The CFPB filed a complaint earlier this week in a New York federal district court against three companies that purchase defaulted debts (Corporate Defendants) and three individuals who are owners and/or officers of the Corporate Defendants (Individual Defendants).
The Bureau alleges that the Corporate Defendants (1) placed consumer debts directly with debt collectors that collected the debts on their behalf or with “master servicers” who then placed the debts with debt collectors that collected the debts on their behalf, and (b) sold consumer debts to debt collectors, some of whom were contractually required to make ongoing payments to the Corporate Defendants. The CFPB alleges that both debt collectors who collected debts on the Corporate Defendants’ behalf and debt collectors to whom the Corporate Defendants sold debts used deceptive collection tactics, including false threats of lawsuits, arrest, and jail, and false statements about credit reporting. The CFPB’s claims against the defendants consist of claims for direct violations of the CFPA and FDCPA and claims for substantially assisting CFPA violations by debt collectors.
Direct Violations. The CFPB alleges that the Corporate Defendants and the Individual Defendants violated the CFPA’s UDAAP prohibition by falsely representing through debt collectors with whom they placed debts that consumers would be sued if they did not settle their debts or that repayment (or not repaying) would affect their credit scores....
By JAMELLE BOUIE Donald Trump knew as well as anyone that he had lost the 2020 presidential election fair and square. He knew there was no conspiracy to commit voter fraud — no mysterious mail bal...