Advertisement
Canada markets open in 1 hour 49 minutes
  • S&P/TSX

    21,587.88
    -51.22 (-0.24%)
     
  • S&P 500

    5,473.23
    +41.63 (+0.77%)
     
  • DOW

    38,778.10
    +188.94 (+0.49%)
     
  • CAD/USD

    0.7270
    -0.0019 (-0.26%)
     
  • CRUDE OIL

    80.35
    +0.02 (+0.02%)
     
  • Bitcoin CAD

    89,662.42
    -842.05 (-0.93%)
     
  • CMC Crypto 200

    1,354.66
    -34.75 (-2.50%)
     
  • GOLD FUTURES

    2,325.70
    -3.30 (-0.14%)
     
  • RUSSELL 2000

    2,022.01
    +15.85 (+0.79%)
     
  • 10-Yr Bond

    4.2790
    +0.0660 (+1.57%)
     
  • NASDAQ futures

    19,947.75
    +26.50 (+0.13%)
     
  • VOLATILITY

    12.71
    -0.04 (-0.31%)
     
  • FTSE

    8,168.79
    +26.64 (+0.33%)
     
  • NIKKEI 225

    38,482.11
    +379.67 (+1.00%)
     
  • CAD/EUR

    0.6783
    -0.0004 (-0.06%)
     

U.S. watchdog orders Virginia debt collector to pay $24 million for illegal practices

FILE PHOTO: Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C.

(Reuters) -A Virginia debt collection company has agreed to pay $24 million over allegedly illegal practices, the top U.S. agency for consumer financial protection said on Thursday, adding that the company had violated a previous order.

Rohit Chopra, director of the Consumer Financial Protection Bureau, said Portfolio Recovery Associates had been "caught red handed" in 2015, but had persisted in "intimidation, deception and illegal ... tactics" to collect on unsubstantiated and undocumented consumer debt in recent years.

"CFPB orders are not suggestions, and companies cannot ignore them simply because they are large or dominant in the market," Chopra added.

Portfolio Recovery Associates said it had admitted to no wrongdoing.

ADVERTISEMENT

In 2015 the CFPB ordered Portfolio Recovery Associates to cease collecting on debts without reasonable basis, selling debt, or threatening to sue or suing when it had no intent to prove the claims. The company agreed to pay $27 million to resolve the allegations.

The CFPB on Thursday said the company broke a number of provisions related to that order. The $24 million payment agreement includes a fine, as well as repayment to consumers harmed, pending court approval.

In a statement, Portfolio Recovery Associates said it was committed to dealing fairly and respectfully with its clients.

"Although we have admitted to no wrongdoing as part of the resolution, and we continue to disagree with the CFPB's characterization of our conduct, we are pleased to have this matter resolved and behind us," Kevin Stevenson, president and chief executive of parent company PRA Group Inc, said in a statement.

(Reporting by Douglas Gillison; Editing by Aurora Ellis and Leslie Adler)