CFPD takes action against Encore and Portfolio Recovery Associates

Recommended Posts

I apologize if this has been brought up before, but a lot of the debts going to litigation at this time, including a case I'm currently involved in, are for debts allegedly defaulted on around the time of this action, Sep 2015.  Whether or not the debt they bought applies to your case, I should think this could be used to show in your proceedings that these companies attempt to collect on unsubstantiated and inaccurate debts.

Share this post

Link to post
Share on other sites


Yes, we are aware of the Consent Orders, but no need to apologize.  :)  It doesn't hurt to remind us of their existence.

Unfortunately, it's unlikely a judge would take the orders into consideration in a debt collection action if the plaintiff is a company other than the ones listed in the orders.  Even if the plaintiff were the same, the orders are specific as to the dates and number of accounts included. 

The orders are also settlements.  While they are proof that the CFPB believed its claims to be true, no court ruled on the validity of the claims made by the Bureau.

Also, while the CFPB claimed that the 2 JDBs violated statutes in some debt cases, it's not proof that they do so in every case.    Look at it this way:   A JDB sues you for a credit card debt.   It claims that  you defaulted on other credit cards and owe other debts.   Therefore, that proves you defaulted on the account in question.

A judge wouldn't even take that into consideration.

If the JDB already had a judgment against you for a different account, it still wouldn't prove you owe or that they have the right to collect on the account in question.   Again, a judge would not consider the judgment on the other account.

However, the Orders do outline what the 2 JDBs must do if they sue for a debt.  That's where I would use one of Orders IF being sued by the JDB referenced in one of them.   While we, as consumers, have no private right of action to enforce the Orders, a judge would probably take the applicable one into consideration.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.