Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Reiss F. Wilks

Subscribe to all posts by Reiss F. Wilks

Northern District of Illinois Rules for Debt Collector on Challenge to 1099-C Language

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 9, the Northern District of Illinois granted summary judgment to a debt collector who included 1099-C language in its collection letter.  The Court held the language was not false or deceptive, and that no reasonable person could read the language otherwise. In Moses v. LTD Financial Services I, Inc., et al., plaintiff Kirk… Continue Reading

Oregon District Court Enters Summary Judgment for Collector in Current Account Balance Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On August 2, a Federal Court in Oregon entered summary judgment in favor of a collection agency, ruling that a debt collector must disclose to the consumer that interest accrues on an account only when such interest actually does accrue. In Powers v. Capital Management Services, LP, plaintiff Diane Powers incurred a debt for $565.90,… Continue Reading

Debt Collector Prevails by Using Safe Harbor Language on Letters in Current Balance Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In dismissing a claim against a debt collector, brought under the Fair Debt Collection Practices Act, the U.S. District Court for the Eastern District of Wisconsin found that language used by the debt collector clearly informing the consumer that interest and fees would continue to accrue on the balance did not violate the FDCPA. In… Continue Reading

Oregon Legislature Passes New Law Regulating Collection Activities of Debt Buyers

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
Oregon has become the next in a line of states to pass legislation regulating debt buyers.  Oregon bill HB2356, initiated by Oregon Attorney General Ellen Rosenblum, passed both the House and Senate prior to legislative adjournment on July 7. The bill’s new debt buyer provisions purport to ensure protections for Oregon consumers, making it unlawful… Continue Reading

Court Denies Cross Motions for Summary Judgment in Current Balance Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 18, a federal judge in Missouri denied cross motions for summary judgment on the issue of whether a letter that did not inform a debtor that interest was, in fact, accruing violated the FDCPA. In Mygatt v. Medicredit, plaintiff Timberly Mygatt incurred medical debt that was being collected by Medicredit.  In order to… Continue Reading

Court Finds Lack of Attorney Meaningful Involvement Sufficient for Article III Standing

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In what appears to be never-ending litigation, a New Jersey Federal District Court upheld a plaintiff’s summary judgment motion on remand from the Third Circuit Court of Appeals, holding that the defendant law firm’s lack of attorney meaningful involvement created a particularized and concrete injury sufficient for the plaintiff to maintain standing to assert his… Continue Reading

Favorable Decision Rendered in “Current Account Balance” Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 18, the Southern District of New York rendered a long-awaited opinion on “current account balance” cases, holding that current balances referenced in collection letters, with no mention of accruing interest or fees, do not violate Section 1692e of the Fair Debt Collection Practices Act where no such interest or fees actually accrue.  The… Continue Reading

U.S. Supreme Court Scoffs at Kentucky Supreme Court’s Decision to Disregard Federal Arbitration Act

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 15, the United States Supreme Court reversed and remanded a state court decision that invalidated an arbitration agreement.  In a visceral 7-1 decision, the Supreme Court sent a clear message to Kentucky that the state cannot circumvent the Federal Arbitration Act (“FAA”) merely because the court does not like arbitration clauses. In Kindred… Continue Reading

Court Rejects Bona Fide Error Defense for Collector Who Failed to Maintain Policies and Procedures

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 8, an Arizona federal judge held that a defendant debt collector was not entitled to a “bona fide error” defense in a claim brought under the Fair Debt Collection Practices Act because the collector failed to show it had either a policy or procedure in force to address the specific error in the… Continue Reading

Favorable Spokeo Decision Handed Down in Eastern District of Virginia

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On April 17, the Eastern District of Virginia dismissed sua sponte a suit against a collection agency alleging that the debt collector failed to properly update the plaintiff consumer’s credit report, thereby violating the Fair Debt Collection Practices Act.  Relying on the U.S. Supreme Court’s decision in Spokeo, Inc. v. Robins, the Court concluded that… Continue Reading

CFPB Cracks Down on Collection Firm for Alleged Misrepresentation of Attorney Involvement

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The Consumer Financial Protection Bureau is continuing its pursuit of third-party collection law firms it believes misrepresent to consumers the level of attorney involvement in their collection practices. On April 17, the CFPB filed suit in the Northern District of Ohio against Weltman, Weinberg & Reis Co., L.P.A., for allegedly misrepresenting in millions of collections… Continue Reading