CFPB files lawsuit against debt collection law firm

CFPB files lawsuit against debt collection law firmOn April 17, 2017, the CFPB announced that it had filed a lawsuit in federal district court against a debt collection law firm for allegedly misrepresenting the level of attorney involvement in demand letters and phone calls placed to consumers.

According to the Bureau, the law firm Weltman, Weinberg & Reis (WWR) falsely represented in “millions of collection letters sent to consumers that attorneys were involved in collecting the debt.” The law firm also allegedly made statements on collections calls that created a false impression that attorneys had meaningfully reviewed the consumer’s file, when no such review had occurred. In fact, the Bureau alleges that in many cases “no attorney had reviewed any aspect of a consumer’s individual debt or accounts.”


Colorado AG announces $491,000 judgment against debt collection agency

Peak Resolution lawsuitOn April 5, 2017, the Colorado Attorney General’s Office issued a press release announcing that it had secured a judgment requiring a debt collection agency and two of its principals to pay approximately $491,000 in consumer restitution, penalties, and attorney fees. The judgment also prohibits the defendants from conducting business in Colorado or from collecting debts from Colorado citizens without proper licensing and full legal compliance.


FTC settles with municipal debt collector for abusive collection practices

On March 24, 2017, the Federal Trade Commission (FTC) issued a press release announcing a consent order with American Municipal Services Corporation, a debt collection company accused of engaging in illegal collection tactics.

American Municipal Services Corporation is a debt collection firm that collects court fines, parking tickets, and debts for utility bills and other services on behalf of over 500 municipalities throughout various states.


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