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

Debt Buyers & Collectors

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Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
United States Supreme CourtOn June 12, 2017, the United States Supreme Court rendered a unanimous decision holding that a company collecting debts that it purchased for its own account does not meet the statutory definition of “debt collector” under the Fair Debt Collection Practices Act (FDCPA) because the debts are no longer “owed or due another.” We previously… Continue Reading

Join Us for a Complimentary Webinar: A Review of the Supreme Court’s Decision in Henson v. Santander

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors
Microphone on Stage SizedOn Wednesday, June 21, 2017, from 4:00 – 4:30 p.m. ET, Troutman Sanders attorneys David N. Anthony and Ethan G. Ostroff will explore the Supreme Court’s unanimous decision issued on June 12, 2017 and how it may affect companies in the collection industry. This decision resolves a Circuit split on the narrow issue of whether an entity… Continue Reading

WV Appellate Court Finds High Volume of Unanswered Calls Alone Does Not Violate § 46A-2-125(d)

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
Golden Seal SizedOn June 12, the Supreme Court of Appeals of West Virginia reversed a Circuit Court ruling and stated that a high volume of telephone calls from a debt collector to a consumer, absent any evidence the debt collector placed the calls with an intent to annoy, abuse, oppress, or threaten the consumer, is not sufficient… Continue Reading

CFPB Updates Its Planned Overhaul of Acceptable Debt Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts, State Attorneys General, CFPB, & FTC
CFPB Rolling BannerIn July of 2016, the Consumer Financial Protection Bureau released an outline of new rules targeting third-party debt-collection operations. The new rules targeted various areas including: Debt validation, Limits on Contact, Consumer Disputes, and Deceased Consumers. At the time, the CFPB stated it planned to release rules relevant to first-party creditors at a later date. However,… Continue Reading

Insurance Company Settles Nationwide TCPA Class Action for $4.25M

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 31, plaintiffs Jim Youngman and Robert Allen filed a motion for preliminary approval of class action settlement for their pending Telephone Consumer Protection Act action against Florida-based insurance company A&B Insurance and Financial Inc.  The case is Youngman v. A&B Insurance and Financial, Inc., No. 6:16-cv-01478-CEM-GJK (M.D. Fla. May 18, 2017).   The action,… Continue Reading

Credit Score Attached to Collection Action Complaint Violates the FCRA and FDCPA, Contends New Putative Class Action Complaint

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
According to a new class action Complaint filed in the United States District Court for the Western District of Wisconsin, Discover Bank (“Discover”) and Kohn Law Firm S.C. (“Kohn”) violated the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) by publishing consumers’ credit scores as part of state court collection actions… Continue Reading

Join Us at the 2017 ACA International Convention & Expo in Seattle July 16-18

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors
We are pleased to announce that Troutman Sanders partners David Anthony and Chad Fuller will be a featured speaker at the 2017 ACA International Convention & Expo in Seattle at the Washington State Convention Center on July 16-18. David will discuss “Debt Collection Litigation Management Best Practices,” where he will focus on litigation management best practices for… Continue Reading

TCPA Is Not Dead Yet – Court Trebles Eight Figure TCPA Award While World Awaits ACA Decision

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Mortgage Lenders & Servicers
While the world eagerly awaits the D.C. Circuit’s forthcoming ruling on the proper interpretation of the Telephone Consumer Protection Act (TCPA), a recent federal court ruling imposing tens of millions of dollars of liability is a reminder of the risks associated with outbound calling activities and of the stakes at play in the ACA International… 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

Supreme Court Rules That Filing a Proof of Claim on a Time-Barred Debt Does Not Violate the FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
United States Supreme CourtOn May 15, 2017, the United States Supreme Court ruled that the Eleventh Circuit erred when it found a debt buyer liable under the Fair Debt Collection Practices Act for filing proofs of claim in bankruptcy on debts that had become time-barred. A copy of the Court’s opinion can be found here. Background In Johnson… 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

Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors, Featured Posts
Credit report with scoreIn one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the viability… 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

U.S. Supreme Court Rejects “Meaningful Attorney Involvement” Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
GavelThe United States Supreme Court declined a petition for writ of certiorari by a consumer regarding a collection letter on law firm letterhead with attorney signatures.  The ruling of the United States Court of Appeals for the District of Columbia in Tawanda Jones v. David Sean Dufek, Sr. was left in place, holding that a… Continue Reading

New WVCCPA Amendments are Enacted by Governor Justice

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors, Mortgage Lenders & Servicers
Senate Bill No. 563 amends several provisions of the West Virginia Consumer Credit Protection Act (WVCCPA). The Bill passed the West Virginia Senate and the House of Delegates with high approval margins, and was signed into law by Governor Jim Justice on April 21, 2017. These amendments to the WVCCPA will have an impact on… Continue Reading

Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
Decorative Scales of Justice in the CourtroomOn April 18, the United States Supreme Court heard long-awaited oral arguments in a case that addresses the fundamental issue of the definition of a “debt collector” under the Fair Debt Collection Practices Act.  The Supreme Court’s decision will resolve an existing Circuit split on whether an entity that purchases defaulted debts and then attempts… 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

District Court Denies Motion to Dismiss Over Allegedly Misleading Statement About Time-Barred Debt

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On March 31, the U.S. District Court for the Southern District of Indiana denied a motion to dismiss where a collection letter sent to the plaintiff stated, “[b]ecause of the age of your debt, our client will not sue you for it,” when in fact there was no possibility of suing on the debt because… Continue Reading

District of New Jersey Tosses FDCPA Putative Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the District of New Jersey recently dismissed a putative Fair Debt Collection Practices Act class action against defendant debt collector, Retrieval-Masters Creditors Bureau, Inc. (“RMCB”), over allegedly violative letters dealing with unpaid E-ZPass tolls.  A copy of the opinion can be found here. As background, plaintiff Thomas E. St.… Continue Reading

Ninth Circuit Reverses District Court’s Dismissal of Putative TCPA Class Action

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
The Ninth Circuit recently reversed a lower court’s dismissal of a Telephone Consumer Protection Act (TCPA) putative class action against Adir International, LLC (“Adir”), holding that Plaintiff Ned Flores (“Flores”) sufficiently alleged that Adir used an automatic telephone dialing system (“ATDS”) to send text messages to Flores. According to the First Amended Complaint, Adir is… Continue Reading

TCPA Defendant Settles Class Claims on Individual Basis Following Counterclaims for Harassment and Racketeering

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
BrandRep, the defendant in a Telephone Consumer Protection Act putative class action lawsuit pending in the United States District Court for the Central District of California, recently settled putative nationwide class claims on an individual basis, resulting in dismissal of the case.  The settlement came on the heels of BrandRep’s assertion of counterclaims that put… Continue Reading

Offshore Call Center Bill Reintroduced in Congress

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
Congress recently reintroduced a bill titled United States Call Center Worker and Consumer Protection Act of 2016, which attempts to deter companies from employing offshore call collection centers.   The bill would require a business that employs 50 or more call center employees to notify the Department of Labor at least 120 days before relocating such… Continue Reading

TCPA Class Action Dismissed Based on Lack of Vicarious Liability

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
The United States District Court for the Southern District of California recently granted summary judgment in favor of defendant United Student Aid Funds, Inc. (“USAF”) in a Telephone Consumer Protection Act class action, holding that the plaintiff had failed to prove that USAF is vicariously liable for the acts of its third party servicers.  In… Continue Reading