phoenix financial services llc south carolina

Phoenix Financial Services LLC Fined $1.675 Million for Mortgagee Address List Errors and Unlawful Debt Collection Practices

Phoenix Financial Services, LLC, a debt collector based in Indiana, has been ordered to pay a significant fine of $1.675 million by the Consumer Financial Protection Bureau (Bureau) due to errors in its mortgagee address list and unlawful debt collection practices.

The Bureau's order requires Phoenix to update its mortgagee address list, which may contain outdated information, to ensure that it is accurate and complete. Additionally, the company must abide by certain conduct provisions to prevent similar violations from occurring in the future.

Phoenix was found to have violated several consumer protection laws, including the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). Specifically, the Bureau determined that Phoenix sent debt collection letters to consumers before verifying the debt, which is a violation of FDCPA. The company also misrepresented to consumers that they owed alleged debts in certain circumstances when it lacked a reasonable basis for making those representations.

Furthermore, Phoenix failed to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information it furnishes to consumer reporting agencies (CRAs). The company also did not conduct reasonable investigations of consumer disputes about information it furnished to CRAs and failed to report the results of direct dispute investigations to consumers.

The Bureau's order requires Phoenix to provide redress to affected consumers by refunding all amounts paid to the company on an unverified debt between January 1, 2022, and the date of the order. Consumers who received unlawful debt collection letters from Phoenix after disputing the validity of the alleged debt may be eligible for a refund.

The public is encouraged to contribute any information that will help update the mortgagee address list with accurate phone numbers and addresses for companies and banks. If you have a request for company information, please let the community know, and someone may be able to help.

The Bureau's actions demonstrate its commitment to protecting consumers from unfair debt collection practices and promoting fair and transparent business practices in the financial industry.

Phoenix financial services llc south carolina