Government Actions
Agency: Consumer Financial Protection Bureau
Description:
On September 30, 2015, the Consumer Financial Protection Bureau, ("CFPB") filed a Consent Order against Westlake Services, LLC ("Westlake"), dba, Westlake Financial Services, LLC and Wilshire Consumer Credit, LLC ("Wilshire"), dba, Wilshire Commercial Capital, LLC for allegations they violated the Fair Debt Collection Practices Act, the Truth in Lending Act, and the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act by performing illegal debt collection tactics. The CFPB found that Westlake and Wilshire deceived consumers by calling under false pretenses and using phony caller ID information, falsely threatened to refer borrowers for investigation or criminal prosecution, and illegally disclosed information about debts to borrowers' employers, friends, and family. The Action further charges that Westlake and Wilshire violated consumer financial laws in their advertising, customer relations, and account servicing practices. Specifically, the CFPB found Westlake and Wilshire deceived borrowers about the effects of due date changes or extensions to loan terms and hid the true cost of credit.
Under the terms of the CFPB Order, Westlake and Wilshire are required to end their deceptive debt collection practices by complying with the Fair Debt Collection Practices Act, the Truth in Lending Act, and the relevant sections of the Dodd-Frank Act. The Action Orders Westlake and Wilshire to stop illegally disclosing borrowers loan information to third parties, end unlawful advertisements, give consumers truthful information about their loans, pay a $4.25 million civil penalty and provide approximately $44.1 million in compensation to victims.
Date of Action: 9/30/2015