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FCO Holding, Inc., Fair Collections & Outsourcing, Inc., Fair Collections & Outsourcing of New England, Inc., FCO Worldwide, Inc. and Michael E. Sobota

On September 25, 2019, the Consumer Financial Protection Bureau filed a complaint in federal court in the District of Maryland against Maryland-based debt collectors FCO Holding, Inc. and its subsidiaries, Fair Collections & Outsourcing, Inc., Fair Collections & Outsourcing of New England, Inc., and FCO Worldwide, Inc. Also named as a defendant in the Bureau’s lawsuit is Michael E. Sobota, the chief executive officer, president, director, and owner of FCO Holding, Inc.

The Bureau alleges that FCO violated the Fair Credit Reporting Act and Regulation V by failing to maintain reasonable policies and procedures regarding the accuracy and integrity of the information it furnishes, including the handling of consumer disputes, failing to conduct reasonable investigations of certain consumer disputes, and failing to cease furnishing information that was alleged to have been the result of identity theft before it made any determination of whether the information was accurate. The Bureau also alleges that FCO and Michael Sobota violated the Fair Debt Collection Practices Act when FCO represented that consumers owed certain debts when, in fact, FCO did not have a reasonable basis to assert that the consumers owed those debts. 

The Bureau’s complaint seeks an injunction against FCO and Sobota, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of a civil money penalty.

Related documents

Complaint

Press release

Consumer Financial Protection Bureau Files Suit Against Fair Collections & Outsourcing and Michael E. Sobota