CFPB Issues Criminal Referrals Against Two Debt Relief Companies
The Consumer Financial Protection Bureau (CFPB) has filed a complaint in a federal district court in New York against two debt-relief service providers. The companies allegedly charged consumers illegal advance fees for debt-settlement services.
The CFPB is trying to stop their operations as well as seeking penalties and relief for victims.
This is the first criminal referral made by the CFPB.
“Today’s action takes aim at two operations we believe are designed to profit through unscrupulous and illegal business practices,” said CFPB Director Richard Cordray. “Consumers deserve better and we are proud of this coordinated effort with the Department of Justice and U.S. Attorney Preet Bharara to crack down on harmful behavior.”
The CFPB accuses Mission Settlement Agency of New York and Premier Consultant Group of New Jersey of charging consumers illegal upfront fees and not providing effective services which often caused consumers to fall further into debt and harm their credit history.