Finally-CFPB making some news- a win for consumers

[EVT1]

www.washingtonpost.com/blogs/wonkblog/wp/2014/07/14/cfpb-sues-law-firm-behind-debt-collection-lawsuits/

     The government watchdog has accused the Georgia-based law firm, which could not be reached for comment, of using illegal tactics to intimidate consumers into paying debts they may not even owe. It claims the firm used sworn statements from people who couldn't possibly know the details of the consumer debts. Officials at the CFPB said the firm, when challenged, dismissed more than 40,000 lawsuits they had filed in Georgia alone because it can't substantiate the claims.

     The bureau's claim was filed in federal court in Atlanta and states that Frederick J. Hanna & Associates failed to do basic due diligence on the accuracy of suits it filed to collect defaulted consumer credit-card debts. In Georgia, one attorney signed off on 180,000 lawsuits over two years.

And that after last week:

www.forbes.com/sites/laurengensler/2014/07/10/cfpb-moves-against-payday-loan-industry-orders-ace-cash-express-to-pay-10-million/

     The lender, ACE Cash Express, “used false threats, intimidation, and harassing calls to bully payday borrowers into a cycle of debt,” said CFPB Director Richard Cordray. “This culture of coercion drained millions of dollars from cash-strapped consumers who had few options to fight back.”

     For example, the CFPB says consumers faced the threat of extra fees, being reported to credit reporting agencies and criminal prosecution if they didn’t make payments. Some collectors repeatedly called consumers, their offices and even their relatives, disclosing information about their loans

Nice to see some people in government agencies doing their job.