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Debt Collection

Debt collection refers to the work done to recover balances from credit accounts that are past due. Most commonly, debt collection specifically references third party debt collectors whose clients include banks, credit card issuers and other credit grantors, debt buyers, governments, and any organization that extends credit or owns an account where a balance is due. Collection methods traditionally include phone calls from call center agents, e-mails, and letters, and increasingly, SMS text. If an account remains in arrears after these efforts, the collection agency may contract with a collection attorney to file suit to recover the debt, if the collection agency is not positioned to do so.


Kentucky Governor Announces Expansion at Medical ARM Firm Frost-Arnett

Kentucky Governor Steve Beshear Tuesday announced Frost-Arnett plans to grow its operations in Campbellsville, Ky. Frost-Arnett, headquartered in Nashville, Tenn., an accounts receivable management company specializing in office solutions for health care organizations, will create 70 new full-time jobs and invest $620,000 to expand its Campbellsville facility (Taylor County).


Collector Settles Class Action for $50,000; Plaintiffs’ Attorneys Take $40,000

A federal judge in New Jersey last week approved the settlement of a class action lawsuit against a collection agency over the validation language the firm used in a letter to a consumer. The settlement calls for the debt collection firm to pay $9,500 to the lead plaintiff and potential class of 225 consumers, with the plaintiffs’ attorneys receiving $40,000.


Bad Faith FDCPA Case Leads to Win for Defendant

The underlying putative class action complaint was filed in state court and removed by the defendants who then filed a motion to dismiss. The District Court granted the unopposed motion to dismiss and the subsequent motion for reconsideration filed by the plaintiff. The motions were granted due to the fact that, “Counts I through V are clearly barred by the FDCPA’s one-year statute of limitations and Count VI is insufficient to sustain a common law negligence claim and is additionally precluded by Missouri’s economic loss doctrine.” Id. at *2.