The underlying putative class action complaint was filed in state court and removed by the defendants who then filed a motion to dismiss. The District Court granted the unopposed motion to dismiss and the subsequent motion for reconsideration filed by the plaintiff. The motions were granted due to the fact that, “Counts I through V are clearly barred by the FDCPA’s one-year statute of limitations and Count VI is insufficient to sustain a common law negligence claim and is additionally precluded by Missouri’s economic loss doctrine.” Id. at *2.
The plaintiff alleges an invasion of his privacy and a violation of California Penal Code. Verizon’s argument: the recording of the phone calls actually isn’t a violation since privacy wasn’t breached. The Court, however, appears to be siding with the plaintiff on this one, which could offer some operational clarity for collection agencies in one aspect of how they interact with consumers via cell phone.
The study compared private collections and IRS collections during four consecutive six-month intervals. Taxpayer Advocate Service found that while private collectors collected more tax dollars in the first six-month period than the IRS, over time IRS collections were more consistent. Private collection agencies had six months of success, before drastically decreasing the dollar amount and percentage of available taxpayer dollars collected.
The Social Security Administration announced Monday that it will immediately stop efforts to collect on taxpayers’ debts to the government that are more than 10 years old. This means the SSA will no longer seize state and federal refunds from people who had relatives who owed money to the agency. While the SSA will no longer seize federal and/or state refunds to pay for government debts past the federal statute of limitations, this does not have any impact on other time-barred debts on a state-by-state basis.
As scammers get more and more sophisticated in how they steal money from unwitting consumers, a consequence for the collection industry may be a significant increase in the number of validation requests submitted by consumers.
A federal judge this week decided to allow a potential class action lawsuit against a debt collection agency to move forward that claims violations of the FDCPA due to the presentation and positioning of validation notice language on a collection letter.
In the first quarter of 2014, about 7.5 percent of debt collection complaints filed with the Consumer Financial Protection Bureau were against payday lenders. This past quarter was the first full quarter in which consumers could select payday loans as the debt type leading to the collection complaint.
In the first quarter of 2014, the percentage of consumers that filed complaints against debt collectors claiming that the debt in question was not theirs increased to more than 40 percent of all complaints.
Nearly two years ago, Neil Madison was sentenced to eight years in prison for running a debt collection agency that actively scammed businesses that were looking for help recovering debts. A news report on a TV station last night added new details to the case.
The attorney general of Arizona, Tom Horne, recently hired a new leader for his Collections Enforcement Unit, a clearinghouse for debt owed to various state agencies. But the specific person hired to fill that role appears to have sparked controversy, or soon will, according to a local paper.