Released every month our debt collection blog contains news, stories and tips to keep you informed.
In Los Angeles, California, the Consumer Financial Protection Bureau ("CFPB") took action against a finance company and its subsidiary resulting US$48.3m in fines and penalties.
The CFPB investigation allegedly uncovered that the debt collectors from the financier were utilising a web based program called Skip Tracy.
This program was used for outward and inward bound telephone calls and permits its users to alter the caller ID that a call recipient would receive. Apparently the debt collectors used this Skip Tracy service on over 137,000 loan accounts. They would alter the ID and pretend to be:
Whilst in the US, it is very very likely that the misleading and deceptive conduct provisions of Australia Law would apply should this style of collection technique be applied here.
Furthermore, the companies were also fined for disclosing the existence of debts to 3rd parties without consent.