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Consumer Fin. Prot. Bureau v. Universal Debt & Payment Sols., LLC

Consumer Fin. Prot. Bureau v. Universal Debt & Payment Sols., LLC

United States District Court for the Northern District of Georgia, Atlanta Division

March 21, 2019, Decided; March 21, 2019, Filed

CIVIL ACTION NO. 1:15-CV-0859-RWS

Opinion

ORDER

The Consumer Financial Protection Bureau ("CFPB") brings this suit against numerous individuals and entities in connection with a massive debt-collection scheme. According to the CFPB, several individuals created limited liability companies in Georgia and New York to perpetrate a debt-collection scheme targeting millions of consumers. All said, through that operation, they collected more than $5 million in false or inflated debts.

After nearly four years, the case is now at summary judgment. Currently before the Court are Defendants Sumant Khan and S Payment Processing Solutions, LLC's Motion for Summary Judgment [450]; the CFPB's Motion for Summary Judgment [451]; and Defendant Tasha Pratcher's Motion for Permission to File an Answer Out of Time to the CFPB's [*3]  Motion [547]. After reviewing the record, the Court enters the following Order.

Background1

I. Factual Background

The Defendants in this case are a set of individuals and limited liability companies that the CFPB accuses of working together in a fraudulent scheme to collect debts from consumers that did not exist or that Defendants were not entitled to collect. Defendants are best organized into two groups: (1) the LLC Defendants and (2) the Individual Defendants.

A. The LLC Defendants

The LLC Defendants include: (1) Universal Debt & Payment Solutions ("UDPS"); (2) Universal Debt Solutions; (3) WNY Account Solutions and WNY Solutions Group, LLC ; (4) Check & Credit Recovery, LLC; (5) Credit Power, LLC; and (6) S Payment Processing & Solutions, LLC ("S Payment"). UDPS, Check & Credit Recovery, Credit Power, and S Payment are all Georgia companies. Meanwhile, Universal Debt Solutions, WNY Solutions Group, and WNY Account Solutions were based out of New York.

According to the CFPB, each of the LLC Defendants played a part in the debt-collection scheme. At least three of them—UDPS, WNY Account Solutions, and Credit Power2—did so from an office located at 1401 Peachtree Street in Atlanta.

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2019 U.S. Dist. LEXIS 46492 *; 2019 WL 1295004

CONSUMER FINANCIAL PROTECTION BUREAU, Plaintiff, v. UNIVERSAL DEBT & PAYMENT SOLUTIONS, LLC, et al., Defendants.

Prior History: Consumer Fin. Prot. Bureau v. Universal Debt & Payment Solutions, 2015 U.S. Dist. LEXIS 185685 (N.D. Ga., Sept. 1, 2015)

CORE TERMS

consumers, collection, processing, debt collector, debt-collection, deceptive, substantial assistance, practices, merchant, summary judgment, MESSAGE, unfair, debt collection, press, Defendants', summary judgment motion, declarations, litigator, Connect, contacting, undisputed, recording, common enterprise, bank account, last name, violations, entitled to summary judgment, covered person, first name, opened