The Supreme Court decision in Spokeo v. Robins was expected to provide clarity to debt industry defendants facing FDCPA and related consumer lawsuits where the Plaintiffs’ allege no actual harm. Unfortunately, the case did little to specify exactly what type of “concrete” harm a consumer must allege to pursue a claim, but did provide some excellent language that can be used to refute consumer lawsuits where no actual harm is or could be alleged.
In an opinion issued yesterday in two consolidated cases, the Eleventh Circuit Court of Appeals determined that “a particular subset of creditors—debt collectors”—may be liable under the Fair Debt Collection Practices Act (FDCPA) for bankruptcy Proof of Claim filings on debt they know to be time-barred. Both cases were appeals from decisions from the United States District Court for the Southern District of Alabama.
SACRAMENTO, Calif. — On Thursday, May 19th, Maryland Governor Larry Hogan signed SB 771/ HB 1491 (Chapter 579) into law, addressing the treatment of out-of-statute debt and statutorily codifies several provisions contained in the Maryland Rules of Procedure (MRP) concerning the litigation of consumer debt. Given that the language from the MRP was copied verbatim, DBA International […]
A Baltimore jury delivered a verdict against Las Vegas-based debt buyer LVNV. At $38 million, it is the largest judgment against a debt collector in Maryland history.
Is the next step in debt collection rulemaking drawing near? Last week the Bureau issued notice of yet another extension, however this one is shorter than those previously announced.
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.
FTC Director Jessica Rich’s comments came as part of an announcement by the FTC that it had filed a complaint and proposed order against a Texas-based debt collection agency for having deficient policies and procedures related to borrower credit reporting. Through its proposed order, the FTC clarified its expectations for what credit reporting policies and procedures debt collection agencies need to have in order to avert or withstand regulatory scrutiny.
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” […]
The State of Georgia has a new wage garnishment law that took effect this month. The law was passed by the Georgia legislature in March and was signed by Georgia Governor Nathan Deal on April 12, 2016. It became effective 30 days after it was signed by the Governor. In September of 2015 the prior law […]
This week’s decision from the U.S. Supreme Court in Spokeo v. Robins should bolster the defense of companies subject to several federal consumer protection statutes. The ruling addresses lawsuits that claim an injury created solely by the violation of a federal statute and require the plaintiff to demonstrate not only that the statute was violated, but that the plaintiff herself suffered harm.