CFPB Settles Its 1st-Ever Action Targeting Abusive Practices

Law360, Miami (June 7, 2013, 7:35 PM EDT) -- A Florida debt collection firm on Thursday agreed to pay $500,000 to settle the Consumer Financial Protection Bureau's first enforcement action alleging “abusive practices,” in a deal that also prohibits the firm from selling debt-relief products or services.

In a final judgment order, U.S. District Judge Donald M. Middlebrooks signed off on the deal that ends the CFPB's suit accusing American Debt Settlement Solutions Inc. and its president, Michael DiPanni, of engaging in unfair, deceptive and abusive practices by misleading customers about the debt relief services...
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