Debt collector assessed $500k fine over alleged credit reporting violations, CFPB says

A non-bank, Illinois-based debt collector that specializes in collecting debt on behalf of telecommunications companies and furnishes information to consumer reporting agencies (CRAs) was assessed a $500,000 civil money penalty over findings that it violated consumer credit reporting requirements under a settlement announced Thursday by the consumer financial protection agency.

The Consumer Financial Protection Bureau (CFPB) said it found that the company, Afni, Inc., furnished information to CRAs “that it knew or had reasonable cause to believe was inaccurate and failed to report to CRAs an appropriate date of first delinquency on certain accounts.” It said the company also failed to conduct reasonable investigations of disputes made by consumers both to Afni and to CRAs about furnished information; failed to conduct investigations of disputes made to Afni in a timely manner; failed to send required notices to consumers about the results of such investigations; and failed to establish, implement, and update its policies and procedures regarding its furnishing of consumer information to CRAs.

The CFPB said Afni’s conduct violated the Fair Credit Reporting Act (FCRA) and its implementing rule, Regulation V and, by engaging in these violations of the FCRA and Regulation V, Afni violated the Consumer Financial Protection Act (CFPA).

Consumer Financial Protection Bureau Announces Settlement with Debt Collector for Credit Reporting Violation