Federal Actions | November 4, 2015

Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

FEDERAL TRADE COMMISSION ACTIONS

Vantage Point Services, 

LLC et. al.

(Buffalo, New York)

(Western District of New 

York, Buffalo Division)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief. 

Alleged violations of Section 5 

of the FTC Act, various sections 

of the FDCPA (15 U.S.C. §§ 

1692(c) & (e)-(g)), and 

analogous NY state laws.

January 5, 2015: 

Complaint filed

Ex parte TRO, and later, a 

preliminary injunction, with 

asset freeze, restraining order, 

and appointment of receiver 

Granted

Case Pending

Federal Trade Commission

&

New York Attorney 

General

(case filed jointly)

Mitchell J. Katz

(202) 326-2161

Press Release:

http://www.ftc.gov/ne

ws-events/pressreleases/2015/02/ftcnew-york-attorneygeneral-crack-downabusive-debtcollectors
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Commercial Recovery 

Systems, Inc.

(Plano, Texas)

(Eastern District of Texas, 

Sherman Division)

Civil Lawsuit:

Seeking permanent injunction 

and civil penalties. Alleging 

violations of Section 5 of the 

FTC Act and Sections 807 (2), 

(3), (4), and (5) of the FDCPA.

January 20, 2015:

Complaint filed

Case Pending

Federal Trade Commission

&

U.S. Department of Justice

(Case filed by U.S. Dept. of 

Justice on behalf of the FTC)

Mitchell J. Katz

(202) 326-2161

Press Release:

http://www.ftc.gov/ne

ws-events/pressreleases/2015/01/ftcsues-stop-texas-debtcollector-coercingconsumers-falsely

4 Star Resolution LLC et. al.

(Buffalo, New York)

(Western District of New 

York, Buffalo Division)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary 

relief. Alleged violations of 

Section 5 of the FTC Act, 

various sections of the FDCPA 

(15 U.S.C. §§ 1692(c) & (e)-

(g)), and analogous NY state 

laws.

February 9, 2015: 

Complaint filed

Ex parte TRO with asset 

freeze, restraining order, and 

appointment of receiver 

Granted

Preliminary injunction 

Granted

Case Pending

Federal Trade Commission

&

New York Attorney 

General

(case filed jointly)

Mitchell J. Katz

(202) 326-2161

Press Release:

http://www.ftc.gov/news

-events/pressreleases/2015/02/ftcnew-york-attorneygeneral-crack-downabusive-debt-collectors
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

K.I.P., LLC, et. al.

(Aurora, Illinois)

(Northern District of Illinois, 

Eastern Division)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief 

against an alleged fake debt 

scam. Alleged violations of 

Section 5 of the FTC Act, 

Sections 805(a), 806(2), 806(5), 

807(2)(A), 807(4), 807(5), and 

809(a) of the FDCPA, and 

analogous Illinois state laws.

April 6, 2015: 

Complaint filed

Ex parte TRO, and later, a 

preliminary injunction, with 

asset freeze, restraining order, 

and appointment of receiver 

Granted

November 3, 2015:

Stipulated Final Order filed

with the Court, banning 

defendants from the debt 

collection business, prohibiting 

defendants from making 

misrepresentations about any 

product or service, and 

imposing judgment of more 

than $6.4 million.

Federal Trade Commission

&

Illinois Attorney General

(case filed jointly)

Frank Dorman

(202) 326-2674

Press Release

(Complaint):

https://www.ftc.gov/n

ews-events/pressreleases/2015/04/ftcillinois-attorneygeneral-halt-chicagoarea-operationcharged

Press Release

(Final Order):

https://www.ftc.gov/n

ews-events/pressreleases/2015/11/ftcfederal-state-locallaw-enforcementpartners-announce

Bayview Solutions, LLC, et. 

al.

(St. Petersburg, Florida)

(District of Columbia)

Civil Lawsuit:

Seeking a permanent injunction 

against a debt portfolio broker 

that allegedly posted 

unencrypted documents online 

disclosing consumers’ sensitive 

personal information, in 

violation of the unfairness 

provisions of Section 5 of the 

FTC Act.

October 13, 2014:

Complaint filed

April 20, 2015: 

Stipulated Final Order 

Entered requiring the 

implementation of an 

information security program 

and independent audits for 20 

years.

