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Four nonbank lenders have agreed to reimburse consumers and pay penalties in connection with medical loans that violated New York usury and other laws, state Attorney General Eric Schneiderman said Wednesday.
April 30 -
New York state Chief Judge Jonathan Lippman proposed tighter rules on Wednesday to govern how banks and debt collectors sue consumers over unpaid bills. If adopted, the new proposals will require plaintiffs to provide more paperwork to support their claims.
April 30 -
The number of financial complaints filed by consumers increased nearly 80% last year, to 160,000, according to a report released Monday by the Consumer Financial Protection Bureau.
March 31 -
WASHINGTON The Consumer Financial Protection Bureau released a report Thursday showing consumers are being "hounded" by debt collectors, adding more fuel to the fire in the agency's efforts to crack down on the industry's bad actors.
March 20
A consumer debt collection agency was shut down by New York Attorney General Eric Schneiderman on Thursday morning after dozens of complaints were filed about the company's business tactics.
Swanson Walker & Associates in Lockport, owned by Sean Millard, reached an agreement with Schneiderman to terminate its business and pay a $10,000 fine. The Attorney General's office, the Better Business Bureau and the Federal Trade Commission Sentinel Network all received several notices that the agency harassed customers when attempting to collect repayments.
The complaints said that Swanson debt collectors repeatedly violated the law by improperly calling consumers at work, inappropriately accusing individuals of check fraud and threatening to file a lawsuit or arrest them. Additionally, consumers claimed Swanson disclosed their debts to third parties and made threats to seize a homeowner's property and freeze bank accounts.
"Attempting to get out of debt is a stressful and overwhelming process that countless consumers struggle with every day," Schneiderman said in a press release. "To threaten and bully these individuals is unacceptable and wrong, and my office will keep fighting to hold those who employ these tactics accountable."
The debt collection agency's website also contained false representations, according to the news release, including claiming to utilize two methodologies of collections traditional and litigation. However, the AG's office said Swanson never litigated a case and did not hire an attorney to even review matters or file a lawsuit.
When American Banker tried to call the debt collection company on Thursday afternoon, a recording said, "this number is not set up to receive phone calls." Additionally, the company website was shut down.
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