Federal Regulator Sues foreign Corporation for Illegal Debt Collection

Federal Regulator Sues foreign Corporation for Illegal Debt Collection
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August 4, 2015

The Consumer Financial Protection Bureau (CFPB) is suing a foreign corporation for collecting money consumers didn't owe.

The CFPB alleges that NDG Enterprise, a complex web of commonly controlled companies, for illegally collecting loan amounts and fees that were void or that consumer has no obligations to repay. NDG Enterprises also allegedly threatened consumers with lawsuits and imprisonment.

Under state law, consumers had no obligation to repay the loans in question, but according to the complaint, NDG Enterprise told consumers that non-payment of debt would result in a lawsuit, arrest, imprisonment, or wage garnishment even though it had no intention of following through with those threats. The company also lacked the legal authority to take such actions.

The complaint also claims that the company included illegal clauses in its loan agreements that allowed NDG Enterprise to take payments from consumers' paychecks.

A copy of the complaint filed in federal district court is available here.