In October 2014, consumers filed 911 lawsuits claiming violations of the Fair Debt Collection Practices Act (FDCPA), up 13.4 percent from September and an increase of 16.1 percent from October 2013. But total FDCPA lawsuits are still on track to finish well below 2013 numbers, which would mark the third straight year of declines.
The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) have filed several recent enforcement actions challenging debt collection practices by original creditors as well as third-party debt collectors. In addition, the CFPB’s Notice of Proposed Rulemaking on debt collection is expected shortly. These rules are anticipated to codify a sea change in the collection industry.
Barron & Newburger, P.C.—a law firm with over three decades of experience in consumer and commercial litigation, insolvency and bankruptcy litigation, and compliance and regulatory affairs—today announces the opening of offices in California, Colorado, and New York.
The U.S. Court of Appeals for the D.C. Circuit heard oral arguments in two cases Wednesday that challenge the CFPB’s authority to regulate financial services firms due to its one Director leadership structure. The specific arguments concerned standing to bring such suits, with the merits of the challenges pending.
A U.S. Circuit Court decision this summer took an extraordinary step when it held that filing a proof of claim on time barred debt is conduct that violates the FDCPA. At the time, attorneys close to both bankruptcy and FDCPA proceedings warned that it would touch off a very real firestorm in that sector of the ARM industry. That has proven to be quite true.
The American Bar Association Wednesday issued a formal opinion finding that a growing practice by district attorneys of allowing debt collection agencies to issue demand letters that suggest they originated from the prosecutor’s office violates ABA Model Rules of Professional Conduct.
Minnesota Attorney General Lori Swanson announced Thursday that her office has filed a lawsuit against TJ Process Service, a Minnesota process serving company, and one of its process servers for falsely claiming that some individuals were served with debt collection lawsuits.
In one of the greatest examples of baiting a collector into a violation of the FDCPA, a plaintiff in Missouri decided he was not going to wait for a collector to call him and instead called the collector himself to induce a 1692c(a)(2) violation.
The U.S. Court of Appeals for the Second Circuit this week ruled that New York’s highest court will need to resolve the legal questions in a case brought by a debt collection law firm challenging a New York City statute that regulates certain activities of collection attorneys.
A federal judge in California late last week ruled in favor of a defendant in a TCPA case by deciding that a platform for sending out text messages did not meet the definition of an automated telephone dialing system (ATDS). The ruling is seen as positive precedent for judicial ATDS interpretations.