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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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, Featured Posts
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

$11 Million Judgment Entered Against Debt Collectors in FTC Action

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
The United States District Court for the Western District of New York recently granted the Federal Trade Commission’s motion for summary judgment and entered a final order against a group of debt collectors who pretended to be affiliated with the government, and ordered them to pay nearly $11 million.    In Federal Trade Commission v. Federal… Continue Reading

FCRA Lawsuits Increase in 2016

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Debt Buyers & Collectors
While the number of lawsuits filed under the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act remained relatively steady or fell, claims under the Fair Credit Reporting Act rose sharply between October 2015 and October 2016.  The total number of FCRA lawsuits increased from 283 to 355 – a 25.4 percent increase. … Continue Reading

What’s In a Barcode?: District Court in Eleventh Circuit Adopts Benign Language Exception for Debtor’s Account Number

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors
A district court in the Eleventh Circuit has joined the Fifth and Eighth circuits, along with a host of district courts throughout the country, in adopting the “benign language” exception to Section 1692f(8) of the Fair Debt Collection Practices Act, and has dismissed a claim based on a collection letter with a visible barcode containing… Continue Reading

Consumers Duped by Telemarketing Debt Collection Scheme Will Soon See Refund Payment

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, State Attorneys General, CFPB, & FTC
The Federal Trade Commission has begun mailing checks totaling over $830,000 to almost 3,500 consumers who fell victim to a telemarketing debt collection scheme targeting Spanish-speaking consumers for payment of bogus debts.  Centro Natural Corp, Sumore LLC, and several individuals operated a telemarketing debt collection scam that used international callers who claimed to be government… Continue Reading

Ninth Circuit Holds Trustees Performing Non-Judicial Foreclosures Are Not Debt Collectors Pursuant to FDCPA

Posted in ALL CFS Blog Entries, Debt Buyers & Collectors, Mortgage Lenders & Servicers
The Ninth Circuit recently broke from other circuit courts across the country and held that a trustee to a security agreement is not a debt collector pursuant to the Fair Debt Collection Practices Act.  The case is Vien-Phuong Thi Ho v. Recontrust Co., N.A., No. 10-56884, 2016 U.S. App. LEXIS 18836 (9th Cir. Oct. 19,… Continue Reading

$5.5 Million TCPA Class Action Settlement Against Debt Collector

Posted in ALL CFS Blog Entries, Cyber Security, Information Governance & Privacy, Debt Buyers & Collectors
A class of consumers in multidistrict litigation (MDL) recently filed their Motion for Final Approval of a Telephone Consumer Protection Act class action settlement against a debt collection company, Convergent Outsourcing Inc. (“Convergent”). Between October 2012 and June 2013, the named plaintiffs initiated separate putative class actions throughout the country alleging that Convergent violated the… Continue Reading

TD Bank USA Escapes State Law Credit Reporting Class Action

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On October 24, the Middle District of Pennsylvania dismissed a putative class action against TD Bank USA, holding that the plaintiff’s state law claims were preempted by the Fair Credit Reporting Act.  The case is Prukala v. TD Bank United States, 2016 U.S. Dist. LEXIS 146614 (M.D. Pa. October 24, 2016).  Plaintiff Michael Prukala alleged that… Continue Reading

TCPA Case Survives Spokeo Motion to Dismiss

Posted in ALL CFS Blog Entries, Credit Reporting & Data Brokers, Debt Buyers & Collectors
On October 19, the United States District Court for the District of New Mexico denied defendants’ motion to dismiss a TCPA putative class action on Spokeo grounds. In LaVigne v. First Community Bancshares, Inc., et al., the plaintiff contends that the defendants called her on her cell phone approximately 195 to 265 times using an… Continue Reading