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CONSUMER LAW BLOG

Debt Collectors Ordered to Pay $4 Million Settlement Due to Illegal Collection Tactics

6/2/2022

3 Comments

 
On May 23, the Consumer Financial Protection Bureau (CFPB) and the New York Attorney General’s Office filed a Stipulated Judgment for $4 million against a group of debt collectors who engaged in illegal collection tactics against consumers. The Complaint alleged the collectors violated the Fair Debt Collection Practices Act by threatening consumers with arrest and imprisonment if they failed to pay their debts, artificially inflating balances, and harassing debtors, their friends and families.
 
Under the stipulation, the collectors are permanently banned from debt collection operations and must pay $2 million to the CFPB victim relief fund and $2 million to the State of New York. In addition, the stipulation provides a $1 million penalty if the collectors fail to pay the damages.
 
If you are the victim of harassing or abusive debt collection calls, you should contact a Las Vegas Debt Collection Lawyer as soon as possible to discuss your legal rights.
 
Source: https://www.jdsupra.com/legalnews/cfpb-and-ny-ag-reach-4-million-5936793/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link
3 Comments
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