The United States District Court for the Southern District of California recently dismissed all of a plaintiff’s claims in the putative class action Matthew Stuppiello v. Southwest Credit Systems, L.P. The Court held that a validation notice does not violate the Fair Debt Collection Practices Act by including a request for payment “and explain[ing]
CFPB Takes Action Against Law Firm Debt Collectors for Lack of Meaningful Involvement
On January 9, 2017, the Consumer Financial Protection Bureau (CFPB) entered a Consent Order against Works & Lentz, Inc., Works & Lentz of Tulsa, Inc., two medical debt collection law firms, and their president, Harry A. Lentz, Jr., for the defendants’ violations of the Fair Debt Collection Practices Act (FDCPA) and the Furnisher Rule (Regulation
Supreme Court Focuses on Intersection of FDCPA and Bankruptcy Code
On January 17, 2017, the United States Supreme Court heard oral argument in the case of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that had been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred
Supreme Court To Decide Whether Financing Company Collecting Debts Is A “Debt Collector” Under The FDCPA
On January 13, 2017, the United States Supreme Court agreed to hear a case presenting the question whether a financing company that purchases delinquent debts and begins collecting on those debts can be held liable under the Fair Debt Collection Practices Act (FDCPA). The Court will review the Fourth Circuit’s decision in Henson et al.
More Than One Call Per Day is Not Enough to Violate FDCPA; Consent Provided to Creditor Extends to Debt Collector Under TCPA
The United States District Court for the District of New Jersey recently held in Samuel Chisholm v. AFNI, Inc. that a debt collector “could not reasonably be found to violate” the Fair Debt Collection Practices Act by calling a consumer 18 times on his cell phone over the course of 13 days. All calls were
Requesting Attorneys’ Fees in Court Summons Does Not Misrepresent Amount of Debt
The U.S. District Court for the Eastern District of Tennessee recently held that a debt collector’s civil court summons requesting “reasonable attorney fees” does not violate the Fair Debt Collection Practices Act. In Wilma Jones et al. v. Hospital of Morristown (Case No. 2:16cv13, 2016 LEXIS 153869 (E.D. Tenn. Oct. 6, 2016)), the plaintiff argued
District Court Rules Credit Card Debt Collection Dispute Must Be Arbitrated
On December 2, Judge Valerie Caproni of the Southern District of New York ruled that a class action suit alleging violations of the Fair Debt Collection Practices Act must be arbitrated. The class plaintiff, Alicia Zambrana, applied for and received a Best Buy-branded credit card from Household Bank N.A. (“HSBC”). While the court could not
Ninth Circuit Holds Trustees Performing Non-Judicial Foreclosures Are Not Debt Collectors Pursuant to FDCPA
The Ninth Circuit recently broke from other circuit courts across the country and held that a trustee to a security agreement is not a debt collector pursuant to the Fair Debt Collection Practices Act. The case is Vien-Phuong Thi Ho v. Recontrust Co., N.A., No. 10-56884, 2016 U.S. App. LEXIS 18836 (9th Cir. Oct. 19,
Eastern District of New York Rules That Fee May Be Collected with Principal Balance, Requesting Prompt Contact is Permissible
In Igor Vayngurt v. Southwest Credit Systems, L.P., the Eastern District of New York ruled that a debt collector did not violate the Fair Debt Collection Practices Act by attempting to obtain payment of a collection fee at the same time as the principal balance of the debt and requesting prompt contact in the
Supreme Court Grants Cert. In FDCPA Claim Related to Filing of Stale Claims in Bankruptcy
On October 11, 2016, the United States Supreme Court granted the petition for certiorari of Midland Funding, LLC v. Johnson, an appeal from the Eleventh Circuit bringing to a head two issues that has been boiling for several years: (i) whether the filing of an accurate proof of claim for an unextinguished time-barred debt