Consumer Portfolio Services Lawsuit 2021: If you’re a borrower with an auto loan with Consumer Portfolio Services (CPS), you may have heard about the recent lawsuit against the company. The Consumer Financial Protection Bureau (CFPB) accused CPS of unfair and deceptive practices towards its borrowers. This article will discuss the details of the CPS lawsuit, what it means for borrowers, and what actions you can take.
What are Consumer Portfolio Services?
Consumer Portfolio Services is a subprime auto lender financing individuals with less-than-perfect credit scores. The company operates in all 50 states and has been in business for over 25 years. CPS specializes in providing loans for used cars, with interest rates generally higher than those of prime lenders.
The CFPB Lawsuit against CPS
In March 2021, the CFPB filed a lawsuit against CPS in federal court, accusing the company of violating the Consumer Financial Protection Act (CFPA) by engaging in unfair and deceptive practices toward its borrowers. According to the CFPB, CPS failed to properly disclose the interest rates and fees associated with its loans, misrepresented the amount borrowers would pay, and made illegal threats to borrowers who fell behind on their payments.
The lawsuit alleges that CPS misled borrowers about the total cost of their loans and the amount of interest they would pay. The CFPB also claims that CPS charged borrowers for additional products and services without their consent, such as vehicle service contracts and GPS tracking devices.
Furthermore, the CFPB alleges that CPS engaged in illegal debt collection practices by threatening to repossess borrowers’ cars without the necessary legal authority, misrepresenting the consequences of not paying, and making false statements about the amount owed.
Impact on Borrowers
If you’re a borrower with a loan with CPS, you may wonder how the lawsuit will impact you. If the CFPB is successful in its lawsuit, CPS may be required to provide restitution to affected borrowers, pay civil penalties, and change its business practices.
However, it’s important to note that the lawsuit is still ongoing, and it may take several months or even years for a final judgment. In the meantime, if you have concerns about your CPS loan or have experienced any of the alleged unfair or deceptive practices, you may want to contact a consumer protection attorney or file a complaint with the CFPB.
What You Can Do
If you’re a CPS borrower and are concerned about the allegations made in the lawsuit, there are a few actions you can take:
- Review your loan documents: Take a closer look at your loan documents to ensure you understand the terms and conditions, interest rates, and fees associated with your loan.
- Check your credit report: Regularly checking your credit report can help you identify any errors or inaccuracies related to your CPS loan.
- File a complaint: If you believe that CPS has engaged in unfair or deceptive practices towards you, you can file a complaint with the CFPB or contact a consumer protection attorney.
Conclusion
The CFPB lawsuit against Consumer Portfolio Services highlights the importance of transparency and fairness in lending practices. If you’re a CPS borrower, it’s important to understand your loan terms and conditions and be aware of any potential issues or concerns. By staying informed and taking action, you can protect your rights as a consumer and ensure that lenders treat you fairly.
FAQs
What are Consumer Portfolio Services?
Consumer Portfolio Services is a subprime auto lender financing individuals with less-than-perfect credit scores.
What is the CFPB lawsuit against CPS about?
The CFPB has accused CPS of engaging in unfair and deceptive practices towards its borrowers, including failing to properly disclose interest rates and fees, misrepresenting the total cost of loans, and engaging in illegal debt collection practices.
What could be the potential impact of the lawsuit on CPS borrowers?
If the CFPB is successful in its lawsuit, CPS may be required to provide restitution to affected borrowers, pay civil penalties, and change its business practices.
What should CPS borrowers do if they have concerns about their loans?
CPS borrowers should review their loan documents, check their credit reports for accuracy, and file a complaint with the CFPB or contact a consumer protection attorney if they have concerns about unfair or deceptive practices.
How can consumers protect themselves from unfair lending practices?
