On November 4, the Federal Trade Commission announced an unprecedented coordinated federal-state enforcement effort targeting deceptive and abusive debt collection. This sweeping initiative, termed “Operation Collection Protection,” coordinates federal, state, and local actions under the FTC, the CFPB, 47 state attorneys general, and other enforcement officers and agencies.
As the top source of complaints to the FTC and the Consumer Financial Protection Bureau, illegal debt collection practices have long been in the agencies’ crosshairs. “Operation Collection Protection” began with 30 new coordinated law enforcement actions targeting debt collectors using illegal methods such as harassing phone calls and false threats of litigation, arrest, and wage garnishment. With the involvement of state attorneys general and variations on state laws, banks and other creditors should have the new initiative on their radars as well.
Although the FTC does not have jurisdiction over banks, they should pay close attention to the initiative because of the involvement of the CFPB and state attorneys general, and variations on state laws under which attorneys general may investigate banks and other financial institutions.Continue Reading FTC, CFPB, and States Collaborate to Clamp Down on Illegal Debt Collection