Federal Trade Commission Jay Mayfield

(202) 326-2181

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/04/debtbrokers-settle-ftccharges-they-exposedconsumers
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Cornerstone and Company, 

LLC, et. al.

(Riverside, California)

(District of Columbia)

Civil Lawsuit:

Seeking a permanent injunction 

against a debt portfolio broker 

that allegedly posted 

unencrypted documents online 

disclosing consumers’ sensitive 

personal information, in 

violation of the unfairness 

provisions of Section 5 of the 

FTC Act.

August 27, 2014:

Complaint filed

April 20, 2015: 

Stipulated Final Order

Entered requiring the 

implementation of an 

information security program 

and independent audits for 20 

years.

Federal Trade Commission Jay Mayfield

(202) 326-2181

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/04/debtbrokers-settle-ftccharges-they-exposedconsumers

Green Tree Servicing LLC

(St. Paul, Minnesota)

(District of Minnesota)

Civil Lawsuit:

Against a national mortgage 

servicing company that, among 

other allegations: (1) made 

abusive collection calls; (2) 

misrepresented amounts people 

owed; (3) misrepresented that 

consumers must use a quick pay 

service that cost $12 per 

payment; (4) withdrew 

unauthorized payments; and (5) 

failed to honor loan modification 

agreements between consumers 

and their prior servicers, in 

violation of the FTC Act, 

FDCPA, FCRA, Consumer 

Financial Protection Act, and the 

Real Estate Settlement 

Procedures Act.

April 21, 2015:

Complaint filed

April 23, 2015:

Stipulated Final Order 

Entered enjoining the 

company from further violation 

of the law and requiring 

payment of $48 million to 

affected consumers and a $15 

million civil penalty. 

Federal Trade Commission

&

Consumer Financial 

Protection Bureau

(case filed jointly)

Frank Dorman, FTC

(202) 326-2674

FTC Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/04/natio

nal-mortgageservicing-companywill-pay-63-millionsettle
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

The Primary Group Inc.

(Roswell, Georgia)

(Northern District of 

Georgia)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly violating the FTC Act 

and the FDCPA by using 

deceptive text messages, emails, 

and phone calls in which they 

claimed to be process servers 

and threatened lawsuits, arrest, 

or imprisonment, and unlawfully 

disclosed debts to third parties.

May 11, 2015:

Complaint filed

Ex parte TRO, and later, a 

preliminary injunction, with 

asset freeze and restraining 

order Granted

Case Pending

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/05/ftchalts-three-debtcollection-operationsallegedly-threatened

Unified Global Group, LLC

(Amherst, New York)

(Western District of New 

York)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly violating the FTC Act 

and the FDCPA by using 

deceptive text messages, emails 

and robocalls, and unlawfully 

contacting consumers’ friends, 

families, and co-workers about 

supposed debts.

May 11, 2015:

Complaint filed

Ex parte TRO, and later, a 

preliminary injunction, with 

asset freeze, restraining order, 

and appointment of receiver 

Granted

Case Pending

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/05/ftchalts-three-debtcollection-operationsallegedly-threatened

Premier Debt Acquisitions 

LLC

(North Tonawanda, New 

York)

(Western District of New 

York)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly violating the FTC Act 

and the FDCPA by using 

deceptive text messages, emails, 

voicemails, and phone calls to 

impersonate state or law 

enforcement officials, falsely 

threaten consumers with 

lawsuits or arrest, and falsely 

threaten to charge consumers 

with criminal fraud, garnish their 

wages, and seize their property.

May 11, 2015:

Complaint filed

Ex parte TRO, and later, a 

preliminary injunction, with 

asset freeze, restraining order, 

and appointment of receiver 

Granted

Case Pending

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/05/ftchalts-three-debtcollection-operationsallegedly-threatened
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Centro Natural Corp. et. al.

(Davie, Florida)

(Southern District of Florida)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief 

against an alleged fake debt 

scam targeting SpanishSpeaking Consumers. Alleged 

violations of Section 5 of the 

FTC Act, Sections 807(1), 

807(2), 807(3), 807(4), 807(5), 

807(7), and 807(10) of the 

FDCPA, and multiple sections 

of the Telemarketing Sales Rule.

