The Ninth Circuit Court of Appeals last week in a split decision overturned a lower court’s ruling in a case claiming FDCPA violations in debt collection letters that were never even read by the plaintiff debtor. The violations were related to an error in the letter misidentifying the original creditor.
A U.S. District Court judge last week decided a case brought by a consumer claiming that an autodialed debt collection call to her cell phone violated the TCPA. The judge dismissed the case, ruling that by providing her cell number, she was consenting to being contacted using that method.
A judge recently held that inaction cannot form the basis of a continuing violations theory under the FDCPA or Florida collection law. The holding constitutes an important development in the debt collection realm and sets a good precedent for analysis of the application of statutes of limitations to inaction or omissions on the part of debt collectors.
Just in time for the summer movie season, one court has given debt collection litigation lawyers yet another reason to disconnect the telephone and computer. Now identifying yourself as a lawyer or a law firm on a voice mail or telephone message is sufficient facts to state a claim for a Fair Debt Collection Practices Act (FDCPA) violation.
A Houston debt collection agency has agreed to a federal court order in a case initiated by the FTC that will see the company pay a penalty and stop certain practices pertaining to its use of convenience fees. At issue were misleading talk-offs with consumers leading them to believe the fees were mandatory.
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.
The Michigan Supreme Court recently overturned two lower court rulings and expanded the definition of “collection agency” to include forwarders and forwarding companies. The case may require certain forwarding companies to obtain a collection agency license in the state.
Massive private equity firms are exploring investing in or outright acquiring student loan collection agencies as the market for student loans grows at a silly rate, according to FOX Business.
The U.S. District Court for the Eastern District of New York earlier this year denied a debt collector’s motion to dismiss an FDCPA case, holding that its $5 surcharge for payments via credit card may have violated the law. The case has apparently been used recently against many other debt collectors.
The CFPB and attorneys general in 49 states and the District of Columbia filed a proposed federal court order requiring SunTrust Mortgage, Inc. to provide $500 million in loss-mitigation relief to underwater borrowers. The order also requires SunTrust to pay $40 million to approximately 48,000 consumers who lost their homes to foreclosure and $10 million to the federal government.