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Credit Grantors

A credit grantor is any individual or business that extends credit to customers. The credit can be for other businesses or consumers and can come in many forms, such as closed-end loans (like auto loans, mortgages, and student loans), revolving loans (like credit cards or certain home equity loans), or a hybrid of the two. Some credit is backed by property or assets.

In the U.S., the primary credit grantors are large commercial banks and credit unions. But credit is also extended by small businesses, governments, and other organizations.

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US District Court in Illinois Finds Disclosure of Potential Tax Consequences for Settling an Account is Misleading to Consumer

Another ARM firm is caught in the “no-win” scenario of including so-called 1099(c) disclosures in a letter to a consumer. Many financial institutions are requiring ARM firms to include 1099(c) disclosures in their initial letters to consumers. It is not clear from the pleadings whether the client in this case mandated that their agency include the language in the letter sent to the Plaintiff. But, if so, companies like this defendant are put in an untenable position.

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New ProPublica Article Criticizes Debt Collection Litigation on Medical Accounts; Paints One Firm as Outlier

As part of an ongoing investigation, Propublica published a lengthy article by Paul Kiel titled For Nebraska’s Poor, Get Sick and Get Sued. The article discusses the practice of use of litigation to collect delinquent healthcare accounts in the State of Nebraska. It is clear that Mr. Kiel spent a considerable amount of time researching the story before publication. The story is less than flattering to the debt collection industry.

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Former CFPB Senior Advisor: Debt Collection Industry Must Press CFPB to Put Complaint Data in Context

Data can be accurate, but without context it could mislead. That was the message former CFPB Senior Advisor Jim McCarthy delivered to industry attendees of last week’s insideARM Larger Market Participant Summit in Washington, D.C. The CFPB cares about data and accuracy, McCarthy noted, but it is not pairing collections complaint data with necessary context […]

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Florida’s Third DCA Reverses Course on Statute of Limitations for Mortgage Foreclosure

This article previously appeared on The Consumer Finance Litigation Blog and is republished here with permission. Florida’s Third District Court of Appeal retreated from one of its most unpopular opinions this morning. The Third DCA surprised many with its original ruling in Deutsche Bank Trust Company Americas v. Beauvais¸ 3D14-575 when it split with the Fourth District Court […]

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4th Cir. Confirms Entity Is Not FDCPA ‘Debt Collector’ Merely Because It Purchases Defaulted Debt

This article previously appeared on The Consumer Financial Services Blog and is re-published here with permission. The U.S. Court of Appeals for the Fourth Circuit recently held that the fact that a debt is in default at the time it is purchased by a third party does not necessarily make that third party a “debt collector” subject […]