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
CFPB Managing Regulatory Counsel Provides Update on Debt Collection Rulemaking
On April 17, Tom Pahl, managing regulatory counsel for the Consumer Financial Protection Bureau Office of Regulations, spoke at ACA International’s Washington Insights Conference about the CFPB’s debt collection rulemaking. According to Pahl, the CFPB currently is focusing on four debt collection related topics for its proposed rulemaking:
- Communication issues;
- Data integrity and information issues;
Missouri Judge Grants Summary Judgment in Favor of Debt Collector
On April 13, Judge Beth Phillips, a federal judge in the Western District of Missouri, granted summary judgment in favor of Credit World Services, Inc. (“CWS”) in a case filed by a consumer that owed a debt to CWS (full opinion found here). In the lawsuit, Plaintiff alleges that CWS violated the Fair
Firm and Pro Se Plaintiff Face Sanctions for Failing to Hold Settlement Conference in Debt Collection Suit
A dispute over the scheduling of a settlement conference ended with a California federal judge ordering a law firm and a pro se plaintiff to explain why they should not be disciplined for missing a deadline set by the court.
U.S. District Judge John F. Walter gave law firm Lewis Brisbois Bisgaard & Smith LLP
CFPB Announces Payday Lending Field Hearing
The Consumer Financial Protection Bureau announced that it will be hosting a field hearing in Richmond, Virginia on payday lending. The hearing will take place on March 26 at 12:00 noon.
The hearing will feature remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.
Georgia Governor’s Office of Consumer Protection Enters into $13 Million Settlement with Debt Collector
The Georgia Governor’s Office of Consumer Protection (“GOCP”) issued a statement on March 5, announcing a $13 million settlement with RSB Equity Group, LLC (“RSB”) and its principal, Roy Mullman. The settlement resolved charges that the company committed multiple violations of the Fair Debt Collection Practices Act and the Georgia Fair Business Practices Act. More
Eighth Circuit Reinforces Rigorous Inquiry Standard for Class Certification in FDCPA Suit
On January 13, the Eighth Circuit Court of Appeals overturned the District Court’s grant of class certification in a case where plaintiffs allege violation of the Fair Debt Collection Practices Act. In Powers v. Credit Management Services, the defendant filed standard-form complaints and discovery requests against the plaintiffs in state court to collect past
Filing Time-Barred Proof of Claim May Have FDCPA Implications
On December 8, the Southern District of Indiana released a decision relating to the interplay between the Fair Debt Collection Practices Act and bankruptcy. In Grandidier v. Quantum3 Group, LLC, the District Court denied a motion to dismiss a plaintiff’s complaint relating to the supposed filing of a time-barred proof of claim in the