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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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

High Call Volume Not Necessarily a Violation of FDCPA or Rosenthal Act

Posted in ALL CFS Blog Entries, Auto Finance, Credit Reporting & Data Brokers, Debt Buyers & Collectors
In Hinderstein v. Advanced Call Ctr. Techs., No. 15-100017 (C.D. Cal. Feb. 27, 2017), a case alleging violation of the federal Fair Debt Collection Practices Act and California’s Rosenthal Fair Debt Collection Practices Act before the United States District Court for the Central District of California, the Court found that a relatively high call volume… Continue Reading

CFPB Sues Law Firms for Debt Relief Fees Disguised as Bankruptcy Fees

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The Consumer Financial Protection Bureau recently sued three law firms in the United States District Court for the Central District of California for collecting advance fees from consumers seeking debt relief.  CFPB Director Richard Cordray stated that “[t]he defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees.”… Continue Reading

DOJ Issues New Guidance on Corporate Compliance Programs

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Mortgage Lenders & Servicers
On February 8, 2017, the Criminal Division of the U.S. Department of Justice quietly issued new guidance on corporate compliance programs for companies implicated in misconduct. Specifically, the Criminal Division posted a set of “important topics and sample questions that the Fraud Section has frequently found relevant in evaluating a corporate compliance program” to the… Continue Reading

Debt Collector Granted Summary Judgment in FDCPA Case

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
Plaintiff Yvette Palmer filed a Fair Debt Collection Practices Act case against defendant debt collector, Enhanced Recovery Company (“ERC”), for ERC’s alleged concealment of its identity as a debt collector while attempting to collect a debt and to obtain information to collect debt.  ERC filed a motion for summary judgment, arguing that Palmer’s claims are… Continue Reading

FTC Issues Letter to CFPB on 2016 Debt Collection Efforts

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On February 13, the Federal Trade Commission sent a letter to Consumer Financial Protection Bureau director Richard Cordray summarizing its 2016 debt collection activities for inclusion in the CFPB’s annual report to Congress on the Fair Debt Collection Practices Act. In its letter, the FTC describes “its aggressive law enforcement activities against abusive, unfair, and… Continue Reading

Validation Notice Including Request for Payment and Identifying Creditor by Acronym Does Not Violate FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the Southern District of California recently dismissed all of a plaintiff’s claims in the putative class action Matthew Stuppiello v. Southwest Credit Systems, L.P.   The Court held that a validation notice does not violate the Fair Debt Collection Practices Act by including a request for payment “and explain[ing] that… Continue Reading

CFPB Takes Action Against Law Firm Debt Collectors for Lack of Meaningful Involvement

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc., Works & Lentz of Tulsa, Inc., two medical debt collection law firms, and their president, Harry A. Lentz, Jr., for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation… Continue Reading

Join Us on February 22 for a Complimentary Webinar on Bankruptcy and Debt Collection – Latest Trends and Developments

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors
Microphone on Stage SizedDebt collection is becoming an increasingly regulated industry and the CFPB has signaled its intention to further regulate the industry by extending regulations to first party creditors.  Please join Troutman Sanders Partner David N. Anthony and Of Counsel Andrew B. Buxbaum for a complimentary webinar for a discussion of debt collection issues including how debt… Continue Reading

West Virginia Federal Court First Reconsiders, Then Restricts, Vicarious Liability for TCPA Claims in MDL

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the Northern District of West Virginia recently reversed its position on vicarious liability under the Telephone Consumer Protection Act, granting summary judgment for defendants UTC Fire and Security Americas Corporation, Inc. and Honeywell International, Inc. in multi-district litigation.  In doing so, the court joined the growing list of federal… Continue Reading

Student Loan Servicer Agrees to $17.5M TCPA Class Action Settlement

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
On January 26, the United States District Court for the Southern District of Indiana granted preliminary approval of a $17.5 million Telephone Consumer Protection Act class action against Navient Solutions Inc.  According to the original Complaint, plaintiff Randy Johnson received multiple telephone calls on his cell phone from Navient, a student loan servicing and collection… Continue Reading

