Minnesota AG obtains judgment against unlicensed debt collection company

Global Gateway fake debt collectionOn May 15, 2017, the Minnesota Attorney General’s office issued a press release announcing that it had obtain a judgment against Global Gateway Solutions, Inc. for making unlicensed collection calls attempting to collect fake payday loan debts from consumers. The judgment bars Global Gateway from collecting debt in the state of Minnesota and requires the company to pay a civil money penalty and restitution to Minnesota consumers. ​​


FTC fines debt collector $2 million for FDCPA violations

FTC fines debt collector for FDCPA violationsOn April 24, 2017, the FTC issued a press release announcing that a federal court had ordered the president of Commercial Recovery System, Inc. (CRS) to pay a $2 million civil money penalty for violating the Fair Debt Collection Practices Act (FDCPA) by falsely threatening debtors.

In January 2015, the Department of Justice filed a lawsuit on behalf of the FTC, alleging that CRS’s collectors falsely told consumers that they would sue debtors, garnish their wages, levy their bank accounts, or seize their property unless their debts were paid. In reality, CRS lacked the authority and intent to take any such actions. According to the complaint, CRS also falsely claimed that they are lawyers or were calling on behalf of lawyers, or that they were judicial employees.


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.


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