![]() ![]() Phoenix’s audits of its dispute investigation procedures were insufficient for identifying practices that compromised the accuracy or integrity of information furnished to CRAs. Phoenix violated the FCRA and Regulation V by failing to establish and implement reasonable written procedures regarding the accuracy and integrity of information it furnishes to CRAs.It did not have a sufficient number of employees and contractors to effectively handle the volume of disputes it received, with the result that its employees and contractors often spent “mere seconds on average” to resolve the hundreds of disputes that Phoenix received each day. Phoenix had inadequate dispute investigation procedures that included Phoenix’s reliance when investigating disputes on data points received from its clients at account placement that Phoenix had not verified as accurate and that Phoenix failed to review other potentially relevant information in its records. Phoenix violated the FCRA by failing to conduct reasonable investigations of indirect disputes from CRAs and direct disputes from consumers.The consent order includes the following CFPB findings and conclusions: It is noteworthy that the consent order also includes a provision pursuant to which Phoenix agrees to be subject to the CFPB’s supervisory authority for the consent order’s five-year duration. In addition to requiring the payment of consumer redress by Phoenix, the consent order requires the company to pay a $1.675 million civil money penalty to the CFPB. The CFPB announced at the end of last week that it had entered into a consent order with Phoenix Financial Services, LLC (Phoenix), a third-party debt collector that collects primarily past-due medical debts and furnishes information to consumer reporting agencies (CRAs), to settle alleged violations by Phoenix of the Fair Credit Reporting Act and its implementing Regulation V, the Fair Debt Collection Practices Act, and the Consumer Financial Protection Act.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |