Facts

United States sued Consumer Portfolio Services Inc. for violations of the Federal Trade Commission Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act.

PLAINTIFF'S CONTENTIONS:
CPS was a loan service provider that collected money owed by consumers, pursuant to automobile financing contracts. It received and processed consumer payments and assessed fees. However, CPS was only allowed to collect fees and amounts authorized by the consumer's contracts or permitted by law.

Despite this, CPS misrepresented the amount owed by consumers, including the amount of their loan's principal or the amount of fees owed. Consumers then paid wrongly assessed fees, sustaining financial harm.

Result

The parties stipulated to a judgment. Pursuant to that stipulation, the court entered a permanent injunction against CPS, prohibiting it from continuing to engage in unlawful conduct. CPS was also ordered to pay $2 million in civil penalties.