Archive by Most Comments

Archive by Date
Shattered Glass

Consumer Litigation “Continues to Evolve in Lurches”: Your October Debt Collection Stats

FDCPA suits “unexpectedly [caught] fire this year, up more than 1200 suits (+14.5%) over this time in 2014,” according to Gordon. FCRA suits “works out to a dramatic +39% increase over this time last year,” and “TCPA’s YTD numbers have recovered due to the combination of a strong October and a weak few months at the end of 2014. Now up almost 200 suits (+8.7%) over this time last year, TCPA seems to have avoided the likelihood of a decline.” But none of this should be a surprise, so why is it?


FTC, State, and Federal Authorities Announce New Actions Targeting Illegal Practices Including Phony Debt Collection

The FTC and other law enforcement authorities around the country announced the first coordinated federal-state enforcement initiative targeting deceptive and abusive debt collection practices. This agencies say the nationwide crackdown encompasses 30 new law enforcement actions against collectors who use illegal tactics such as harassing phone calls and false threats of litigation, arrest, and wage garnishment.


Can the American Action Network Stop the CFPB?

Americans who may have never heard of the Consumer Financial Protection Bureau (CFPB) before may have learned about it last night. The American Action Network (AAN), an advocacy group, launched a $500,000 ad campaign that ran throughout the evening on Fox Business, the host of the fourth GOP Primary debate. Additionally, the ad campaign aired during the post-debate commentary on Fox News Channel. The ad will also be online the next four weeks along with the launch of What effect the ad will have, though, is anyone’s guess.

checklist, checkbox, box

Will Federal Push to “Ban the Box” Affect Debt Collection Hiring Practices?

It isn’t uncommon for clients to push debt collection agencies to disqualify job candidates for criminal histories. Agencies may not be able to deliver on that demand much longer. Many states have already adopted a “ban the box” policy, which prohibits employers from asking about criminal convictions in job applications. (Check out our recent and […]


Encore Adjusted EBITDA Up 7% But Net Income Down Due to CFPB Settlement

Last Friday, Encore Capital Group (ECPG), an international specialty finance company with operations in eight countries, reported its financial results for the third quarter of 2015, ending September 30, 2015. Third Quarter Highlights Gross collections from the portfolio purchasing and recovery business grew 4% to $422 million, compared to $407 million in the same period of […]

Rotary Phone

Collectors Calling on Federal Debt May Now Use ATDS to Dial Cell Phones?

Last week I wrote about the latest budget deal working through Congress, and its inclusion of a provision to allow those collecting federal student loans to call consumer cell phones using an autodialer (ATDS). That two-year budget has since passed the Senate Friday by a vote of 64 to 35, and was signed into law yesterday by President Obama. But you’re not going to want to turn on that autodialer just yet.


California Reaches $100M Settlement with JP Morgan Chase Regarding Debt Collection Practices

JP Morgan Chase, the nation’s biggest bank, will pay $100 million to settle allegations that it used illegal and abusive debt-collection practices in connection with California credit card customers. The settlement specifically collecting incorrect amounts, selling bad credit card debt, and running a debt collection mill that involved illegally “robo-signing” thousands of court documents and improperly obtaining default judgments against military service members.


Are We Closer to Understanding ‘Meaningful Involvement’? Bock v. Pressler & Pressler May Show the Way

The Third Circuit Court of Appeals heard oral argument in the case of Bock v. Pressler & Pressler. Observers saw this as a significant case, with far-reaching impact upon attorneys who engage in debt collection litigation. From the tone of the Circuit Court’s questions, it was clear that policy consideration were at the center of the Court’s focus.


The Supreme Court Takes Another Look at Mootness Following an Offer of Judgment in TCPA Class Litigation

At oral argument, the justices were split along ideological lines, with the liberal justices siding with the plaintiffs and the conservatives siding with Campbell-Ewald. The conservative justices focused on judicial economy and practicality, emphasizing the lack of adversity arguably resulting in no need for judicial involvement because the plaintiff has been offered everything to which he or she could possibly be entitled. On the other side, the liberal wing took issue with the premise that Campbell-Ewald’s offer was for complete relief, pointing out that the plaintiff also asked for his attorneys’ fees. In response, Justice Scalia noted, “I suppose he could ask for the key to Fort Knox, right? If it’s a frivolous claim, I don’t see why the Court can’t dispose of that initially in connection with the mootness.”


