On May 18, the Consumer Financial Protection Bureau issued a 24-page report regarding consumer usage and default patterns for vehicle title loans. Such loans are made to borrowers who sign over their car titles as collateral, and are commonly made to individuals with poor credit histories in need of fast cash. Although the borrower retains
Seventh Circuit Rules Debt Collectors Do Not Violate FDCPA By Dismissing Lawsuits Prior to Trial
On May 19, the Seventh Circuit Court of Appeals ruled that debt collectors who filed collection lawsuits and then dismissed them prior to trial did not violate the Fair Debt Collection Practices Act.
Section 1692e(5) of the FDCPA prohibits debt collectors from using a false, deceptive, or misleading representation to threaten to take an action
Illinois Appellate Court Rejects Coverage for Blast-Fax Class Action Under the TCPA
On May 18, 2016, in First Mercury Insurance Company v. Nationwide Security Services, Inc. et al., the First District of the Illinois Appellate Court affirmed the Circuit Court of Cook County’s ruling of no coverage after the insured settled a “Blast-Fax” class action lawsuit brought under the Telephone Consumer Protection Act. The TCPA provides
Join Us for a Troutman Sanders Webinar: A Year in Review – TCPA Developments since the FCC’s Landmark Declaratory Ruling
Join Troutman Sanders partners Alan Wingfield and Chad Fuller, and associate Virginia Flynn for a webinar entitled, “A Year in Review – TCPA Developments since the FCC’s Landmark Declaratory Ruling,” on Tuesday, June 7, from 12:00-1:00 p.m. EDT.
The Federal Communications Commission’s landmark July 10, 2015 Declaratory Ruling interpreting the Telephone Consumer Protection Act
Supreme Court Rejects Claim That Collection Letters on Attorney General’s Letterhead Sent By Private Debt Collection Attorneys Misled Borrowers
On May 16, 2016, a unanimous U.S. Supreme Court ruled that private attorneys hired by states to collect back taxes and other debts did not mislead investors by sending collection letters to borrowers using the state Attorney General’s letterhead. The Court found that the attorneys were acting as agents of the Attorney General and, therefore,
U.S. Supreme Court Remands Spokeo in Ruling that Mere Technical, Statutory Violation Is Insufficient to Confer Article III Standing
On May 16, 2016, the Supreme Court of the United States issued its much-anticipated decision in Spokeo, Inc. v. Robins. Spokeo considered whether Congress may confer Article III standing by authorizing a private right of action based on the violation of a federal statute alone, despite a plaintiff having suffered no “real world” harm.
Debt Collector Pays $72,000 to Settle FCRA Charges
On May 9, the Federal Trade Commission announced that the debt collection agency Credit Protection Association will pay $72,000 to settle charges that the company violated the Fair Credit Reporting Act (“FCRA”). This case is part of “Operation Collection Protection,” a program the FTC describes as “an ongoing federal, state and
Join Us at the 2016 ACA International Convention & Expo in Denver June 16-18
We are pleased to announce that Troutman Sanders partner David Anthony will be a featured speaker at the 2016 ACA International Convention & Expo in Denver at the Hyatt Regency on June 16-18.
David will speak on a panel entitled “Industry Response to Current Trends in Fair Debt Collection Practices Act Enforcement.” He will
FCC Releases Notice of Proposed TCPA Rulemaking
On May 6, the Federal Communications Commission released a notice of proposed rulemaking to implement a provision of President Obama’s Bipartisan Budget Act of 2015, which creates an exception from the Telephone Consumer Protection Act’s (TCPA) consent requirement for robocalls “made solely to collect a debt owed to or guaranteed by the United States.”
The
CFPB Attempts to Sound Death Knell for Consumer Class Action Waivers Used by Financial Institutions
On May 5, 2016, the CFPB announced proposed rules that would further restrict the ability of financial institutions to enter into mandatory arbitration clauses with consumers, including an outright ban on provisions that would prohibit consumers from pursuing class actions in court. The proposed rules do not forbid all mandatory arbitration clauses, however. Financial institutions