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.
The Federal Trade Commission Wednesday issued its annual report on enforcement of the Fair Debt Collection Practices Act in a letter to the Consumer Financial Protection Bureau. The letter noted that the FTC has stepped up its law enforcement actions under the FDCPA as the CFPB takes over most other responsibilities.
A judge in the US District Court for the Eastern District of New York this week sided with a debt collection agency in dismissing a case, with prejudice, that alleged violations of the FDCPA in collection letter language. The judge offered interesting commentary on the “least sophisticated consumer” standard in her opinion.
The Federal Trade Commission today announced that an administrator working for the agency is mailing 3,852 checks averaging $91.14 each to consumers who were deceived into paying unnecessary “convenience fees” to Jacob Law Group, PLLC, on behalf of debt buyer Security Credit Services, LLC.
Consumer Financial Protection Bureau Director Richard Cordray Wednesday gave an update on the Bureau’s activities to a group of state attorneys general. The address covered a wide range of topics, including cooperation with AGs in debt collection regulation and rulemaking.
In part two of our in-depth look at the new regulatory environment in ARM, we look at how banks have been regulated in the past and explore the key points of focus for the CFPB.
2014 has just begun, and U.S. district courts have already seen a 19 percent increase in Fair Credit Reporting Act filings and a 30 percent increase in Telephone Consumer Protection Act filings. At the same time, filings for violations of the Fair Debt Collection Practices Act dropped 26 percent. In January 2014, more FDCPA lawsuits […]
A state appeals court in Illinois earlier this month ruled that a debt collection law firm that filed a collection suit on behalf of a debt buyer not licensed in the state did not violate the Fair Debt Collection Practices Act (FDCPA) as alleged in a consumer action.
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.
A state appeals court in New York last week decided to publicly censure a debt collection attorney and his law firm over the practices is used in the legal collection channel. The long-running disciplinary action was over conduct in six debt collection cases over a three year period.