The agency charged with consumer financial protection included information on two of its previously announced cases over abusive debt collection on Tuesday and reintroduced those efforts and others reportedly underway elsewhere under the moniker of “Operation Corrupt Collector,” calling it a “nationwide law enforcement and outreach initiative” targeting phantom debt collection and “abusive and threatening” debt collection practices.
The CFPB said the initiative includes five cases filed by the FTC, two cases filed by the CFPB and three criminal cases brought by the U.S. Department of Justice and U.S. Postal Inspection Service. “States reporting actions as part of the operation include Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Massachusetts, New Mexico, North Carolina, North Dakota, New York, Ohio, South Carolina, and Washington,” it said.
The only cases named in the release are two previously announced by the bureau and reported here – this month and in July 2019. The release does not list or provide links to other actions.
“In addition to law enforcement actions, state and local consumer protection agencies are joining the FTC in rolling out new information to help consumers know their rights when it comes to debt collection and what steps to take if they receive a call trying to collect on a debt that they do not recognize,” the bureau release said.
RR: Federal, state agencies team up to charge NY firms, staffers, with collecting debts illegally through threats, harassment (Sept. 8, 2020)
RR: Settlement proposes $60 million in penalties for debt collectors, with banishment from industry (July 25, 2019)