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.
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 […]
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.
PARSIPPANY, N.J. — Pressler and Pressler, a law firm specializing in retail collections, today announced it has entered into a settlement agreement with the Consumer Financial Protection Bureau (CFPB). While the CFPB rigorously and thoroughly scrutinized the firm for more than a year and a half, the settlement ultimately involves no consumer redress or restitution, no […]
Yesterday the CFPB announced that a New Jersey law firm and a debt purchasing company had agreed to pay $2.5 million in response to the agency’s assertions regarding the filing of “mass-produced” lawsuits. The law firm, Pressler & Pressler, issued a strong response, noting that no restitution or invalidation of judgments was required in the agreement, and that the settlement is not about laws or rules that are currently in place.
In an April 1, 2016 letter the Massachusetts Division of Banks (Division) has reversed its position regarding licensing of law firms as debt collectors in the state. The Division now says that a Massachusetts law firm and/or other similarly situated law firms will not need to become licensed to engage in debt collection in the Commonwealth. This single issue seems to have been a gigantic waste of time and resources.
Yesterday the United States Supreme Court heard oral arguments in the case of Pamela Gillie, et al. (Plaintiff), v. Law Office of Eric A. Jones, LLC, et al. (Defendant). This is the first case in ten years regarding the FDCPA to be heard by the highest court, Ohio state officials are looking to overturn a […]
Yesterday insideARM reported on a putative class action lawsuit filed against B of A. We were since made aware of a previous case involving the same Plaintiff’s attorney and similar facts.