October 20, 2014:

Complaint filed, ex parte TRO, 

and later, a preliminary 

injunction, with asset freeze, 

restraining order, and 

appointment of receiver 

Granted

June 30, 2015: 

Stipulated Final Order

Entered banning defendants 

from debt collection and 

telemarketing activities and 

imposing judgments on the 

defendants totaling nearly $6.8 

million, which are suspended 

upon the transfer of $776,000 

worth of assets, including 

Florida real estate.

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/07/ftcaction-puts-endfraudulent-debtcollection-schemetargeted
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Broadway Global Master 

Inc., In-Arabia Solutions 

Inc., and Kirit Patel

(Tracy, California)

(Eastern District of 

California)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly harassing consumers 

and pretending to be agents of 

law enforcement or fake 

government agencies, and 

illegally processing more than 

$5.2 million in payments from 

consumers for payday loan debts 

they did not owe.

April 3, 2012:

Complaint filed, ex parte TRO, 

and later, a preliminary 

injunction, with asset freeze, 

restraining order, and 

appointment of receiver 

Granted

September 9, 2015: 

Stipulated Final Order

Entered banning defendants 

from the debt collection 

business, prohibiting 

defendants from making 

misrepresentations about any 

product or service, and 

imposing judgments totaling 

more than $3.4 million, which 

are suspended upon the transfer 

of $608,500, which will be 

used for consumer redress.

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/09/ftcaction-stopsscammers-whocollected-millionsphantom-payday

Kelly S. Brace, et al.

(Buffalo, New York)

(Western District of New 

York, Buffalo Division)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief. 

Alleged violations of Section 5 

of the FTC Act, various sections 

of the FDCPA (15 U.S.C. §§ 

1692(c)-(e) & (g), and 

analogous New York State laws.

October 5, 2015:

Complaint Filed

TRO, and later a preliminary 

injunction, with asset freeze 

and restraining order

Granted

Case Pending

Federal Trade Commission

&

New York Attorney 

General

(case filed jointly)

Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/11/ftcfederal-state-locallaw-enforcementpartners-announce
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

BAM Financial

(Irvine, California)

(Central District of 

California)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly violating the FTC Act 

and the FDCPA by collecting 

unsubstantiated debts,

pretending to be process servers, 

and falsely threatening to report 

consumers to government 

authorities.

October 19, 2015:

Complaint filed

Ex parte TRO with asset 

freeze, restraining order, and 

appointment of receiver 

Granted

Case Pending

Federal Trade Commission Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/11/ftcfederal-state-locallaw-enforcementpartners-announce

National Check Registry

(Buffalo, New York)

(Western District of New 

York)

Civil Lawsuit:

Seeking permanent injunction 

and equitable monetary relief for 

allegedly violating Section 5 of 

the FTC Act, various sections of 

the FDCPA, and analogous New 

York State laws.

July 21, 2014:

Complaint filed, ex parte TRO, 

and later, a preliminary 

injunction, with asset freeze, 

restraining order, and 

appointment of receiver 

Granted

October 16, 2015:

Stipulated Final Order 

Entered banning defendants 

from the debt collection 

business, prohibiting 

defendants from making 

misrepresentations about any 

product or service, and 

imposing judgments totaling 

more than $8.3 million that will 

be suspended upon payment of 

$112,000 by Joseph Bella and 

the surrender of certain bank 

accounts, two cars and two 

boats.

Federal Trade Commission

&

New York Attorney 

General

(case filed jointly)

Frank Dorman

(202) 326-2674

Press Release:

https://www.ftc.gov/n

ews-events/pressreleases/2015/11/ftcfederal-state-locallaw-enforcementpartners-announce
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

CONSUMER FINANCIAL PROTECTION BUREAU ACTIONS 

ECMC Group, Inc. and 

Zenith Education Group

(Oakdale, Minnesota)

(Washington DC)

Settlement In Lieu of Civil

Lawsuit: 

Settling potential liability for 

numerous alleged violations in 

the extension and collection of 

Corinthian College private 

student loans.

September 2014: 

Complaint filed against 

Corinthian College, ECMC’s 

predecessor in interest, alleging 

predatory lending and 

violations of the FDCPA.

February 2, 2015: 

Settlement Reached –

Provides for $480 million in 

student loan forgiveness, the 

provision of information to 

credit bureaus directing the 

deletion of negative 

information related to the 

loans, and assurances that the 

third-party holder of the loans 

will refrain from suing or 

threatening to sue borrowers.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-secures-480-

million-in-debt-relieffor-current-andformer-corinthianstudents/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Universal Debt and

Payment Solutions, LLC, et. 

al.

