The CFPB and FTC this week said in a court brief that “actual or threatened litigation is not a necessary predicate for an FDCPA violation in the context of time-barred debt.” The brief argues that under certain circumstances, a settlement offer — and other collection activity — on an out-of-statute account can mislead the consumer and could be a violation of the FDCPA.
Market changes since the FDCPA’s passage in 1977 and the postcrisis shift toward regulation have opened the door to significantly enhanced consumer protections. The CFPB’s rulemaking has the potential to alter dynamics in every corner of the industry, from reducing recovery rates and limiting post-charge-off sale options and pricing to driving further consolidation by firms with sophisticated processes, systems, and controls.
The DBA International Certification Council is pleased to announce the approval of seven firms to perform independent third-party audits for Certified Professional Receivables Companies (CPRC) as part of DBA International’s Debt Buyer Certification Program
U.S. Representative Steve Cohen (D-Tenn.) late last week introduced a bill that would amend the Fair Debt Collection Practices Act (FDCPA) to specifically outlaw nationwide the filing of collection lawsuits on accounts that are beyond the statute of limitations. The bill also places new requirements on disclosures collectors must provide regarding out of statute debt.
In two separate segments airing on consecutive days, the FOX News morning show FOX & Friends took on the debt collection industry with an eyebrow-raising level of misinformation and general sloppiness. The segments focused on dealing with abusive collectors and negotiating settlements for debt.
A report released Thursday from the National Consumer Law Center claims that states have failed to protect the assets and income of consumers who have had a judgment entered against them in debt collection cases. The narrowly-focused report is being hyperbolically marketed under the subtitle, “How States Let Debt Collectors Push Families into Poverty.”
A new report from the National Consumer Law Center detailing state exemption laws for debt collectors paints a grim picture of how small statutes could have a big impact on consumer finance. And while the report has the debt collection industry talking – ACA International issued a scathing response – there’s a larger conversation to […]
With debt collection scams on the rise, legitimate collectors need to take extra steps to make sure they’re not being lumped in with illegal operations. According to the Better Business Bureau, these types of scams can vary. In some instances, consumers receive calls stating that they need to pay money for a loan that they […]
With the CFPB scheduled to commence exercise of its rule-making authority later this year, many debt collection industry experts were surprised by a joint amicus brief filed by the FTC and the CFPB that stated in part, “…in some circumstances, a debt collector may seek voluntary payment of a time-barred debt without violating the FDCPA, even if the communication is silent as to the statute of limitations.”
But with no additional guidance, the way forward for compliant ARM operations is unclear.
The CFPB recently joined the FTC in an amicus brief filed on behalf of a plaintiff in a Fair Debt Collection Practices Act (FDCPA) case before a federal appeals court. The case concerns language used in collection letters sent on time-barred accounts.
But the position taken by the FTC and CFPB does not appear to be supported by the law or any formal rules.