CFPB v. Universal Debt & Payment Solutions, LLC, et al.
The CFPB took enforcement action against Universal Debt & Payment Solutions, LLC, et al. The CFPB alleged Universal Debt Solutions, LLC violated the Consumer Financial Protection Act and the Fair Debt Collection Practices Act by making false, deceptive, and misleading threats and allegations when collecting on defaulted debt.
Universal Debt Solutions was a limited liability companies initiated by a set of individuals that the CFPB accused of working together in a fraudulent scheme to collect debts from consumers that did not exist or that Defendants were not entitled to collect. On March 21, 2019 Summary Judgement was filed finding they engaged in deceptive acts or practices that violated the Consumer Financial Protection Act by failing to meaningfully disclose their identities to consumers during collection calls, along with their use of threats and making of false allegations in their debt collection practices.
Eligible consumers have been identified in the available data from the defendant, obtained by the CFPB as part of their enforcement action. Consumers who paid the defendant any money between March 1, 2011 and March 31, 2015. Checks for identified consumers will be mailed in late May, 2025.
Victim compensation
The CFPB has contracted Rust Consulting INC to administer payments for this case and answer consumers' questions. For questions related to this case, please:
- Call: 1-866-290-0159
- Email: UDS_info@rustcfpbconsumerprotection.org
- Write: PO Box 2561, Faribault, MN 55021-9561
Important dates
May 30, 2025 – Ongoing: Distribution
More information about the case
Read the court orders:
- Stipulated final judgment and order - Khan and S Payment and Processing Solutions, LLC
- Stipulated final judgment and order - Bagga
- Stipulated final judgment and order - Pratcher
- Final judgment and order – Brown and WNY Account Solutions, LLC
- Default judgment and final order – Credit & Credit Recovery, Credit Power, Universal Debt & Payment Solutions, Universal Debt Solutions, and WNY Solutions
- U.S. Court of Appeals Opinion