The district court of Maryland has issued a default judgment for the Consumer Financial Protection Bureau (CFPB) against defendants accused of violating the Consumer Financial Protection Act’s prohibition against deceptive practices and the Telemarketing Sales Rule.
The 2017 lawsuit filed by the bureau was levied against two companies operating under the name “FDAA,” a service provider, and their owners for falsely presenting FDAA as being affiliated with the federal government.
The CFPB alleged that FDAA’s so-called “debt validation” programs violated the law by falsely promising to eliminate consumers’ debts and improve their credit scores in exchange for thousands of dollars in advance fees. Read on for details of the judgment.
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