Yesterday Internal Revenue Service Commissioner John Koskinen testified before the Senate Committee on Finance. Among many topics addressed in this hearing was the recently passed FAST Act provision to reinstate the use of private debt collectors within the IRS, which has a requirement that contracts be signed by early next month. Koskinen said he would miss that deadline.
WASHINGTON, District of Columbia – January 26, 2016 – Consumers, creditors, and the economy as a whole benefit from the existence of the professional debt collection industry, according to the newest white paper from ACA International, the association of credit and collection professionals. The white paper “The Role of Third-Party Debt Collection in the U.S. Economy” explores the industry’s role in the U.S. economy,focusing on how third-party debt collectors work in tandem with creditors and […]
A federal judge in Indianapolis has ruled that a lawsuit alleging violations of the FDCPA and the United States Racketeer Influence and Corrupt Organization Act (“RICO”) against Sherman Financial Group, one of the country’s largest debt buyers, cannot proceed as a class action because circumstances vary too much among the class members. Assuming this decision withstands any subsequent appeal it appears that Sherman made a good decision to vigorously defend the case.
Bulletins from the CFPB often function as rule-making, even though bulletins aren’t technically the way the CFPB conducts rule-making. Both bulletins and consent orders, though, should be viewed by all in the industry as the “writing on the wall,” so to speak. They show the agency’s current line of thinking, and give those companies in the debt industry a map of compliance.
In this episode of the Debt Collection Drill podcast, attorneys John Rossman and Mike Poncin identify challenges arising from industry regulators and from the Courts while providing specific guidance on how best to avoid difficulties. Specifically: Regulators and Litigation.
Yesterday, U.S. Attorney General Loretta E. Lynch announced a major settlement with Education Management Corp., the second-largest for-profit education company in the United States. Under the deal announced yesterday, EDMC has agreed to pay a $95.5 million civil settlement to resolve claims that it falsely obtained federal and state education funds, and forgive about 80,000 student loans.
FDCPA suits “unexpectedly [caught] fire this year, up more than 1200 suits (+14.5%) over this time in 2014,” according to Gordon. FCRA suits “works out to a dramatic +39% increase over this time last year,” and “TCPA’s YTD numbers have recovered due to the combination of a strong October and a weak few months at the end of 2014. Now up almost 200 suits (+8.7%) over this time last year, TCPA seems to have avoided the likelihood of a decline.” But none of this should be a surprise, so why is it?
I’m sure you’ve heard the expression “work smarter, not harder.” In today’s environment you need to do both to grow your business. Utilizing skip trace technology is a business-growth engine because it takes care of “easy” day-to-day activities like phone number identification and change of address, while at the same time working harder to solve […]
Americans who may have never heard of the Consumer Financial Protection Bureau (CFPB) before may have learned about it last night. The American Action Network (AAN), an advocacy group, launched a $500,000 ad campaign that ran throughout the evening on Fox Business, the host of the fourth GOP Primary debate. Additionally, the ad campaign aired during the post-debate commentary on Fox News Channel. The ad will also be online the next four weeks along with the launch of StopCFPB.com. What effect the ad will have, though, is anyone’s guess.
JP Morgan Chase, the nation’s biggest bank, will pay $100 million to settle allegations that it used illegal and abusive debt-collection practices in connection with California credit card customers. The settlement specifically collecting incorrect amounts, selling bad credit card debt, and running a debt collection mill that involved illegally “robo-signing” thousands of court documents and improperly obtaining default judgments against military service members.