CFPB Inks $1.4M Illegal Fees Deal With Payment Processor

Law360, Washington (October 03, 2013, 4:00 PM ET) -- The Consumer Financial Protection Bureau and a major debt-settlement payment processor agreed on Thursday to settle allegations that the company helped collect more than $11 million in illegal upfront fees from debt settlement customers with a nearly $1.4 million penalty.

Meracord LLC allegedly charged more than 11,000 consumers upfront fees since 2010, a practice that is illegal under the Telemarketing Sales Act because customers aren't guaranteed any actual debt settlement relief when they pay. CFPB alleged that 5,000 of Meracord's customers who were charged the unlawful...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers


Case Information

Case Title

Consumer Financial Protection Bureau v. Meracord LLC et al

Case Number



Washington Western

Nature of Suit

Other Statutory Actions


Ronald B. Leighton

Date Filed

October 3, 2013


Government Agencies Mentioned

Related Articles