CFPB Says Using Multiple Debt Collectors Poses ECOA Risk
By Jonathan Joshua ( September 21, 2017, 1:01 PM EDT) -- On Aug., 23, 2017, the Consumer Financial Protection Bureau entered into a consent order (the order) with American Express in connection with alleged fair lending violations by certain of its subsidiaries. The consent order should be carefully reviewed by creditors, debt buyers, and debt collectors in light of the CFPB's allegation that American Express' illegal discrimination included that a third-party debt collector operating in Puerto Rico settled delinquent debts for higher amounts than a different debt collector settled for in the U.S. The CFPB alleged that such practice allegedly had a disparate impact on a protected class in violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B....
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