Search the Community

@BV80 This was filed yesterday in US District Southern District of California. https://files.consumerfinance.gov/f/documents/cfpb_encore-capital-group-et-al_complaint_2020-08.pdf Consumer Financial Protection Bureau Sues Debt Collectors and Debt Buyers Encore Capital Group, Midland Funding, Midland Credit Management, and Asset Acceptance Capital Corp. WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against Encore Capital Group, Inc. and its subsidiaries, Midland Funding, LLC; Midland Credit Management, Inc.; and Asset Acceptance Capital Corp. The companies, which are headquartered in San Diego, California, together comprise the largest debt collector and debt buyer in the United States, with annual revenue exceeding $1 billion and annual net income exceeding $75 million. Encore and its subsidiaries are currently subject to a 2015 consent order with the Bureau based on the Bureau’s previous findings that they violated the Consumer Financial Protection Act (CFPA), Fair Debt Collection Practices Act (FDCPA), and Fair Credit Reporting Act. The Bureau alleges that Encore and its subsidiaries have violated the terms of this consent order and again violated the FDCPA and CFPA. The Bureau’s complaint seeks injunctions against them, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and civil money penalties. . . . . . . . The Bureau further alleges that the companies violated the CFPA by failing to disclose possible international-transaction fees to consumers, thereby effectively denying consumers an opportunity to make informed choices of their preferred payment methods. The Bureau also alleges that each violation of the consent order constitutes a violation of the CFPA."

Commack, N.Y.-based Forster & Garbus LLP sought to collect on more than 99,000 debts through lawsuits between 2014 and 2016, relying on “nonattorney support staff, automation, and both a cursory and deficient review of account files” to file those suits, according to CFPB complaint filed on 5/17/19. Federal district court case Forster & Garbus, LLP The Consumer Financial Protection Bureau today filed a lawsuit in the federal district court in the Eastern District of New York against Forster & Garbus, LLP, a New York debt-collection law firm. The Bureau’s complaint alleges that Forster & Garbus violated the Fair Debt Collection Practices Act by representing to consumers that attorneys were behind its lawsuits when, in fact, attorneys were not meaningfully involved in preparing or filing them. The Bureau’s complaint also alleges that Forster & Garbus violated the Consumer Financial Protection Act’s prohibition against deceptive acts and practices by making such representations to consumers through its lawsuits. The Bureau’s complaint seeks an injunction against Forster & Garbus, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of a civil money penalty. CFPB v FORSTER & GARBUS, LLP,

Hello, I am currently getting sued for a debt that I now know for sure I do not owe. The gist is I answered a summons with a general denial of the debt based on lack of information (asserted no affirmative defenses) in CO's simplified procedures. I have a pre-trial conference in February. Attorney sent a disclosure statement with printout of a few online statements, (worth noting two months of statements they claimed were in the document packet were actually missing (not sure if mistake or on purpose)). I was recently able to access my old bank account to find I made several payments to Citibank after the date they claimed was my "last payment". These payments don't appear on the statements sent by the collection agency. Additionally, I discovered I may be a victim of Citibank based on the 2016 CFPB order, the situation/circumstances and time period is in line with the activity on the account. However it's difficult to prove quickly since Citibank can't even access my account due to it being in collections or tell me if I'm included in the consent order. Looks like I will be filing a consumer complaint which takes ~14 days. Even if I'm not it's very shady because the statements sent by the collections agency show an inflated amount of debt owed on the credit card and now it's obvious that account should have never been sent to collections as I was making the payments requested by Citi...an issue similarly stated in the CFPB order. Based on my conversation with CFPB it is unclear if Citibank finished locating and notifying all the victims. I am curious if I file a complaint with the Consumer Financial Protection Bureau (CFPB) will this stop the lawsuit immediately and give time to figure out what's going on? Also if I file the complaint, do I send proof of complaint along with my bank statements when I return the disclosure statement to the Attorney? Or should the complaint be filed with the debt collection agency instead of Citibank? Or complaint against both. Disclosure information isn't filed with the court, so would you recommend a motion I could file with the court before the pre-trial?

