Yesterday insideARM reported on a putative class action lawsuit filed against B of A. We were since made aware of a previous case involving the same Plaintiff’s attorney and similar facts.
A putative class action suit was filed yesterday against Bank of America alleging that that the bank has been improperly suing consumers who owe credit card debt after the bank had previously “sold” that debt via a securitization of a pool of accounts. The case has the potential to dramatically impact future collection practices regarding securitized accounts.
As you may know, both the New York Department of Financial Services (NYDFS) and the CFPB have posted on their website a Sample Request for Substantiation of Account letter for consumers to use. These letters are quite sophisticated and complex, and try to accomplish many things at the same time.
Yesterday in Wisconsin, Republican governor Scott Walker signed AB 117, modifying the Wisconsin Consumer Act (WCA). The ARM industry says the bill provides clarity and uniformity.
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.
Massachusetts Attorney General Maura Healey’s Office offered support this week for proposed legislation related to statute of limitations, collection of judgments, and more, that would have a significant effect on creditors and debt collectors.
The U.S. Court of Appeals for the Seventh Circuit recently affirmed summary judgment in favor of a debt collector, holding among other things that the “FDCPA is not an enforcement mechanism for matters governed elsewhere by state and federal law.”
George Mason University Foundation Professor of Law and Senior Scholar of the Mercatus Center Todd J. Zywicki has published a Working Paper entitled “The Law and Economics of Consumer Debt Collection and Its Regulation.” The 69-page paper concludes that new government restrictions on debt collection may very well burden consumers. Zywicki starts with the premise […]
SACRAMENTO, Calif. – A new study conducted by Professor Todd Zywicki of the Mercatus Center at George Mason University indicated that careful evaluation of the current regulatory environment was necessary to ensure that the debt collection and debt buying industries continued to fulfill their critical role in the economy. The study also found as the […]
The Consumer Bankers Association (CBA) has filed a petition for review of the FCC’s July 10, 2015 Declaratory Ruling and Order in the US Court of Appeals for the District of Columbia Circuit. The CBA Petition will be consolidated with the prior Petitions filed by ACA International and others and will be heard as a single case before the Court of Appeals for the District of Columbia.