(Tucker, Georgia)

(Northern District of 

Georgia, Atlanta Division)

Civil Lawsuit:

Seeking a permanent injunction, 

redress, and civil penalties

against a robo-call phantom debt 

collection company, and its 

service providers, for allegedly 

threatening consumers with 

arrest, wage garnishment, and 

“financial restraining orders” to 

collect debts that were not owed 

to them, in violation of the Fair 

Debt Collection Practices Act 

and the Consumer Financial 

Protection Act.

March 26, 2015:

Complaint filed and 

Temporary Restraining 

Order Granted.

April 7, 2015:

Preliminary Injunction 

Entered halting the 

misconduct and freezing the 

assets of the individual 

defendants and their 

businesses. 

September 1, 2015:

Motion to Dismiss Denied.

Case Pending

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-suesparticipants-in-robocall-phantom-debtcollection-operation/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

National Corrective Group, 

Inc., American Justice 

Solutions, Inc., Victim 

Services, Inc., and Mats 

Jonsson

(San Clemente, California)

(District of Maryland)

Civil Lawsuit:

Seeking permanent injunction 

and civil penalties against a 

nationwide debt collection 

operation collecting bounced 

checks. Alleging violations of 

the Consumer Financial 

Protection Act and Sections 

807(3), (4), (5), (9), (10), (11), 

(14) and 809(a) of the FDCPA.

March 31, 2015:

Complaint and stipulated 

final order filed. The order 

prohibits the companies from 

stating or implying that they 

are a state or district attorney 

and from falsely representing 

that failure to pay will result in 

arrest or imprisonment, and 

requires payment of a $50,000 

civil penalty.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-takes-actionagainst-bad-checkdebt-collector/

Green Tree Servicing LLC

(St. Paul, Minnesota)

(District of Minnesota)

Civil Lawsuit:

Against a national mortgage 

servicing company that, among 

other allegations: (1) made 

abusive collection calls; (2) 

misrepresented amounts people 

owed; (3) misrepresented that 

consumers must use a quick pay 

service that cost $12 per 

payment; (4) withdrew 

unauthorized payments; and (5) 

failed to honor loan 

modification agreements 

between consumers and their 

prior servicers, in violation of 

the FTC Act, FDCPA, FCRA,

Consumer Financial Protection 

Act, and the Real Estate 

Settlement Procedures Act.

April 21, 2015:

Complaint filed

April 23, 2015:

Stipulated Final Order 

Entered enjoining the 

company from further violation 

of the law and requiring 

payment of $48 million to 

affected consumers and a $15 

million civil penalty. 

Consumer Financial 

Protection Bureau

&

Federal Trade Commission

(case filed jointly)

Moira Vahey

(202) 435-7170

CFPB Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-and-federaltrade-commissiontake-action-againstgreen-tree-servicingfor-mistreatingborrowers-trying-tosave-their-homes/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Security National 

Automotive Acceptance 

Company

(Mason, Ohio)

(Southern District of Ohio, 

Western Division)

Civil Lawsuit:

Seeking a permanent injunction, 

redress, and civil penalties 

against an auto loan company 

for aggressive and unlawful 

collection tactics against 

servicemembers, in violation of 

the Consumer Financial 

Protection Act.

June 17, 2015:

Complaint filed 

October 26, 2015: Stipulated 

Final Order Issued

October 29, 2015: 

Administrative Order Issued

Company ordered to correct its 

business practices, pay 

$2,274,855.70 in redress to 

consumers and $1 million to 

the CFPB civil money penalty 

fund. 

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-takes-actionagainstservicemember-autolender-for-aggressivedebt-collectiontactics/ 

Syndicated Office Systems, 

LLC

(Dallas, Texas)

(Washington DC) 

Administrative Action:

CFPB found that medical debt 

collector failed to conduct 

timely FCRA investigations in 

response to 13,000 consumer 

disputes and failed to send 

notices required by FDCPA 15 

§1692g to more than 10,000 

consumers, unlawfully 

collecting over $2,000,000 from 

consumers who did not receive 

the notices. 

June 18, 2015:

Administrative Order Issued

Ordered to correct its business 

practices, pay $5,100,000 in 

redress to consumers and 

$500,000 to the CFPB civil 

money penalty fund, and to 

cease collecting $300,000 

worth of debt.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-takes-actionagainst-medical-debtcollector/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Northway Financial Group, 

et al.

