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.
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.
This is the only event each year that provides a forum for these executives to interact candidly with peers who have similar challenges, in a sales-free environment. There is no exhibit hall, and only a small number of sponsors, whose representatives have the background that allows them to contribute productively to the conversations.
DBA International is hosting a webinar on Wednesday, April 22nd on understanding the new risks in the bankruptcy claim process. Companies that participate in the bankruptcy claims process have faced a flood of litigation since the 2014 Crawford opinion by the Eleventh Circuit Court of Appeals.
A collection agency that saw a Sixth Circuit Court of Appeals decision go against it last month has filed a petition for rehearing and rehearing en banc with the Court. The case involved a settlement offer on a time-barred account. The collector initially won the case and the Sixth Circuit reversed that ruling in a split decision that carried a strong dissent.
The recent frenzy regarding the collection of time-barred debt has gone from the sublime to the ridiculous. What is highly touted as consumer protection is in actuality greater consumer harm.
A report released Thursday by the National Consumer Law Center (NCLC) urges the CFPB to prohibit debt collectors from attempting to seek payment on accounts that are beyond the statute of limitations. It’s a reiteration of recommendations the group made in response to the CFPB’s advance notice of proposed rulemaking (ANPR) for debt collection last year.
The Sixth Circuit Court of Appeals ruled Tuesday in a 2-1 decision that merely offering a settlement on a time-barred debt can run afoul of the Fair Debt Collection Practices Act (FDCPA) because a consumer might consider the word “settlement” to be a legal term and may assume they are being sued or that they could be sued in the future.
New York Attorney General Eric T. Schneiderman today announced that his office has obtained a settlement with debt buyer Encore Capital Group, Inc. (NASDAQ: ECPG) over the company’s debt collection practices in the legal collection channel.
A U.S. Circuit Court decision this summer took an extraordinary step when it held that filing a proof of claim on time barred debt is conduct that violates the FDCPA. At the time, attorneys close to both bankruptcy and FDCPA proceedings warned that it would touch off a very real firestorm in that sector of the ARM industry. That has proven to be quite true.