In a decision filed on October 23, 2015, U.S. District Judge Katherine Polk Failla has granted Credit Management LP (CMI)’s motion to dismiss a case against the firm filed by Joy Gardner. This case represents a positive “envelope” decision in what has been a busy couple of years for collection letter rulings.
A recent Illinois bill provides a welcome fix to the Illinois Collection Agency Act (ICAA). The legislation, SB 1369, corrects amendments made to the ICAA this past August. Those amendments potentially expanded sections of the ICAA to commercial debt and would require disclosures contrary to (and possibly in violation of) the federal Fair Debt Collection Practices Act. The […]
Court documents were filed yesterday, preliminarily approving the class action settlements in Monique Sykes, et al., vs. Mel S. Harris and Associates, LLC, et al. A Fairness Hearing has been scheduled for May 11, 2016, in the U.S. District Court for the Southern District of New York. The case is a class-action lawsuit originally certified […]
A New Jersey Senate bill introduced in 2014 relating to debt collectors’ responsibilities upon receipt of notice of identity theft or misidentification crossed over to the Assembly this week. The bill adopts the FDCPA’s definition of “debt,” but strays in its definition of “debt collector” which includes, in part, “any person who by any direct or indirect action, conduct, or practice, collects or attempts to collect a debt that is owed or due or asserted to be owed or due from a consumer in this State.”
FDCPA suits “unexpectedly [caught] fire this year, up more than 1200 suits (+14.5%) over this time in 2014,” according to Gordon. FCRA suits “works out to a dramatic +39% increase over this time last year,” and “TCPA’s YTD numbers have recovered due to the combination of a strong October and a weak few months at the end of 2014. Now up almost 200 suits (+8.7%) over this time last year, TCPA seems to have avoided the likelihood of a decline.” But none of this should be a surprise, so why is it?
Regulators from the CFPB and the FTC encourage the debt industry to look at past enforcement actions and other publications to determine what issues are most important to those agencies. A review of the recent enforcement actions by the CFPB and FTC, as well as other publications, reveal three distinct trends: actions involving unfair treatment of service members; the failure of debt collectors to adequately distinguish and investigate FDCPA and FCRA disputes; and, racial bias in debt collection efforts.
The Third Circuit Court of Appeals heard oral argument in the case of Bock v. Pressler & Pressler. Observers saw this as a significant case, with far-reaching impact upon attorneys who engage in debt collection litigation. From the tone of the Circuit Court’s questions, it was clear that policy consideration were at the center of the Court’s focus.
How can a collector accurately identify, track, and respond to consumer disputes when the FDCPA does not define what a “dispute” is? How exactly do you define a consumer “dispute”? Are you sure you will know a dispute when you see it?
Yesterday the Consumer Financial Protection Bureau (CFPB) released its latest supervision report outlining practices uncovered by the Bureau’s examiners from May 2015 to August 2015. The 45 page report can be found here. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the CFPB has authority to supervise banks and credit unions […]
In an opinion filed on October 28th, a federal judge for the United States District Court for the Southern District of Florida ruled that a settlement offer in a letter sent to a consumer on time-barred debt did not violate the Fair Debt Collection Practices Act (FDCPA). The case, Ehrich v. Convergent Outsourcing, Inc. involves […]