Last week the Consumer Financial Protection Bureau (CFPB) issued its latest Compliance Bulletin, called “The FCRA’s Requirement that Furnishers Establish and Implement Reasonable Written Policies and Procedures Regarding the Accuracy and Integrity of Information Furnished to all Consumer Reporting Agencies.” A copy of the Bulletin can be found here. The Bulletin was released in conjunction […]
The CFPB announced yesterday that EOS CCA agreed to pay at least $2.5 million to settle CFPB claims that it collected debts that it had purchased without verifying their accuracy and gave inaccurate information to consumer credit reporting firms. The matter offers a lesson for all ARM companies.
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?
Regulators from the CFPB and the FTC encourage the debt industry to look at past enforcement actions and other publications to determine what issues are most important to those agencies. A review of the recent enforcement actions by the CFPB and FTC, as well as other publications, reveal three distinct trends: actions involving unfair treatment of service members; the failure of debt collectors to adequately distinguish and investigate FDCPA and FCRA disputes; and, racial bias in debt collection efforts.
How can a collector accurately identify, track, and respond to consumer disputes when the FDCPA does not define what a “dispute” is? How exactly do you define a consumer “dispute”? Are you sure you will know a dispute when you see it?
Yesterday’s oral argument before the U.S. Supreme Court in Spokeo v. Robins suggests a struggle to fashion an understanding of what can constitute an “injury in fact.” It pitted the issue of whether a plaintiff’s standing to sue requires a tangible, concrete injury (loss of money, a job or property right) against the concept that the law can […]
Yesterday the Consumer Financial Protection Bureau (CFPB) released its latest supervision report outlining practices uncovered by the Bureau’s examiners from May 2015 to August 2015. The 45 page report can be found here. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the CFPB has authority to supervise banks and credit unions […]
Sprint to Pay $2.95 Million Penalty to Settle FTC Charges It Violated Fair Credit Reporting Act The Federal Trade Commission (FTC) announced yesterday that mobile service provider Sprint will pay $2.95 million in civil penalties to settle charges that the company failed to give proper notice to consumers who were placed in a program for […]
The Consumer Financial Protection Bureau (CFPB) has been talking about disparate impact for years and the agency’s favorite controversial methodology – finding evidence of discriminatory practices in data and outcomes rather than intent – has been plenty of trouble for bankers. But the collections industry has not had to deal head-on with the CFPB’s methodology. Does that mean collections firms have nothing to worry about?
August FDCPA litigation statistics show large litigation drops for two successive months. That’s according to the monthly report from WebRecon LLC (WebRecon) statistics on consumer litigation. FDCPA litigation was down by 12.6% in July after dropping 7.5% in June. While the trend is welcome, FDCPA litigation is still up significantly year-over-year. In fact, litigation totals are […]