On Tuesday, July 7, 2015 a federal judge in Manhattan entered an order for judgment against Time Warner Cable (TWC) for willful violations of the Telephone Consumer Protection Act (TCPA). The judgment was for $229,500. The order was entered after both parties moved for Summary Judgment.
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Last week the Huffington Post published an article that just sent me over the edge. The headline read, “Republicans Want Private Debt Collectors To Replace IRS Agents; The GOP thinks it’ll save the government money, but the facts suggest the opposite.” While the headline got my attention, the first two sentences really got my blood boiling…
Encore Capital Group, Inc. (NASDAQ:ECPG) announced yesterday that it has collaborated with U.S. Reps. Scott Peters (CA-52) and Duncan Hunter (CA-50) to create a bill that would exempt up to $2,500 worth of forgiven personal and household debt from federal taxation. The bill (H.R. 2640) was recently introduced as the “Consumer Debt Forgiveness Tax Relief Act of 2015.” This re-raises the 1099-C debate for the collection industry.
In May of this year, several of the larger banks were in the news for not correctly reporting debts on credit bureaus that were discharged in bankruptcy. Pursuant to lawsuits, which were filed in White Plains, New York Bankruptcy Court, and investigations by the US Trustee’s Office, the banks were not correctly updating trade-line accounts on consumer’s credit bureaus with information that the debt was discharged in bankruptcy.
According to a report on The Hill website, House members from both parties have suddenly realized that new FCC TCPA rule clarifying auto-dialer restrictions related to mobile numbers will hamper their own efforts to reach constituents. They ask, well… how will we get consent?
In June, EBay and PayPal revised their user agreements to include a statement related to their ability to communicate with customers via autodialed calls and text messages for various purposes, including collecting a debt. The change raised eyebrows. Yesterday, they tried again, in the wake of the FCC’s release of its TCPA ruling last Friday. But they still may not have gotten it right.
Collingswood, NJ: ARMing Heroes (www.armingheroes.org), the collection industry’s charity for military veterans, announced that it began accepting applications on July 4, 2015, for its annual No Debts for Vets grant-making program. Last year, the charity received hundreds of inquiries and more than 100 applications from military vets and their families seeking much-needed financial support for […]
According to an exclusive Reuters report, JPMorgan Chase will be paying $125 million to settle investigations by state and federal authorities, some dating back to 2013, related to the improper sale and collection of consumer credit card debt.
Given the data that must be weighed by a creditor or debt collector in determining where a consumer resides – the area code of the number called, the zip code of the residence of record, any statements by the consumer about his or her place of residence – it is certain that the Discover Consent Order will be the start of yet another flood of consumer lawsuits against the collection industry regarding the calling of consumer cell phones.
As insideARM reported last month, oral arguments on the Defendant’s Motion to Dismiss the Consumer Financial Protection Bureaus (CFPB) action against the Georgia collection law firm Frederick J Hanna & Associates P.C. were held on June 3rd in Atlanta. Yesterday the judge issued an order denying the defendant’s motion to dismiss.
The facts in Gelinas are only slightly different than those presented in Kostik. In the Gelinas case, the envelope in question displayed a series of 21 numbers, the last 10 of which were the original invoice number for the services rendered that created the outstanding balance due. (In Kostik the envelope displayed a barcode.)
Minnesota Commerce Commissioner Mike Rothman announced yesterday that a Texas-based debt collection company is facing a $500,000 penalty and a consent order that requires the company to change its ways, including rewriting its collection manual and retraining its employees. The financial penalty is the largest ever imposed on a debt collection agency by the Minnesota […]
Melville, New York – Acumen Solutions Group is proud to announce it has partnered with ComplyARM (http://complyarm.com) to integrate services within their Dashboard software platform for the purposes of tracking and managing Acumen’s clients’ licensing and insurance data. In doing so, Acumen and ComplyARM collaborated to build functionality into ComplyARM’s Compliance Management System (CMS) that will […]
At issue is what Congress meant when it defined “consumer” as a “natural person,” but then didn’t take the next step to define what a person, in FDCPA situations, is. With nothing else to guide it, the Sixth Circuit was left with the language of Citizens United, and the ability to name corporations as consumers under the FDCPA.
A report issued last week by the Office of the Inspector General (OIG) found that the Social Security Administration spent nearly three times as much as it took in to try to collect on mistakenly issued overpayments over the six year period ending in 2013. The findings are reminiscent of the IRS debt collection saga of the early 2000′s.
