‘Downright shameful’: New York AG and CFPB shut down predatory debt-collection operation that generated $93 million

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New York Attorney General Letitia James and the Consumer Financial Protection Bureau said Monday they have closed a debt-collection campaign that was collecting debt using illegal measures.

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The operation, based in Getzville, NY, had reportedly been targeting consumers nationwide since 2015. Several companies participated in the operation — including JPL Recovery Solutions, LLC and five affiliates, officials said.

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authority Said that the operation inflated the loan amount and falsely threatened the consumers with imprisonment for non-payment. The company reportedly upset the inner circles of consumers, which included their friends and family as well as their Facebook FB.
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Friends, for pressurizing consumers to pay, and will not stop even after consumers are asked to stop contact, officials said.

New York AG and the CFPB said the operation reached approximately 293,000 consumers and collected $93 million in gross revenue from 2015 to 2020.

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James and the consumer watchdog ordered the operation to pay $4 million in damages and penalties, and banned operations from the debt collection industry.

(Efforts to reach JPL Recovery Solutions were unsuccessful, and the company’s website is no longer live.)

“It is illegal for borrowers to run defamatory campaigns using social media to make payments to consumers,” said Rohit Chopra, director, CFPB. “Our action with the Attorney General of New York restricts the masterminds of this operation to prevent further misconduct from the industry.”

James promised to target illegal debtors when she ran for attorney general.

“Predators make their profit by targeting hardworking consumers who take loans and then illegally put them into debt. These borrowers used harassing calls and false threats to force consumers to pay, which is both illegal and downright shameful,” James said.

“This debt collection drive used illegal and deceptive tactics to victimize consumers, and now they are paying the price for their losses,” she said.

Credit: www.marketwatch.com /

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