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Debt Buying

A debt buyer is a firm that purchases debt from another company, usually a creditor or bank, at a deeply discounted rate. The debt purchaser then attempts to collect the debt through its own operations or through the use of a third-party debt collection agency. Some debt buyers may sell all or part of the debt to another party at a profit. Most debt buyers are small and privately held, though there is a handful of publicly traded debt buying companies.

Recent changes in law and legal rulings have seen the debt buying industry regulated like collection agencies, or servicers of debt, rather than creditors, or owners of the debt. Debt buyers must adhere to the FDCPA.


DC Circuit Rejects FDCPA ‘Meaningful Involvement’ and Related State-Law Claims

The U.S. Court of Appeals for the District of Columbia recently held that, under the FDCPA, a collection letter from a law firm did not misrepresent any meaningful involvement by an attorney. Because the letter clearly stated that the law firm was acting as a debt collector, and that no attorney with the law firm had reviewed the debtor’s account, the D.C. Circuit held the letter was not deceptive as a matter of law.


Former Regulator Accuses CFPB of Targeting the Biggest Companies and Imposing “The Maximum Fines They Can Afford to Pay”

The Weekly Standard has just published an article written by attorney and former regulator Ronald L. Rubin that you will want to read. In the post, Rubin shares his insider experience as a former enforcement attorney with the CFPB, leading one of the Bureau’s first two debt collection investigations.


Massachusetts Jumps into the Active Debt Collection Regulation Pool

The Massachusetts Division of Banks and the Massachusetts Office of the Attorney General have scheduled a meeting to seek input on the current state of debt collection and debt collection regulation within the State. They are considering whether changes may be warranted. This announcement comes, literally, at the same time the CFPB holds its debt collection SBREFA hearing in Washington, D.C.


7th Cir. Deepens Split on FDCPA Liability for ‘Time-Barred’ Claims

This article was originally published on the Maurice Wutscher blog and is republished here with permission. Filing a proof of claim with a bankruptcy court representing a debt subject to an expired state law limitations period does not violate the federal Fair Debt Collection Practices Act (FDCPA) under an opinion released yesterday from the Seventh Circuit Court […]


PRAA Announces Financial Results for Q2 2016; Comments On CFPB Outline of Proposed Debt Collection Rules

On Monday, PRA Group (PRAA) reported its financial results for the second quarter of 2016. The company also hosted a conference call for investors.  PRAA is one of the largest purchasers of defaulted receivables worldwide. Second Quarter 2016 Highlights Cash collections of $387.2 million, (currency adjusted cash collections of $391.3) million versus $389.6 million in […]