The Great Recession hit the financial services industry – and the ARM companies that serve it – the hardest. Even now, this segment is still recovering; new regulatory policies are forcing banks to shift some of their focus toward compliance, taking resources away from business-growing practices. However, there’s good news. Although the market seems depressed […]
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The debt industry has a story, but it is one told about it, rather than by it, generally. And, according to a crisis management consultant, that’s the wrong way for the industry’s stories to be told. Consumer media outlets — your Wall Street Journals; your nightly news segments; your Times, both Financial and New York […]
As part of an ongoing investigation, Propublica published a lengthy article by Paul Kiel titled For Nebraska’s Poor, Get Sick and Get Sued. The article discusses the practice of use of litigation to collect delinquent healthcare accounts in the State of Nebraska. It is clear that Mr. Kiel spent a considerable amount of time researching the story before publication. The story is less than flattering to the debt collection industry.
In a 6-2 decision, the United States Supreme Court on Monday sided with an online “people search engine” company, Spokeo.com, to provide critical insight as to when and how consumers can sue for privacy violations under the FCRA.
This article originally appeared as an Alert on ClarkHill.com, and is republished here with permission. Lightning can strike twice. With the ink barely dry on the Consent Order against the Hanna Law Firm (Hanna) in Georgia, the Consumer Financial Protection Bureau (CFPB or Bureau) yesterday took action against another debt collection law firm for the filing […]
“What?? How did this happen?!” You’ve worked your tail off for this client. You’ve always been first or second in batch track performance, and you get along great with the recovery manager. OK, so you seem to be getting sued more often and you’re spending more time answering complaints. But that comes with the territory, […]
Another ARM firm is caught in the “no-win” scenario of including so-called 1099(c) disclosures in a letter to a consumer. Many financial institutions are requiring ARM firms to include 1099(c) disclosures in their initial letters to consumers. It is not clear from the pleadings whether the client in this case mandated that their agency include the language in the letter sent to the Plaintiff. But, if so, companies like this defendant are put in an untenable position.
We’ve grown accustomed to using secondary markets – grocery store, used car dealerships, and the stock market – in many aspects of American life, even if we don’t realize it. Another example is the receivables market. When it comes to the ARM industry, the receivables secondary market exists so that debt buyers and sellers can […]
In a Fair Debt Collection Practices Act (FDCPA) case, a Federal Judge has declined to dismiss a lawsuit claiming that a 1099(c)) disclosure in an initial letter was a false, deceptive, or misleading statement regarding potential tax consequences in relation to a proposed settlement of a debt. The Memorandum Opinion in case, Velez v. Enhance Recovery Company, LLC (Case No. 16-164, U.S. District Court, Eastern District of Pennsylvania) was filed on May 2, 2016.
Yesterday, Encore Capital Group (ECPG), reported its financial results for the first quarter of 2016. Encore is an international specialty finance company with operations in eight countries that provides debt recovery solutions for consumers across a broad range of assets. Financial Highlights for the First Quarter of 2016: Estimated Remaining Collections (ERC) grew 12% to $5.7 billion, compared […]
Yesterday the White House hosted a call together with the Dept. of ED and the CFPB to announce actions to ensure that student loan borrowers are aware of their options for repayment. The actions are wide-ranging, but don’t address material post-default issues.
Data can be accurate, but without context it could mislead. That was the message former CFPB Senior Advisor Jim McCarthy delivered to industry attendees of last week’s insideARM Larger Market Participant Summit in Washington, D.C. The CFPB cares about data and accuracy, McCarthy noted, but it is not pairing collections complaint data with necessary context […]
A Baltimore jury delivered a verdict against Las Vegas-based debt buyer LVNV. At $38 million, it is the largest judgment against a debt collector in Maryland history.
Yesterday the Seventh Circuit Court of Appeals rendered its opinion in Paula St. John, Yvonne Owusumensah, et al., & Bryan Sirota v. CACH, LLC, Cavalry Portfolio Services, LLC; & Unifund CCR Partners, Inc. At issue was whether 15 U.S.C. sec. 1692 e(5) dictates that a debt collector must intend to proceed to trial when it files a lawsuit to collect a debt. The Court agreed with Appellees that e(5) contains no such requirement.
I recently learned that a person commits suicide about every 12.3 minutes in the United States. That’s 42,773 Americans a year. This is a staggering statistic. It got me thinking about my last 25 years in the accounts receivable management industry. I can point to about a half a dozen examples of prominent leaders taking […]
The U.S. District Court for the Western District of New York recently held that claims under the federal TCPA are penal in nature and therefore do not survive the death of a plaintiff.
