CFPB orders debt collector to pay $24 million in relief for illegal practices.
TL;DR Summary
Debt relief company GST Factoring and four attorneys were accused by the Consumer Financial Protection Bureau (CFPB) of illegally charging fees and encouraging borrowers to stop paying their student loans. The CFPB filed a complaint in 2020 and has now ordered the company to pay $30 million in penalties and $11 million in payments to 2,600 impacted borrowers. The court order also bans the defendants from engaging in any debt relief services going forward. This is not the first time the CFPB has cracked down on potential predatory behavior by debt relief companies.
- 2,600 student-loan borrowers to get $11 million in debt relief: CFPB Business Insider
- CFPB Orders Repeat Offender Portfolio Recovery Associates to Pay More Than $24 Million for Continued Illegal Debt Collection Practices and Consumer Reporting Violations Consumer Financial Protection Bureau
- U.S. watchdog orders Virginia debt collector to pay $24 million for illegal practices Yahoo Canada Finance
- CFPB orders Portfolio Recovery Associates to pay $24 million American Banker
- Portfolio Recovery Associates Under Fire for Misconduct Bankrate.com
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