Pay-Day Loans

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The Pay-Day Loan industry, a sub-prime lending mechanism which has pushed many low income users into a debt trap, has become the focus of federal regulatory rulemaking and state attorney general oversight.  

For-Profit Colleges

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For the last several years, regulators have focused their attention on the for-profit college industry. Through registered complaints by students, independent investigations conducted by media outlets and federal-state government agencies, revelations have emerged detailing the misrepresentations and outright deceptive practices of these universities. According to a PBS Frontline investigation "for-profits had charged students nearly five times as much as community colleges, while getting the bulk of their revenue, up to 90 percent, from student loans and grants — often from the federal government." This has led many state attorneys general and federal regulators to investigate and file suit against the industry, shutting down several of these schools in the process.

Investigations

Cases

Advocacy

Legislation/Regulation

Report - Debt Collection and Debt Buying

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A report by the Center for Responsible Lending on the history and current state of the debt collection by debt buying industry. An important document for those looking to understand the industry and its impact on consumers.

State AG-CFPB Settlement with Chase Bank Over Credit Card Collections

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In 2015, the CFPB, 47 state attorneys general and the District of Columbia settled with Chase Bank for $136 million over their credit card collection practices. The investigation found that Chase used robo-signed documents as evidence in lawsuits against consumers. In addition, Chase often sold accounts to other debt collecting agencies that were already discharged or inaccurate.

CFPB Proposal to Overhaul Debt Collection Market

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The Consumer Financial Protection Bureau has offered new rules to eliminate the often problematic practices carried out by the debt collection industry. The following CFPB resources includes a report detailing the industry and the scope of the proposals under consideration, including rules pertaining to collection practices.

N.Y. Times Report on the Consumer Debt Collection

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In this 2014 report, N.Y. Times reporter Jake Halpern delves into the often unknown and secretive world of the debt-buying industry. According to Halpern, the industry has seen astronomical growth.

“From 2006 to 2009, for example, the nation’s top nine debt buyers purchased almost 90 million consumer accounts with more than $140 billion in ‘face value.’ And they bought at a steep discount. On average, they paid just 4.5 cents on the dollar. These debt buyers collect what they can and then sell the remaining accounts to other buyers, and so on. Those who trade in such debt call it ‘paper.’ ”
— Jake Halpern

Minnesota AG Resource on Debt Buyers

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A comprehensive resource for consumers on the debt buying industry. Created by the Minnesota Attorney General's office, the guide provides a definition of a "debt-buyer," a brief history of the debt-buying industry, and rights of consumers when pursued by debt collectors.  

 

2009 Report - State Anti-Predatory Lending Laws

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A 2009 report produced by the UNC Center for Community Capital and funded by the National State Attorneys General Program at Columbia Law School found that federal action to exempt national banks from state consumer protection led to more foreclosures and riskier lending practices. The report also found that anti-predatory lending laws enacted by some states to protect consumers from abusive and unfair mortgage practices saved many people from losing their homes to foreclosure.