The number of debt collection complaints in the CFPB’s consumer complaints database claiming that debt collectors are chasing incorrect debt increased in July compared to the previous month and quarter. Interestingly, there has been a sharp rise in consumers claiming that the debt in question has already been paid.
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At a collection conference in Las Vegas, regulators shared some insight into how they view out-of-statute debt. They called for fuller disclosures to consumers, both on legal action (agencies can’t take any) and responsibility to pay (the consumer, in an out-of-stat-debt situation, has none). Will the insight make it into the Policies and Procedures of collection agencies, though?
Brandon Scroggin had an air-tight FDCPA claim against a debt collection agency. It was such a solid case, the company offered him a $5,000 settlement to make it go away. But now Scroggin owes the agency more than $33,000 to pay their attorney’s fees. So how did he go from five grand up to 33-large in the hole?
The Uniform Law Commission announced in late July that it has formed a committee to study the feasibility of having uniform state laws on the transfer and recording of consumer debt. The influential group will also look at the viability of a universal registration system to record and track such transactions.
The Fourth Circuit Court of Appeals recently upheld a lower court ruling that found a debt collection agency in violation of the FDCPA for continuing to call a debtor after the bill had been paid to the original creditor. The agency argued that it never received a dispute in writing after the debt was paid.
A business group headed by former Minnesota Governor Tim Pawlenty has launched a public relations campaign against the CFPB’s open access complaints database. A new proposal from the agency to include consumer narratives appears to be the impetus for the action.
A man who once ran what seemed to be a legitimate debt collection operation before resorting to overtly criminal behavior was sentenced Wednesday to 175 months in federal prison for stealing client money, identity theft, and a ton of other federal financial fraud crimes.
United States District Judge Denise Cote has dismissed all claims brought by the New York State Professional Process Servers Association, a process serving agency and an individual process server against the Department of Consumer Affairs (DCA), its attorneys and administrative law judges.
The 8th Circuit Court of Appeals Friday upheld a lower court’s ruling that a defendant collection agency was entitled to some $33,000 in attorney’s fees and costs in an FDCPA case found to be brought in bad faith and specifically for the purpose of harassment.
Is that interesting enough? No? Well, it involved an outspoken consumer advocate’s gloating posts on a debtor-focused message board, posts that ultimately led to the awarding of fees.
The Arkansas Supreme Court late last week ruled that an out-of-state debt buyer that “retains a licensed Arkansas lawyer to collect on the delinquent accounts and file lawsuits on its behalf in Arkansas” meets the definition of “collection agency” in the state and must be properly licensed as such.
The National Consumer Law Center (NCLC) late Tuesday published a report that calls for the Department of Education to stop using private collection agencies to help recover delinquent student loans. But the report is misleading and inflammatory, going far beyond more reasoned studies from government agencies urging reform within the ED collection contract.
LAS VEGAS — During the panel discussion on Impacts of Regulations, Greg Nodler, an enforcement attorney for the Consumer Financial Protection Bureau, suggested that those in the debt industry should spend some time making themselves acquainted with three CFPB Bulletins: CFPB Bulletin 2013-08 (Fair Debt Collection Practices Act and the Dodd-Frank Act) Date: July 10, […]
Our highly-regulated industry is replete with acronyms and regulations. Over the past year, many organizations have been setting up a Compliance Management System (“CMS”) to meet client requirements and to prevent costly lawsuits and fines. But are agencies focusing on the right thing? Or are they spinning their wheels and wasting money?
In comments submitted to the CFPB on the Advance Notice of Proposed Rulemaking under the FDCPA, the attorneys general of 31 states condemned the use of third-party prepared, integrated business records in civil lawsuits to collect debt as an example of “unfair, deceptive, and abusive acts or practices.” But many of those AGs use similar records in their own criminal cases.
The Eighth Circuit Court of Appeals recently affirmed a decision made by its Bankruptcy Appellate Panel last year that may grant a student loan borrower discharges on 15 separate private student loans totaling more than $118,000. The bankruptcy panel relied on a unique treatment of ability to repay that is not used in any other circuit.
The Consumer Financial Protection Bureau Thursday announced the latest additions to its three advisory boards, including seven new members of its Consumer Protection Advisory Board. Joann Needleman, VP at law firm Maurice & Needleman and current President of the National Association of Retail Collection Attorneys (NARCA), was named as one of the new members.
John Schanck, Chairman, announces executive changes at Stellar Recovery, Inc. that took effect on September 1. Keith Jones has been named President and Chief Marketing Officer, and Bob Burnside has been named Chief Technology Officer.
A debt collector in Singapore was severely injured in February when a man from whom he was attempting to collect a debt attacked him with an axe. The debtor pled guilty Friday to his crimes and awaits sentencing.
CenterPoint Legal Solutions, the leader in non-performing judgment collections, skip tracing and legal servicing solutions announced today that Mark Hutchins has joined the company as Senior Vice-President, Operations.
Resulv LLC has successfully launched its second free compliance tool to assist in the monitoring and oversight of collection vendors.
Enterprise Recovery Systems, Inc.® (ERS) announced today that they hosted a congressional visit on Friday, August 22, 2014.
Auto loans have long been an interesting market for the accounts receivable management industry. While total outstanding balances have always been quite high, historically in line with credit cards for example, the secured nature of the loans limit the work collection agencies could do for lenders. Is that paradigm about to change?
Frost-Arnett today announced that W. Judd Peak has been named Corporate Compliance Officer. In his role, Peak will develop and manage Frost-Arnett’s enterprise compliance program.
LocateSmarter, LLC, a subsidiary of CBE Companies, has been awarded a patent from the United States Patent and Trademark for its cloud-based skip tracing application.
Hudson Cook, LLP, a nationwide provider of legal compliance services for the financial services industry, announces that it has added as partners two nationally-recognized collections attorneys, Gary Becker and Barbara Sinsley, to its existing collections practice.
In order to service the Baby Boomer aging onslaught, hospitals, senior living centers, doctors’ offices, and other healthcare providers will seek greater support in Revenue Cycle Management and Client Relationship Management.
Available free for download, SunGard’s AvantGard, provider of statistical scoring models and corporate liquidity solutions, has a new whitepaper: How Statistical Models Can Help Navigate the Future of Medical Debt Collections.
The National Consumer Law Center released a pretty one-sided report about the role debt collectors play in collecting student loan debt for the Department of Education. But fear not: Student loan collection is a viable market, no matter how “icky” some might believe it to be. That’s why we created our new report, Student Loans – […]
Revenue Discovery Systems (RDS), a division of PRA Group’s government services (Nasdaq:PRAA) has announced that Jeremy Katz joined the company as vice president of state government solutions after 20 years at Xerox.
The Consumer Financial Protection Bureau (CFPB) Wednesday warned credit card companies against deceptively marketing interest-rate promotions. The Bureau is concerned that some companies are luring in consumers with offers of zero or lower interest for a specific purchase or balances transferred from another credit card, and then hitting them with surprise interest charges.