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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.

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

This article originally appeared as an Alert on ClarkHill.com, and is republished here with permission. 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 […]

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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, […]

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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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Another Court Finds a 1099(c) Disclosure May Be False, Deceptive or Misleading

In a Fair Debt Collection Practices Act (FDCPA) case, a Federal Judge has declined to dismiss a lawsuit claiming that a 1099(c)) disclosure in an initial letter was a false, deceptive, or misleading statement regarding potential tax consequences in relation to a proposed settlement of a debt. The Memorandum Opinion in case, Velez v. Enhance Recovery Company, LLC (Case No. 16-164, U.S. District Court, Eastern District of Pennsylvania) was filed on May 2, 2016.

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Encore Capital Group Announces First Quarter 2016 Financial Results

Yesterday, Encore Capital Group (ECPG), reported its financial results for the first quarter of 2016. Encore is an international specialty finance company with operations in eight countries that provides debt recovery solutions for consumers across a broad range of assets. Financial Highlights for the First Quarter of 2016: Estimated Remaining Collections (ERC) grew 12% to $5.7 billion, compared […]

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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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Appeals Court Affirms that FDCPA Does Not Require Debt Collector Intent to Proceed to Trial When Filing Lawsuit

Yesterday the Seventh Circuit Court of Appeals rendered its opinion in Paula St. John, Yvonne Owusumensah, et al., & Bryan Sirota v. CACH, LLC, Cavalry Portfolio Services, LLC; & Unifund CCR Partners, Inc. At issue was whether 15 U.S.C. sec. 1692 e(5) dictates that a debt collector must intend to proceed to trial when it files a lawsuit to collect a debt. The Court agreed with Appellees that e(5) contains no such requirement.

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Walking for Suicide Prevention

I recently learned that a person commits suicide about every 12.3 minutes in the United States. That’s 42,773 Americans a year. This is a staggering statistic. It got me thinking about my last 25 years in the accounts receivable management industry.  I can point to about a half a dozen examples of prominent leaders taking […]

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State Court Opinion in TCPA Class Action Lawsuit Takes TCPA to Task; And Includes Interesting Insurance Sub-plot

Court: “This case is typical of the TCPA class action cases… members received notice of the settlement more than five years after receiving the unsolicited fax, making the likelihood of filing a claim very low. In this appeal, which consists of a 12-volume record and 120 pages worth of briefs… the only ones who stand to reap any significant benefit from a favorable outcome are the attorneys for the class.”

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Senate Committee to hold Hearing to Examine Effects of 25-Year-Old TCPA on Modern Consumers and Businesses

In a press release issued yesterday, U.S. Senator John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, announced that he will convene a full committee hearing titled “The Telephone Consumer Protection Act at 25: Effects on Consumers and Business” on Wednesday, May 18, 2016, at 10:00 a.m. The hearing will examine […]

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Maryland Debt Collection Litigation Bill Signed Into Law

SACRAMENTO, Calif. — On Thursday, May 19th, Maryland Governor Larry Hogan signed SB 771/ HB 1491 (Chapter 579) into law, addressing the treatment of out-of-statute debt and statutorily codifies several provisions contained in the Maryland Rules of Procedure (MRP) concerning the litigation of consumer debt. Given that the language from the MRP was copied verbatim, DBA International […]

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U.S. District Court in New York Grants Debt Collector Motion to Certify Important FDCPA Issue for Interlocutory Appeal

In an Order dated May 5, 2016 a Federal Judge in New York has determined that a decision he rendered in the matter of Halberstam v. Global Credit and Collection Corp. (U.S. District Court, ED, NY, 15-cv-5696 (BMC) earlier this year should be certified for an immediate interlocutory appeal. (Editor’s Note: Interlocutory actions are certified by courts when an issue presents a question of law that should be answered by an appellate court before a trial may proceed or to prevent irreparable harm from occurring to a person or property during the pendency of a lawsuit or proceeding. Generally, courts are generally reluctant to make interlocutory orders.)

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Executive Change: InvestiNet Faith Braverman Executive Change Announcement

InvestiNet, LLC has announced the hiring of Faith Braverman to the position of Director, Business Development.  She joins InvestiNet after more than 10 years in the accounts receivable industry, initially as VP Client Services at YouveGotClaims and then as VP Business Development at Eltman Law, PC. “We are excited to be working with Faith again.  […]

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FTC Warns Industry to Have Robust Credit Reporting Policies and Procedures

FTC Director Jessica Rich’s comments came as part of an announcement by the FTC that it had filed a complaint and proposed order against a Texas-based debt collection agency for having deficient policies and procedures related to borrower credit reporting. Through its proposed order, the FTC clarified its expectations for what credit reporting policies and procedures debt collection agencies need to have in order to avert or withstand regulatory scrutiny.

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Executive Change: Randy Tempest Promoted to Chief Sales Officer at Receivables Management Partners

GREENSBURG, Ind. – Receivables Management Partners (RMP), a leading provider of accounts receivable management and other outsourced revenue cycle management (RCM) services to the healthcare industry is pleased to announce the promotion of Randy Tempest to Chief Sales Officer. Previously, Randy served as the Senior Director, Sales and Client Relations for RMP. In his new […]

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Executive Change: Stellar Recovery Promotes Hayden Miller to Operations Manager

JACKSONVILLE, Fla. — Stellar Recovery announced today that Hayden Miller has been promoted to Operations Manager.  Hayden has over 10 years of operations and operations management experience in first and third party collections.  His background includes managing banking, communications, financial services, student loan, and utility verticals.  Hayden’s responsibilities include working with the collection managers to […]

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Executive Changes: MRS Announces Top Appointments

MRS BPO, LLC, a New Jersey-based debt collection agency and one of the country’s premiere accounts receivable management firms, recently announced organizational changes to best align key MRS executive personnel with the vison and mission of the company’s strategic objectives. Effective May 1st, Hal Goldstein, former Chief Strategic Officer has assumed the title of Chief […]

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LiveVox Partners with CBA to Discuss the Latest Vicarious Liability Trends for Retail Banking Contact Centers

SAN FRANCISCO, Calif. – LiveVox Inc., a leading provider of cloud contact center solutions for enterprise operations, announced it has partnered with the CBA to host a panel of legal and operations experts as they discuss the unique impacts and approaches to vicarious liability for retail banking consumer contact centers. The webinar takes place this Friday, May […]