Millions Recovered for Consumers Affected by Illegal Debt Collection Practices

Were you the victim of an unfair or fraudulent debt collection practice over the last year? According to a recent news release from the Consumer Financial Protection Bureau (CFPB), some of those companies will be paying substantially for harm caused to consumers. Indeed, the CFPB has recovered $14 million for more than 100,000 consumers who were impacted by illegal debt collection practices in the first half of 2017 alone. As the news release explains, supervisory actions by the CFPB “resulted in $14 million in relief to more than 104,000 harmed consumers from January through June 2017.”
What are some of the illegal practices that are covered in the monetary relief?
CFPB Assesses Millions for Misleading Practices
The news release discusses a recent CFPB report that names some of the problems that led to the supervisory action and relief for consumers: “some banks misled consumers about checking account fees or overdraft coverage, and some credit card companies deceived consumers about pay-by-phone fees.” In addition, the report indicated that “some auto lenders had wrongly repossessed consumers’ vehicles, and some debt collectors improperly communicated with consumers about debts.” The CFPB also found illegal practice among mortgage servicers.
Consumers who were affected by these harmful practices will be receiving, collectively, $14 million. The money provides relief for injured consumers, and it also serves as a message to debt collection companies that the CFPB will not allow violations of the Fair Debt Collection Practices Act (FDCPA) to stand.
The report notes that, in addition to the $14 million in restitution, the CFPB has also been involved in two separate public enforcement actions that resulted in $1.75 million in civil penalties and $1.15 million to remedy consumer harms.
More Harms to Consumers and Recent CFPB Findings  
What else did the CFPB’s recent report have to say? Here are some of the findings it listed:
  • Banks engaging in deceptive practices concerning consumers’ checking account fees and overdraft coverage;
  • Credit card companies engaging in deceptive practices in failing to disclose less costly payment options than an expensive pay-by-phone option;
  • Auto loan companies failed to give borrowers options to avoid repossession;
  • Debt collection companies communicated with third parties about consumers’ debts without getting permission from the consumer;
  • Mortgage servicers overcharged on closing fees; and
  • Mortgage servicers failed to let consumers know about certain rights, which is required by the CFPB’s mortgage servicing rules.
The CFPB aims to protect consumer rights through its public enforcement actions. The report indicates that about one-third of all complaints received by the CFPB that go through the Action Review Committee (ARC) process are “deemed appropriate for further investigation for possible public enforcement action.” To put that number in perspective, about 10% of all the CFPB’s examinations are earmarked for additional investigation with an eye toward a public enforcement action.
Speak with an Oak Park Consumer Protection Attorney
When you suspect you are being misled or harassed by a debt collector, it can be difficult to know whether the debt collector’s actions are violating the Fair Debt Collection Practices Act. The FDCPA is designed to prevent fraudulent and misleading debt collection practices, and affected consumers may be eligible to file a claim. An Oak Park consumer protection lawyer can assist you. Contact the Emerson Law Firm today to learn more.
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