CFPB proposes settlement with debt settlement firm SettleIt over alleged abusive conduct
The CFPB announced a proposed settlement in its California federal lawsuit against SettleIt, Inc., a debt settlement company, after alleging abusive acts or practices and telemarketing rule violations.
The Consumer Financial Protection Bureau said a proposed settlement would resolve its California federal lawsuit against SettleIt, Inc., a debt settlement company, after the agency alleged abusive acts or practices under the Consumer Financial Protection Act and violations of the Telemarketing Sales Rule.
The proposed order calls for at least $646,769.43 in consumer redress and a $750,000 civil money penalty. It would also restrict the company’s future handling of certain debt settlement business.
The Consumer Finance Monitor report said the CFPB alleged SettleIt was affiliated with CashCall and LoanMe. It said the bureau claimed SettleIt and CashCall were owned and controlled by the same individual, and that LoanMe had a financial relationship with that individual.
According to the report, the CFPB said SettleIt took unreasonable advantage of consumers’ reliance and engaged in self-dealing that benefited SettleIt, CashCall and LoanMe at consumers’ expense. The report also said the agency alleged telemarketing rule violations tied to a failure to clearly disclose the amount of SettleIt’s fee and to collecting fees based on consumers’ preauthorization of settlements.
The proposed order, as described in the report, would bar SettleIt from settling debts owed to CashCall, LoanMe or any company with shared direct or indirect ownership. It would also require disclosures about lender affiliation for Fresh Start loans.
The source of the report is a Consumer Finance Monitor article published April 16, 2021 and carried in Google News RSS. The brief provided only secondary reporting, not the underlying court filing or a CFPB release.
What happens next is not clear from the brief. The proposed settlement would still need to move through the court process before any final resolution takes effect.
Sources
- Consumer Finance Monitor: CFPB enters into proposed settlement of lawsuit filed against debt settlement company
- Google News RSS item
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
Comments ()