Can This Debt Collector Rise from the Ashes? Phoenix Pays $1.67 Million to CFPB

Cozen O'Connor
Contact
LinkedIn
Facebook
X
Send
Embed

Cozen O'Connor

  • The CFPB issued a consent order against medical debt collector Phoenix Financial Services, LLC for allegedly violating the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Consumer Financial Protection Act of 2010 by continuing attempts to collect on debts after patients had disputed the validity of the debts.
  • According to the order, Phoenix allegedly failed to conduct reasonable investigations of disputed debts and sent collection letters to consumers who had disputed the validity or accuracy of their purported debts, which led to inaccuracies on consumers’ credit reports.
  • Under the terms of the order, Phoenix must pay over $1.67 million in penalties, refund amounts paid on unverified debts, and cease unlawful collection and reporting practices.
  • We recently reported on the CFPB’s proposed order against Portfolio Recovery Associates, LLC, another debt collection company, accusing it of similar failures to substantiate debts before attempting to collect.

Written by:

Cozen O'Connor
Cozen O'Connor
Contact
more
less

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign Up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide