On November 21, the United States District Court for the Northern District of Illinois granted preliminary approval of a proposed $600,000 settlement of a class action lawsuit filed by a consumer against M3 Financial Services, Inc., an Illinois-based health care debt collector. The lawsuit, styled Elaine Mason et al. v. M3 Financial Services Inc.,
Federal Court Finds 29 Calls in 24 Days Sufficient to State FDCPA Claim
A federal district court in Connecticut recently ruled that a debt collector’s 29 telephone calls to a debtor’s home telephone over a period of 24 days was sufficient to establish a claim under the Fair Debt Collection Practices Act. In denying in part the defendant debt collector’s motion for judgment on the pleadings, Judge Jeffrey
Another Big-Dollar TCPA Settlement as Payment Processor Agrees to $9M Deal
A Texas-based payment processor agreed on November 1 to pay $9 million to settle a putative class action brought under the Telephone Consumer Protection Act in the United States District Court for the Northern District of California. According to the plaintiffs, Pivotal Payments, Inc. failed to ensure that a third party it hired to make
Current Balance Decision Creates Uncertainty in Eastern District of New York
On October 31, the United States District Court in the Eastern District of New York held that a debt collector violated the Fair Debt Collection Practices Act by failing to disclose whether interest and fees may accrue on an account. Specifically, the Court denied a debt collector’s summary judgment motion, stating that a collection letter
CFPB Issues Interim Final Rule Amending Time Requirement for Servicers to Send Subsequent Early Intervention Notices
On October 4, the Consumer Financial Protection Bureau issued an interim final rule which will amend a portion of the 2016 Mortgage Servicing Final Rule for Regulation X of the Real Estate Settlement Procedures Act. Specifically, the interim rule will amend the amount of time mortgage servicers have under amended § 1024.39(d)(3)(iii) to “provide modified
Federal Court Rejects Dish Network’s Motions to Set Aside or Reduce $61M Damages Award in TCPA Class Action
In the past several years, Dish Network, LLC has found itself a target of several class actions for violations of the Telephone Consumer Protection Act. Earlier this year, a jury found Dish Network liable for TCPA violations arising from telemarketing calls. The North Carolina District Court trebled the jury verdict, resulting in a $61 million
Court Rejects Debt Collector’s Bid for Second Bite at the Apple
A federal judge in New Jersey denied a debt collector’s motion to reconsider the Court’s award of summary judgment to a plaintiff for violations of the Fair Debt Collection Practices Act. In granting summary judgment, the Court applied the “substantial attorney review” standard to a collection complaint filed in state court. The case is Daniel
Debt Collector Defeats FDCPA Suit with Bona Fide Error Defense
A federal judge in Utah has ruled that a debt collector may rely on the “bona fide error” defense to defeat a claim for violations of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq. Analyzing the compliance procedures that the debt collector had in place, the Court granted summary judgment for
House Financial Services Committee Hears Bill to Exempt Lawyers from FDCPA in Connection with Legal Proceedings and Related Communications
On September 7, the Financial Services Committee held hearings on a bill, H.R. 1849: Practice of Law Technical Clarification Act of 2017 (Trott), that seeks to amend the Fair Debt Collection Practices Act.
The current definition of “debt collector” under the FDCPA does not make clear whether it applies to attorneys, especially in the
District of New Jersey Judge Allows Consumer’s 1099C Disclosure Case to Continue
On September 28, 2017, the District of New Jersey denied a debt collector’s motion to dismiss a Fair Debt Collection Practices Act (“FDCPA”) claim based on 1099C language contained in a collection letter. This decision continues a recent trend, particularly within the courts of the Third Circuit, in denying motions to dismiss on this issue.