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Debt Collection

Debt collection refers to the work done to recover balances from credit accounts that are past due. Most commonly, debt collection specifically references third party debt collectors whose clients include banks, credit card issuers and other credit grantors, debt buyers, governments, and any organization that extends credit or owns an account where a balance is due. Collection methods traditionally include phone calls from call center agents, e-mails, and letters, and increasingly, SMS text. If an account remains in arrears after these efforts, the collection agency may contract with a collection attorney to file suit to recover the debt, if the collection agency is not positioned to do so.

Risk management flow chart on paper

Stellar Recovery Announces Cutting-Edge Risk Management And Compliance Model

John G. Schanck, Chairman of Stellar Recovery, Inc. is pleased to announce the development and implementation of a cutting-edge risk management and compliance model, new to the industry. Stellar Recovery has contracted with a Florida law firm, the Assurance Law Group, which will be dedicated exclusively to serving the legal needs of Stellar Recovery, Inc. […]

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The Ultimate Irony – The State of West Virginia Needs Help in a Debt Collection Matter

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 […]

Outsource In-House Signboards

The 986 Words That Have Guided First Party Outsourcing for 15 Years

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.

lawsuit form

Eleventh Circuit’s Mistaken Interpretation Likely to Expose Attorneys to Increased FDCPA Liability

The Eleventh Circuit Court of Appeals recently handed down a decision that went too far in holding that all litigation related activity is subject to the FDCPA. In pursuing their client’s judgment, an attorney and law firm obtained a garnishment against Nedzad Miljkovic. Miljkovic filed a claim for exemption in response, which the creditor disputed. However, the writ was eventually dissolved on the creditor’s attorney’s motion after Miljkovic provided discovery showing that his wages were exempt from garnishment.

taxes

Encore Partners With U.S. Reps. Peters and Hunter On Bill To Exempt Forgiven Debt From Federal Taxation

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.