Is it acceptable to allege in court that a reasonably accurate credit record is, in fact, not accurate and therefore in violation of the FCRA? Nope. That’s according to U.S. District Court for the District of New Jersey Judge Renée Marie Bumb, who dismissed what she termed a “frivolous” lawsuit against Experian in the recent, twinned cases Glenn Williams v. Experian and Lorissa Williams v. Experian.
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On last night’s episode of “Last Week Tonight with John Oliver” on HBO the host dedicated the entire show to absolutely skewering the debt-buying industry. He has recently done shows on other industry-related topics, including predatory lending and student loan debt. With great hype, Oliver “gave away” $15 million (in the form of forgiven debt), double the value of the infamous Oprah Winfrey car giveaway.
While DBA International disagrees with certain broad characterizations of the debt buying industry contained in the June 5th episode of “Last Week Tonight with John Oliver,” we wholeheartedly agree with the premise of the show that unscrupulous activity within the industry harms consumers.
The Seventh Circuit’s ruling stems from three consumers that brought suit against three debt collection agencies for violating the FDCPA’s broad prohibition on false, deceptive or misleading representations threatening to take action that collectors do not intend to actually take. 15 U.S.C. § 1692e(5). In each case, the agency had previously filed suit against the consumer in state court. The consumers argued in their lawsuits, however, that the suits against them violated the FDCPA because the agencies never had the intention of proceeding to trial; rather, the consumers alleged that the suits were brought solely to obtain a default judgment or settlement. The proof, the consumers argued, was the fact that each debt collector later moved for voluntary dismissal of their lawsuits.
Just before the Memorial Day weekend I noticed a press release from Navient, the nation’s largest student loan servicing and collection company, publishing excerpts of CEO Jack Remondi’s remarks at their Annual Meeting of Shareholders. The remarks stood out for two reasons…
Eighteen months after the filing of a putative FDCPA class action that arose out of a $131 balance on a Verizon account a New York Federal Judge has granted summary judgment in favor of the defendants and dismissed the lawsuit. According to the Judge – again – this is a clear case of entrapment.
Both the FTC and the CFPB filed comments to the May 6, 2016 FCC Notice of Proposed Rulemaking related to the TCPA. We would have liked to have seen more specific suggestions, especially from the CFPB, which has been studying the topic for years now.
House Financial Services Committee Chair Jeb Hensarling (R-Texas) unveiled the outline of a massive new Republican plan this week to overhaul or strip away nearly every aspect of the Dodd-Frank financial reform. The new plan, called the Financial CHOICE Act, would result in big changes to the Dodd-Frank, including a repeal of the Volcker Rule, the creation of new capital and liquidity standards for banks and, most relevant to the collections industry, a thorough strip-down and rebuild of the CFPB.
Last week insideARM reported on a case where New Jersey Judge Renée Marie Bumb dismissed what she termed a “frivolous” lawsuit against Experian in the recent, twinned cases Glenn Williams v. Experian and Lorissa Williams v. Experian. The case was interesting for the ARM industry because the Judge discussed “meaningful review or investigation” by an attorney prior to filing a complaint.
Pursuant to a motion filed in Florida federal court last Friday, JPMorgan Chase has agreed to pay $3.75M to resolve a proposed class action in alleging the bank autodialed cellphone numbers that were reassigned from former customers to new users who hadn’t agreed to receive calls.
On June 24, 2016 a Pennsylvania District Court ruled that a plaintiff — a frequent litigant — who manufactured TCPA lawsuits had no standing to pursue her TCPA claims in Federal Court. This case is one of the first TCPA opinions to reference the Spokeo Supreme Court case.
Yesterday Oracle announced the launch of a new product of interest to the ARM industry: Oracle Banking Collections. insideARM has heard industry “gossip” over the past couple of years suggesting…
WIXOM, Mich. – RevSpring continues to maintain its commitment to security and compliance by successfully meeting the necessary criteria to complete the AT 101 SOC 2 Type 2 audit under the American Institute of Certified Public Accountants (AICPA) guidelines. Benefits of completing SOC 2 include: Ensuring best practices with regard to security controls and established procedures […]
GREENSBURG, Ind. – Collection Associates (CAI) , a Greensburg-based accounts receivable collection service that offers creditors a number of proven solutions to help achieve their recovery goals, rebranded as of June 1, 2016. CAI has been serving clients throughout the United States since 1985, and has become a top employer in the Greensburg area. In […]
More than 75% of American companies are finding that it’s “harder for them to access the financial services they need” in the wake of increased federal financial regulation. That’s according to a new study by the U.S. Chamber of Commerce, who surveyed “more than 300 corporate financial professionals” from “companies of all sizes” about their […]
According to filings yesterday in Georgia federal court, Wells Fargo Bank, N.A. (Wells) will pay approximately $16.3 million to end a proposed class action alleging it illegally used an ATDS to call customers’ cellphones without their consent.
