For the past year, the industry’s attention has been focused on the Debt Collection Rule (the “Rule”), its changes, and the new expectations it will place on debt collectors; but as the rubber meets the road, collection...more
With the CFPB having decided to leave the effective date of the Debt Collection Rule as November 30th, the push is on for debt collectors to ensure their compliance with the Rule by that date. As debt collectors make the...more
Last month, the entire ARM industry was caught by surprise when the Eleventh Circuit held that a debt collector’s transmittal of information to a third-party letter vendor violated Section 1692c(b) of the FDCPA. Hunstein v....more
The FDCPA provides a bona fide error defense for debt collectors who can show by a preponderance of the evidence that their violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of...more
On April 6th, the CFPB announced its proposal to postpone the effective date of the Debt Collection Rule. Originally scheduled to take effect November 30, 2021, the CFPB now proposes that the Rule become effective on January...more
Section 1692a(3) defines a consumer as any natural person obligated or allegedly obligated to pay a consumer debt. The final debt collection rule interprets the definition of a consumer to include deceased natural...more
The Sixth Circuit recently weighed in on whether there is a “benign language” exception to Section 1692f(8) of the Fair Debt Collection Practices Act (the “FDCPA”). In Donovan v. FirstCredit, Inc., No. 20-3485, 2020 U.S....more
On October 30, 2020, the CFPB published its long awaited Final Debt Collection Rule (the “Rule”) which is intended to interpret the federal Fair Debt Collection Practices Act (the “FDCPA”) and clarify how new communication...more
The CFPB has issued its semi-annual report to Congress. The Report, which covers April through September of 2019, is mandated by Dodd-Frank and was released in conjunction with Director Kraninger’s testimony to the House...more
2/10/2020
/ Annual Reports ,
Consumer Complaint System ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Scores ,
Debt Collection ,
Debt Collectors ,
Dodd-Frank ,
Financial Services Committee ,
Financial Services Industry ,
Proposed Rules ,
Rulemaking Process
The Third Circuit recently doubled-down on its decision in Douglass v. Convergent Outsourcing, 765 F.3d 299 (3rd Cir. 2014). In Douglass, the Third Circuit held that displaying an internal collection agency reference number...more
More than five years after it issued its Advanced Notice of Proposed Rulemaking, the CFPB appears poised to issue its proposed debt collection rules. The first hint that this was imminent came in the fall of 2018 when the...more
4/24/2019
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Debt Collection ,
Debt Collectors ,
Dispute Resolution ,
Electronic Communications ,
FDCPA ,
SBREFA ,
Third-Party
A recent case from a New York district court serves as a reminder that a single word in a debt collection letter may cause a wave of implications if enough further information is not supplied. In Leonard v. Capital...more
The CFPB has issued its Semi-Annual Report to Congress for the time period beginning April 1, 2018 and ending September 30, 2018. The Report is the first issued by newly confirmed Director Kathy Kraninger and outlines the...more
3/1/2019
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Consumer Complaint System ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Reports ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Information Reports ,
Mortgage Lenders ,
Mortgage Servicers ,
Mortgages ,
Payday Lending Rule ,
Rulemaking Process ,
SBREFA
A recent case from a Wisconsin district court serves as a reminder that the best approach to a 1692g notice is that it stands alone. In Maniaci v. The Receivable Management Services Corp., 2018 U.S. Dist. LEXIS 109087 (E.D....more
A district court has dismissed an FDCPA action based on a bona fide error after reviewing the collection firm’s extensive pre-suit procedures and determining they were reasonably calculated to avoid any errors. Guynn v....more
The Seventh Circuit recently joined the Fourth and Ninth Circuits in holding that a debt collection discharges its obligation as to debt validation by verifying that its letters accurately conveyed the information received...more
Any opinion that starts out by stating “[t]his case is about $82.00” is not likely to go well for one party and in this instance, that was the case for Nestor Saroza. A New Jersey district court recently held that a debt...more
The Sixth Circuit recently made clear its position that “Congress cannot override the baseline requirement[s] of Article III of the U.S. Constitution by labeling the violation of any requirements of a statute a cognizable...more
Settle (verb): “to conclude (a lawsuit) by agreement between parties usually out of court. Merriam Webster Dictionary -
The Third Circuit has refined its position as to whether collection of time-barred debt may violate...more
Any opinion that starts out by stating “[t]his case is about $82.00” is not likely to go well for one party and in this instance, that was the case for Nestor Saroza....more
An unpublished opinion from the Eleventh Circuit continues its analysis of the definition of a debt collector and continues to narrow the applicability of the FDCPA. As many may recall, the Eleventh Circuit’s opinion in...more
The juxtaposition of Sections 1692e and 1692g continues to be a battle ground for the consumer bar and collection industry. Section 1692e prohibits false, deceptive or misleading representations in connection with the...more
A recent opinion from the Fifth Circuit should serve as a reminder to debt collectors that their duties as to disputed debts are not governed solely by section 1692g. In Sayles v. Advanced Recovery Systems, Advanced Recovery...more
The Fourth Circuit recently examined the issue of Article III standing in the context of the FDCPA. In Ben-Davies v. Blibaum & Associates, P.A., 2017 U.S. App. LEXIS 9667 (4th Cir. June 1, 2017), the consumer sought to...more
6/7/2017
/ Article III ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Corporate Counsel ,
Debt Buyers ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Federal Rule 12(b)(1) ,
Financial Services Industry ,
Injury-in-Fact ,
Standing ,
Third-Party Service Provider
A recent decision from a Louisiana district court should provide some comfort to banks and other financial institutions who acquire other entities by merger – at least in the Fifth Circuit, they are not debt collectors. ...more