The Third Circuit Court of Appeals Thursday said that a collection agency violated the Fair Debt Collection Practices Act (FDCPA) when it sent a collection letter with the debtor’s account number visible through the transparent address window of an envelope.
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.
For-profit higher education firm Corinthian Colleges revealed in a recent SEC filing that the CFPB has initiated settlement talks relating to an enforcement action over the company’s debt collection tactics and treatment of certain loans.
In comments submitted to the CFPB on the Advance Notice of Proposed Rulemaking under the FDCPA, the attorneys general of 31 states condemned the use of third-party prepared, integrated business records in civil lawsuits to collect debt as an example of “unfair, deceptive, and abusive acts or practices.” But many of those AGs use similar records in their own criminal cases.
Brandon Scroggin had an air-tight FDCPA claim against a debt collection agency. It was such a solid case, the company offered him a $5,000 settlement to make it go away. But now Scroggin owes the agency more than $33,000 to pay their attorney’s fees. So how did he go from five grand up to 33-large in the hole?
Lawsuits against ARM firms citing violations of the FDCPA increased slightly in July, but were still on pace to finish far below the number filed in 2013. TCPA lawsuits also bucked their 2014 trend by decreasing on a month-over-month basis, but still remain on pace to grow significantly for the year.
A man who once ran what seemed to be a legitimate debt collection operation before resorting to overtly criminal behavior was sentenced Wednesday to 175 months in federal prison for stealing client money, identity theft, and a ton of other federal financial fraud crimes.
A recent Circuit Court opinion examined the issue of what constitutes adequate verification in the context of multiple requests for validation by the consumer focused on a specific portion of a debt. While it has been argued that the case requires a debt collector to provide itemized statements whenever any request for validation is received, this interpretation is not borne out by a careful reading of the case and other applicable precedent.
A business group headed by former Minnesota Governor Tim Pawlenty has launched a public relations campaign against the CFPB’s open access complaints database. A new proposal from the agency to include consumer narratives appears to be the impetus for the action.
The 8th Circuit Court of Appeals Friday upheld a lower court’s ruling that a defendant collection agency was entitled to some $33,000 in attorney’s fees and costs in an FDCPA case found to be brought in bad faith and specifically for the purpose of harassment.
Is that interesting enough? No? Well, it involved an outspoken consumer advocate’s gloating posts on a debtor-focused message board, posts that ultimately led to the awarding of fees.