Collection Laws and Regulations Feed Link

Collection Laws and Regulations

Debt collectors are regulated by the FTC on the federal level. At the state level, attorneys general are typically responsible for enforcing state and federal laws. A few local governments also separately regulate debt collectors.

The laws that govern the ARM industry are civil, meaning that liability is almost always monetary. So a state’s attorney general will not file criminal charges against a debt collector accused of violating the law, rather, he/she will sue for damages. Collection laws include federal and state statutes that govern the proper operation of companies and personnel that work in the debt collection industry. The most comprehensive collection law is the Fair Debt Collection Practices Act (FDCPA). Other federal laws that collectors must follow include the Fair Credit Reporting Act (FCRA), the Telephone Consumer Protection Act (TCPA) and the data security requirements of the Gramm–Leach–Bliley Act (GLBA).

Invisible Man

CFPB Issues Report on “Credit Invisible” Consumers

Yesterday the Consumer Financial Protection Bureau (CFPB) issued a report titled “Credit Invisibles” (link to report). The report concludes that one in 10 adults in the United States, or about 26 million consumers, are “credit invisible.” Consumers that are credit invisible do not have a credit history with any of the three nationwide credit reporting […]

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Supreme Court to Hear Case on Statutory Damages Without Actual Harm; Could Impact FDCPA Cases

The U.S. Supreme Court has agreed to hear an important case that will decide whether a plaintiff who cannot show any actual harm from a violation of the FCRA nevertheless has standing to sue for statutory damages in federal court. The consequences of the decision will likely extend significantly beyond FCRA litigation and affect numerous other statutes, including the FDCPA and TCPA .

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Federal Judge Sides with Collection Agency and Debt Buyer in Letter Class Action

A federal judge in Illinois two weeks ago dismissed an FDCPA class action filed against a debt buyer and its contracted collection agency over the use of the word “transferred” in a collection letter explaining why a new company was attempting to recover the debt. The case had been granted class action status and will be appealed to the Seventh Circuit.

Smartphone with cloud of application icons

Filing a TCPA lawsuit? There’s an App for that

It seems as though there is a mobile app for everything these days, including collecting information for TCPA suits. Two mobile applications allow consumers to create legal documentation of unwanted robocalls, telemarketing calls, and debt collection calls. The information is forwarded to law firms specializing in filing lawsuits against businesses using robocalls and engaging in debt collection activities.