Unfair Debt Collection Practices Lead to $5M Fine
The Consumer Financial Protection Bureau often takes action after consumers report unfair debt collection practices that violate the law.
Unfair debt collection practices can put consumers at a disadvantage if they do not realize the types of violations that can occur and the recourse they have available to them.
Consumers who experience unfair debt collection practices are well within their rights to speak with an attorney about the opportunity to file a lawsuit.
Many consumers who are being targeted for collection of a debt don’t even realize that companies can violate the law by aggressively communicating with them, their employer, or others.
In this particular case, a debt collector went too far and enabled those affected consumers to talk to attorney or file complaints about debt collection practices that broke the law. Any consumer in this situation should evaluate their legal standing to pursue action.
The Consumer Financial Protection Bureau recently levied a $5 million fine for a security group due to unfair debt collection practices.
Security Group Inc., which was the owner of numerous consumer loan companies, settled for $5 million directly to the Consumer Financial Protection Bureau after claims that it sent debt collectors to consumers’ workplaces and homes.
A consent order indicated that between 2011 and 2016, Security Group Inc. was responsible for unfair debt collection practices by trying to carry out more than 12 million in person visits to more than 1 million loan customers, including at their places of employment, neighbor’s homes and the debt owner’s home directly. The purpose of these in-person visits was to collect delinquent debt.
However, according to reports alleged by those affected consumers, the unfair debt collection practices continued after the neighbors, employers and customers requested that the companies stop.
Other unfair debt collection practices allegedly carried out by the company include inappropriate collection calls made to third parties or the customers’ workplaces.
Customers said they did not know which collection tactic would be used and at which point, meaning that they were not able to protect themselves from substantial injuries.
The investigation carried out by the Consumer Financial Protection Bureau also indicated that the companies implemented procedures and policies related to how they obtained and shared information with consumer reporting agencies, providing inaccurate details in a pervasive and systemic manner for thousands of customers all the way through August 2016.
Unfair debt collection practices can be overwhelming, embarrassing and confusing for consumers.
Even when the debt is legitimate, there are specific state and federal laws in place that block collection agencies from being able to carry out activities that are against the law and violate the privacy of the consumers.
As many of the reports connected to this particular investigation allege, the company systematically engaged in unfair debt collection practices for more than 1 million consumers all across the United States.
Consumers might ultimately decide to take legal action by filing reports with the Consumer Financial Protection Bureau or participating in a class action lawsuit investigation.
If your consumer rights have been violated, call the experienced attorneys at McDonald Worley today for a FREE case evaluation.
Disclaimer: McDonald Worley is not representing the plaintiff in this lawsuit.