On October 25, Rep. Alma Adams (D-NC) introduced a bill in the U.S. House of Representatives, seeking to protect a greater portion of consumers’ disposable income from garnishment.
Aged Account Comes Back to Haunt Collections Firm: Federal District Court Revives Time-Barred FDCPA Claims
A recent federal district court opinion highlights the potential pitfalls associated with renewals of unsatisfied default judgments. The case, Sarah Pitera v. Asset Recovery Group Inc., No. 2:22-cv-00255-TL (W.D. Wash.), serves as a reminder that judgment creditors must still tread carefully when seeking to collect on, or revive, judgments from yesteryear. Read on for more
Tenth Circuit Adopts “Reasonable Consumer” Standard to Determine Materiality Under FDCPA
The standard courts should use to determine whether an alleged Fair Debt Collection Practices Act (FDCPA) violation is material remains unsettled. According to a recent Tenth Circuit decision, however, the standard should be that of the “reasonable consumer,” not the “least sophisticated consumer.” In other words, “the inquiry is whether the reasonable consumer could
Court Grants Debt Collector Summary Judgment in FDCPA Claim Based on Collection Letter With Multiple Addresses
In Bacalzo v. Credit Control, LLC, No. 20-16904 (KMW/MJS) (D.N.J. June 7, 2022), the court granted summary judgment in favor of a debt collector who included multiple contact addresses in a debt collection letter.
Defendant Credit Control LLC (Credit Control) sought to collect a credit card debt owed by plaintiff Linda Bacalzo. As part
Eleventh Circuit En Banc Panel Reverses Controversial Hunstein Decision
In a much anticipated decision released September 8, an en banc panel of the Eleventh Circuit Court of Appeals reversed the district court’s decision that a debt collector’s outsourcing of its letter process to a third-party mail vendor violated the Fair Debt Collection Practices Act’s (FDCPA) prohibition on third-party disclosure and ruled that plaintiff Hunstein
Court Denies Motion to Dismiss FDCPA Suit Based on Pleadings Statements of a Previous Lawsuit
In Louis v. Deshmukh, Civil Action No. 21-19902 (D.N.J. July 27, 2022), the District of New Jersey denied a motion to dismiss a putative class action, asserting claims under the Fair Debt Collections Practices Act (FDCPA) based on statements made in the pleadings in an earlier state court litigation.
Plaintiff Cathelene Louis incurred a
Eleventh Circuit Holds TILA-Required Mortgage Statements Can Violate FDCPA
When mortgage servicers use periodic statements sent under the Truth in Lending Act (TILA) to collect a debt, they can be held liable under the Fair Debt Collection Practices Act (FDCPA) for any misleading or unconscionable representations made in those statements. Applying this reasoning, the Eleventh Circuit recently overturned a dismissal of a FDCPA case
Court Finds Entity Partnering With Medical Provider Does Not Qualify as a Debt Collector Under the FDCPA
In Palacio v. Med. Fin. Sols., No. 21 CV 1288 (N.D. Ill. June 14, 2022), the court granted summary judgment in favor of the defendant, finding that it did not qualify as a “debt collector” under the Fair Debt Collections Practice Act (FDCPA).
Defendant Medical Financial Solutions (Medical Financial) works with medical care
California Requests Feedback on Proposed Debt Collection Regulations Impacting Licensing, Reporting, and Records
On July 15, the California Department of Financial Protection and Innovation (DFPI) issued an invitation for comments on proposed additions to regulations implementing the Debt Collection Licensing Act (DCLA). According to the invitation, the new provisions pertain “to the scope, annual report, and document retention requirements of the DCLA.” For example, the proposed regulations define
Recent CFPB Advisory Opinion Puts Pay-to-Pay Fees in Crosshairs
“Convenience” fees charged to consumers for the use of certain debt payment options have come under increased scrutiny, as regulators have sought to limit charges and other back-end fees that may come as a surprise to consumers. Also known as “pay-to-pay” fees, such convenience charges are typically imposed by debt collectors and/or loan servicers where