CFPB Takes Action Against Predatory Factoring Company

Submitted by Abbey Hudson on Fri, 12/02/2016 - 19:56

Last week the Consumer Financial Protection Bureau (CFPB) announced that they will be filing a complaint against Access Funding, LLC. The complaint alleges that the factoring company acted in an illegal manner while trying to get structured settlement recipients to sell their payments for an immediate cash payout.

The release describes the claims in the following way: “Access Funding steered victims to receive “independent advice” from a sham advisor, an attorney who was actually paid directly by the company and indicated to consumers that the transactions required little scrutiny. In its suit, the CFPB seeks to put an end to the company’s unlawful practices, obtain relief for the harmed consumers, and impose penalties.”

NSSTA has worked for nearly 20 years to pass Structured Settlement Protection Acts in 49 states.  Over the past 14 months we have worked effectively in several states, including Maryland, Florida, Illinois and Virginia to strengthen Structured Settlement Protection Acts that were vulnerable to abuse.

Actions like the one being taken by the CFPB go a long way in raising awareness to prevent injury victims and their families from being taken advantage of in the future. While NSSTA is pleased to see that the CFPB is taking legal action against companies that violate the terms of the Structured Settlement Protection Acts, this is just the first step in curbing unethical behavior that takes advantage of claimants and their families. We hope to see more actions like this in the future.

You can read the full press release and CFPB’s complaint on the bureau’s website. You can also read the Washington Post’s coverage of the CFPB filing here:

Washington Post - Federal agency accuses settlement-purchasing company of violating Consumer Protection Act

Washington Post - A scam to rip off the cognitively impaired deserves condemnation in court