CFPB Bans Daniel Portillo Over False Lawsuit Notices

The CFPB issued a consent order against Yorba Capital Management, LLC (Yorba), a third-party debt collection company, headquartered in Anaheim California, and its former sole owner and managing member, Daniel Portilla, Jr. (Portilla). The Bureau found that from January 2017 until at least April 2020, Yorba and Portilla engaged in deceptive acts or practices in violation of the Consumer Financial Protection Act of 2010 and that Yorba violated the Fair Debt Collection Practices Act by mailing notices to consumers in an attempt to collect debt that falsely represented that consumers would be sued and that there would be further legal action if the consumers did not pay the debt amount on the notices. The consent order permanently bans both Yorba and Portilla from participating, or assisting others, in activities related to the collection of a consumer debt and orders them to pay $860,000 in redress. The ordered redress amount is suspended in full based on Yorba’s and Portilla’s demonstrated inability to pay upon their payment of a $2,200 civil money penalty to the Bureau.