Yesterday NBCnews.com ran a story by consumer columnist Herb Weisbaum about military families being targeted by debt collectors. This story was actually a little bit different than the norm.
The ACLU and the National Consumer Law Center (NCLC) filed suit yesterday in the US District Court in Massachusetts against the Department of ED under the Freedom of Information Act (FOIA), related to practices affecting student-borrowers. They want to see procedures manuals, which have only been provided with heavy redaction. The question is, why?
Yesterday, at the request of the FTC and Illinois AG, a federal court has shut down a network of businesses and operators that falsely claimed to be debt collectors collecting real payday loan debts. The first paragraph in the FTC’s Blog about the event was perfect: “It’s fine to play ‘let’s pretend’ when you’re young; you can be an astronaut today and an inventor tomorrow. But grown-ups who pretend to be debt collectors and lie to get peoples’ money are headed for trouble.”
Yesterday, CBE Group obtained a very favorable decision on its Motion for Summary Judgment in a TCPA action concerning its product, Manual Clicker Application (MCA).
Now is the time to register for insideARM’s 4th Annual Larger Market Participant Summit. We’ve just confirmed a number of sessions unique to this event, catering especially to larger firms.
The US Court of Appeals for the Second Circuit has ruled that Section 1692(e) of the FDCPA requires debt collectors, when they notify consumers of their account balance, to disclose that the balance may increase due to interest and fees. I believe the applicable phrase here is, “Damned if you do, Damned if you don’t.”
On Wednesday, March 23rd the Consumer Financial Protection Bureau (CFPB) issued its fifth annual Fair Debt Collection Practices Act report to Congress. The report covers the CFPB’s activities in 2015. Until the creation of the CFPB, the responsibility for drafting of the report fell to the Federal Trade Commission (FTC). The FTC is still involved, however; the CFPB report incorporates information provided to the CFPB by the FTC in its February 12, 2016 letter to the CFPB on the FTC’s 2015 debt collection activities. The FTC letter is an Appendix to the report.
Since its inception, the Consumer Financial Protection Bureau (CFPB) has penalized a wide variety of companies and people for violating federal consumer financial protection laws. The CFPB has the authority to issue penalties for violations of a range of laws, but the majority of fines issued to date have been for violations of several specific statutes, most often the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Yesterday, the Subcommittee on Communications and Technology for the House Energy and Commerce Committee held a hearing on “Oversight of the Federal Communications Commission” (FCC). All five FCC commissioners were called to and did testify.
The latest iteration of this darned-if-you-do-darned-if-you-don’t conundrum for debt collectors involves the disclosure of the tax consequences to a consumer for settling a collection account for less than the full balance.