SAN JOSE, Calif. – Lien Enforcement, Inc. (LEI), a service-disabled veteran-owned small business based in San Jose, California, is pleased to announce it has signed a letter of intent (LOI) with Penn Credit Corporation, of Harrisburg, Pennsylvania, enabling the two firms to cooperate with one another on subcontracting opportunities with Federal Private Collection Agencies (PCAs). The […]
NORTH ANDOVER, Mass. – F.H. Cann & Associates, Inc. (FHC) announced this week that it has received an Authorization to Operate (ATO) from the U. S. Department of Education (ED). In a long and competitive process, FHC was awarded an ED contract based upon its significant experience in default collections, superior performance, outstanding customer service and strong […]
Brings Total to $200,000 in College Scholarships Provided by the Foundation Since 2013 WOODLAND HILLS, Calif. – Account Control Technology Foundation (herein ACT Foundation), is pleased to announce the 50 winners of its annual $1,000 college scholarships. The 2016 winners’ lists for the ACT Foundation’s two programs can be accessed on its website at: http://accountcontrolfoundation.org/winnersLists.php. […]
Kaulkin Ginsberg’s latest bi-annual industry report highlights the areas presenting the greatest growth prospects, the economic and regulatory trends impacting them, and insight on merger and acquisition deals.
The mission of every modern debt collection organization is simple: collect more money faster, at a lower cost and with improved consumer satisfaction. Balancing recovery performance while maximizing recovery amounts presents a myriad of challenges, however. It can be difficult to navigate the complex web of dynamic consumer behavior and preferences; regulatory uncertainty at the […]
Last year, the TCPA statute was amended allowing an exemption for calls made to collect a debt owed to the United States. The amendment also directed the FCC to develop rules that “may restrict or limit the number and duration of calls made to a number assigned to a cellular phone service.” …But there are two possible interpretations of “duration of calls.”
Kinum, Inc., a leader in accounts receivable recovery services, has successfully completed a SSAE 16 SOC 1 Type 2 audit compliance examination. Virginia Beach, VA: June 16, 2016: Kinum recently underwent an independent examination and the subsequent reporting document was completed by Ascend Audit & Advisory, an independent third-party CPA audit firm. Dan Geiger, Partner […]
A federal Judge from the Eastern District of Tennessee has dramatically reduced a consumer attorney’s request for an award of attorney’s fees and costs in Fair Debt Collection Practices Act (FDCPA) cases involving an accepted Offer of Judgment. The cases were LaPointe v. Midland Funding, LLC (Case Nos. 2:15-CV-171 and 2:15-CV-172, United States District Court, […]
Many More Military Vets Expected to Apply for Much-Needed Financial Help This Year COLLINGSWOOD, N.J. – On July 4, 2016, ARMing Heroes (www.armingheroes.org), the collection industry’s charity for military veterans, will once again begin accepting applications for its No Debts for Vets grant-making program. The charity, which relies mainly on donations from ARM industry companies across […]
The Consumer Financial Protection Bureau (CFPB) Office of Consumer Response sent a notice today to those registered as their company’s point of contact (Company POC), explaining that they are changing the way they distribute “Daily Digest” reports. According to the notice, “As part of our continued work to make the CFPB Company Portal more useful to […]
Last week, Great Britain voted to leave the European Union – otherwise known as “Brexit.” For all of the talk surrounding one of the most monumental changes to the global economy since the financial crisis of the late 2000s, little has been said about its impact on the U.S. ARM industry. The most apparent effect […]
Reveal – from The Center for Investigative Reporting, has produced a series of articles related to student debt. Who got rich off the student debt crisis – A story about how, by privatizing the student loan program, Congress created a profit center for Wall Street and a system of college finance that created a kind […]
This article was originally published on the Maurice Wutscher blog and is republished here with permission. The U.S. Court of Appeals for the Ninth Circuit recently held that the discovery rule applies equally regardless of the nature of the federal Fair Debt Collection Practices Act (FDCPA) violation alleged by a plaintiff. Therefore, according to the Ninth Circuit, […]
Yesterday, the U.S. Supreme Court decided not to review a Second Circuit decision that found state usury laws applied to debt that had been purchased from a national bank. The case was significant for debt buyers, as it would have simplified decisions regarding applicable interest rates.