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

Editor’s Note: Cross-posted from Regulatory Cybersecurity.

From: insideARM.com

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.

The complaint, filed March 26 but unsealed last week, charges a host of shady “debt collection” companies with outright fraud for their efforts in attempting to get consumer to pay debts that never existed. Named in the suit are Buffalo-area companies with names including Universal Debt & Payment Solutions, LLC; Universal Debt Solutions, LLC; WNY Account Solutions, LLC; WNY Solutions Group, LLC; Check & Credit Recovery, LLC; Credit Power, LLC, collectively referred to as “The Debt Collectors” in the suit.

***

But the Bureau also names a number of technology providers that cater to the ARM industry as defendants for “providing substantial assistance to the Debt Collectors’ unfair or deceptive conduct.”

Read Complete Article

Leave a Reply

2 × two =