CFPB Takes Action Against Debt Collector and Owner for Falsely Threatening Consumers with Legal Action

Consumer Financial Protection Bureau (CFPB)

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) this week issued a consent order against a debt collector and its owner for harassing thousands of consumers, falsely threatening them with legal action.

The CFPB found that Yorba Capital Management, LLC (Yorba) and its former owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act of 2010 (CFPA) and that Yorba violated the Fair Debt Collection Practices Act (FDCPA). The consent order permanently bans both Yorba and Portilla from the debt collection business, and orders restitution and penalties.

“Debt collectors often run afoul of consumer law when they coerce consumers to pay them by exaggerating the consequences of not paying,” said CFPB Acting Director David Uejio. “[This week’s] action is a reminder that debt collectors must stick to the truth when communicating with consumers.”

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This is the CFPB’s latest action against collectors that have used false threats to collect debts. In 2019, the CFPB – in partnership with the New York Attorney General – filed a consent judgment that barred Douglas MacKinnon, Mark Gray and their companies Northern Resolution Group LLC and Delray Capital LLC from the collections industry.

The CFPB and New York Attorney General sued these defendants for numerous collections violations, including falsely threatening consumers with legal action that the collectors had no intention of taking, falsely accusing consumers of committing crimes, and falsely claiming that consumers would be arrested to pressure them to pay debts.

In 2018, the CFPB entered a consent order that barred National Credit Adjusters, LLC and its former CEO, Bradley Hochstein from the collections industry for FDCPA violations, including threatening consumers and their family members with lawsuits, visits from process servers, and arrest when NCA and Hochstein had no authority or intention to take those actions.

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Read the consent order here.

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