Big Fines for Abusive Debt Collection
Today, the Consumer Financial Protection Bureau (CFPB) announced enforcement actions against Encore Capital Group and Portfolio Recovery Associates, the two largest debt buyers active in the United States. According to the Bureau, Encore will pay up to $42 million in refunds to affected consumers, a $10 million fine and cease collection on $125 million in debts. Portfolio will pay $19 million in consumer refunds, a $8 million fine and cease collection on over $3 million in debts. The CFPB documented the companies buying debts that were potentially inaccurate, lacking documentation or