News & Analysis as of

Fraud Debt Collection

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Troutman Pepper Locke

FTC Obtains Order Against Accelerated Debt for Allegedly Deceptive Practices Targeting Elderly and Veterans

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On July 14, the Federal Trade Commission (FTC) secured a court order aimed at halting allegedly deceptive practices against seven companies and three individuals operating the “Accelerated Debt” program. The defendants...more

McGlinchey Stafford

Fifth Circuit Affirms FCRA Limits: Credit Reporting Agencies are Not Required to Resolve Fraud Claims

McGlinchey Stafford on

In a case of first impression, the Fifth Circuit in Reyes v. Equifax Information Systems, L.L.C., joined the First, Seventh, Ninth, and Tenth Circuits in affirming the District Court for the Eastern District of Texas’s...more

Ballard Spahr LLP

FTC seeks to ban Blackstone Legal from debt collection business

Ballard Spahr LLP on

A debt collector company, Blackstone Legal, its associated companies and its owners, Ryan and Mitchell Evans, are facing a permanent ban from the debt collection business as a result of an FTC lawsuit charging that they...more

Foster Swift Collins & Smith

Legal Alert - Imposter LARA Past Due Notices Spring 2025

Beware of a new scam targeting Michigan businesses and individuals. The scam uses fake mailings containing “Annual Statement Past Due” notices. These notices arrive in plain white envelopes, bear no return address, and...more

Troutman Pepper Locke

Illinois Passes Bill Prohibiting Collection of Coerced Debt

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On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a...more

Ballard Spahr LLP

FTC takes action against student loan debt relief companies

Ballard Spahr LLP on

The FTC has recently taken action against two student loan debt relief companies and their owners....more

Poyner Spruill LLP

The Sovereign Citizen Movement and Potential Impacts on Lending Institutions

Poyner Spruill LLP on

The “Sovereign Citizen Movement” is a term used to describe the growing number of individuals who deny the authority and / or legitimacy of the U.S. government. While the “SovCit” movement originated decades ago, there...more

Ballard Spahr LLP

FTC enters into stipulated order to permanently ban Global Circulation, and its owner, from debt collection industry

Ballard Spahr LLP on

Alleging that Global Circulation, Inc. (GCI) threatened consumers with jail time, lawsuits, and wage garnishments to pressure them into paying debts they did not owe, the FTC entered into a stipulated order with GCI and its...more

Orrick, Herrington & Sutcliffe LLP

District court sides with FTC order against student loan company

Recently, the U.S. District Court for the Central District of California granted the FTC’s motion resulting in a permanent injunction against defendants involved in an allegedly fraudulent student loan debt relief operation....more

Goodwin

FTC Settles with Debt Collector

Goodwin on

​On May 1, 2025, the Federal Trade Commission (FTC) announced that it had filed an amended complaint​ and entered into a proposed final order with a debt collector and its owner, resolving allegations that the company engaged...more

Goodwin

CFPB Reports on Consumer Complaint Trends

Goodwin on

The Consumer Financial Protection Bureau (CFPB) recently issued its annual report analyzing the consumer complaints it received in 2024.  The CFPB collects complaints through its website, phone calls, and mail....more

Ankura

Fraud and Corruption in Covid Bounce Back Loans - A Perspective for Lenders

Ankura on

Under the government Bounce Back Loan Scheme (BBLS), small businesses struggling due to the pandemic could obtain a fully government-secured loan of up to £50,000 with no repayments required for the first 12 months....more

Ward and Smith, P.A.

Entitled to Stay Relief? Prove it.

Ward and Smith, P.A. on

For example, you make a commercial real estate loan and record your deed of trust. The borrower pays you for a time but then defaults.  You tried loan forbearance and modification, but it was unsuccessful. The borrower falls...more

Kelley Drye & Warren LLP

AGs Celebrate Consumer Protection Week 2025

Many state Attorneys General are celebrating Consumer Protection Week this week by releasing their top consumer complaint categories, summarizing their past year’s successes, and/or providing consumer education. As the AG...more

Offit Kurman

Lenders Must Act Fast to Recover Funds in Fraudulent Loan Schemes

Offit Kurman on

Lenders get into a groove with originating loans with existing and new borrowers. So often, the closing comes and goes, and the monthly payments commence without any trouble. But then a borrower comes along who seeks to...more

Sheppard Mullin Richter & Hampton LLP

New York AG Reaches $1 Billion Settlement with ‘Predatory’ Lender

On January 22, New York Attorney General Letitia James announced a $1 billion settlement with a now defunct cash advance firm and its officers. The settlement resolves allegations that the firm and its officers repeatedly...more

Troutman Pepper Locke

Troutman Pepper Locke Weekly Consumer Financial Services Newsletter – January 2025 #4

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week....more

Troutman Pepper Locke

New York Attorney General Settles $1 Billion Lawsuit Against Yellowstone Capital Over High-Interest Loans

Troutman Pepper Locke on

On January 22, New York Attorney General Letitia James announced a significant settlement with Yellowstone Capital of New Jersey and its affiliated companies over allegations of illegal high-interest loans disguised as...more

Pietragallo Gordon Alfano Bosick & Raspanti,...

Private Equity Throws FCA Enforcement Off-Kilter

Over the last 15 years, private equity (“PE”) firms have invested hundreds of billions of dollars in the healthcare sector, infiltrating every corner of the industry from emergency rooms and labs to billing providers and...more

Lowndes

Understanding Non-Dischargeable Debts Under the Bankruptcy Code: A Guide for Creditors

Lowndes on

When a debtor files for bankruptcy, creditors often fear their claims will be wiped away. However, under Section 523 of the Bankruptcy Code, certain debts are categorized as non-dischargeable, meaning the debtor cannot...more

Ward and Smith, P.A.

Collection Costs of a Non-Discharged Debt Also Are Non-Discharged

Ward and Smith, P.A. on

Bankruptcy offers debtors an opportunity for a "fresh start," the primary draw for many individuals seeking to unburden themselves of their debt. A bankruptcy discharge relieves a debtor of their legal obligation to repay...more

Troutman Pepper Locke

CFPB Annual Report Sees Continued Increase in Consumer Reporting Complaints and Complaints Involving Fraudulent Activity, Student...

Troutman Pepper Locke on

On March 29, the Consumer Financial Protection Bureau (CFPB or Bureau) released its Consumer Response Annual Report, providing a high-level overview of the 1,657,600 consumer complaints received by the Bureau from January 1...more

Davis Wright Tremaine LLP

October 2023 UDAAP Bulletin

The following document provides a monthly roundup summarizing enforcement actions, guidance, rulemakings, and other public statements from the Consumer Financial Protection Bureau and the Federal Trade Commission regarding...more

Rosenberg Martin Greenberg LLP

Third Circuit Holds That Furnisher Who Receives Notice of an Indirect Dispute Has Absolute Duty to Investigate Under FCRA

News accounts of instances of stolen identity in which identity thieves incur debts in the names of innocent consumers are common. Given the structure of the consumer credit industry, it is difficult for consumers to know...more

McGlinchey Stafford

Eleventh Circuit Calls Out CFPB’s Conduct

McGlinchey Stafford on

In an unusually blunt decision, the 11th Circuit Court of Appeals affirmed a district court’s decision to dismiss various claims brought by the Consumer Financial Protection Bureau (CFPB) for “violating the district court’s...more

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