The Second Circuit Court of Appeals Monday upheld a four year federal prison sentence for a former collection agency executive who orchestrated a $12 million fraud scheme over the course of four years.
On December 18, 2014, the United States District Court for the District of Columbia (Case No. 13-1111) ordered consumer attorney Reid D. Henderson to pay almost $7,000 in attorney fees as sanctions for his repeated failures to comply with Court orders in a Fair Debt Collection Practices Act (FDCPA) suit.
The Consumer Financial Protection Bureau (CFPB) and the Attorneys General of North Carolina and Virginia announced legal action against a retailer that caters to members of the U.S. military, and an affiliated lender and debt collection agency, for using illegal collection tactics against their customers.
A federal judge this week sided with a consumer plaintiff in denying a motion to dismiss an FDCPA class action case. The collection agency defendant argued that the debt did not fall under the FDCPA because it was incurred in a transaction required by law. The case also involves a claim concerning disclosure through a clear envelope window, a recent development that is sure to pop up more frequently.
insideARM.com today released the final rankings for all companies honored in its seventh annual Best Places to Work in Collections program, sponsored in 2014 by Executive Alliance.
Ask any collection agency executive about their top three compliance issues, and “voicemail messages” will most likely be among them. The reason? The FDCPA can present agencies with a real Catch 22. But the Zortman case offers an intriguing workaround with specific language.
Think you’ve seen it all in the ARM industry? Here’s a new one: The Securities and Exchange Commission last week launched legal action against a hedge fund and its owners for defrauding investment customers. Investors allegedly lost millions because the fund was managed by a former debt collector who had no investment experience.
In two separate actions Thursday, the CFPB and a group of U.S. Senators turned their attention to debt relief for students struggling to repay loans. The CFPB shut down two student “debt relief” scams while 13 Senators asked the Department of Education to forgive student loans held by companies that break the law.
CFPB Director Richard Cordray today will call on credit reporting agencies to take a more active role in policing the companies that furnish data on consumers, including a mandate to report consumer disputes made against specific companies. The new requirements stem from a CFPB study on debt collection tradelines in credit reporting.
The New York State Department of Financial Services announced recently revised debt collection regulations, culminating more than a year of proposals and comments. While the new regulations provide clarity and consumer protection in some areas, they are fraught with ambiguities and overlap existing laws in several key aspects