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Phoenix Financial Services, LLC

On June 8, 2023, the Consumer Financial Protection Bureau (Bureau) issued an order against Phoenix Financial Services, LLC (Phoenix), an Indiana-based debt collector that collects primarily past-due medical debts and furnishes information about consumers to consumer reporting agencies (CRAs). The Bureau found that Phoenix violated the Fair Credit Reporting Act and its implementing Regulation V by failing to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information it furnishes to CRAs; failing to conduct reasonable investigations of consumer disputes about information Phoenix furnished to CRAs; and failing to report the results of direct dispute investigations to consumers. The Bureau also found that Phoenix violated the Fair Debt Collection Practices Act by sending debt collection letters to consumers before providing the consumer a verification of the debt when Phoenix had received a written dispute from the consumer within 30 days of the consumer’s receipt of a debt validation notice; and by misrepresenting to consumers that they owed alleged debts in certain circumstances when Phoenix lacked a reasonable basis to make those representations. The order requires Phoenix to provide redress to affected consumers by refunding all amounts paid to Phoenix on an unverified debt between January 1, 2017 and the date of the order by consumers who received an unlawful debt collection letter from Phoenix after disputing the validity of the alleged debt. The order also requires Phoenix to abide by certain conduct provisions to prevent it from engaging in the violations found by the Bureau and to pay a $1.675 million civil money penalty.

Related documents

Consent Order


Press release

CFPB Orders Phoenix Financial Services to Pay $1.675 Million Penalty for Unlawful Debt Collection and Credit Reporting Practices

Case Docket

View case filings