CFPB Fines Auto Loan Company $3.28 Million For Illegal Debt Collection Tactics

The Consumer Financial Protection Bureau (CFPB) announced yesterday that it has filed an administrative order against Security National Automotive Acceptance Company (SNAAC), an auto lender specializing in loans to servicemembers, for engaging in illegal debt collection practices. The order requires the company to refund or credit about $2.28 million to servicemembers and other consumers who […]


DBA International Spells Out Certification Program Requirements

In February 2013, DBA International launched its Receivables Management Certification Program. This “gold standard” certification program promotes uniform, consumer-oriented, best practice standards for the receivables industry. The goal of the Receivables Management Certification Program is to raise the bar; not just meet the bar. Since program standards exceed many current statutory and regulatory requirements for […]


District Court in CFPB v. Hanna Denies Request to Certify Case for Interlocutory Appeal

The long and winding road in the Consumer Financial Protection Bureau (CFPB) lawsuit against the Frederick J. Hanna & Associates. P.C. law firm took another turn this week. On Monday, November 16th, The Honorable Amy Totenberg, United States District Court Judge for the Northern District of Georgia, issued an order denying Hanna’s request to certify […]


FTC Amendment to Telemarketing Sales Rule Sounds Like Operation Choke Point

The Federal Trade Commission (FTC) announced last week that, following a public comment period, they have approved final amendments to a Telemarketing Sales Rule (TSR), including a change that will help protect consumers from fraud by prohibiting four discrete types of payment methods favored by con artists and scammers. “Con artists like payments that are […]


A Guide to Tracking Consent and Revocation of Consent

Recent Telephone Consumer Protection Act (TCPA) developments have made it vital that collection agencies take a proactive, and sustainable, approach to managing contact consent, as well as revocation of that consent. The following list of questions may be helpful in considering where your process currently stands. Considerations Regarding Consent at the Originator  How is consent […]


Compliance and Quality Audits

Weighting auditing forms can affect collection goal bonus eligibility and compliance and quality incentives. An agency can choose to do this separately, or simultaneously. Traditional models would consider reducing the agent’s collection goal bonus when compliance and quality scores are not met. An emerging model is to provide positive reinforcement by assigning a monetary value to an overall quality and compliance score, outside of any considerations for collection goal bonus eligibility.

Big Mistake

Big Mistake! Three Compliance Risks Collectors Overlook

Regulators from the CFPB and the FTC encourage the debt industry to look at past enforcement actions and other publications to determine what issues are most important to those agencies. A review of the recent enforcement actions by the CFPB and FTC, as well as other publications, reveal three distinct trends: actions involving unfair treatment of service members; the failure of debt collectors to adequately distinguish and investigate FDCPA and FCRA disputes; and, racial bias in debt collection efforts.


Nine Strategies that Leverage Technology for More Effective Skip-Tracing

I’m sure you’ve heard the expression “work smarter, not harder.” In today’s environment you need to do both to grow your business. Utilizing skip trace technology is a business-growth engine because it takes care of “easy” day-to-day activities like phone number identification and change of address, while at the same time working harder to solve […]

Patient Engagement

LiveVox Discusses Approaches to Optimizing Patient Engagement Strategies in a Changing Insurance Landscape

LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced that it will join operations experts from IHMS, in partnership with the Healthcare Financial Management Association (HFMA), to provide insights into the top insurance enrollment challenges moving into 2016 and innovative approaches to adapting existing resource to optimize patient engagement and […]


Stay Ahead Of The Curve

I recently read an excellent article by Kenneth Mikkelsen and Harold Jarche about the need for leaders to stay ahead of the markets they serve. The article begins with a story about racecar driver Juan Manuel Fangio famously slowing down before entering a blind turn in the 1950 Monaco Grand Prix, a move that was […]