When collectors get sued in an FDCPA action, they face a steep uphill battle. Courts apply the very pro-consumer “least sophisticated debtor” standard when evaluating a collector’s communications, and most violations of the Act are “strict liability.” However, courts have gradually been demanding more and have rejected suits based on hyper-technicalities.
July’s FDCPA-related cases include some positive outcomes and some negative outcomes for the industry. Review the list, and our at-a-glance case law resource, powered each month by Joann Needleman of Clark Hill.
On July 27, 2016 the Court of Appeals for the Third Circuit issued an opinion in the case of Bock v. Pressler & Pressler. “Meaningful Involvement” meet “Injury in Fact.” This case may have a life of its own.
The Consumer Financial Protection Bureau (CFPB) is highlighting recent enforcement activity with the release of its latest Supervisory Highlights report. This report focuses on activities during the first quarter of 2016, showcasing supervisory actions that the Bureau says resulted in the remediation of approximately $30 million to more than 250,000 consumers. You can read the […]
JERSEY CITY, N.J. — Eltman Law, PC has announced the hiring of Paul J. Klemm to the position of Chief Operating Officer. Mr. Klemm joins Eltman after nearly two decades in the creditors’ rights industry, previously at Patenaude & Felix APC, and as Managing Partner at Klemm & Associates, LLC and Nudelman, Klemm, and Golub, […]
insideARM maintains a free FDCPA resources page to provide the ARM community a destination for timely and topical information on the Fair Debt Collection Practices Act (“FDCPA”). This page is generously supported by TransUnion. See the page here or find it in our main navigation bar from any page on insideARM. The cornerstone of the page is […]
COLUMBUS, Ohio – The Law Offices of Robert A. Schuerger Co., LPA (Schuerger Law), based in Columbus, OH, today announced it has received Historically Underutilized Business Zone (HUBZone) certification through the U.S. Small Business Administration (SBA). Schuerger Law provides comprehensive debt collection services to the higher education, government, healthcare and commercial industries. The HUBZone program helps small […]
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.
The CFPB has entered into consent orders with major creditors, debt buyers, and law firms during the past year relating to key areas of their collection practices. The consent orders impose significant new requirements relating to data integrity, dispute handling, debt substantiation, debt sales, affidavit practices, and litigation practices. The orders are not formal “rules” […]
In a unanimous decision issued today, the United States Supreme Court held that private attorneys hired by the Ohio Attorney General to collect debts owed to state agencies were “state officers” otherwise exempt from portions of the FDCPA, and that even if the private attorney didn’t have “state officer” status, using Ohio AG letterhead did not violate the FDCPA.