The FTC had a busy 2014 nailing abusive debt collectors.
Since the inception of the Consumer Financial Protection Bureau (“CFPB”), I had expected the Federal Trade Commission to put its proverbial feet up on its desk and collect is federal funds. After all, the FTC unloaded a lot of the work that it used to do, to the CFPB. Boy, I was wrong. Our friends at the FTC have been busy.
Last year, the FTC went after Regional Adjustment Bureau. We have gone after them a few times in our office, too. But the FTC really lowered the boom on it. The FTC nailed RAB for $1.5 million civil penalty for violating the Fair Debt Collection Practices Act (“FDCPA). Apparently, RAB violated the law by;
- repeatedly calling consumers and accusing them of owing debts that they did not owe;
- contacting consumers at work while knowing that their employers did not allow the calls,
- making unauthorized withdrawals from consumers’ bank accounts, and
- disclosing confidential information about debtors to third parties.
The FTC also went after Consumer Portfolio Services. We have nailed CPS on several occasions, ourselves. CPS is in the subprime auto lending business meaning that it hangs consumers with had credit out to dry with extortionately high interest rates. According to the FTC, our friends at CPS violated the FDCPA by:
- disclosing the existence of debts to third parties;
- calling consumers at work when not permitted or inconvenient;
- calling third parties repeatedly with the intent to harass;
- making unauthorized debits from consumers’ bank accounts;
- falsely threatening car repossession;
- deceptively manipulating Caller ID
- committed loan-servicing violations, including misrepresenting fees consumers owed in collection calls;
- improperly assessing collection fees;
- unilaterally modifying contracts to increase principal balances;
- failing to reasonably investigate disputes about credit reports and failed to establish required policies and procedures for handling direct credit reporting disputes.
Debt collectors and even large lenders such as Regional Adjustment Bureau and Consumer Portfolio Services, sometimes break the law and violate people’s rights. Its your job to step up when this happens.
If you have been victimized by a debt collector or have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin at email@example.com for a free consultation at (888) 293-2882. For more information about your credit rights as a consumer, visit our website at www.micreditlawyer.com for informative, how to videos on consumer financial protection. We are here to fight for you. Call us today! 888-293-2882.
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