Skip to main content

the Consumer Financial Protection Bureau announced late last week that it had settled with the National Credit Adjustersa private company, as well as its managing director and co-owner Bradley Hochstein.

In a press release, the CFPB said it discovered that NCA and Hochstein were using a network of debt collection companies to collect consumer debt, some of which engaged in illegal acts and debt collection practices that harmed consumers. consumers. The CFPB said the acts were frequent and included representations that consumers owed more than they were legally required to pay and threatening consumers and their families with lawsuits, visits from debt collectors and arrests. they weren’t paying. The NCA or collection companies had no authority to take any of these actions, the CFPB said in the statement. The CFBP also alleges that NCA and Hochstein sold millions of dollars in consumer debt to one of the companies with knowledge of the company’s illegal consumer activities. Debt recovery Shares. Under the settlement, NCA and Hochstein can no longer engage in certain collection practices and Hochstein is permanently banned from working at any company that collects, buys or sells consumer debt. NCA and Hochstein were fined $3 million each – but full payment is suspended if NCA pays $500,000 and Hochstein pays a civil penalty of $300,000.

NCA is not the only debt collector to be fined by the CFPB due to the tactics they used to collect debts from consumers. CFPB loaded Security group making “inappropriate in-person and telephone collection attempts” and “physically preventing consumers from leaving their homes and visiting and calling consumers’ workplaces.” The CFPB said Security Group’s practices were unfair because they could result in the disclosure of financial information to employers and others. The company was fined $5 million. Although Security Group said it disagreed with the CFPB, it agreed to pay the fine so it could close the case. Security Finance Corp., a unit of Security Group, donated $2,000 to acting CFPB director Mick Mulvaney ahead of the 2016 election, the report noted.



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.