Consumer Financial Protection Bureau v. Collecto Inc. dba EOS CCA
Published: Jan. 23, 2016 | Result Date: Dec. 8, 2015 | Filing Date: Jan. 1, 1900 |Case number: 1:15-cv-14024-RGS Settlement – $2,500,000
Court
USDC Massachusetts
Attorneys
Plaintiff
Defendant
Stefanie H. Jackman
(Troutman Pepper Hamilton Sanders LLP)
Christopher J. Willis
(Troutman Pepper Hamilton Sanders LLP)
Facts
The Consumer Financial Protection Bureau commenced a civil action against Collecto Inc. dba EOS CCA alleging violations of the Consumer Financial Protection Act of 2010, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act relating to EOS's reporting and collecting of certain debts.
Contentions
PLAINTIFF'S CONTENTIONS:
The CFPB contended that an EOS subsidiary acquired a $2.3 billion portfolio of old, previously collected telecommunications debt from AT&T. EOS violated the law when it allegedly reported inaccurate information about the debts to credit reporting agencies and collected and continued to report the debts even though it was unable to verify the validity of the debts.
Result
Pursuant to the stipulated final judgment and order, EOS must pay $743,000 in restitution to eligible consumers and provide a comprehensive written plan for providing redress. It must also pay $1.85 million in civil penalties.
Other Information
FILING DATE: Dec. 7, 2015.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390