Troutman Pepper Attorneys, David Anthony and Jonathan Floyd recently published the article, “The Inconvenience of Convenience Fees” in ACA’s Collector Magazine.
Convenience fees have emerged as a prominent topic and potential source of litigation in the accounts receivable management (ARM) industry as creditors and debt collectors look to defray the expense of payment processing. The
The plaintiff incurred a debt to a medical provider who placed the debt with a debt collector. The collection letter from the debt collector included a request for repayment of principal and interest. The plaintiff filed a lawsuit alleging that the debt collector violated the Fair Debt Collection Practices Act (FDCPA) because it was not
Fair Credit Reporting Act (“FCRA”) plaintiffs learned a hard lesson in procedure recently when the Second Circuit Court of Appeals affirmed the dismissal of their claim because they (presumably) failed to follow the notification process required by 15 U.S.C. § 1681s-2(b), which foreclosed their private right of action.
The case is Sprague v. Salisbury Bank
On July 27, 2020, the Eastern District of Pennsylvania confirmed that a plaintiff lacks Article III standing to state a claim for violation of the Fair Credit Reporting Act (“FCRA”) premised solely on the failure to receive a copy of the background report and the statute’s procedurally-required summary of rights. In Davis v. C&D Sec.
In January 2017, the Attorney General of Colorado filed two lawsuits against Marlette Funding LLC and Avant of Colorado LLC. Among other things, the lawsuits claimed that these two companies, as the online platforms for loans made to Colorado citizens, violated Colorado’s usury caps. In November 2018, the Attorney General amended the complaint to include
Like most industries today, Consumer Finance Services businesses are being significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a dedicated COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading health organizations, and tools that businesses can
In a 9-3 vote earlier this month, the California Assembly Banking and Finance Committee approved legislation requiring a license for debt collectors and debt buyers, entitled the Debt Collection Licensing Act (SB 908) (DCLA).
The DCLA would prohibit a person from engaging in the business of collecting on a consumer debt in this state without
On August 13, 2020, the Oregon Bankers Association (“OBA”) and three Oregon-chartered banks filed a Complaint for declaratory and injunctive relief against the State of Oregon, Oregon’s Attorney General, and the Director of the Oregon Department of Consumer and Business Services. The Complaint alleges that House Bill 4204 (“HB 4204” or “the Bill”) is unconstitutional
Fannie Mae and Freddie Mac provided temporary guidance to lenders due to COVID-19 on various topics related to servicing mortgage loans. On June 30, Fannie Mae updated its COVID-19 Frequently Asked Questions – Servicing on the topics related to retention workout options, reporting and operational processes, and incentive fees, amongst other topics.
Foreclosure Suspension Extended
Enforcement of the California Consumer Privacy Act (CCPA) began July 1, 2020. Our privacy team at Troutman Pepper includes several attorneys who worked in an attorney general’s office. This privacy regulatory team has identified six areas of enforcement likely to catch the California Office of the Attorney General’s (OAG) attention, which arguably holds sole regulatory