Supreme Court Focuses on Intersection of FDCPA and Bankruptcy Code

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On January 17, 2017, the United States Supreme Court heard oral argument in the case of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that had been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred debt… Continue Reading

Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
Supreme Court Hearing Paperwork SizedOn January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a financing company that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al. v. Santander… Continue Reading

Telecommunications Service Provider Does Not Have Standing to Sue Under TCPA

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
In Telephone Science Corporation v. Asset Recovery Solutions, the United States District Court for the Northern District of Illinois recently held that Telephone Science Corporation (“TSC”), a telecommunications company, did not have standing to pursue its Telephone Consumer Protection Act claims against Asset Recovery Solutions, LLC (“ARS”), a debt collection company. TSC operates a service… Continue Reading

CFPB Monthly Snapshot Focused on Debt Collection

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
In its latest monthly snapshot report, the Consumer Financial Protection Bureau reported that it has handled approximately 285,800 debt collection complaints since July 21, 2011, making debt collection the most-complained-about product.  Within the debt collection context, consumers’ most common complaint concerned attempts to collect on a debt that the consumer says is not owed.  According… Continue Reading

Arkansas AG Files Suit Against Credit Repair Organization

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On December 20, Arkansas Attorney General Leslie Rutledge filed a consumer protection lawsuit in the United States District Court for the Eastern District of Arkansas against Florida-based Capital Credit Solutions Inc. and Willie J. McKenzie for alleged violations of the Federal Credit Repair Organization Act, the Arkansas Deceptive Trade Practices Act, and the Arkansas Credit… Continue Reading

Federal Communications Commission Chairman Tom Wheeler Announces Resignation on Dec. 15, 2016, Signaling Potential Reform to the Telephone Consumer Protect Act (TCPA)

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
Federal Communications Commission Chairman Tom Wheeler said Thursday that he’ll step down from his post on Jan. 20, 2017. Wheeler was appointed by President Obama three years ago to lead the FCC. Prior to his October 2013 confirmation as the 31st chairman of the FCC, Wheeler served as managing director at venture capital firm Core… Continue Reading

More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Featured Posts
RobotThe United States District Court for the District of New Jersey recently held in Samuel Chisholm v. AFNI, Inc. that a debt collector “could not reasonably be found to violate” the Fair Debt Collection Practices Act by calling a consumer 18 times on his cell phone over the course of 13 days.  All calls were… Continue Reading

Requesting Attorneys’ Fees in Court Summons Does Not Misrepresent Amount of Debt

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The U.S. District Court for the Eastern District of Tennessee recently held that a debt collector’s civil court summons requesting “reasonable attorney fees” does not violate the Fair Debt Collection Practices Act.  In Wilma Jones et al. v. Hospital of Morristown (Case No. 2:16cv13, 2016 LEXIS 153869 (E.D. Tenn. Oct. 6, 2016)), the plaintiff argued… Continue Reading

FTC Files Lawsuit Against Bogus Debt Portfolio Seller

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On December 16, the Federal Trade Commission filed suit in Kansas federal court against Joel Tucker and the business entities he purportedly controls, alleging that Tucker marketed, distributed, and sold counterfeit debt portfolios that purport to identify consumers who have defaulted on payday loans.  Specifically, Tucker and his companies allegedly sold spreadsheets to debt collectors… Continue Reading

CFPB Signals Intent to Move Forward With System Allowing Consumers to Rate Companies’ Responses to Complaints

Posted in Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors
According to a Federal Register notice published on November 29, the Consumer Financial Protection Bureau is soliciting further comments on its proposal to provide consumers with the option to fill out a short survey on their satisfaction with companies’ resolution of consumer complaints.  In the notice, the CFPB described the proposal: The purpose of this… Continue Reading

Attorney Collecting Debt For a Debt Collector May Not Rely on Client’s Validation Notice

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
A district court in the Seventh Circuit has denied a motion to dismiss filed by a collection attorney acting on behalf of a debt collector client, holding that the plaintiff in the case could pursue her claim based on the attorney’s failure to provide his own § 1692g validation notice in an initial communication, even though… Continue Reading