In Powell v. Palisades Acquisition XVI, LLC, the Fourth Circuit Court of Appeals held that the filing of an assignment of judgment in a debt collection action qualifies as debt collection activity that triggers the requirements of the Fair Debt Collection Practices Act (“FDCPA”). In so holding, the Fourth Circuit overturned the decision of
New York Announces Sweeping New Regulation of the Debt Collection Industry
On Wednesday, December 3, 2014, New York Governor, Andrew Cuomo, announced new regulations aimed at “protect[ing] consumers against abusive and deceptive debt collection practices.” The press release issued by Governor Cuomo can be found here.
These regulations come from the New York Department of Financial Services and were first proposed in July 2013 and
CFPB Delays Proposed Rulemakings on Overdraft, Payday Lending, and Debt Collection Until 2015
On November 25, the Consumer Financial Protection Bureau announced that it plans to push back three key rulemakings until next year. These rulemakings center on overdraft protection, payday lending, and debt collection. The agenda released by the CFPB stated that it would issue proposals on these issues in the first seven months of 2015. This
CFPB Proposes Expanded Foreclosure Protections
On November 20, the Consumer Financial Protection Bureau proposed measures aimed at mortgage servicers. These proposed measures provide surviving family members and other homeowners with the same protections as the original borrowers. Additionally, the proposal seeks to add protections to homeowners and borrowers struggling to make payments under their mortgages. The new mortgage rules can
CFPB Publishes Compliance Bulletin and Policy Guidance for Mortgage Servicing Transfers
On October 22, the CFPB published in the Federal Register the compliance bulletin and policy guidance regarding mortgage servicing transfers that it issued on August 19, 2014 (link to full text can be found here). It states that “[t]his bulletin is effective October 23, 2014 and applicable beginning August 19, 2014.” The bulletin
FTC Stops Debt Collection Scheme that Targeted Spanish-Speaking Consumers
At the request of the Federal Trade Commission, a U.S. district court judge in Miami has temporarily shut down a fraudulent phantom debt collection operation that allegedly deceived Spanish-speaking consumers across the country.
On October 20, the FTC filed a complaint against Centro Natural Corp., Sumore LLC, and several individual defendants alleging that defendants illegally
OCC Warns on Auto Lending, HELOC, and Debt Sale Risks
On October 28, the Deputy Comptroller for Supervision of Risk Management Darrin Benhart of the Office of the Comptroller of the Currency discussed auto and home equity lending risks and consumer debt sales. A copy of his remarks, which were made before the Financial Services Collections and Credit Risk Conference, can be found here.
CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice
On August 20, the Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief in Hernandez v. Williams, Zinman & Parham, P.C. The case concerns the interpretation and enforcement of the Fair Debt Collection Practices Act, and is currently on appeal to the U.S. Court of Appeals for the Ninth Circuit.
New York AG and FTC Allege New York Based Debt Collector Used Illegal and Fraudulent Methods to Collect Debts
The Federal Trade Commission and the New York Attorney General’s Office filed a joint complaint against a New York based debt collector that goes by several names, including National Check Registry. As a result of the complaint, the U.S. District Court for the Western District of New York froze the operation’s assets and appointed a
Cordray Testifies before Senate Committee Regarding CFPB’s Semi-Annual Report
On June 10, 2014, CFPB Director Richard Cordray appeared before the Senate Committee on Banking, Housing and Urban Affairs in conjunction with the May 2014 release of the Bureau’s fifth Semi-Annual Report. Cordray highlighted a variety of topics, including mortgages, student loans, complaint numbers, and proposed data collection efforts.
Senator Mike Crapo (R-Idaho) questioned