CFPB takes Action against Encore Capital Group and Portfolio Recovery Associates

Posted on Oct 07, 2015 By Ron Sykstus

Attorney Ron SykstusRecently, the Consumer Financial Protection Bureau (CFPB) took action against the nation’s two largest debt buyers and collectors – Encore Capital Group (Midland Funding, Midland Credit Management, Asset Acceptance)   and Portfolio Recovery Associates – for using deceptive tactics to collect bad debts that were potentially inaccurate, lacking documentation, or unenforceable. The CFPB has ordered the companies to overhaul their debt collection and litigation practices and to stop reselling debts to third parties. Both companies must pay consumer refunds, pay penalties, and stop collection on certain debts.

Here is the press release from the CFPB.

If you are being sued by a debt collector, we can help.  If you receive a summons for a lawsuit against you in the mail or in person by a private process server or a deputy sheriff, please call our office immediately to set up a free consultation where we will review the lawsuit with you.  The worst thing someone can do is to do nothing and let a default judgment be entered against them.  If that happens, wage garnishments, bank seizures, judgment liens and ruined credit will follow immediately.  If you are sued, you must react immediately.   The following are some additional blog posts with further information regarding this area of law.