ROCKVILLE, MD – Yesterday the Consumer Relations Consortium (CRC) submitted comments in response to the Consumer Financial Protection Bureau’s (CFPB) request for information (RFI) on complaint data normalization. The CRC is a group of more than 20 Larger Market Participants (LMP) in the debt collection industry who proactively engage with regulators and consumer advocacy groups […]
If an entity acquires a debt in default and tries to collect on it, does that automatically make it a “debt collector” under the Fair Debt Collections Practices Act? Several courts, including the Third, Seventh, and Sixth Circuit Courts of Appeals, all said yes it does. In a surprise ruling earlier this week, however, the […]
Navient Solutions, Inc. may be in legal trouble again. Late last week, the CFPB’s Office of Enforcement sent loan processing giant Navient a NORA (Notice and Opportunity to Respond and Advise) letter informing the company that it may recommend that the agency pursue legal action. The CFBP warned Navient that it may seek restitution, civil […]
MUNCIE, Ind. – Ontario Systems, a leading accounts receivable technology and services provider, announced it has added Sessions Firm partners David Israel and Michael Del Valle to the company’s roster of presenters at its annual customer and collection education conference, PowerUp 2015. Sessions, Fishman, Nathan & Israel, LLC, is the nation’s leading consumer protection defense […]
This week the CFPB released its second Monthly Complaint Report. This month’s focus is credit reporting. Last month was debt collection. What’s interesting is the significant difference from a supervisory/enforcement standpoint between these two markets.
According to a monthly report by Webrecon, FDCPA litigation is up 17.5% YTD over the same period in 2014, with 6,888 cases filed through the end of July compared to 5,862 for the same period last year. FCRA cases also increased YTD compared with last year, by 26.8%. TCPA are still down for the YTD comparison, […]
The CFPB has ordered Springstone Financial to provide $700,000 in relief to victims of deceptive credit enrollment tactics, stating that many consumers who signed up for Springstone’s deferred-interest loan product at dental offices to pay for dental work were led to believe that the product was interest free. In fact, interest accrued from the date of the consumer’s purchase and was charged if the balance was not paid in full before the promotional period ended. Turns out this is a lesson in training, monitoring, and UDAAP violations.
Last week the CFPB, jointly with the FTC, filed an amicus brief with the U.S. Court of Appeals for the Third Circuit in Bock v. Pressler & Pressler, LLP. In the case a U.S. district court previously ruled that a debt collection law firm violated the Fair Debt FDCPA by filing a complaint without “meaningful attorney involvement.”
In a news release from the Consumer Financial Protection Bureau (CFPB) yesterday the CFPB announced that the CFPB, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have all issued fines against Citizens Bank for allegedly failing to credit consumers for the full amounts of their deposited funds. […]
In a seemingly endless debt collection pre-rulemaking process, John McNamara from the CFPB’s Division of Research Markets & Regulations has circulated a questionnaire with approximately 60 questions to a random sample of debt collection firms and service providers. This is part of the so far nearly two-year debt collection rulemaking process.