On October 16, the Second Circuit in Nigro v. Mercantile Adjustment Bureau, LLC, ruled against a debt collector by holding that the agency violated the Telephone Consumer Protection Act when it repeatedly called the plaintiff about his deceased mother-in-law’s debt. Despite the plaintiff providing the number called to the creditor, the Court of Appeals
Game Changers for the Industry Webinar
Troutman Sanders partner, David N. Anthony, participated in a Strafford webinar early this year titled, “Consumer Debt Collection and New CFPB Regs, Enforcement and Litigation: Game Changers for the Industry.” Due to overwhelming popularity, Strafford scheduled an encore presentation with live Q&A for Tuesday, October 14, 1:00pm-2:30pm EDT.
The panel will provide banking and finance
New Debt Collection Rules Announced for New York State Courts
New York Court administrators recently announced new rules impacting cases involving debt collector-plaintiffs with certain debt claims against consumers. As we discussed on May 7th when the proposed rules were announced, the new rules place a higher burden of proof on debt collector-plaintiffs to establish chain of title and that they actually own the debt
Federal Court Affirms Debt Collector’s Right to Collect Pre-Judgment Statutory Interest After Charge-Off by Original Creditor
On September 18, in Peters v. Financial Recovery Services, Inc., the United States District Court for the Western District of Missouri held that neither the federal Truth in Lending Act (TILA) nor the Federal Debt Collection Practices Act (FDCPA) prohibit a debt collector from charging state statutory pre-judgment interest after charge-off. In reaching that
CFPB and FTC File Amicus Brief Urging Application of FDCPA Beyond Initial Debt Collection Notice
On August 20, the Consumer Financial Protection Bureau and the Federal Trade Commission jointly filed an amicus brief in Hernandez v. Williams, Zinman & Parham, P.C. The case concerns the interpretation and enforcement of the Fair Debt Collection Practices Act, and is currently on appeal to the U.S. Court of Appeals for the Ninth Circuit.
11th Circuit Rejects Percentage Collection Fees Under FDCPA Without Specific Contract Provision
On January 2, 2014, the Eleventh Circuit Court of Appeals found that the Fair Debt Collection Practices Act prohibits collection agencies from charging consumers a percentage fee of the balance of their debt unless the consumer has explicitly agreed to such a fee arrangement. In Bradley v. Franklin Collection Services, Inc., a unanimous
USA Discounters Investigated and Penalized by CFPB
As we discussed here, regulators have been keeping close watch on USA Discounters. Today, the CFPB announced that it has “ordered the company to refund $350,000 to service members tricked into paying fees for benefits available for free.” Last week, several senators wrote a letter urging the CFPB to investigate the findings of a
Seventh Circuit Favors Simplified and Neutral Class Action Notices
In a June 2 decision, Judge Richard Posner, writing for a unanimous panel of the United States Court of Appeals for the Seventh Circuit, criticized a number of statements and other aspects within a notice of class action settlement that had been approved by the district court. In response to a number of objections
Cordray’s Renewed Questioning Concerning Recess Authority
In a letter dated July 29, addressed to Richard Cordray, Director of the Consumer Financial Protection Bureau, two Republicans – Representative Jeb Hensarling, Chairman of the House Committee on Financial Services, and Mike Crapo, Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs – continue to question the validity of the CFPB’s
Is Your Smartphone an ATDS? The United States Says “No”.
TCPA litigation is running rampant in courts throughout the country. Automatic telephone dialing systems, or “ATDSs” or “autodialers”, are at the heart of virtually every TCPA case involving cell phones. Why? Because if a call to a person’s cell phone was not made with an ATDS as defined by the statute, there is virtually no