Today on the official blog of the U.S. Department of ED, plans were announced to launch “one of its biggest initiatives to date” – the creation of a software system to manage all Direct Student Loans, including both servicing and debt collection. This effort will be an incredibly heavy lift for the department.
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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.
“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, […]
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 […]
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.
The debt industry has a story, but it is one told about it, rather than by it, generally. And, according to a crisis management consultant, that’s the wrong way for the industry’s stories to be told. Consumer media outlets — your Wall Street Journals; your nightly news segments; your Times, both Financial and New York […]
Yesterday the White House hosted a call together with the Dept. of ED and the CFPB to announce actions to ensure that student loan borrowers are aware of their options for repayment. The actions are wide-ranging, but don’t address material post-default issues.
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.
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 […]
On April 7, 2016 a Judge for the US District Court, Eastern District of Texas, granted a motion for Summary Judgment against a Dallas-based debt collector, Commercial Recovery Systems, Inc. (CRS), and its owner Timothy L. Ford, in an FTC enforcement action. The behavior that was identified is appalling. If true, how it developed and continued is beyond belief.
We’ve grown accustomed to using secondary markets – grocery store, used car dealerships, and the stock market – in many aspects of American life, even if we don’t realize it. Another example is the receivables market. When it comes to the ARM industry, the receivables secondary market exists so that debt buyers and sellers can […]
Jay Rickman Jr., the President/CEO at ACA member company AMCOL Systems in Columbia, S.C., passed away on April 5 at age 55. Rickman Jr. had been active in ACA International for nearly 29 years and worked extensively to advance the collection industry. He was politically active, served on numerous ACA committees, and became an ACA […]
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 […]
A federal judge in Michigan has dismissed a proposed class action accusing publicly traded debt buyer Encore Capital Group and its affiliated entities of suing consumers over old debts that were no longer legally enforceable. The Judge ruled that that the case must be decided in arbitration.
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 […]
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.
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 […]
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 […]
This case provides interesting perspective on how a settlement was apparently reached fairly quickly and efficiently in a TCPA case. Also of note is the fairly broad definition of the Settlement Class.
The U.S. District Court for the Eastern District of North Carolina recently rejected a defendant’s arguments that its contract with the plaintiff did not allow revocation of prior express consent under the TCPA, and that the defendant’s telephone communication system was not an “automatic telephone dialing system.”
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 […]
GREENWOOD VILLAGE, Colo. — Alpha Recovery Corp announced today that it will be opening a second office on June 1, 2016, in Tempe, Arizona. Alpha Recovery Corp. is an Accounts Receivable Management firm that specializes in contingency collections, consulting, and asset sales services. “Our expansion has been a direct result of our growth this past […]
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 […]
Harvard researchers find that fewer consumers are using credit cards because government regulations are making it harder for them to open credit card accounts in the first place.
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 […]
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.”
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.
ARM Vets Charity Combines Donations from Various Sources to Fund Grant-Making Program Collingswood, NJ: ARMing Heroes, the collection industry’s charity for military veterans, is pleased to share the story of three military veterans from different walks of life to show how much they actually have in common. Each dedicated at least a decade of his […]
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 […]
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.