We know that ARM industry professionals are pressed for time. This is why the editorial team at insideARM sifts through all the news and highlights only the most important stories each week. Last week we focused on two litigation updates and some advice for communicating with consumers to reduce complaints. Read on for a breakdown of these stories and why we think you need to know about them.
On Tuesday, we brought you an update on the litigation surrounding the CFPB's Late Fee Rule. On July 18, 2024, the CFPB asked the court to remove the preliminary injunction that has been in place since May. The court asked the parties to produce more information on standing, set a briefing schedule, and set a hearing for August 27th. The outcome of the court's decision in this case, particularly if the case is dismissed, has the potential to impact everyone in the financial services ecosystem. For a refresher on the final rule and previous events in this case, see here, here, and here.
Wednesday’s news involved a 7th Circuit Court of Appeals case where a consumer argued that a credit furnisher violated the FCRA by continuing to report a debt as delinquent after the consumer successfully completed a bankruptcy plan. However, because the consumer failed to identify the Credit Reporting Agency to which they submitted the debt, the 7th Circuit agreed with the District Court that the case should be dismissed. Though this ruling does not lower the bar for FCRA compliance, It is a case that can be useful in defeating vague allegations.
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