Debt Collection

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On April 30, 2025, the FTC filed an amended complaint and final order in the U.S. District Court for the Northern District of Georgia against a debt collection company in connection with allegations that the company engaged in deception and coercion to pressure consumers into paying debts they did not owe, in violation of the FTC Act, the Fair Debt Collection Practices Act (FDCPA), Regulation F, the Gramm-Leach-Bliley Act (GLBA), and the FTC’s Impersonation Rule.Continue Reading FTC Imposed $9.6 Million Judgement Against Debt Collector for Alleged Threats and Phantom Debt

On November 1, a debt collection trade group filed a complaint in federal court challenging an October 1 CFPB advisory opinion that warned debt collectors against seeking payment on unverified or potentially inflated medical bills (we previously discussed the advisory opinion here).Continue Reading Debt Collectors Push Back: Trade Group Sues CFPB Over New Medical Debt Collection Rules

In a September 26 settlement, the Massachusetts Attorney General’s office reached an agreement with a mortgage loan servicer to resolve allegations of violations of Massachusetts consumer protection laws and the Truth in Lending Act.Continue Reading Massachusetts AG Reaches Settlement with Loan Servicer Over Improper Debt Collection Practices

On September 5, the CFPB issued its annual report on debt collection practices, detailing the Bureau’s efforts to enforce the Fair Debt Collection Practices Act (FDCPA). This year’s report focuses on improper practices in the collection of medical and rental debt.Continue Reading CFPB Targets Medical and Rental Debt Collection in 2024 Annual Report

On July 2, the CFPB released its Summer 2024 Supervisory Highlights, which focused on the servicing and collection of consumer debt. The report shared key findings from recent supervisory examinations of auto and student loan servicing companies and debt collectors. In addition, the report highlighted issues with deposit and prepaid accounts, with a focus on medical credit card practices. Continue Reading Latest CFPB Supervisory Highlights Focuses on Servicing and Debt Collection Practices

On May 31, the CFPB filed suit in federal court in the Middle District of Pennsylvania against a Pennsylvania-based student loan servicer accusing it of illegally pursuing student loan debts discharged in bankruptcy and providing false information to credit reporting agencies. The CFPB’s lawsuit asks the court to order the servicer to stop its illegal conduct, provide redress to borrowers, and pay a civil penalty.Continue Reading CFPB Takes Legal Action Against Student Loan Servicer for Chasing Debt on Discharged Student Loans

In a significant ruling on March 19, the Third Circuit Court of Appeals held that the CFPB can proceed with its lawsuit against a group of Delaware student loan trusts rejecting their claims that they are just passive financing entities outside the reach of the Bureau’s authority. Continue Reading Third Circuit Ruling Gives CFPB Green Light to Enforce Against Student Loan Trusts

On January 10, the CFPB and the attorneys generals of Colorado, Delaware, Illinois, Minnesota, New York, North Carolina, and Wisconsin sued a New York-based debt relief company and its founders in the U.S. District Court for the Western District of New York for violating the Telemarketing Sales Rule as well as New York and Wisconsin state law.Continue Reading CFPB and Attorneys General Sue Debt-Relief Enterprise

In August, a New York federal district court denied a motion to dismiss a CFPB lawsuit against three affiliated companies engaged in the business of purchasing distressed consumer debt and several of the companies’ owners and officers. The CFPB’s lawsuit involves claims against the defendants for violations of the Consumer Financial Protection Act (“CFPA”) and Fair Debt Collection Practices Act (“FDCPA”) based on a theory of vicarious liability as a result of conduct of the companies’ third-party debt collection vendors.Continue Reading NY Federal Court Rules CFPB Vicarious Liability Suit Can Proceed