The Year in CFPB: What 2015 Looked Like from the Regulators’ Perspective

As 2015 winds to a close, it might be illustrative to take a look at some of the bigger actions the CFPB has taken in its oversight of the ARM industry.

In early April of 2015, we learned that the CFPB had filed suit against a network of companies engaging in sham collection operations targeting “phantom” debts. However, this action went a step further, and named a number of legitimate payment processors and a voice broadcasting service as defendants, too — specifically, for “enabling” the debt collectors in their scheme.

The CFPB said that The Debt Collectors used collectors and automated telephone broadcasting services to contact consumers and threaten them with false allegations of check fraud and false claims of debt owed, which would result, according to the Debt Collectors, in service of a “financial restraining order,” notification to the consumer’s employer of the alleged fraud or debt, garnishment of wages, and arrest, unless the consumers paid the alleged debt.

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