CFPB fines debt collector over old AT&T accounts
Sharon Edmondson, Washington Legislative Team Member | December 07, 2015
A Massachusetts debt collector will pay more than $2.5 million in penalties and refunds for allegedly pursuing disputed cellphone bill amounts it knew were problematic after buying the accounts from AT&T according to the CFPB.
The firm, EOS, paid AT&T $35.4 million in 2012 for a portfolio with a value of $2.3 billion and soon found out that some of the amounts were already settled and paid but pursued them anyway. The company will be banned from reselling debts it buys to other collection agencies for five years if the agreement with CFPB is approved. The CFPB has been working on a new rule to rein in debt collection abuses and is expected to make more progress early next year before making a formal proposal.