Sending out confusing or deceptive debt collection letters.Calling you repeatedly to the point of harassment.Calling you late at night or early in the morning.Here are some kinds of behavior that state and federal laws forbid: The Telephone Robocall Abuse Criminal Enforcement and Deterrence Act andĮXAMPLES OF ILLEGAL DEBT COLLECTOR BEHAVIOR:.The California Rosenthal Fair Debt Collection Practices Act (applies only in California).The Fair Debt Collection Practices Act (applies to third-party debt collectors).All of these statutes are federal, meaning that they apply everywhere in the US, unless proven otherwise. Following is a list of statutes that govern debt collector behavior. California state law, for example, is particularly protective of consumers. YOUR LEGAL ARSENAL:įederal law, as well as many state laws, strictly regulate the behavior of debt collectors. It is important to point out that, to the extent that Comenity Bank is an original creditor (as opposed to a third-party creditor such a debt collection agency), you wouldn’t expect all that many lawsuits against them, because their agreements with their debtors almost always contain enforceable arbitration clauses, which keeps disputes out of court. One plaintiff, for example, complained that she had received 500 robocalls from Comenity.īelow is a very incomplete list of some of the other lawsuits that have been filed against Comenity Bank: The TCPA prohibits robocalls - repeated automated dialing calls. More than one lawsuit has been filed against Comenity Bank for violation of the Telephone Consumer Protection Act (TCPA) by Comenity in the process of debt collection. Among other terms, it required Comenity to pay $2 million in civil fines, as well as a shocking $53 million in refunds to consumers who were harmed by Comenity’s deceptive practices. In 2015 the Federal Deposit Insurance Corporation (FDIC), the US government entity with authority over the nation’s banking system, sued Comenity Bank and Comenity Capital Bank over deceptive marketing of add-on products, and settlement was reached in 2015.
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