(Canada and Malta)

(Southern District of New 

York)

Civil Lawsuit:

Seeking a permanent injunction, 

redress, and civil penalties for 

making false threats, using 

illegal wage assignment clauses, 

and collecting debts that are 

void under state law, in violation 

of the Consumer Financial 

Protection Act.

July 6, 2015

Complaint filed 

Case Pending

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-sues-offshorepayday-lender/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Chase Bank, USA N.A. and 

Chase Bankcard Services, 

Inc. 

(Newark, Delaware)

(Washington DC and in 47 

states)

Administrative Action:

CFPB, 47 States, and DC found 

that the large credit card bank 

sold debt buyers inaccurate 

information used to collect debts 

and robo-signed inaccurate

affidavits and sworn pleadings.

July 8, 2015:

49 Separate Administrative 

Orders Issued

Ordered Chase Bank to cease 

collecting on 528,000 accounts; 

pay $50 million in refunds to 

consumers; confirm debts 

before selling to debt buyers; 

not sell debts with inadequate 

documentation; require its debt 

buyers not to resell accounts; 

notify consumers when their 

debts are sold and make their 

account information available 

to them; withdraw, dismiss, or 

terminate all collection 

litigation filed after 1/1/09; 

cease robo-signing affidavits; 

verify debts before filing 

lawsuits; and pay $30 million 

in civil penalties to the CFPB, 

and $106 million to 47 states 

and DC. The OCC also ordered 

Chase to pay $30 million in 

civil penalties in a related 

action.

Consumer Financial 

Protection Bureau

&

Attorneys General from 47 

States and District of 

Columbia

(actions taken jointly)

Office of the Comptroller 

of the Currency

concurrently announced a 

civil penalty assessed against 

Chase in a related action.

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-47-states-and-dc-take-action-againstjpmorgan-chase-forselling-bad-creditcard-debt-and-robosigning-courtdocuments/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Frederick J. Hanna & 

Associates, e.t al.

(Marietta, Georgia)

(Northern District of 

Georgia, Atlanta Division)

Civil Lawsuit:

Seeking a permanent injunction, 

redress, and civil penalties 

against debt collection law firm 

and its partners for 

misrepresenting the level of 

attorney involvement in debt 

collection lawsuits and filing 

false affidavits in violation of 

the Fair Debt Collection 

Practices Act and the Consumer 

Financial Protection Act.

July 14, 2014:

Complaint filed 

July 14, 2015:

Motion to Dismiss Denied

Case Pending

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-files-suit-againstdebt-collectionlawsuit-mill/

Encore Capital Group, Inc.,

Midland Funding LLC, 

Midland Credit 

Management, Inc., and 

Asset Acceptance Capital 

Corp.

(San Diego, California)

(Washington DC)

Administrative Action:

The CFPB found that Encore, 

the nation’s largest debt buyer 

and collector, attempted to 

collect debts that it knew, or 

should have known, were 

inaccurate or could not legally 

be enforced, filed lawsuits 

against consumers without 

having the intent to prove the 

debts, if contested, filed 

misleading collection affidavits, 

and made misrepresentation to 

consumers in collecting debt in 

violation of the Fair Debt 

Collection Practices Act and the 

Dodd-Frank Wall Street Reform 

and Consumer Protection Act.

September 8, 2015:

Consent Order Issued

Ordered company to correct its 

business practices, cease 

threatening lawsuits without 

evidence, cease collecting 

unverified, suspect debt; cease 

filing misleading affidavits and 

making deceptive statements 

when collecting debt; refund 

approximately $36 million and 

cease collecting approximately 

$125 million worth of debt 

secured by a judgment or 

pending lawsuit in which the 

company misrepresented that 

undisputed debts were assumed 

valid; refund approximately 

$5.3 million for

misrepresenting that it could 

sue on time-barred debts; and 

pay a penalty of $10 million to 

the CFPB’s Civil Penalty Fund.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-takes-actionagainst-the-twolargest-debt-buyersfor-using-deceptivetactics-to-collect-baddebts/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Portfolio Recovery 

Associates, LLC

(Norfolk, Virginia)

(Washington DC)

Administrative Action:

The CFPB found that Portfolio 

Recovery Associates, the

nation’s second largest debt 

buyer and collector, attempted to 

collect debts that it knew, or 

should have known, were 

inaccurate or could not legally 

be enforced, filed lawsuits 

against consumers without 

having the intent to prove the 

debts, if contested, filed 

misleading collection affidavits, 

and made misrepresentation to 

consumers in collecting debt in 

violation of the Fair Debt 

Collection Practices Act and the 

Dodd-Frank Wall Street Reform 

and Consumer Protection Act.

