The Indiana Court of Appeals addressed an issue of first impression by holding that out-of-state companies must have an Indiana location before they need to obtain a license under Indiana’s Uniform Consumer Credit Code (IUCCC). Therefore, a collection agency with its principal place of business in another state is only required to obtain a license
FTC Enforcement Action Recovers More Than $3.3 Million for Consumers and Agreement to Permanent Ban from the Debt Collection Business
The two principal owners of Rincon Debt Management – Jason R. Begley and Wayne W. Lunsford – will surrender more than $3.3 million worth of assets that will be used to provide refunds to victims under a settlement with the Federal Trade Commission. In addition to the permanent ban from the debt collection business
CFPB Issues New (TILA-RESPA) Guidelines
The Consumer Financial Protection Bureau recently issued guidelines aimed to increase clarity regarding the Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated mortgage disclosure rule. The CFPB stated that the “TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide” makes mortgage disclosures easier for consumers to understand and use, while also helping
CFPB Issues Proposed Amendments to Mortgage Rules under Regulation Z
The Consumer Financial Protection Bureau has issued a rule containing proposed amendments to its mortgage rules under the Truth in Lending Act (Regulation Z). The proposed rule was published in the Federal Register on May 6, 2014. The proposal includes amendments to certain rules that were issued in January 2013 and went into effect in
New York State Judge Institutes New Court Rules Governing Actions of Debt Collectors
On April 30, 2014, New York State’s chief judge, Jonathan Lippman, announced that he would institute new court rules and protocols aimed at the issue of obtaining default judgments against debtors. These rules offer more protection to debtors.
In a speech, the judge claimed that many debtors are never served papers and only learn a
White House Issues Report Urging Future Regulation of Big Data
On Thursday, May 1, 2014, the White House issued a report outlining initiatives to supposedly better protect privacy in light of the growing realm of big data, the term used to describe a collection of large and complex data sets. The report, titled “Big Data and Privacy: A Technological Perspective,” was presented to the President
CFPB Publishes New Guidance on Credit Reporting for Child Welfare Caseworkers
On May 1, 2014, the Consumer Financial Protection Bureau published action letters for child welfare caseworkers to send to credit bureaus if they find errors on the credit reports of the children in their care. The CFPB stated that the nearly 400,000 children in the United States foster care system often lack a permanent address,
The Future of State Involvement in Dodd-Frank
On Wednesday, the New York Department of Financial Services (DFS) became the first state financial regulator to use the Dodd-Frank Act’s “UDAAP” consumer protection standards against a corporation when it filed a lawsuit against an auto lender. The 2010 Dodd-Frank Act gives state regulators the ability to sue companies for engaging in unfair, deceptive, or
New Legislation Proposes Amendments to FCRA
On Wednesday, April 9, 2014, Senators Brian Schatz (D-Hawaii) and Sherrod Brown (D-Ohio) announced legislation seeking to amend the Fair Credit Reporting Act (FCRA) to protect consumers from inaccurate credit reports and credit scores. Their legislation, the Stop Errors in Credit Use and Reporting (SECURE) Act, is aimed at easing the process by which
West Virginia Adds New Disclosure Requirement for Out-of-Statute Debts
A recently passed bill by the West Virginia Legislature requires debt collectors to make new disclosures in initial letters to consumers. Effective June 6, 2014, section 46A-2-128(f) of the West Virginia Consumer Credit Protection Act (WVCCPA) is amended to require the initial written communication with a consumer to disclose the subject debt is beyond the