Hi all, Long story short, JDB sues me for breach of contract of an old Citibank CC account. I file MTC Private Contractual Arbitration and Dismiss. In the motion hearing, dirtbag PA argues that the CC agreement I swore applied, doesn't apply because I can't prove which CC agreement is which, blah blah. Judge swears me in, asks me why I believe what I believe, decides not to believe me, then sides with dirtbag PA. Yay justice for the common citizen. See this link for a lively discussion on a motion judge abusing their discretion to first entrap into discussing, and then rule on, the soundness of a witness's sworn testimony to the validity of a Credit Card Agreement. The point of this new thread is so that it is easy to find out that the suggestion that @CCRP626 made to complain to the CFPB WORKED! I complained that Citibank would not talk to me about a sold account and within 10 days of filing the complaint, I got a letter form Citibank with my name, last 4 of the account number, the Card Agreement, and dates of applicability. Same agreement, btw, that I originally declared, just 3 years older.

I've also been sued in AZ by Midland Funding for a personal line of credit for health care services. They filed a Notice of Service of Disclosure Statement on July 22th but I didn't do anything with it upon receipt as I wasn't sure what to do. Then I had a mediation hearing today but did not enter into any agreement because I recalled that there was a CFPB ruling against them about 2 years ago and I didn't know the details of it. I just found it here and wanting to know if there's any recommendation as to how I should proceed from this point. They've also filed for a Summary Judgement which I have until August 10th to respond to. Furthermore, I'd like to know which category of the SOL this line of credit falls under in AZ. Is it an open end account subject to 3 years SOL or is it considered a credit card subject to 6 years SOL. When you opened the credit account were you 1.) given a credit card, 2.) given a loan for a fixed amount that was required to be repaid within a specified amount of time, or 3.) given an account where you would make charges up to a specified limit and then required to make monthly payments to pay down the balance? 1. ) I was given a credit card that could only be used for medical services with participating service providers. 2. ) I was given a revolving line of credit up to $2,500 3. ) I was required to make monthly payments after a "no interest- no payment" period. How to upload the complaint and motion for summary judgement? . #1 will most likely be viewed as a credit card subject to a 6 year SOL. #2 will most likely be treated as a written agreement, also subject to a 6-year SOL. #3 could be an "open" account subject to a 3-year SOL but could also be a written agreement depending on the details of the contract and how the complaint is plead. If you can, please post the complaint and motion for summary judgment with your personal info redacted. That will help us know how Midland intends to prosecute this lawsuit.

I just got sent this article by another attorney. http://finance.yahoo.com/news/2-americas-largest-debt-collectors-194552315.html

Long time no post. The CFPB action against Chase brought me back out. http://www.consumerfinance.gov/administrativeadjudication/ What recourse will this give those of us who have settled with a JDB? I sued Chase ProSe in 2012 to remove 2 items on my credit reports that had started as Wamu accounts. They settled out of court and the items were removed from my report Sadly they had been sold separately one to Midland and one to MCM (i know same company) The account that went to MCM used a local debt collector and sued me for one. I fought in court but because it was blocking my mortgage I settled (I had them by the balls but I needed the mortgage so it was for a minimal amount that I settled) the account that went to Midland was on the report but no action taken. I had to reach out and settle with them to show it was paid off to get the mortgage. In both instances I let them know I had sued Chase and the items had been removed by Chase. The Midland account is still on my account (as paid) but it is a degratory account and hurts my score. The MCM was entirely removed 1. Does this open up the ability for me to go after Midland/MCM? Even just to get the Midland Account entirely removed from my CR? Thanks

Fred Hanna files a motion to dismiss and CFPB files its response. I recommend clicking through to read the CFPB's response: http://www.insidearm.com/daily/debt-collection-news/debt-collection/cfpb-gets-testy-in-latest-filing-in-debt-collection-law-firm-enforcement-action/ (I apologize in advance if this has been posted here already. I didn't see that it had been.)

