On May 18, the Southern District of New York rendered a long–awaited opinion on “current account balance” cases, holding that current balances referenced in collection letters, with no mention of accruing interest or fees, do not violate Section 1692e of the Fair Debt C
District Court Rules SeaWorld Breached Customer Contracts and Violated Electronic Funds Transfer Act
A federal district court in Florida entered summary judgment against SeaWorld in a class action case, finding the theme park violated the Electronic Funds Transfer Act (EFTA) by renewing class members’ contracts during their one-year term and collecting unauthorized payments after the contracts expired.
Lead Plaintiff Jason Herman commenced the action in December 2014, alleging
U.S. Supreme Court Rejects “Meaningful Attorney Involvement” Case
The United States Supreme Court declined a petition for writ of certiorari by a consumer regarding a collection letter on law firm letterhead with attorney signatures. The ruling of the United States Court of Appeals for the District of Columbia in Tawanda Jones v. David Sean Dufek, Sr. was left in place, holding that a
Supreme Court Wavers During Oral Arguments in FDCPA Case That May Upend Entire Industry
On April 18, the United States Supreme Court heard long-awaited oral arguments in a case that addresses the fundamental issue of the definition of a “debt collector” under the Fair Debt Collection Practices Act. The Supreme Court’s decision will resolve an existing Circuit split on whether an entity that purchases defaulted debts and then attempts
Favorable Spokeo Decision Handed Down in Eastern District of Virginia
On April 17, the Eastern District of Virginia dismissed sua sponte a suit against a collection agency alleging that the debt collector failed to properly update the plaintiff consumer’s credit report, thereby violating the Fair Debt Collection Practices Act. Relying on the U.S. Supreme Court’s decision in
Join Us on March 23 for a Complimentary Webinar on Electronic Fund Transfer Act (EFTA) – Latest Trends and Developments
Over the past few years, Regulation E, which implements the Electronic Fund Transfer Act, has been cited by federal regulators in rulemaking, enforcement actions and bulletins. The CFPB has not only used the EFTA in its rulemaking concerning prepaid accounts, but it has filed enforcement actions for alleged violations of EFTA and issued bulletins concerning
CFPB Sues Law Firms for Debt Relief Fees Disguised as Bankruptcy Fees
The Consumer Financial Protection Bureau recently sued three law firms in the United States District Court for the Central District of California for collecting advance fees from consumers seeking debt relief. CFPB Director Richard Cordray stated that “[t]he defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees.”
Validation Notice Including Request for Payment and Identifying Creditor by Acronym Does Not Violate FDCPA
The United States District Court for the Southern District of California recently dismissed all of a plaintiff’s claims in the putative class action Matthew Stuppiello v. Southwest Credit Systems, L.P. The Court held that a validation notice does not violate the Fair Debt Collection Practices Act by including a request for payment “and explain[ing]
CFPB Takes Action Against Law Firm Debt Collectors for Lack of Meaningful Involvement
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc., Works & Lentz of Tulsa, Inc., two medical debt collection law firms, and their president, Harry A. Lentz, Jr., for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation
Republican Senators Press Vice President-Elect Pence for Removal of CFPB Director
On the same day that House Democrats wrote to President-elect Donald Trump to defend controversial Consumer Financial Protection Bureau Director Richard Cordray, two Republican senators sent a letter to Vice President-elect Mike Pence to press for his removal. The letter, signed by Ben Sasse (Neb.) and Mike Lee (Utah), requested that Trump dismiss Cordray “promptly