A U.S. Circuit Court decision this summer took an extraordinary step when it held that filing a proof of claim on time barred debt is conduct that violates the FDCPA. At the time, attorneys close to both bankruptcy and FDCPA proceedings warned that it would touch off a very real firestorm in that sector of the ARM industry. That has proven to be quite true.
The United States Trustee Program, a division of the Justice Department, is investigating several of the largest consumer lenders in the country over their debt collection and portfolio sales tactics relating to accounts owed by consumers under bankruptcy protection, according to The New York Times.
The Eighth Circuit Court of Appeals recently affirmed a decision made by its Bankruptcy Appellate Panel last year that may grant a student loan borrower discharges on 15 separate private student loans totaling more than $118,000. The bankruptcy panel relied on a unique treatment of ability to repay that is not used in any other circuit.
Last month’s 11th Circuit Court of Appeals decision that allowed a Fair Debt Collection Practices Act (FDCPA) claim to be made against a bankruptcy proof of claim filed on out-of-statute debt will get a rehearing if a petition filed by LVNV Funding, LLC is granted.
Large debt buyer Portfolio Recovery Associates, Inc. (Nasdaq:PRAA) announced today that it has completed its acquisition of Aktiv Kapital AS, a Norway-based debt buyer of accounts throughout Europe and Canada. Effective today, the combined companies will be known as PRA Group.
Addressing what it termed “a deluge [that] has swept through U.S. bankruptcy courts of late,” the 11th Circuit Court of Appeals in Crawford v. LVNV Funding, LLC last week held that filing a proof of claim on time barred debt is conduct that violates the Fair Debt Collection Practices Act (FDCPA).
A former employee of the state of Florida revealed Monday that the Sunshine State’s economic development office referred thousands of cases to debt collectors that were not eligible for such actions. She went public with the allegations after winning a $250,000 settlement with the state in April over wrongful termination in a whistleblower case.
Weltman, Weinberg & Reis Co., LPA (WWR) is excited to announce the selection of Scott D. Fink as the new Business Unit Leader of WWR’s Bankruptcy Practice Group. Scott has been an attorney for more than 17 years, handling bankruptcy matters with WWR for more than 9 years.
Encore Capital Group, Inc. (Encore), an international specialty finance company (NASDAQ: ECPG), Tuesday announced that it has closed its acquisition of a controlling stake in Grove Capital Management, a management company that purchases credit portfolios and has a focus on UK insolvencies and Spanish assets. The acquisition has received regulatory approval from the Financial Conduct Authority in the UK.
In the latest exchange in an increasing arms race among public U.S. debt buyers, Encore Capital Group said it acquired a controlling stake in a debt purchaser in Latin America and a UK-based firm that handles bankruptcies in that country.