There’s always something happening in the ARM industry and staying on top of it all is a challenging endeavor. That’s where insideARM’s weekly recap comes in. Our weekly recap of top stories will give you the news we found most interesting last week and more importantly- why we think it’s relevant. Last week we brought you news about a noteworthy FDCPA litigation win, an FDCPA loss worth paying attention to, and details about the clear and convincing message Massachusetts sent to unlicensed debt collectors and debt buyers.
On Tuesday we published details from Rossman Kirk regarding a win for a debt buyer in an FDCPA case where a consumer alleged that a collection lawsuit was filed as a “pressure tactic” to force payment. Notably, in dismissing the action, the court did not allow the pro se consumer the ability to amend his complaint. The court’s reasoning on the FDCPA issue is worth noting, as is the decision not to allow the consumer a re-do of the pleadings, something that has becoming increasingly costly for the ARM industry as the volume of pro se plaintiff/consumers continues to rise.
On Wednesday, we brought you insights from Troutman Pepper Locke regarding an enforcement action from Massachusetts where a $52 million dollar Consent Judgment was filed resolving the Massachusetts AG’s suit against a group of several debt buyers. This case serves as a good reminder that state attorneys general are treating unlicensed debt collection as a serious enforcement priority.
On Thursday, we published news from Orrick, discussing a court’s decision not to dismiss a case that alleged text messages sent to a consumer asking for an email address after a consumer refused to pay, should be considered a “communication” under the FDCPA. This is another case filed by a pro se plaintiff, but here, the court decided the litigation should continue. The volume of pro se consumers is rising, along with the sophistication of their pleadings thanks to readily available AI tools. As these types of complaints rise, it’s important to take stock of how courts are treating them.
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