On April 6, the Consumer Financial Protection Bureau (CFPB) issued a consent order against California-based debt collector Yorba Capital Management LLC and its sole owner Daniel Portilla, Jr. for violating the Consumer Financial Protection Act and the Fair Debt Collection Practices Act. The consent order permanently bans Yorba and Portilla from the debt collection business and orders restitution and penalties to resolve the findings of the CFPB. The consent order states Yorba and Portilla allegedly harassed consumers from January 2017 until April 2020 by threatening legal action. Specifically, it states Yorba attempted to collect debts through mailing letters titled “LITIGATION NOTICE” that contained a case number and caption, giving the incorrect impression that Yorba had already filed a lawsuit. The letters stated: “You are hereby notified that a recommendation to file a lawsuit to collect this debt may be the next step resulting in a judgment entered against you,” and “to avoid any further legal action, you need to contact our office within 10 days of this notice; otherwise, we will assume you do not intend to pay this debt and litigation will be commenced immediately.” The letters further warned that Yorba had “several methods to collect a judgment” once a judgment was entered, including wage garnishment, levy on bank accounts, placement of liens on real or personal property, and suspension of the consumer’s driver’s license. If consumers contacted Yorba, they were provided scarce information regarding their debts before being verbally threatened with a lawsuit unless the debt was paid.