Lightning can strike twice. With the ink barely dry on the Consent Order against the Hanna Law Firm (Hanna) in Georgia, the Consumer Financial Protection Bureau (CFPB or Bureau) yesterday took action against another debt collection law firm for the filing of debt collection complaints that the CFPB alleges were unsubstantiated by a lack of […]
Portfolio Recovery Associates will pay $18 million to resolve multidistrict litigation accusing the debt collection company of violating the TCPA by making autodialed phone calls to consumers without their consent, according to documents filed Monday in California federal court.
Yesterday the CFPB announced that a New Jersey law firm and a debt purchasing company had agreed to pay $2.5 million in response to the agency’s assertions regarding the filing of “mass-produced” lawsuits. The law firm, Pressler & Pressler, issued a strong response, noting that no restitution or invalidation of judgments was required in the agreement, and that the settlement is not about laws or rules that are currently in place.
The CFPB intends for its consent orders to set industry-wide precedents. In March 2016, CFPB Director Richard Cordray referred to consent orders as a guide “to all participants in the marketplace to avoid similar violations and make an immediate effort to correct any such improper practices,” telling the Consumer Bankers Association that any company not following the precedents set by the CFPB’s consent orders is committing “compliance malpractice.”
GREENWOOD VILLAGE, Colo. – United Debt Holding today announced that it has earned the highly-regarded designation of Certified Professional Receivables Company (CPRC) after completing the comprehensive national standards contained in DBA International’s certification program. These standards have been recognized for exceeding state and federal laws and regulations through a series of stringent requirements that stress responsible […]
This article previously appeared on The Consumer Financial Services Blog and is re-published here with permission. The U.S. Court of Appeals for the Fourth Circuit recently held that the fact that a debt is in default at the time it is purchased by a third party does not necessarily make that third party a “debt collector” subject […]
A federal judge in Michigan has dismissed a proposed class action accusing publicly traded debt buyer Encore Capital Group and its affiliated entities of suing consumers over old debts that were no longer legally enforceable. The Judge ruled that that the case must be decided in arbitration.
On March 21, 2016, the U.S. Supreme Court announced that it had invited the Solicitor General to file a brief expressing his views in connection with the certiorari petition in Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015). insideARM originally wrote about this case on May 26, 2015. As outlined in that […]
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.”
Just posted on the Federal Trade Commission blog is this, by Christopher Koegel, Assistant Director, Division of Financial Practices: We’ve learned that portfolios of alleged payday loan debts serviced by AMG Services are circulating in the debt collection marketplace. The alleged lenders are USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices, and StarCashProcessing. But these alleged […]