CFPB Proposes Settlement with Debt Collector for Failing to Investigate Identity Theft Reports

The Consumer Financial Protection Bureau (CFPB) has filed a proposed settlement in an attempt to resolve a lawsuit against a debt collection enterprise and its owner, with the CFPB stating that it "will not tolerate companies that put inaccurate data on credit reports or fail to investigate consumers' disputes."
Creditors, including credit card companies and other institutions selling debts, should be knowledgeable of the procedures that debt purchasers have in place for ensuring accuracy in reporting. The CFPB may seek to hold responsible not only debt buyers with insufficient policies and procedures or insufficient compliance with such, but also those selling debt to them.