In a case decided on February 4, 2016, the US District Court, Eastern District of Missouri has granted summary judgment to AllianceOne Receivables Management on a claim that the firm violated FDCPA § 1692d-f, and to the Plaintiff, Schuller, on the claim that the firm violated FDCPA § 1692g, related to overshadowing.
A U.S. District Court Judge in Kansas refused to dismiss a lawsuit that alleged that a debt collection letter was false and/or misleading because it failed to inform the consumer that a partial payment would revive the statute of limitations on otherwise time-barred debt.
Among the many compliance resources insideARM provides to the ARM industry, we maintain an “FDCPA Resources” page on our website. See: here. Among the important elements of the page is a grid of significant FDCPA cases. The grid is updated on a regular basis. Case information and analysis is provided by Joann Needleman, Clark Hill […]
Mandatory arbitration provisions may be on the endangered species list, but they are not gone yet. Two opinions from two different courts were published this past week addressing mandatory arbitration clauses. The cases presented different issues and the results were not consistent.
On January 29, 2016, Illinois Governor Bruce Rauner signed into law Senate Bill 1369. That Bill reversed provisions adopted in the Illinois Collection Agency Act, an August 2015 legislative enactment that conflicted with the federal Fair Debt Collection Practices Act (FDCPA)
The Consumer Financial Protection Bureau (CFPB) released its latest monthly consumer complaint report on consumer complaints in December about financial services. The report highlights that complaints on debt collection were still the largest volume of complaints in December, 6410 of the 20,300 or (31%) of the total complaints. Debt collection, mortgage, and credit reporting complaints […]
Yesterday, a Federal Judge in Virginia denied a motion to certify a class action case against an arm of publicly traded debt buyer PRA Group (PRAA). The lawsuit was originally filed exactly one year earlier, on January 28, 2015. The case illustrates the challenges of attempting to be FDCPA compliant when dealing with consumers that do not speak English or for whom English is a second language.
In Garfield v. Ocwen Loan Servicing, LLC, the Second Circuit Court of Appeals examined whether a debtor who has been discharged in a bankruptcy can sue in a district court under the FDCPA,as opposed to seeking relief in the bankruptcy court. The Court held that the Bankruptcy Code provision governing the discharge injunction, “does not explicitly create a cause of action for its violation, whereas the automatic stay provision provides such a remedy…”
The U.S. District Court for the Middle District of Florida recently dismissed allegations that a debt buyer violated the federal Fair Debt Collection Practices Act by filing a proof of claim on time-barred debt, holding that such claims are precluded by the Bankruptcy Code, and that the FDCPA does not provide a private right of action against debt collectors who file time-barred proofs of claim in bankruptcy court.
A federal judge in Indianapolis has ruled that a lawsuit alleging violations of the FDCPA and the United States Racketeer Influence and Corrupt Organization Act (“RICO”) against Sherman Financial Group, one of the country’s largest debt buyers, cannot proceed as a class action because circumstances vary too much among the class members. Assuming this decision withstands any subsequent appeal it appears that Sherman made a good decision to vigorously defend the case.