On August 7, Illinois enacted Senate Bill 2457, amending the Collection Agency Act and removing its January 1, 2026 repeal date under the Regulatory Sunset Act. The law retains the licensing framework for collection agencies and debt buyers while revising definitions, exemptions, and enforcement provisions under the Act.Continue Reading Illinois Expands Collection Agency Act with New Licensing and Enforcement Provisions
On April 30, the FTC filed a stipulated order for a permanent injunctive relief and a monetary judgment against a Georgia-based debt collection company and its owner, which the court granted on May 9, to resolve allegations that the company used false claims, threats, and harassment to collect more than $7.6 million in bogus debts.Continue Reading FTC Permanently Bans Debt Collector for UDAP and FDCPA Violations
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 October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F.Continue Reading CFPB Issues Guidelines for Medical Debt Collection
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
In December, the CFPB brought a series of three separate enforcement actions against several financial services companies alleging a range of violations of federal consumer protections laws.Continue Reading CFPB Brings String of Enforcement Actions to Round Out 2023