Note - This bill was introduced in the US Senate. Not sure if there is a companion bill in the House of Representatives as yet. It is a commendable effort, but at the rate both are approaching the infinity of dysfunction, no action to pass the bill is contemplated before the END of the century. If we are reading the bill correctly, it provides injunctive relief to plaintiffs as well as ATTORNEYS FEES!!! If someone could give me a quick sanity check [text of the bill is below], that would be much appreciated. Amendment to Fair Credit Reporting Act to Impact Debt Collection Bill focuses on preventing errors in consumers' credit reports and calls for the CFPB to develop accuracy procedures for credit reporting agencies to follow. New legislation from Sens. Sherrod Brown (D-Ohio), and Brian Schatz, (D-Hawaii), seeks to amend the Fair Credit Reporting Act (FCRA) to protect consumers from inaccurate credit reports and credit scores. The “Stop Errors in Credit Use and Reporting Act” would make it easier for consumers to correct, dispute, and access their credit reports and builds on a proposal from Sen. Bernie Sanders (I-Vt.), to provide consumers with free credit scores, according to a statement from Brown and Schatz. Under the FCRA, credit reporting agencies are required to, “follow reasonable procedures to assure maximum possible accuracy” of information contained in credit reports, but reports still contain far too many preventable errors, according to a summary of the legislation. “In today’s economy, it is critical that consumers have access to a safe and reliable way of checking their credit reports and scores,” Brown said. “This legislation ensures consumers have the resources they need to correct credit report errors that could potentially impact future employment opportunities, credit applications, and other transactions that require a good credit score. Consumers would also have access to a free annual credit score and report.” Of relevance to debt collection agencies, the bill amends responsibilities of consumer data furnishers to provide “free disclosure after notice of adverse action or offer of credit on materially less favorable terms.” (1) In general.--Not later than 14 days after the date on which a consumer reporting agency receives a notification under subsection (a)(2) or (h)(6) of section 615, or from a debt collection agency affiliated with the consumer reporting agency, the consumer reporting agency shall make, without charge to the consumer, all disclosures required in accordance with the rules prescribed by the Bureau under section 609(h). Other specific components the legislation would: Require the Consumer Financial Protection Bureau (CFPB) to develop procedures for credit reporting agencies to follow as a means to improve accuracy.Ensure that agencies send consumers’ disputes and supporting documents to the creditor when there is an error on a report, so that they can thoroughly review the consumer’s claim.Make it easier for consumers to spot errors in their credit reports by requiring that consumers receive a free copy of their credit report if anyone makes an unfavorable decision based on the report.Give consumers the ability to request a free credit score along with their annual free credit report to see what credit they might be eligible for.Give courts the ability to stop a credit reporting agency from reporting inaccurate information and provide the Federal Trade Commission with new authority to stop sloppy practices. The legislation is cosponsored by Sanders, Sen. Elizabeth Warren, (D-Mass.), and Sen. Richard Blumenthal (D-Conn.). It is under review by the Committee on Banking, Housing and Urban Affairs Senate: S.2224 - SECURE Act INJUNCTIVE RELIEF AND ATTORNEYS FEES!!! Injunctive Relief.--In addition to any other remedy set forth in this section, a court may award injunctive relief to require compliance with the requirements imposed under this title with respect to any consumer. In the event of any successful action for injunctive relief under this subsection, the court may award to the prevailing party costs and reasonable attorney fees (as determined by the court) incurred during the action by such party.

After what happened to me I have been thinking. The only way to force the courts to act properly is to rub the spectre of Civil Rights Violations on them. If you live in a large city such as LA there is usually commision for civil rights issues. If you complain to them about your treatment in court they may take it up. If you also say you saw a disporportionate number of minorities being bullied by the court they may do even better. The court has chosen sides on this area of law and it is not right. So letters to the editors maybe even well written op-ed not only may net you some coin but maybe a job so they can garnish something. Complain to the CFPB they have taken interest to the shenanigans of the debt collection industry and have cracked the whip onthe banks. If you got foreclosed on hey try what the guy in Boca Raton did he has Hostile possesion of a mansion. The bank would have to prove the title to it and it has a higher standard of proof. any little thing you do will help because a million beestings will hurt. If you are in LA County when you do answer request a jury trial then you will have a fighting chance, In any other courts a jury will be better than a judge who is on the plaintiffs side. I know once you but the issues in front of a jury you at least get the message out to twelve people or 9 or 8. These are things you can do. also if you got judgement against you Motion for a new trial, or file a writ of mandate and appeal. Many of us are not responsible for these alleged debts but the courts treat the plaintiffs like Sirens and are wooed by the affidavits they see. The judges could care less about the parties and will rule for them because pro pers hardly ever appeal. So This is Seadragon still on the fight. A void judgment is subject to attack anytime and in any venue, first you shame them then you sue them.

"Announcements Now on RegulationRoom.org – Consumer Debt Collection Practices November 6, 2013 The Consumer Financial Protection Bureau (CFPB) is considering new rules for the debt collection industry, and needs your feedback on its questions and ideas. CFPB believes debt collection is an important issue for consumers and are taking the first steps to gather information to determine what rules would be appropriate to protect consumers who are subject to debt collection. This decision matters to you if you: •had an experience with debt collection (good or bad) •counsel consumers with overdue debts •have a business where you do your own account collection or •work in the debt collection industry Now is your chance to weigh in! We hope you’ll join the discussion--and encourage your family, friends and colleagues to become involved. You can also find Regulation Room on Facebook and Twitter. Spread the word, so that everyone affected by this proposal can have their say." http://www.regulationroom.org/