On July 14, a federal judge in Atlanta denied Frederick J. Hanna & Associates’ motion to dismiss in Consumer Financial Protection Bureau v. Frederick J. Hanna & Associates PC, which the CFPB filed against the law firm arising out of alleged violations of the Fair Debt Collection Practices Act and Consumer Financial Protection Act.
CFPB Director Cordray Defends Consumer Data Collection Practice
On Wednesday, July 15, CFPB Director Richard Cordray assured the Senate Banking, Housing and Urban Affairs Committee, as well as the public, that data collected by the CFPB could not be used to personally identify any consumer. A September report by the U.S. Government Accountability Office found that the CFPB collects information on 700,000 car
Judge Denies Law Firm’s Motion to Dismiss Debt Collection Lawsuit Filed by CFPB
On July 14, 2015, a federal judge in Atlanta denied a law firm’s Motion to Dismiss a claim against it filed by the Consumer Financial Protection Bureau (“CFPB”) for violations of the Fair Debt Collection Practices Act (“FDCPA”) and the Consumer Financial Protection Act or the Dodd-Frank Act (“Dodd-Frank”).
The CFPB filed suit against a
CUNA Calls for Additional Oversight of CFPB
Representatives from the Credit Union National Association (CUNA) addressed the Senate Banking Committee on July 14 in advance of the Committee’s July 15 Hearing with Director Richard Cordray of the Consumer Financial Protection Bureau (CFPB).
CUNA representatives recommended that Congress clarify and expand the CFPB’s exemption authority. This would permit the CFPB to further exempt
New York’s Highest Court Holds New York City Law Imposing Requirements on Lawyers Engaging in Debt Collection Practices is Not Preempted
On June 30, the Court of Appeals of New York answered questions certified from the Second Circuit regarding whether a New York City law imposing certain requirements on attorneys engaged in debt collection practices is preempted by state law.
Local Law 15, which was enacted in 2009, expanded an earlier definition of debt collection agencies
New York DFS Clarifies Debt Collection Requirements
On June 16, 2015, the New York State Department of Financial Services (“DFS”) released additional guidance related to its recently enacted debt collection regulations. The new clarifications supplement DFS’ initial set of “Frequently Asked Questions” released in February, with new guidance beginning at Question #17. DFS announced publication of the supplemental guidance during a “Debt
FTC Holds Inaugural Debt Collection Dialogue
On June 15, the Federal Trade Commission and the Office of the New York State Attorney General hosted a “Debt Collection Dialogue” in Buffalo, New York. FTC Bureau of Consumer Protection Director Jessica Rich and New York State Attorney General Eric Schneiderman delivered opening remarks, and officials from the New York State Department of Financial
CFPB Argues Processors Facilitated Debt Collection Fraud
On June 5, 2015, the Consumer Finance Protection Bureau (the “CFPB”) argued that a lawsuit against four payment processors for their involvement in a debt collection scheme should not be dismissed. According to the CFPB’s complaint (found here), filed on March 26, 2015, this scheme involved Marcus Brown and Mohan Bagga and their
Ohio Attorney General Files Lawsuit Against Debt Collectors
On May 19, Ohio Attorney General Mike DeWine announced the filing of a lawsuit against the alleged operators of a fictitious debt collection enterprise that threatened and harassed consumers, many of whom were not actual debtors.
The Attorney General’s lawsuit, filed in Cuyahoga Common Pleas Court, names Mohan Bagga of Duluth, Georgia; Marcus Brown of
Ninth Circuit Holds Collection Letter Seeking Interest Does Not Violate FDCPA
On May 12, in Tamara Diaz v. Kubler Corporation d/b/a Alternative Recovery Management, the Ninth Circuit Court of Appeals ruled 3-0 in favor of a collection agency on issues related to including interest in debt collection notices. The Court of Appeals reversed the district court and held that a collection letter seeking 10 percent