Quietly, on the eve of the holiday weekend, the CFPB published a Rulemaking Agenda update, extending the end of Prerule Activities for Debt Collection, for a second time, to December of this year.
The original lawsuit was filed by Madden in 2011. Madden claimed, on behalf of herself and a putative class, that Midland had engaged in abusive and unfair debt collection practices and had charged a usurious rate of interest under New York law that proscribed interest from being charged at a rate exceeding 25% per year.
The Primary Group is alleged to have sent consumers multiple text messages, and, in most cases, failing to disclose the company as a debt collector. Per Jessica Rich, Director of the FTC’s Bureau of Consumer Protection: “[Debt collectors] can’t harass or lie to you, whether they send a text, email, or call you.” She also stated that “legitimate debt collectors know the rules.”
The multi-state investigation was initiated in 2012. The investigation focused on consumer disputes about credit report errors, monitoring and disciplining data furnishers (providers of credit reporting information), accuracy in consumer credit reports, and the marketing of credit monitoring products to consumers who call the credit reporting agencies to dispute information on their credit report. Under the terms of the 54 page settlement agreement, the credit reporting agencies have agreed to make a number of changes to their business practices to benefit consumers.
I’ve recently learned about some industry confusion surrounding the CFPB Consumer Complaint Portal. In speaking with about a dozen or so individuals who are responsible for interacting with the Portal on behalf of their collection agencies, I’ve heard that there are new response category options (though it’s actually not clear if they are new), as well as new public response options. I’ve also learned about what companies see in their Portal versus what the public sees on the CFPB website.
Today the Consumer Financial Protection Bureau (CFPB) filed a Complaint and proposed Consent Order in federal court against PayPal, Inc. for illegally signing up consumers for its online credit product, PayPal Credit, formerly known as Bill Me Later. The CFPB alleges that PayPal deceptively advertised promotional benefits that it failed to honor, signed consumers up for […]
According to data provided by WebRecon LLC, FDCPA litigation is trending up in 2015. Litigation was up 10% over last month, and for the first four months of the year, up 12.5% over the same period a year ago.
You should probably stop charging convenience fees. You also probably won’t listen to me, or to your compliance team. But convenience fees are proving to be ironically named, and a sure-fire way to involve your agency in a class action lawsuit — at the least.
The Second Circuit Court of Appeals ruled yesterday that a debt collector does not violate the FDCPA if it does not advise a consumer of the tax consequences of a settlement offer.
Today the CFPB announced it is launching a public inquiry into student loan servicing practices that can make paying back loans a stressful or harmful process for borrowers. They are seeking information on industry practices that create repayment challenges, hurdles for distressed borrowers, and the economic incentives that may affect the quality of service.