Quietly, on the eve of the holiday weekend, the CFPB published a Rulemaking Agenda update, extending the end of Prerule Activities for Debt Collection, for a second time, to December of this year.
The Primary Group is alleged to have sent consumers multiple text messages, and, in most cases, failing to disclose the company as a debt collector. Per Jessica Rich, Director of the FTC’s Bureau of Consumer Protection: “[Debt collectors] can’t harass or lie to you, whether they send a text, email, or call you.” She also stated that “legitimate debt collectors know the rules.”
According to data provided by WebRecon LLC, FDCPA litigation is trending up in 2015. Litigation was up 10% over last month, and for the first four months of the year, up 12.5% over the same period a year ago.
You should probably stop charging convenience fees. You also probably won’t listen to me, or to your compliance team. But convenience fees are proving to be ironically named, and a sure-fire way to involve your agency in a class action lawsuit — at the least.
The Second Circuit Court of Appeals ruled yesterday that a debt collector does not violate the FDCPA if it does not advise a consumer of the tax consequences of a settlement offer.
Yesterday the United States Court of Appeals for the Ninth Circuit issued a 3-0 Opinion (add link) in favor of the ARM industry in an FDCPA case entitled Ninth Circuit Opinion in Diaz v Kubler. The appeal involved a suit by a debtor against a debt collector alleging that by sending a collection letter that sought 10 percent interest on the debt the debt collector violated §1692f(1) of the FDCPA and also California’s Fair Debt Collection Practices Act (the Rosenthal Act).
West Virginia had once been described as one of the most treacherous states within which to conduct debt collection business. Collection agencies were frequently sued by consumers for contact after the consumer alleged to have retained an attorney. Some updates to the West Virginia Consumer Credit Protection Act, however, could offer both clarity and protections for collection agencies.
Collectors on the Department of Education contract tell me the same thing. They have so many options for borrowers; if they could only get them on the phone to discuss! Good collectors are counselors, listening to the consumer and finding the right way to resolve issues. And with student loan repayment options as good as they are- these should all be GREAT conversations with good outcomes for the borrower.
The CFPB had a very busy 2014 administering the Fair Debt Collection Practices Act (FDCPA). In the CFPB’s Annual Report, the Bureau gives us a glimpse into it’s agenda. Here are the five key points to draw your attention to. 1. Ensure You Have Enough “Media”. It is no secret that the CFPB wants creditors and […]
Over the first quarter of 2015, the number lawsuits filed by consumers claiming violations of the Fair Debt Collection Practices Act (FDCPA) is up compared to the same period in 2014, a reversal of a three year trend in those types of actions. TCPA cases are down in the same time frame, also a change from recent trends.