Having a plan in place for how your company will manage collections of deceased account holders will go a long way toward making sure this delicate situation is handled with extra care. It is important to note that the baby boomer generation is far more credit savvy, and will expect there to be a disciplined process around this inevitable event. Additionally, it is essential that your plan is well thought out, and in compliance with regulations.
I saw this story from the Charleston Gazette-Mail today. The headline caught my attention, “Morrisey aims to collect $13.8 million from usurious lender” But, the first sentence in the article really grabbed me. It read: “West Virginia Attorney General Patrick Morrisey is seeking to hire a lawyer licensed in California to help collect a $13.8 million […]
For the past 15 years lawyers have artfully drafted agreements that address such things as whether the accounts being worked are “in default” and whether the employees of an agency working the business are “de facto” employees of the creditor. Often the contract would require that those same employees be segregated from the rest of the company and/or working in isolated space. Numerous other provisions in First Party service agreements all have their genesis in deMayo. Times have changed.
The facts in Gelinas are only slightly different than those presented in Kostik. In the Gelinas case, the envelope in question displayed a series of 21 numbers, the last 10 of which were the original invoice number for the services rendered that created the outstanding balance due. (In Kostik the envelope displayed a barcode.)
In a decision filed on July 22, 2015, the US District Court for the Middle District of Pennsylvania in the case of Lisa Kostik v. ARS National Services, Inc., a new chapter is being written in the saga of what information can be displayed on the outside of an envelope a collector mails to a consumer.
Encore Capital Group, Inc. (NASDAQ:ECPG) announced yesterday that it has collaborated with U.S. Reps. Scott Peters (CA-52) and Duncan Hunter (CA-50) to create a bill that would exempt up to $2,500 worth of forgiven personal and household debt from federal taxation. The bill (H.R. 2640) was recently introduced as the “Consumer Debt Forgiveness Tax Relief Act of 2015.” This re-raises the 1099-C debate for the collection industry.
Collingswood, NJ: MyGovWatch.com has made available for download a free copy of a report the U.S. Department of Treasury (Treasury) provides annually to the U.S. Congress on Federal non-tax government receivables and debt collection activities of U.S. government agencies. MyGovWatch.com offers subscribers insider access to the past, present, and future of government and student loan […]
Student loan guaranty agency USA Funds (USA) filed suit last week in federal court against the Department of Education over a letter the Department sent on July 10, 2015 prohibiting agencies from imposing collection fees on borrowers who default on their loans but initiate payment arrangements within 60 days. The agency claims the letter amounts to capricious and irrational rulemaking that will harm consumers.
The recent order issued by the FCC regarding the TCPA encompasses 138 pages (including hundreds of footnotes) and created an instant tidal wave of questions, comments and uncertainty about the use of telephone technology to contact consumers on mobile phones. After digesting the order, Moss & Barnett attorneys John Rossman and Mike Poncin share what you need to know.
Yesterday the CFPB released its first monthly report on consumer complaints. The Report provides a high-level snapshot of trends, including the most complained about companies regarding debt collection.