Massive private equity firms are exploring investing in or outright acquiring student loan collection agencies as the market for student loans grows at a silly rate, according to FOX Business.
The U.S. District Court for the Eastern District of New York earlier this year denied a debt collector’s motion to dismiss an FDCPA case, holding that its $5 surcharge for payments via credit card may have violated the law. The case has apparently been used recently against many other debt collectors.
The CFPB and attorneys general in 49 states and the District of Columbia filed a proposed federal court order requiring SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. The order also requires SunTrust to pay $40 million to approximately 48,000 consumers who lost their homes to foreclosure and $10 million to the federal government.
Ordinarily, a company’s political contributions don’t make waves, unless they are of an unusual size. But when the largest government-focused collection agency is making the donations to a candidate running for the largest office in a state known for largeness, then you’ve got yourself a scandal.
Illinois Attorney General Lisa Madigan recently sounded the alarm on an email debt collection scam that uses her office’s name and falsely threatens prosecution to collect on supposed debts. People who applied for loans online are thought to be the target.
In a ruling that could have far-reaching impact on the collection practices of ARM law firms, a district court judge in New York recently allowed an FDCPA lawsuit to advance against a collection attorney over the language used in a pre-recorded voicemail message.
The New York State Assembly recently passed a large package of bills that target the debt collection industry and increase requirements for doing business in the state. Among the changes: increasing disclosure requirements to consumers, codifying new requirements for collection lawsuits, and requiring statewide licensure for ARM companies.
The bank official at the center of yesterday’s bribery charges against a debt buyer just happens to be the same executive who late last year pled guilty to accepting bribes from another ARM company. So what’s going on here? Is bribery an unspoken part of the debt collection industry, or did a single corrupt bank officer lure a couple of bad actors into his web?
The owner of a debt buying operation in Florida was arrested by federal officials and charged for his role in a fraudulent scheme that netted his company some $76 million over five years. Wire fraud, bribing a bank official, money laundering; you name it, it’s in the complaint.
A payday lending association and its largest member announced Friday a lawsuit against the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency, and the Federal Reserve over the agencies’ Operation Choke Point initiative which focuses on banks’ and payment processors’ affiliation with what the government says are high risk industries.