The Consumer Financial Protection Bureau announced a settlement with a trio of companies accused of engaging in deceptive acts and practices in violation of the Consumer Financial Protection Act and the Fair Credit Reporting Act. The companies will pay a combined $35,000 in civil money penalties.
The companies — Harbour Portfolio Advisors, National Asset Advisors, and National Asset Mortgage — worked together in buying foreclosed properties, selling and financing them, and then servicing the mortgages. Harbor targeted individuals who were unable to obtain traditional financing and offered them financing through contracts for deed. National Asset Advisors and National Asset Mortgage — which serviced the loans — were accused of telling individuals who noticed errors on their credit reports that the disputes must be filed with a credit reporting agency instead of taking the dispute themselves. National Asset Mortgage was also found to lack “adequate” procedures to protect the accuracy and integrity of information that was submitted to credit reporting agencies.
Harbour Portfolio Advisors will pay a $25,000 fine and National Asset Advisors and National Asset Mortgage will jointly pay $10,000 to settle the allegations. The companies also agree to not misrepresent how consumers can resolve errors in their credit reports or any other material fact regarding their consumer report. National Asset Mortgage also agreed to establish and implement procedures regarding the accuracy and the integrity of information that it furnishes to credit reporting agencies.
The alleged infractions took place between 2012 and 2016. National Asset Advisors went out of business in 2018.
A copy of the consent order can be accessed by clicking here.