Lightning can strike twice. With the ink barely dry on the Consent Order against the Hanna Law Firm (Hanna) in Georgia, the Consumer Financial Protection Bureau (CFPB or Bureau) yesterday took action against another debt collection law firm for the filing of debt collection complaints that the CFPB alleges were unsubstantiated by a lack of […]
Portfolio Recovery Associates will pay $18 million to resolve multidistrict litigation accusing the debt collection company of violating the TCPA by making autodialed phone calls to consumers without their consent, according to documents filed Monday in California federal court.
Data can be accurate, but without context it could mislead. That was the message former CFPB Senior Advisor Jim McCarthy delivered to industry attendees of last week’s insideARM Larger Market Participant Summit in Washington, D.C. The CFPB cares about data and accuracy, McCarthy noted, but it is not pairing collections complaint data with necessary context […]
PARSIPPANY, N.J. — Pressler and Pressler, a law firm specializing in retail collections, today announced it has entered into a settlement agreement with the Consumer Financial Protection Bureau (CFPB). While the CFPB rigorously and thoroughly scrutinized the firm for more than a year and a half, the settlement ultimately involves no consumer redress or restitution, no […]
This article previously appeared on The Consumer Finance Litigation Blog and is republished here with permission. Florida’s Third District Court of Appeal retreated from one of its most unpopular opinions this morning. The Third DCA surprised many with its original ruling in Deutsche Bank Trust Company Americas v. Beauvais¸ 3D14-575 when it split with the Fourth District Court […]
The CFPB intends for its consent orders to set industry-wide precedents. In March 2016, CFPB Director Richard Cordray referred to consent orders as a guide “to all participants in the marketplace to avoid similar violations and make an immediate effort to correct any such improper practices,” telling the Consumer Bankers Association that any company not following the precedents set by the CFPB’s consent orders is committing “compliance malpractice.”
The requirements for what debt collectors are required to provide in “snail mail” notices to consumers arises from a patchwork of Federal, State and local laws — as well as case law that often varies by jurisdiction — and many of the requirements are antiquated, dating back to the 1970s. Unfortunately, these dated and contradictory collection letter requirements continue to result in lawsuits and adverse Court decisions against debt collectors.
On April 7, 2016 a Judge for the US District Court, Eastern District of Texas, granted a motion for Summary Judgment against a Dallas-based debt collector, Commercial Recovery Systems, Inc. (CRS), and its owner Timothy L. Ford, in an FTC enforcement action. The behavior that was identified is appalling. If true, how it developed and continued is beyond belief.
An Order granting partial summary judgment in favor of a plaintiff in a TCPA case against Navient and its affiliate, Student Assistance Corporation, was entered on April 6. The summary judgment order translates to an award of over $360,000, with the potential for additional liability once the case proceeds to trial on the issue of whether the defendants should be liable for treble damages under the statute. The case presents several interesting facts and issues.
The Silver case is important to the entire ARM industry for a number of reasons. Any positive decision in a TCPA case is a good decision and should be reviewed. However, the case is especially important to that segment of the ARM industry that collects on federal government-backed student loans.