On August 24, the United States District Court for the Western District of New York entered a Stipulated Order for Permanent Injunction and Monetary Judgment against the last of a group of defendants who engaged in banned debt collection practices. The defendant, Anthony Coppola, is now barred from debt collection activities, misrepresenting material facts of
FTC Charges Deceptive Debt Collectors in Intimidation Scheme; Court Enters Temporary Restraining Order
On August 21, the Federal Trade Commission charged a North Carolina debt collection operation with using deception and intimidation to collect money from consumers for debts they did not owe or that the group had no right to collect. On August 24, the District Court for the Western District of North Carolina granted a temporary
Central District of California Limits Fees in FCRA Class Action, Creates Bigger Award Pool for Class Members
On July 18, the District Court for the Central District of California granted in part and denied in part a motion for attorneys’ fees, costs, and other payments in a Fair Credit Reporting Act class action suit. The motion accompanied a proposed $400,000 settlement, with a third of the funds allocated to class counsel for
11th Circuit Rules That Consent Under TCPA Can Be Partially Revoked
The Eleventh Circuit ruled in Schweitzer v. Comenity Bank that a consumer can verbally revoke consent to be called on her cell phone using an automatic telephone dialing system “in the morning and during the work day.” As a result, the district court improperly granted summary judgment to the bank because a jury could find
Seventh Circuit Holds That Debt Collector Cannot Avoid Liability Under FDCPA Despite Strict Compliance With Controlling Precedent
In a surprising decision involving a vigorous and scathing dissent, the Seventh Circuit ruled that a debt collector was liable under the Fair Debt Collection Practices Act even when it followed the law that was in effect at the time the alleged violation took place. This alarming ruling raises an
CFPB Warns Older Consumers of Risks of Reverse Mortgage
Financial professionals often recommend a reverse mortgage loan as a way to delay claiming Social Security benefits. A reverse mortgage, federally insured through the Federal Housing Association’s (“FHA”) Home Equity Conversion Mortgage Program (“HECM”), allows homeowners age 62 and older to borrow against the equity in their homes and defer payment of the loan until
Northern District of Illinois Rules for Debt Collector on Challenge to 1099-C Language
On August 9, the Northern District of Illinois granted summary judgment to a debt collector who included 1099-C language in its collection letter. The Court held the language was not false or deceptive, and that no reasonable person could read the language otherwise.
In Moses v. LTD Financial Services I, Inc., et al., plaintiff
Seventh Circuit Holds Rule 67 Tender of Full Relief Does Not Moot TCPA Class Action
In Campbell-Ewald Co. v. Gomez, 136 S.Ct. 663 (2016), the Supreme Court held that an unaccepted offer of full relief under Rule 68 to a named plaintiff was insufficient to moot class claims. However, the Supreme Court expressly left open the possibility of a “different result if a defendant deposits the full amount of
Supreme Court Refuses to Extend the Scope of the FDCPA to Consumer Finance Company
On June 12, 2017, the United States Supreme Court rendered a unanimous decision holding that a company collecting debts that it purchased for its own account does not meet the statutory definition of “debt collector” under the Fair Debt Collection Practices Act (FDCPA) because the debts are no longer “owed or due another.” We previously
Join Us for a Complimentary Webinar: A Review of the Supreme Court’s Decision in Henson v. Santander
On Wednesday, June 21, 2017, from 4:00 – 4:30 p.m. ET, Troutman Sanders attorneys David N. Anthony and Ethan G. Ostroff will explore the Supreme Court’s unanimous decision issued on June 12, 2017 and how it may affect companies in the collection industry. This decision resolves a Circuit split on the narrow issue of whether