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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House Thwarts CFPB’s Arbitration Rule

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On July 25, the United States House of Representatives voted to repeal the Consumer Financial Protection Bureau’s latest arbitration rule.   As we reported previously, the CFPB issued a final rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the CFPB regarding any efforts… Continue Reading

Seventh Circuit Holds Rule 67 Tender of Full Relief Does Not Moot TCPA Class Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
In Campbell-Ewald Co. v. Gomez, 136 S.Ct. 663 (2016), the Supreme Court held that an unaccepted offer of full relief under Rule 68 to a named plaintiff was insufficient to moot class claims.  However, the Supreme Court expressly left open the possibility of a “different result if a defendant deposits the full amount of the… Continue Reading

Join Us for the Credit and Collection News Annual Creditor Grantor Consortium in Washington, DC

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
We are pleased to announce that Troutman Sanders partners Ashley Taylor and David Anthony will be featured speakers at the upcoming Credit and Collections News (CCN) Annual Creditor Grantor Summit.  The conference will be held August 14-16, 2017 at the Ritz-Carlton in Georgetown, Washington, DC. Ashley will speak on a panel entitled “Working with Your Attorney… Continue Reading

Join Us on August 17 for a Clear Law Institute Webinar “Game of Phones: Current Trends in Collection Calls under the TCPA, FDCPA, and other Regulatory Frameworks”

Posted in ALL CFS Blog Entries, CFS Events, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
Join Troutman Sanders attorneys James Trefil and Jonathan Floyd for a webinar hosted by the Clear Law Institute on August 17 from 1:00 – 2:15 p.m. In this webinar, you will learn to navigate the various layers of rules and regulations that govern the use of debt collection telephone calls. This presentation will focus on… Continue Reading

Fifth Circuit Affirms FDCPA Violation Where Debt Collector Failed to Mark Account as Disputed

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The Fifth Circuit Court of Appeals recently affirmed summary judgment on a Fair Debt Collection Practices Act claim in favor of a debtor, finding that the debt collector violated the FDCPA when it failed to mark the debtor’s account as “disputed” when the collector reported the account to the bureaus. Plaintiff Robert Sayles sued Advanced… 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

Florida District Court Dismisses Consumer’s “Current Balance” Claim

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On June 30, the U.S. District Court for the Southern District of Florida dismissed a consumer’s Fair Debt Collection Practices Act “current balance” claim. Plaintiff Heath Bryant brought an FDCPA claim against defendant Aargon Collection Agency, Inc., alleging Aargon’s collection letter was deceptive because it falsely implied that Bryant’s account balance would increase due to… 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

IRS Debt Collector Engages in Unscrupulous Collection Practices

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On June 23, several United States senators, led by Sen. Elizabeth Warren (D-Mass.), accused a debt collector of relying on unscrupulous collection practices while collecting on behalf of the Internal Revenue Service. The IRS is owed approximately $138 billion in back taxes.  To reduce the backlog of taxes owed and to supplement the agency’s internal… Continue Reading

New Federal Appeals Court Ruling Provides Ray of Sunshine for TCPA Defendants: Contractual Consent to Receive Calls Cannot be Revoked

Posted in ALL CFS Blog Entries, Auto Finance, Debt Buyers & Collectors, Featured Posts
Lawsuits under the Telephone Consumer Protection Act (TCPA) have become the second most common form of consumer protection claim brought in federal court. Many of these lawsuits are premised on the idea that a consumer has the absolute right to revoke previously given consent to receive calls. A calling party could be subject to statutory… Continue Reading

New Consumer Finance Lawsuits Increase in May 2017, On Pace with 2016

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
New data from WebRecon reflects an increase in the number of consumer finance lawsuits filed during the month of May.  After a sharp decline in the number of Fair Debt Collection Practices Act, Telephone Consumer Protection Act, and Fair Credit Reporting Act lawsuits filed during the month of April, May saw a roughly 30% increase… Continue Reading

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
On 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
On 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
On 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
In 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

FTC Obtains Judgments Against Defendants Who Initiated Billions of Illegal Robocalls

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
On May 31, a California Federal District Court approved default judgments against ten defendants for violations of the Federal Trade Commission Act, 15 U.S.C.  § 45 et seq., (“FTC Act”), and Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. § 6105 et seq., (“Telemarketing Act”).  The case is Federal Trade Commission v. Aaron… 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
On 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