Debt Buyers + Collectors

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On August 25, 2017, the United States District Court for the Northern District of Georgia entered an order granting multiple Defendants’ consolidated motion for sanctions against the Consumer Financial Protection Bureau. Defendants’ Rule 37 motion alleged the CFPB failed to produce a knowledgeable deposition witness and also failed to follow the Court’s various orders to…

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…

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 …

On August 10, Massachusetts District Court Judge Richard G. Stearns granted preliminary approval of a $3.2 million class settlement agreement in a Telephone Consumer Protection Act class action filed against Collecto, Inc.  The four named plaintiffs allege that Collecto made unauthorized telephone calls to class members’ cellular phones using an automated telephone dialing system in …

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 …

On August 17, the Consumer Financial Protection Bureau filed a complaint and proposed settlement against Aequitas Capital Management, Inc. and its related entities, alleging that the loan buyer aided the Corinthian Colleges’ predatory lending scheme.  According to the Bureau, Aequitas enabled Corinthian to make high-cost private loans to Corinthian students, giving the impression that the…

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…

On August 2, a Federal Court in Oregon entered summary judgment in favor of a collection agency, ruling that a debt collector must disclose to the consumer that interest accrues on an account only when such interest actually does accrue.

In Powers v. Capital Management Services, LP, plaintiff Diane Powers incurred a debt for …

On July 25, the United States House of Representatives voted to repeal the Consumer Financial Protection Bureau’s latest arbitration rule.  

As we reported previously, the CFPB issued a final rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the …

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 …