September 8, 2015:

Consent Order Issued

Ordered company to correct its 

business practices, cease 

threatening lawsuits without 

evidence, cease collecting 

unverified, suspect debt; cease 

filing misleading affidavits and 

making deceptive statements 

when collecting debt; refund 

approximately $19 million for 

misrepresenting that collectors 

were calling on behalf of 

attorneys and that litigation 

was imminent or already 

ongoing, and for suing on timebared debts; vacate 

approximately $3.4 million

worth of judgments on lawsuits 

that were filed after the

expiration of the applicable 

statute of limitations; and pay a 

penalty of $8 million to the 

CFPB’s Civil Penalty Fund.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-takes-actionagainst-the-twolargest-debt-buyersfor-using-deceptivetactics-to-collect-baddebts/
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Westlake Services, LLC, 

d/b/a Westlake Financial 

Services, LLC, and Wilshire 

Consumer Credit, LLC, 

d/b/a Wilshire Commercial 

Capital, LLC

(Los Angeles, California)

(Washington DC)

Administrative Action:

The CFPB found that that an

indirect auto finance company 

and its auto title lending 

subsidiary deceived consumers 

by calling under false pretenses 

and using phony caller ID 

information, falsely threatened 

to refer borrowers for 

investigation or criminal 

prosecution, and illegally 

disclosed information about 

debts to borrowers’ employers, 

friends, and family.

September 30, 2015:

Consent Order Issued

Ordered the companies to 

correct their debt collection 

practices; provide consumers 

$44.1 million in cash relief and 

balance reductions; and pay a 

civil penalty of $4.25 million.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Press Release:

http://www.consumerf

inance.gov/newsroom/

cfpb-orders-indirectauto-financecompany-to-provideconsumers-44-1-

million-in-relief-forillegal-debtcollection-tactics/

Supervisory Highlights, 

Summer 2015

(Examinations conducted 

across the U.S.)

(Washington DC)

Supervisory Examinations:

Described supervisory findings 

that financial institutions 

engaging in consumer debt 

collection:

• Had weaknesses in 

compliance management, 

including board oversight, 

oversight of service providers 

and complaint-handling;

• Misled consumers about how 

they would handle FCRA 

disputes, in violation of 

Section 807 of the FDCPA, 

15 U.S.C. § 1692e(10); and

• Responded to indirect 

disputes by deleting 

tradelines without conducting 

an investigation, in violation 

of Section 623 of the FCRA, 

15 U.S.C. § 1681s-2(b)(1).

June 23, 2015:

Published Supervisory 

Highlights, Summer 2015

Report highlighting supervision 

work in the area of debt 

collection generally completed 

between January 2015 and 

April 2015.

Consumer Financial 

Protection Bureau

Moira Vahey

(202) 435-7170

Supervisory 

Highlights:

http://files.consumerfi

nance.gov/f/201506_c

fpb_supervisoryhighlights.pdf
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

U.S. Department of Justice Actions 

Commercial Recovery 

Systems, Inc.

(Plano, Texas)

(Eastern District of Texas, 

Sherman Division)

Civil Lawsuit:

Seeking permanent injunction 

and civil penalties. Alleging 

violations of Section 5 of the 

FTC Act and Sections 807 (2), 

(3), (4), and (5) of the FDCPA.

January 20, 2015:

Complaint filed

Case Pending

U.S. Department of Justice

&

Federal Trade Commission

(Case filed by U.S. Dept. of 

Justice on behalf of the FTC)

Press Release:

http://www.justice.go

v/opa/pr/united-statesfiles-enforcementaction-against-texasdebt-collectioncompany-current

Maria Luzula, Juan 

Rodriguez Cuya, Angeluz 

Florida Corporation and 

Angeluz Miami, LLC

(Miami, Florida)

(Southern District of Florida)

Criminal Charges:

Charges stemmed from the 

operation of Angeluz Florida 

Corporation in Miami and call 

centers in Peru that lied to and 

threatened Spanish-speaking 

victims into paying fraudulent 

settlements for nonexistent debts 

June 10, 2014:

Defendants charged.

