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CFPB Sues Debt Collectors and their Technology Vendors in Chilling Enforcement Action

A lawsuit filed late last month by the Consumer Financial Protection Bureau (CFPB) accuses a network of companies of engaging in sham collection operations targeting “phantom” debts. But the action also names a number of legitimate payment processors and a voice broadcasting service as defendants for “enabling” the debt collectors in their scheme.

Payday Loan

Is This the Beginning of the End for Payday Loan Operations?

The proposals under consideration would include two ways that lenders could extend short-term loans without causing borrowers to become trapped in debt. Lenders could either prevent debt traps at the outset of each loan, or they could protect against debt traps throughout the lending process. Specifically, all lenders making covered short-term loans would have to adhere to one of several requirements.

Envelope on Fire

Is Your Envelope “Benign” Under The FDCPA?

There has been a lot of litigation relating to envelopes recently, but section 1692f(8) of the FDCPA, which regulates collection envelopes, is not new. It has been a source of frustration for collectors for decades. Fortunately, some courts have recognized that a strict application of section 1692f(8) may lead to absurd results, and have held that “benign language” on an envelope does not violate the FDCPA. Unfortunately, the word “benign” can be VERY slippery.

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Stoneleigh Recovery Associates Becomes Certified Third Party Collection Agency

Stoneleigh Recovery Associates (SRA) today announced that it has earned the highly-regarded designation of Certified Professional Receivables Company (CPRC) after completing the comprehensive national standards contained in DBA International’s certification program. These standards have been recognized for exceeding state and federal laws and regulations through a series of stringent requirements that stress responsible consumer protection […]

Due Diligence

What Are Collection Agencies Doing About Due Diligence?

Compliance professionals, no doubt, are doing a lot of “I Told You So!”s. Their’s is among the toughest jobs in the industry: they’re not a profit-maker and they almost always have a hundred reasons why a collection agency can’t do something that the owner is convinced will make more money. So is the latest from the CFPB enough to get collection agency owners’ and operators’ attention?

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Neustar TCPA Compliance FAQs

Complying with the Telephone Consumer Protection Act (TCPA) is a stiff challenge. The act is designed to safeguard consumers from harassing or predatory calls. Its rules are complex and sometimes difficult to interpret, and failure to adhere can result in large fines. To help you comply with Federal Communications Commission (FCC) regulations and requirements, Neustar has prepared this set of Q&As.

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FTC and State AG Team Up on Fake Debt Collection Agency in Illinois

The FTC and the Illinois Attorney General’s Office announced Friday that they have obtained a court order temporarily halting a fake debt collection scam located in a suburb of Chicago. The defendants are charged with illegally using threats and intimidation tactics to coerce consumers to pay payday loan debts they either did not owe, or did not owe to the defendants.

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Account Control Technology Foundation Releases “Beware the Debt Monster” Video forNational Financial Literacy Month

The Account Control Technology Foundation (herein ACT Foundation), a non-profit, charitable organization established by the founders of Account Control Technology, Inc. (ACT), has announced the release of “Beware the Debt Monster,” a short video aimed at building financial literacy by highlighting the dangers of monstrous or unaddressed debt.