Texas Company Allegedly Duped Consumers with Sham Credit Card
The Consumer Financial Protection Bureau is suing a Texas-based company, Union Workers Credit Services, for allegedly deceiving consumers into paying fees to sign up for a sham credit card.
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Bloomberg News
“Our nation’s servicemembers deserve better than to be targeted with illegal collections tactics when they are struggling to pay their bills,” Cordray said.
WASHINGTON - One day a mobile phone giant, the next day a furniture store catering to military service members. more »
One of the defendants behind a massive landline cramming operation that placed more than $70 million in unauthorized charges on consumers’ phone bills has agreed to settle Federal Trade Commission charges against him. more »
Bloomberg News
The Consumer Financial Protection Bureau said Wednesday it had filed a lawsuit against Sprint Corp., alleging it illegally processed improper third-party billing charges — marking the first time the agency has pursued a telecommunications firm. more »
Bloomberg News
"I informed Ocwen that I did not have confidence that the internal review group was independent... so we have to have the work redone," said Joseph A. Smith, the settlement monitor.
Ocwen Financial came under fire Tuesday from Joseph A. Smith, the monitor of the national mortgage settlement, after concerns of conflicts of interest were raised by an unnamed whistleblower. more »
A Florida-based mortgage modification business and its owner are banned from the industry as part of a settlement resolving Federal Trade Commission charges that he tricked financially strapped consumers into paying for mortgage-relief services that he never provided. more »
The Federal Trade Commission is taking action against two auto dealer groups, operating in five states with more than two dozen retail stores, for civil penalties for violating FTC administrative orders prohibiting them from deceptively advertising the cost of buying or leasing a car. more »
The payday loan industry in South Dakota is warning about possible far-reaching problems if a coalition seeking to ban such lending in the state succeeds. more »
The Securities Exchange Commission charged the co-owners of Buffalo, N.Y.-based Reliance Financial Advisors with fraud for allegedly misleading clients about risks associated with a hedge fund managed by a former debt collector. more »
Two companies that allegedly ran scams promising debt relief for student loan borrowers are named in separate enforcement orders announced Thursday by the Consumer Financial Protection Bureau. more »
OPEN QUESTION: "It's an open question" how the CFPB will regulate banks that collect their own debt, said Joann Needleman, president of the National Association of Retail Collection Attorneys. "To the extent they can do it at all is unchartered territory."
As the Consumer Financial Protection Bureau readies a proposal to rein in debt collectors, significant questions remain about how it plans to treat banks that collect their own debts as opposed to hiring third parties. more »
Texas-based collection agency Dyck O’Neal reportedly has filed an estimated 240 deficiency judgment lawsuits in Palm Beach County, Fla. this year, hoping to collect the mortgage debt that remains after foreclosures are processed. more »
AWKWARD MOMENTS AHEAD? "Any rules that make the experience more uncomfortable for customers will hinder reputable lenders' ability to help their customers,”" Wells Fargo's Tom Wolfe wrote to the CFPB.
Banks aren't going to be able to hide behind the Fair Debt Collection Practices Act anymore. more »

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