What’s New and Interesting In Debt Management News This Month
Every month there is breaking news regarding issues such as debt settlement regulations, debt, FTC debt settlement rules, and new debt management software that can help you. We want to make sure we keep you updated on all that is relevant and informative.
Justice Department Fines Citifinancial $907,000 for Illegal Repossession of Vehicles
The Justice Department fined CitiFinancial Credit Company $907,000 for violating the Servicemembers Civil Relief Act (SCRA) after the company illegally repossessed 164 cars that were owned by active duty members of the U.S. military. The repossessions were illegal because Citifinancial did not obtain court orders, even though it knew that the vehicles belonged to service members protected by the SCRA.
Transworld Systems Inc (TSI) Settles Claim Brought By the Consumer Financial Protection Bureau (CFPB)
TSI – an accounts receivable firm – announced that it has settled a claim brought by the CFPB that had lasted for more than three years. The CFPB alleged that TSI had violated several federal and state consumer protection laws related to the conduct of a legal firm that was hired to make collections on private student loans that were in default. The terms of the settlement were not announced, and TSI made no admission of guilt.
Consumer Financial Protection Bureau (CFPB) Acts Against Funding Company For Lying
The CFPB has taken action against Top Notch Funding, a firm that markets loans to consumers, which the CFPB alleges lied in its loan offers to consumers waiting for settlement payments from lawsuits and victim-compensation funds. These consumers included former NFL players involved in the big concussion lawsuit, as well as the families of those killed in the Deepwater Horizon oilrig disaster, and families of first responders that died in the September 11, 2001 terrorist attacks. The CFPB alleges that Top Notch Funding was deceptive about the cost of its loans, the size of the company, and how quickly consumers would receive their funds.
Federal Court Finds That Brookstone Law and Advantis Law Lied About Mortgage Relief
A federal court has found that Brookstone Law and Advantis Law, which promised consumers mortgage relief, lied when they guaranteed that they could obtain $75,000 or free-and-clear home ownership to clients who filed lawsuits against their mortgage companies. The Federal Trade Commission (FCT) took action against Brookstone Law and Advantis after winning a $20 million judgment earlier this year against four individuals who were also involved in the case. As part of the judgment, none of the people associated with Brookstone Law and Advantis law will be allowed to work in the debt relief industry in the future.
Federal Trade Commission Will Look Into Equifax Breach
The Federal Trade Commission (FTC) said it would investigate the Equifax security breach, which left the personal information of 143 million Americans vulnerable to hackers. Although the FTC does not usually reveal existing investigations, it broke its own rule and admitted that the Equifax data breach was so potentially damaging, that it was actively investigating how it happened.