News & Analysis as of

Settlement Debt Collectors

Cozen O'Connor

Washington AG Secures Judgment Against Debt Collection Agency over Medical Debt Practices

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Washington AG Bob Ferguson has secured a court order imposing civil penalties on Optimum Outcomes, Inc. for the debt collection agency’s alleged failure to comply with the state’s Consumer Protection Act when it collected...more

Troutman Pepper

Massachusetts AG Settles With Major Student Loan Servicer for $1.8M Over Faulty Notices

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On January 11, Massachusetts Attorney General (AG) Andrea Joy Campbell announced a $1.8 million settlement with Nelnet, Inc. (Nelnet), one of the largest federal student loan servicers in the U.S., for allegedly sending...more

Troutman Pepper

CFPB Shuts Down Medical Debt Collector for Attempting to Collect Unverified Debt

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On December 15, the Consumer Financial Protection Bureau (CFPB) announced it had reached a settlement with medical debt collector Commonwealth Financial Systems, Inc. (Commonwealth) in its lawsuit over alleged illegal debt...more

Troutman Pepper

Colorado AG Settles With Debt Management Company Over Failure to Provide Customers With Signed Agreements

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On November 3, Colorado Attorney General (AG) Phil Weiser announced that his office reached a settlement with Touchstone Partners, Inc. (Touchstone), a noted debt management company. The AG’s allegations were that Touchstone...more

Cozen O'Connor

Debt Collectors Receive Lifetime Ban in Settlement with FTC, Pennsylvania AG

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The FTC and Pennsylvania AG Michelle Henry settled with International Credit Recovery, Inc. and two related individuals (collectively, “ICR”) to resolve allegations that ICR engaged in fraudulent debt collection efforts...more

Goodwin

New York Attorney General Shuts Down Buffalo Debt Collection Firm

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On November 23, 2021, the New York Attorney General (“NYAG”) announced an agreement shutting down a Buffalo, NY based debt collection firm that the NYAG alleges violated the Fair Debt Collections Practices Act (“FDCPA”), the...more

Goodwin

North Carolina AG Enters Into $23 Million Settlement with Debt Collector

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​On October 11, 2022, the North Carolina Attorney General’s Office (NC AG) announced that it had entered into a consent order with certain Texas-based debt collection companies, resolving allegations that those...more

Goodwin

Arizona AG Announces $1.6 Million Settlement with Debt Collectors

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On May 16, 2022, the Arizona Attorney General’s Office (Arizona AG) announced that it reached a settlement agreement with the owner of several debt collection companies regarding alleged deceptive debt collection practices in...more

Goodwin

Massachusetts AG Settles with Online Loan Servicer for Alleged Abusive Debt Collection Practices

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On August 12, 2021, the Massachusetts Attorney General (AG) announced ​a settlement ​with an online loan servicer, resolving allegations that the company engaged in abusive debt collection practices in violation of the AG’s...more

Goodwin

Georgia AG Reaches Settlement with Debt Collector for Alleged Unlawful Debt Collection Practices

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On August 12, 2021, the Georgia Attorney General’s Office (AG) announced​ it had entered into a settlement with a debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act (FDCPA)...more

Sheppard Mullin Richter & Hampton LLP

Second Circuit Reverses Ruling in FDCPA Case

The U.S. Court of Appeals for the Second Circuit recently held that a debt collector’s settlement offer must indicate whether interest and fees are continuing to accrue on the outstanding debt, or alternatively, whether...more

Wiley Rein LLP

Wiley Consumer Protection Download (April 26, 2021)

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Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC). In this newsletter, we analyze recent regulatory...more

Goodwin

FTC Reaches Settlement With Debt Collection Company for “Debt Parking” Scheme

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On November 30, 2020 the Federal Trade Commission (FTC) announced ​that it had reached a settlement with a debt collection company for its “debt parking scheme” (also known as “passive debt collection”)​​ in which the company...more

Hinshaw & Culbertson - Consumer Financial...

Consumer Law Hinsights – May 2020

Consumer Law Hinsights is a monthly compilation of nationwide consumer protection cases of interest to financial services and accounts receivable management companies....more

Goodwin

Minnesota AG Settles with Out-of-State Student Loan Debt Settlement Company for Full Restitution of Illegal Fees

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On April 29, 2020, the Minnesota Attorney General’s Office (AG) announced that it had settled its claims against a California-based student loan debt settlement company for alleged violations of Minnesota’s Debt Services...more

Smith Debnam Narron Drake Saintsing & Myers,...

District Court: 1099-C Language May State Claim for FDCPA Violation

A recent case from a New York district court serves as a reminder that a single word in a debt collection letter may cause a wave of implications if enough further information is not supplied. In Leonard v. Capital...more

Goodwin

FTC Settles for Nearly $3.5 Million with Debt Collectors Over Alleged Debt Collection Scheme

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On September 7, 2018, the Federal Trade Commission (FTC) announced a settlement with a Georgia debt collection company and its principals over alleged illegal collection practices. In October 2017, the FTC filed an action...more

Goodwin

Major Debt Buyer Reaches Settlement With 42 States and the District of Columbia

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On December 4, 2018, one of the nation’s largest debt buyers and its subsidiaries reached a settlement with 42 states and the District of Columbia (see, e.g., announcements here and here). The settlement closes the states’...more

Ballard Spahr LLP

Georgia AG announces settlement with debt collection company

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On April 4, Georgia Attorney General Chris Carr (“AG Carr”) announced an $8.5 million settlement with a national debt collection company, resolving alleged Fair Debt Collection Practices Act (FDCPA) and the Georgia Fair...more

Goodwin

Georgia AG Announces $8.5 Million Settlement with Debt Collector

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On April 4, Georgia Attorney General Chris Carr (“Georgia AG”) announced? an $8.5 million settlement with a national debt collector, resolving allegations that the company violated the Fair Debt Collection Practices Act...more

Goodwin

Minnesota AG Secures Judgment Against Debt Collector Over Allegedly Abusive Collection Practices

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On May 15, 2017, the Minnesota Attorney General’s office (“Minnesota AG”) announced that it obtained a judgment in a lawsuit filed in Minnesota state court against a debt collection company. As a result of the final judgment,...more

Ruder Ware

Autodialing and Pre-Recorded Messages: the TCPA’s Trap for Unwary Lenders and Debt Collectors

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In February 2015, a federal judge approved a $75 million Telephone Consumer Protection Act (“TCPA”) class settlement involving Capital One and three debt collectors.[1] The plaintiffs (debtors) alleged that Capital One and...more

Burr & Forman

Middle District of Florida Defines Settlement Communications Allowed Under the FDCPA

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On November 18, 2016, the United States District Court for the Middle District of Florida held that the communication of an unequivocal and non-coercive settlement offer does not violate the Fair Debt Collection Practices Act...more

Goodwin

Financial Services Weekly News - November 2016 #2

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Editor's Note - FinTech at the Forefront. FinTech remains at the forefront of Washington’s discussions about how best to regulate financial products and services. As discussed in more detail below, the SEC announced the...more

Goodwin

District of Columbia Settles Unlawful Collection Claims Against Debt Collector

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On June 21, the Attorney General for the District of Columbia announced a settlement with a debt collector for alleged violations of the District’s debt collection and consumer protection laws. Specifically, the District...more

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