October 17, 2014:

Defendants convicted of 26 

felony counts of conspiracy, 

fraud and attempted extortion.

December 22, 2014:

Sentencing – Maria Luzula 

sentenced to 165 months in 

prison.

January 27, 2015:

Sentencing – Juan Alejandro 

Rodriguez Cuya sentenced to 

210 months in prison for his 

operation of Angeluz Florida 

Corporation.

Consumer Protection 

Branch, Civil Division, U.S. 

Department of Justice

Press Release:

http://www.justice.go

v/civil/cpb/case/united

-states-v-maria-luzulajuan-rodriguez-cuyaangeluz-floridacorporation-andangelus
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Cesar Luis Kou Reyna

(Miami, Florida)

(Southern District of Florida)

Indictment:

Charged that defendant, through 

Fonomundo FC Corp in Miami 

and Mater Call and other 

affiliated call centers in Peru, 

used telephone calls to Spanishspeaking consumers in the 

United States, threatening 

lawsuits, arrest, deportation, and 

harmed credit to coerce victims 

into paying fraudulent 

settlements for nonexistent 

debts.

August 27, 2015:

Defendants charged

October 14, 2015:

Defendant pleads guilty to 

one count of conspiracy to 

commit mail fraud and wire 

fraud

Consumer Protection 

Branch, Civil Division, U.S. 

Department of Justice

Press Release 

(Charged):

http://www.justice.go

v/opa/pr/peruvianman-charged-leadingconspiracy-defraudand-extort-spanishspeaking-consumersthrough

Press Release (Plead):

http://www.justice.go

v/opa/pr/peruvianman-pleads-guiltythreatening-anddefrauding-spanishspeaking-consumersthrough-call
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

TRAVELL THOMAS, the 

co-owner, chief executive 

officer, and president of a 

Buffalo, New York-based 

debt collection company (the 

“Company”), MAURICE 

SESSUM, a co-owner and 

chief operating officer of the 

Company, ANTHONY 

BRZEZOWSKI, the 

Company’s director of 

operations, three Company 

managers – JIMMY 

STOKES, HEATHER 

GASTA, and TACOBY 

THOMAS – and five 

Company debt collectors –

ANTHONY CABA, 

COLUMBUS SIMMONS, 

CHARLES STARKS, 

WILLIAM CLARK, and 

MICHAEL CALLANDRA

(Buffalo, New York)

(Southern District of New 

York)

Indictment:

11 charged with wire fraud and 

conspiracy to commit wire fraud 

in connection with a nationwide 

debt collection scheme that took 

in more than $31 million from 

thousands of victims across the 

United States As alleged, the 

defendants engaged in what is 

believed to be the largest 

fraudulent debt collection 

scheme ever to be prosecuted, 

falsely threatening arrest and 

prosecution of countless 

Americans, including those who 

suffered from disabilities

October 27, 2015:

Charges unsealed 

U.S. Attorney’s Office, 

Southern District of New 

York

Press Release:

http://www.justice.go

v/usaosdny/pr/manhattan-usattorney-chargesfifteen-defendants-31-

million-fraudulentand-coercive
Matter Name 

Company Location

Action Location

Type of Action Date/Matter Information Responsible Agency Press Contact

Press Release or Order

Mark Lavin John Salatino, 

Jessica Mann, And Jennifer 

Sherk

(Buffalo, New York)

(Southern District of New 

York)

Guilty Pleas:

Guilty pleas unsealed as to 4 

persons in connection with case 

charging an additional 

11persons with wire fraud and 

conspiracy to commit wire fraud 

in connection with a nationwide 

debt collection scheme that took 

in more than $31 million from 

thousands of victims across the 

United States As alleged, the 

defendants engaged in what is 

believed to be the largest 

fraudulent debt collection 

scheme ever to be prosecuted, 

falsely threatening arrest and 

prosecution of countless 

Americans, including those who 

suffered from disabilities

October 27, 2015:

Guilty pleas unsealed

U.S. Attorney’s Office, 

Southern District of New 

York

Press Release:

http://www.justice.go

v/usaosdny/pr/manhattan-usattorney-chargesfifteen-defendants-31-

million-fraudulentand-coercive