The CFPB announced Monday it has filed a lawsuit against a debt collection law firm and its three principal partners alleging that the firm was a “lawsuit mill” that churned out debt collection actions and violated the FDCPA en masse. The firm denies the claims and says it will defend the action in court.
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The FCC last week threw another clarifying wrinkle in the struggle to understand “express prior consent” to call a cell number for the purpose of debt collection. In an amicus brief, the agency explored some nuance in its 2008 TCPA declaratory ruling while clarifying another ruling from this year.
Just in time for the summer movie season, one court has given debt collection litigation lawyers yet another reason to disconnect the telephone and computer. Now identifying yourself as a lawyer or a law firm on a voice mail or telephone message is sufficient facts to state a claim for a Fair Debt Collection Practices Act (FDCPA) violation.
The Ninth Circuit Court of Appeals last week in a split decision overturned a lower court’s ruling in a case claiming FDCPA violations in debt collection letters that were never even read by the plaintiff debtor. The violations were related to an error in the letter misidentifying the original creditor.
Addressing what it termed “a deluge [that] has swept through U.S. bankruptcy courts of late,” the 11th Circuit Court of Appeals in Crawford v. LVNV Funding, LLC last week held that filing a proof of claim on time barred debt is conduct that violates the Fair Debt Collection Practices Act (FDCPA).
On July 14, 2014, the Consumer Financial Protection Bureau (“CFPB”), a Federal regulatory body created by the Dodd Frank Act of 2010 mounted a frontal attack on this bedrock of separation of powers principle by filing suit in the United States District Court against a prominent consumer collection law firm, Frederick J. Hanna and Associates, P.C. of Atlanta Georgia.
A U.S. District Court judge last week decided a case brought by a consumer claiming that an autodialed debt collection call to her cell phone violated the TCPA. The judge dismissed the case, ruling that by providing her cell number, she was consenting to being contacted using that method.
Gordon Beck, Chief Operating Officer of Diversified Consultants, Inc., based in Jacksonville, Florida, sat for an interview last week with ABC World News with Diane Sawyer. Beck said ABC set out to investigate TCPA lawsuits where companies – including collection agencies – dialed wrong numbers. ABC producers told Beck that he was the only collection agency official that agreed to be interviewed.
LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced that CMO John McNamara will be departing LiveVox to take a position with the Consumer Financial Protection Bureau (CFPB). Dusty Whitesell, an operations expert with over 25 years in the creditor servicing-BPO industry will re-join LiveVox to lead its marketing efforts.
A federal judge in Maryland this week sided with a collection agency in a TCPA case involving the question of “prior express consent” to call a cell phone number that was provided by the consumer. The decision mirrors another recent case in a trend that shows judges moving away from the controversial Mais decision.
Numerous recent FDCPA lawsuits challenge the ability of debt collectors to assess interest to accounts. These cases focus on a number of factors including whether collection letters need to disclose the accrual of interest and also interest on purchased accounts.
We’ve all seen the headlines lately with the statistics of lawsuits rising against collection agencies, of penalties handed down by the CFPB and the courts, of settlements against collection agencies and even speculation that the business of debt collection is going the way of the dinosaur. But is the business of collections really going away, or is it just going through another change?
The Telephone Consumer Protection Act played to packed audiences through two sessions Wednesday at ACA International’s 75th Anniversary Convention & Expo in Chicago. At issues for those in the debt industry are: effective consent language and present capacity.
The New York State Department of Financial Services (NYSDFS) today published a proposed rule in the New York State Register on debt collection by third-party debt collectors and debt buyers. The proposal is subject to a 30-day comment period which began July 16.
The Consumer Financial Protection Bureau (CFPB) Wednesday announced that it is proposing to expand its consumer complaints public database to include the consumer’s narrative description of what happened, along with a company response narrative. The announcement came on the three-year anniversary of the CFPB’s launch.
Using these 55 questions, developed by industry-expert Todd Langusch of TECH LOCK, Inc., you’ll be able to immediately see any vulnerabilities your agency may be laboring with.
This comprehensive questionnaire looks at the following risk areas: Risk Assessment, Security Awareness, Overseeing Service providers, Encryption, Transmission of Sensitive or Non-Public Personal Information, Firewall, System Hardening, Regularly Monitor and Test, Strong Access Control measures, General, Remote Access.
TEC Services Group, Inc., a leading provider of Professional, Advisory and Analytical Services to the Credit and Collections industry, has announced the promotion of Eric Foulk to Vice President of Professional Services.
Despite the advances of the Patient Protection and Affordable Healthcare Act (ACA) related to patient debt (establishing maximum out-of-pocket expenses and other protections), most healthcare finance analysts believe bad debt will increase over the coming years.
In this free whitepaper, sponsored by LexisNexis, you’ll discover best practices from a wide range of healthcare providers who have managed to stem the tide of bad debt increases.
Ontario Systems, a leading receivables technology and services provider, announced CBE Companies has installed both Artiva Healthcare and Artiva RM to drive new receivables solutions for its first- and third-party healthcare clients, along with third-party clients in other industries.
Collections Solutions Software, Inc. (CSS IMPACT), the ARM industry’s leading and most robust Debt Collections platform, today announced the acquisition of 123 Comply LLC.
Historically, collection agencies have viewed compliance as a reactionary, standalone department. Now, there’s an active shift to view compliance as a proactive process that requires full participation and collaboration across all agency branches. Because of this, a collection agency’s compliance management system is not a product. It’s a mindset. What now? As Rozanne Andersen, Chief […]
With half of the year already gone and the official start of Q3, now is a great time to review your marketing goals for the year. What did you want to accomplish? Have you started yet?
May 2014 was a light month overall for debt collection complaints, and most types of litigation, according to new data from WebRecon. While 3188 consumers filed CFPB complaints against debt collectors – that’s a little more than 100 consumers a day – it still represents a 15.8 percent decline from April 2014. In all, the CFPB […]
Expert Global Solutions (EGS), a global leader in the Business Process Outsourcing (BPO) industry and parent company of ARM giant NCO Group, announced Monday that it has entered into an agreement to sell certain segments of its ARM business to private equity firm Platinum Equity. Financial terms of the pending transaction were not disclosed.
How can ARM companies know where their market opportunities exist in the five to ten year time range? We all know that credit card debt is slowly recovering from recent lows and student loans are growing at a silly rate. But what about everything else?
New guidance from the Office of the Comptroller of the Currency and the Federal Reserve makes it clear that supervised institutions must be vigilant throughout every stage of the relationship with a third party.
If information is the new world currency, then debt collectors probably want to collect as much information as they do cash from consumers. But the data security sphere comes with its own expansive – and evolving – set of compliance standards, especially when a third-party vendor deals with consumer information. Unfortunately, there are vendors out […]
In the first quarter of 2014, the percentage of consumers that filed complaints against debt collectors claiming that the debt in question was not theirs increased to more than 40 percent of all complaints.
Large debt buyer Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) announced today that it has completed its acquisition of Aktiv Kapital AS, a Norway-based debt buyer of accounts throughout Europe and Canada. Effective today, the combined companies will be known as PRA Group.
Automated Collection Services, Inc. (ACSI) is pleased to announce Mr. Tim Moore has joined ACSI to lead our sales efforts in the guarantor educational marketplace. Mr. Moore is an experienced industry veteran with extensive knowledge in higher education.