Court: “This case is typical of the TCPA class action cases… members received notice of the settlement more than five years after receiving the unsolicited fax, making the likelihood of filing a claim very low. In this appeal, which consists of a 12-volume record and 120 pages worth of briefs… the only ones who stand to reap any significant benefit from a favorable outcome are the attorneys for the class.”
In a press release issued yesterday, U.S. Senator John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, announced that he will convene a full committee hearing titled “The Telephone Consumer Protection Act at 25: Effects on Consumers and Business” on Wednesday, May 18, 2016, at 10:00 a.m. The hearing will examine […]
SACRAMENTO, Calif. — On Thursday, May 19th, Maryland Governor Larry Hogan signed SB 771/ HB 1491 (Chapter 579) into law, addressing the treatment of out-of-statute debt and statutorily codifies several provisions contained in the Maryland Rules of Procedure (MRP) concerning the litigation of consumer debt. Given that the language from the MRP was copied verbatim, DBA International […]
In an Order dated May 5, 2016 a Federal Judge in New York has determined that a decision he rendered in the matter of Halberstam v. Global Credit and Collection Corp. (U.S. District Court, ED, NY, 15-cv-5696 (BMC) earlier this year should be certified for an immediate interlocutory appeal. (Editor’s Note: Interlocutory actions are certified by courts when an issue presents a question of law that should be answered by an appellate court before a trial may proceed or to prevent irreparable harm from occurring to a person or property during the pendency of a lawsuit or proceeding. Generally, courts are generally reluctant to make interlocutory orders.)
In a Memorandum Opinion and Order filed on May 9, 2016 a U.S. District Court Judge for the Northern District of Illinois granted Summary Judgment in favor of the plaintiffs in a FDCPA lawsuit involving publicly traded debt buyer Portfolio Recovery Associates, LLC.
InvestiNet, LLC has announced the hiring of Faith Braverman to the position of Director, Business Development. She joins InvestiNet after more than 10 years in the accounts receivable industry, initially as VP Client Services at YouveGotClaims and then as VP Business Development at Eltman Law, PC. “We are excited to be working with Faith again. […]
FTC Director Jessica Rich’s comments came as part of an announcement by the FTC that it had filed a complaint and proposed order against a Texas-based debt collection agency for having deficient policies and procedures related to borrower credit reporting. Through its proposed order, the FTC clarified its expectations for what credit reporting policies and procedures debt collection agencies need to have in order to avert or withstand regulatory scrutiny.
GREENSBURG, Ind. – Receivables Management Partners (RMP), a leading provider of accounts receivable management and other outsourced revenue cycle management (RCM) services to the healthcare industry is pleased to announce the promotion of Randy Tempest to Chief Sales Officer. Previously, Randy served as the Senior Director, Sales and Client Relations for RMP. In his new […]
JACKSONVILLE, Fla. — Stellar Recovery announced today that Hayden Miller has been promoted to Operations Manager. Hayden has over 10 years of operations and operations management experience in first and third party collections. His background includes managing banking, communications, financial services, student loan, and utility verticals. Hayden’s responsibilities include working with the collection managers to […]
What follows is a Q & A from a webinar we produced. We’ve allowed the original panelists the opportunity to update and change their answers to reflect evolving best practices. This free whitepaper is presented as part of our TCPA Toolbox, offering a full suite of compliance and operational tools for the industry.
April’s FDCPA-related cases include some positive outcomes and some negative outcomes for the industry. Review the list, and our at-a-glance case law resource, powered each month by Joann Needleman of ClarkHill.
MRS BPO, LLC, a New Jersey-based debt collection agency and one of the country’s premiere accounts receivable management firms, recently announced organizational changes to best align key MRS executive personnel with the vison and mission of the company’s strategic objectives. Effective May 1st, Hal Goldstein, former Chief Strategic Officer has assumed the title of Chief […]
Last Friday five diverse political organizations joined forces to file a lawsuit seeking to declare the TCPA unconstitutional, and request both preliminary and permanent injunctions enjoining enforcement of the law.
SAN FRANCISCO, Calif. – LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced it has partnered with the CBA to host a panel of legal and operations experts as they discuss the unique impacts and approaches to vicarious liability for retail banking consumer contact centers. The webinar takes place this Friday, May […]