Consumers can protect themselves from unfair lending practices by carefully reviewing loan documents, checking their credit reports regularly, and seeking legal advice if they have concerns about the terms and conditions of their loans. It’s also important to be aware of any potential red flags, such as high-interest rates or hidden fees, and to ask questions if anything seems unclear or suspicious.
Consumer Portfolio Services Lawsuit 2021
Consumer Portfolio Services lawsuit 2021 is a new settlement product that protects debt collectors from harassment and provides protection for the consumer. In previous years, debt collectors were able to harass consumers and lie to them about the debt owed. Thanks to the new Consumer Portfolio Services lawsuit, the Federal Trade Commission and the Justice Department have reviewed the laws governing the collection of debts. These laws were reviewed to make sure they are still effective and in compliance with the Fair Debt Collection Practices Act (FDCPA).
Consumer Portfolio Services Lawsuit
The FDCPA outlines how debt collectors can collect monies from consumers. The Consumer Portfolio Services lawsuit prevents debt collectors from harassing consumers. According to the lawsuit, once a collector gets a request to investigate a debt they have to investigate all reasonable methods to collect that debt. If those methods are deemed inappropriate, they must cease their harassing activities. They cannot collect based on what they consider to be harassment based on their past instances of harassing behavior.
According to the lawsuit, once a consumer sends a pre-litigation demand to a debt collector, the collector may not proceed with those requests anymore without first getting a court order. The Consumer Portfolio Services lawsuit helps protect the rights of the consumer. If a debt collector calls at least three times in seven days, the consumer can call the court to stop the phone harassment. The court can issue an order to the debt collectors that the calls are harassing.
According to the lawsuit, debt collectors can not make any further calls after receiving an order from the court.
This includes recorded phone messages. If a debt collector calls at least three times within seven days, the consumer can call the court to stop the phone harassment. The court can issue an order to the debt collectors that the calls are harassing. They cannot collect based on what they consider to be harassment based on their past instances of past conduct. The Consumer Portfolio Services lawsuit helps prevent the debt collectors from taking advantage of people and using this type of harassment.
In addition to stopping the prerecorded voice calls from being able to make further contact with the consumer, the lawsuit also helps prevent the debt collector from threatening the consumer with other things if the consumer does not receive the promised settlement. The prerecorded voice calls would include; harassing the consumer with phone calls, giving the consumer a divorce notice, telling the consumer that they will have to face county court, threatening to take over the consumer’s bank account, telling the consumer that the consumer will get no money or harassing others that the debt collector has told about the consumer. This is an unfair and unwarranted use of the power of the debt collector.
A PLLC ensures that the consumer is given a fair opportunity to challenge any harassment.
Any false, derogatory, and intimidating statements made by the debt collector will not be held against the company nor will it hold up in court. There is also a Fair Debt Collection Practices Act that protects consumers from debt collector harassment in various states including; Arizona, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Montana, Nevada, New Hampshire, Oregon, Pennsylvania, and Washington. If the PLLC wins the case against the debt collector the company must pay the PLLC a portion of any money awarded as well as damages. The damages that are awarded can be quite substantial for very unfair practices.
In many cases the PLLC has won major cases against companies such as; Wells Fargo & Co. which was found to have violated the FDCPA because they were sending harassing phone calls to the consumer, VISA, which was found to be charging upfront fees without ever providing the consumer with a credit card statement, and Chase Bank which was found to be charging huge fees for overdraft protection but did not allow the customer an adequate time to contact them to notify them of their overdraft problem. A PLLC attorney will work on your behalf to win the case for you. Some of these cases have been especially complex and may require a team of experts on each side of the case to bring the outcome that benefits you.
It is important to note that when you are fighting a consumer debt collection harassment case such as the ones mentioned above you must keep in mind that you will be representing yourself in court. This means that you must prepare yourself adequately to present your case in front of a judge. You should do your homework and gather information on your specific company to better understand what it is they are doing to get you to pay up. You must also learn about your rights as a consumer and know what you are legally allowed to do to fight back against a debt collector.
