In the joint report with the Federal Trade Commission on debt collection practices, the CFPB said it had initiated four enforcement actions last year, had resolved one case and has five others pending.
The tech giant won praise from consumer groups for its decision to ban ads for high-cost consumer loans. But the policy contains a big loophole, and advertisers have found multiple ways to exploit it.
Lustig, Glaser & Wilson often harassed the wrong consumers, demanded amounts that were not owed, bullied consumers into paying from exempt income, and failed to obtain legitimate documentation of those debts, state officials said.
As the CFPB prods banks to improve their debt collection processes, tech firms are applying artificial intelligence, chatbots and self-service portals to create a more enlightened approach.
Rather than push for looser rules on robo-calls, the industry should focus on policy related to the channels consumers prefer: email and text messages.