A bill before the U.S. Senate would make commercial robocalls a federal crime, exacting up to a $20,000 fine and a prison sentence of up to 10 years. Introduced on June 25 by Sen. Chuck Schumer (D-NY), S. 1681 would criminalize the use of an automatic telephone dialing system or an artificial or prerecorded voice for calls made “for […]
During yesterday’s press call regarding the JP Morgan Chase Enforcement Action, officials from the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC), and the Attorneys General from Iowa and Illinois offered personal commentary on the Action, reinforced its implications, and worked to clarify questions about the numbers. Iowa […]
On July 14, 2015 the PACE filed a Petition in the U.S. Court of Appeals for the Seventh Circuit in the matter of Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991, Declaratory Ruling and Order.
The State of California is considering a bill that would add additional limits to the amount a creditor can garnish. Currently, “Existing law prohibits the amount of an individual judgment debtor’s weekly disposable earnings subject to levy under an earnings withholding order from exceeding the lesser of 25% of the individual’s weekly disposable earnings or the amount by which […]
YUMA, AZ – TSW Global Solutions announces the opening of its new Call Center facility in Ortigas Center, Philippines, with 200 call center seats. TSW Global Solutions is a growing contact center company in the Philippines, striving to develop long standing associations with clients based on transparency, trust and high quality work. Chief Operating Officer […]
As part of a larger CFPB enforcement action announced today against Citibank, N.A., Department Stores National Bank (a Citibank subsidiary) will pay $23.8 million for deceptively charging expedited payment fees to nearly 1.8 million consumer accounts during collection calls.
DALLAS, TX & WESTMINSTER, CO — SWC Group selected Big Brother Big Sisters of America as their second quarter 2015 Charities of Choice. Employees from their Carrollton, TX and Westminster, CO offices made both non-monetary and monetary donations; resulting in more than $5,000 raised. Big Brothers Big Sisters helps children realize their potential and build […]
Due to loss of revenue, the USPS has implemented reforms in an effort to combat changes. These include consolidating as many as 82 mail processing facilities, raise rates, and, perhaps most importantly, single-piece, First-Class mail is expected to be delivered in two to three days, rather than one to two days – and overnight delivery may be eliminated for a considerable portion of First-Class mail. Does that have to affect your collection floor?
The Consumer Financial Protection Bureau (CFPB) recently announced the impending departure of Deputy Director Steve Antonakes to spend more time with family. Antonakes has also been serving as the Associate Director for the Division of Supervision, Enforcement, and Fair Lending. Yesterday the Bureau announced that Meredith Fuchs will now serve as Acting Deputy Director. Ms. Fuchs […]
Morgan Drexen went out of business in late June 2015 after filing for bankruptcy. On June 19, 2015, the company shut down its business after a federal court ordered the company to stop collecting money for debt settlement work. The CFPB is now notifying affected consumers about their rights and the actions they should now take.
WOODLAND HILLS, Calif. – Account Control Technology, Inc. (ACT), a national leader in delivering debt management and recovery solutions, is pleased to announce that David Elmore has joined the company as Vice President, Business Development. Elmore has been working in the financial services industry for 15 years and spent the majority of his career at Experian, […]
The Eleventh Circuit Court of Appeals recently handed down a decision that went too far in holding that all litigation related activity is subject to the FDCPA. In pursuing their client’s judgment, an attorney and law firm obtained a garnishment against Nedzad Miljkovic. Miljkovic filed a claim for exemption in response, which the creditor disputed. However, the writ was eventually dissolved on the creditor’s attorney’s motion after Miljkovic provided discovery showing that his wages were exempt from garnishment.
On the heels of yesterday’s enforcement action against Citibank and its subsidiary Department Stores National Bank, today the CFPB took action against Discover Bank and its affiliates for illegal private student loan servicing practices. The company also engaged in illegal debt collection tactics, including calling consumers early in the morning and late at night.
The first half of 2015 was filled with major developments for the accounts receivable management (ARM) industry, from the Department of Education contract to the recent TCPA ruling. What’s next? And what does this mean for ARM? Join Kaulkin Ginsberg President and CEO Mike Ginsberg and Ontario Systems Chief Compliance Officer Rozanne Andersen for this […]
Connections and associations in a business setting take time to build and maintain, arguably even more time than in your personal life. No matter what level of friendship you have or are pursuing, all relationships take various amounts of time and dedication to nurture and develop. Some might say that keeping a friend is effortless and just comes naturally, when really it is just more enjoyable “work” than, say, figuring out what the new FCC ruling means for your company.