If the defendants fail to pay the money penalties on time, the amount due would increase to $5 million.
The order also required the defendants to exit from the debt collection industry. They cannot act as debt collectors or assist any person acting as a debt collector. They are also prohibited from engaging in abusive and deceptive practices in connection with any consumer financial product or service.
The defendants agreed to comply with the stipulated judgment and order to resolve the complaint against them by the CFPB and AG James.
The CFPB and AG James alleged that these debt collectors, their owners, and managers violated the Fair Debt Collection Practices Act and the Consumer Financial Protection Act by using illegal tactics to collect consumers’ debt.
Specifically, the defendants threatened consumers with arrest and imprisonment if they failed to pay their debts. They also threatened consumers with legal action including wage garnishment and property seizures.
Additionally, the defendants misrepresented the amounts owed by the consumers and used social media and other methods to harass and pressure consumers to pay their debts. Victims described the defendant’s tactics as “emotional terrorism.”
