CFPB and FTC Take Action Against Debt Relief Organizations

  • Written by SubPrime Auto Finance News Staff

Perhaps involving consumers who also have installment contracts with subprime auto finance providers, the Consumer Financial Protection Bureau and the Federal Trade Commission each announced enforcement actions against firms the regulators deemed to be orchestrating fraudulent debt-relief programs.

Over at the CFPB, the bureau recently settled its lawsuit against Freedom Debt Relief, one of the nation’s largest debt-settlement services providers. The company agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty.

Meanwhile, the FTC said it recently has stopped a student loan debt relief scheme, alleging it bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans.

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