On May 19, 2014, the Maryland Court of Appeals held that plaintiff-debt buyers that pursue judgments against defaulted debtors based on affidavits must produce certain documents that are “sufficient to pass muster” under the business records exception to the hearsay rule. Nevertheless, the high court further ruled that, once a small-claim action is contested and
FTC Settles $4 Million Enforcement Action Against California Debt Collectors
Asset Capital and Management Group (“Asset”), a debt collector based in Southern California, has agreed to a $4 million settlement with the Federal Trade Commission to resolve allegations that it extorted payments from consumers by using false threats. According to the FTC, Asset and its principals employed a vast network of related companies and used
Legislation Introduced To Amend The FDCPA To Limit A Prevailing Defendant’s Ability To Recover Costs
On May 9, 2014, U.S. Representative Matt Cartwright introduced H.R. 4624 to amend the Fair Debt Collections Practices Act to prohibit a court from awarding costs to a prevailing defendant in the absence of a finding that an action was brought in bad faith.
This legislation is in response to the United States Supreme Court’s
Licensure Requirements Do Not Apply to Out-of-State Collectors that Have No Physical Location Within Indiana
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,