A recent ruling by an appellate court took a very troubling position on debt collectors’ use of settlement offers to resolve debt. An ARM legal expert wonders if the ruling will result in an unintended consequence: more collection lawsuits.
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Last week the Seventh Circuit Court of Appeals issued its opinion in the consolidated appeals of McMahon v. LVNV Funding and Delgado v. Capital Management Services concerning the collection of time-barred debt without the threat of litigation. The result is not good for the credit and collections industry, principally because it further confuses application of the FDCPA across the nation.
An attorney at the Consumer Financial Protection Bureau (CFPB) Wednesday accused the Bureau of fostering a “culture of retaliation and intimidation that silences employees and chills the workforce from exposing wrongdoing” in a hearing before a House Financial Services Subcommittee. The lawyer worked in the CFPB’s consumer complaints division.
A recent New Jersey Appellate Court decision offers an extensive analysis of debt buyers’ use of prior creditors’ records to obtain judgment on purchased debt in New Jersey. The decision can be useful guidance in other jurisdictions.
You finally determined the timing is right for a sale and you’re going to do it. How do you confront your staff about your intentions? Perhaps the more critical question to answer is not how but when.
CFPB Deputy Director Steve Antonakes yesterday discussed debt collection rulemaking noting that his agency is particularly concerned that “the accuracy of account information degrades as it is passed on from the original creditor to debt collection firms or debt buyers.”
The challenges facing debt collectors – and creditors, and consumers – today are more than 30 years in the making and have compounded over time. So it’s the perfect opportunity to get everyone in the same room to talk it out.
The Sixth Circuit Court of Appeals Wednesday upheld a lower court judgment in an FDCPA case against a collection agency over the use of the word “of” rather than “after” in the validation notice in a debt collection letter.
A bill that would offer a technical fix to the Fair Debt Collection Practices Act (FDCPA) aimed at collection attorneys has picked up three additional co-sponsors this month in the U.S. House of Representatives, including two in the past week alone.
Delinquencies for installment and home-related loans fell in last year’s fourth quarter as the economy improved and consumers conscientiously managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.
The Telephone Consumer Protection Act (TCPA) requires a call placed to a cellular phone using an autodialer to have the prior express consent of the person who received the call, the Eleventh Circuit Court of Appeals held this past Friday in a ruling that went against the creditor defendant.
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.
The Consumer Financial Protection Bureau (CFPB) Tuesday released a research report on payday lending and presented some of the findings at a field hearing in Nashville. CFPB Director Richard Cordray noted at the hearing that his group is in the “late stages” of formulating new rules for short-term loans.
Our discussions with issuers over the past few months have focused on the current storm for the debt sale market; growing regulatory requirements.
SKYLINK Receivables Inc., headquartered in Vancouver (Surrey), Canada and Integrity First Telesolutions Inc., headquartered in Toronto, Canada today announced that their Boards of Directors have approved a definitive agreement for Integrity First Telesolutions to merge with SKYLINK Receivables effective April 1, 2014.
As scammers get more and more sophisticated in how they steal money from unwitting consumers, a consequence for the collection industry may be a significant increase in the number of validation requests submitted by consumers.
The recent acquisition of Carrollton, Texas based commercial collectors, RCI Asset Solutions, by Tucker, Albin and Associates means that current RCI customers will now have access to improved debt collection resources and the best available technology.
A U.S. District Court last week ruled in favor of a commercial debt collection agency that was sued by a consumer who alleged violations of the FDCPA. But the consumer had made his purchase as a business and later tried to claim the product was for personal use. The decision gives weight to what information the consumer provides during the original transaction.
The Federal Trade Commission Thursday announced a settlement in a long-running case against two debt collection agency owners and their network of companies that threatened lawsuit and arrest over debts consumers often did not owe.
The study compared private collections and IRS collections during four consecutive six-month intervals. Taxpayer Advocate Service found that while private collectors collected more tax dollars in the first six-month period than the IRS, over time IRS collections were more consistent. Private collection agencies had six months of success, before drastically decreasing the dollar amount and percentage of available taxpayer dollars collected.
Ontario Systems, a leading receivables management technology and services provider, is easing the regulatory burden for its customers in the third-party collection industry.
On Tuesday, Senior Vice President at Wells Fargo Bank Larry Tewell moderated a discussion titled “Implications for Default Management” among a panel of regulators at the Consumer Bankers Association national conference, CBA Live
Unifund CCR, LLC today announced that it has earned the designation of Certified Professional Receivables Company (CPRC) and Morgan Smith, Unifund’s Chief Compliance Officer has earned the designation of Certified Receivables Compliance Professional (CRCP) after completing the prescribed educational requirements of DBA International’s Debt Buyer Certification Program.
Ceannate Corp today announced that the company has filed comments with the Federal Communications Commission (FCC) in support of the Petition for Rulemaking of ACA International.
Bank of America is in talks with the Consumer Financial Protection Bureau to pay an $800 million settlement over allegations that the bank deceived customers when selling them additional credit card products. If finalized, the settlement would be the largest levied by the CFPB to date. This wouldn’t be the first time the CFPB has taken […]
LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced that John McNamara, CMO, will be joining telecom legal and operations experts as they discuss the prominent TCPA and CFPB developments that are impacting contact center leaders at Telecom Risk Management Association (TRMA) 2014 Spring Conference in Hollywood, FL.
West Virginia Attorney General Patrick Morrisey Thursday announced that the Office of the Attorney General reached an approximately $1.2 million settlement in Jefferson County Circuit Court with Fast Auto Loans Inc. and Virginia Auto Loans Inc.
The Social Security Administration announced Monday that it will immediately stop efforts to collect on taxpayers’ debts to the government that are more than 10 years old. This means the SSA will no longer seize state and federal refunds from people who had relatives who owed money to the agency. While the SSA will no longer seize federal and/or state refunds to pay for government debts past the federal statute of limitations, this does not have any impact on other time-barred debts on a state-by-state basis.
TECH LOCK, Inc., a leading compliance and technology consulting company announced that it has been designated by Health Information Trust Alliance (HITRUST) as a Common Security Framework (CSF) Assessor.
The attorney general of Arizona, Tom Horne, recently hired a new leader for his Collections Enforcement Unit, a clearinghouse for debt owed to various state agencies. But the specific person hired to fill that role appears to have sparked controversy, or soon will, according to a local paper.