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Appellate Courts Hold Typical Collection Letters Violate FDCPA

The requirements for what debt collectors are required to provide in “snail mail” notices to consumers arises from a patchwork of Federal, State and local laws — as well as case law that often varies by jurisdiction — and many of the requirements are antiquated, dating back to the 1970s. Unfortunately, these dated and contradictory collection letter requirements continue to result in lawsuits and adverse Court decisions against debt collectors.

Youre Fired

Biggest Compliance Risk – “You’re fired!”

“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, […]

Opinion on Red Keyboard Button.

Debt Collection Litigation in the Cross Hairs: CFPB’s Consent Order Against New Jersey Law Firm Creates More Problems Than Solutions

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 of debt collection complaints that the CFPB alleges were unsubstantiated by a lack of […]

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New ProPublica Article Criticizes Debt Collection Litigation on Medical Accounts; Paints One Firm as Outlier

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.

taxes

US District Court in Illinois Finds Disclosure of Potential Tax Consequences for Settling an Account is Misleading to Consumer

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.

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Former CFPB Senior Advisor: Debt Collection Industry Must Press CFPB to Put Complaint Data in Context

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 […]

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Witnesses Tell Senate Banking Committee That CFPB Has Hurt Consumers

Yesterday the Senate Banking Committee held a hearing to debate the Effects of Consumer Finance Regulations. Witnesses included: Leonard Chanin, Of Counsel with Morrison and Foerster LLP – his testimony David Hirschmann, President & CEO, U.S. Chamber of Commerce Center for Capital Markets Competitiveness – his testimony Todd Zywicki, Foundation Professor of Law and Executive […]

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Executive Change: Marc Gruskoff Joins Cascade RM as EVP Operations

PETALUMA, Calif. – Cascade Receivables Management, LLC (Cascade RM) is excited to announce the newest addition to its’ team: Marc Gruskoff.  Joining Cascade RM as Executive Vice President of Operations, Gruskoff is responsible for both internal and external collection operations, as well as the addition of new product lines and services to expand upon Cascade RM’s […]

Mootness

SDNY Allows Defendant’s Offer of Full Relief to Moot TCPA Action

In a putative class action for alleged violation of the TCPA, and notwithstanding the recent ruling by the Supreme Court of the United States inCampbell-Ewald Co. v. Gomez, the U.S. District Court for the Southern District of New York recently granted a defendant’s request to enter judgment in the consumer’s favor providing all relief sought only by the plaintiff in his individual capacity.

Tim Sullivan (center, with award) surrounded by team members

HS Financial Group Wins Award for Federal Subcontracting Performance

COLLINGSWOOD, N.J. –  HS Financial Group, LLC (HSF) and Fed Cetera are pleased to announce that HSF has won Fed Cetera’s Robert J. Prince Award for outstanding performance as a subcontractor on the Department of Education’s (ED) Private Collection Agency (PCA) contract. The award is given by Fed Cetera to a small business subcontractor whose exceptional […]

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Performant Financial Corporation Announces Financial Results for First Quarter

Performant Financial Corporation (PFMT), yesterday announced financial results for first quarter ending March 31, 2016. The company also hosted a conference call to discuss the results. PFMT is one of the few publicly traded companies in the ARM space. The company has also historically been one of the Department of Education’s (ED) top performing private […]

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Florida’s Third DCA Reverses Course on Statute of Limitations for Mortgage Foreclosure

This article previously appeared on The Consumer Finance Litigation Blog and is republished here with permission. Florida’s Third District Court of Appeal retreated from one of its most unpopular opinions this morning. The Third DCA surprised many with its original ruling in Deutsche Bank Trust Company Americas v. Beauvais¸ 3D14-575 when it split with the Fourth District Court […]

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Executive Change: Hayden Miller Joins Stellar Recovery, Inc. as Collection Manager

Hayden Miller has joined Stellar Recovery, Inc. as Collection Manager and is responsible for leading his team in providing a great customer experience for the consumer, meeting all compliance requirements, and maintaining top level performance for clients.  Hayden has over 10 years of operations and operations management experience in first and third party collections.  His […]

LiveVox Discusses the Future of Consumer Contact Technology at iA’s 2016 Large Market Participant Summit

LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced that LiveVox CEO, Louis Summe, has been invited to join a panel to discuss what macro trends will alter the financial services segment at this week’s Large Market Participant Summit presented by insideARM in Washington D.C. On the session, LiveVox Chief […]

wrong-way

CFPB Targets ARM Industry — Which Practices Should Your Company Avoid?

The CFPB intends for its consent orders to set industry-wide precedents. In March 2016, CFPB Director Richard Cordray referred to consent orders as a guide “to all participants in the marketplace to avoid similar violations and make an immediate effort to correct any such improper practices,” telling the Consumer Bankers Association that any company not following the precedents set by the CFPB’s consent orders is committing “compliance malpractice.”

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The Intelitech Group Announces Launch of StackUp, a Competitive, Reward-Based Collector Training Game for Collection Agencies

The Intelitech Group, a premiere analytics provider and consulting practice in the ARM industry, today announced the launch of its latest collector training solution StackUp. StackUp is a game designed to help continuously train collectors in areas such as compliance, industry regulations, collection law, and communication skills in a fun and entertaining way.

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Federal Court: CFPB Overstepped Jurisdiction in Issuing CID to For-Profit Colleges Accreditor

This article previously appeared on the Holland & Knight Consumer Protection Defense & Compliance blog and is re-published here with permission. The post was co-authored by Anthony E. “Tony” DiResta, Kwamina Thomas Williford, and Brian J. Goodrich. Judge Richard J. Leon of the U.S. District Court for the District of Columbia on April 21, 2016, ruled that the […]

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CFPB Announces Consent Orders Against Law Firm and Debt Buyer

Yesterday the CFPB announced that a New Jersey law firm and a debt purchasing company had agreed to pay $2.5 million in response to the agency’s assertions regarding the filing of “mass-produced” lawsuits. The law firm, Pressler & Pressler, issued a strong response, noting that no restitution or invalidation of judgments was required in the agreement, and that the settlement is not about laws or rules that are currently in place.