CFPB Director Rohit Chopra on Thursday defended his agency’s proposed rule to prohibit the listing of medical debt on credit reports, contending that such debts are not a fair indication of a person’s financial health....more
8/12/2024
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reports ,
Debt Collection ,
Debt Collectors ,
Fair Credit Reporting Act (FCRA) ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Healthcare ,
Lenders ,
Medical Debt ,
Proposed Rules
A New York federal district court has denied a motion to dismiss the lawsuit filed in January 2022 by the CFPB against three companies that purchase portfolios of defaulted debts (Corporate Defendants) and three individuals...more
Third-party debt collectors, first-party creditors, and debt buyers face an ever-evolving federal and state regulatory landscape as well as ongoing private litigation. We first look at the impact of the CFPB’s most recent...more
The CFPB announced last week that it has entered into a settlement of the lawsuit it filed in September 2020 against Encore Capital Group, Inc., Midland Funding, LLC, Midland Credit Management, Inc., and Asset Acceptance...more
The CFPB announced that it has entered into a proposed consent order with Think Finance and six subsidiaries (collectively, the “Think Entities’) to settle the Bureau’s lawsuit filed in November 2017 that alleged the Think...more
2/7/2020
/ Abusive Acts ,
Chapter 11 ,
Civil Monetary Penalty ,
Commercial Bankruptcy ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Debt Collection ,
Debt Collectors ,
Enforcement Actions ,
Financial Services Industry ,
Interest Rates ,
Motion To Enjoin ,
Settlement Agreements ,
State and Local Government ,
State Attorneys General ,
Unfair or Deceptive Trade Practices ,
Usury ,
Void Contracts
The U.S. Court of Appeals for the Seventh Circuit recently ruled in Horia v. Nationwide Credit & Collection, Inc. that a consumer was not precluded from bringing a second FDCPA lawsuit against a debt collector for failing to...more
2/6/2020
/ Abusive Acts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Debt Collection ,
Debt Collectors ,
Failure to Notify ,
FDCPA ,
Financial Services Industry ,
Litigation Strategies ,
Subsequent Litigation
The New York Department of Financial Services has announced the creation of a new Consumer Protection Task Force within the NYDFS. ...more
1/14/2020
/ Abusive Acts ,
Consumer Financial Products ,
Debt Collection ,
Debt Collectors ,
Enforcement Authority ,
Federal Agency Taskforce ,
Financial Services Industry ,
Licensing Rules ,
NYDFS ,
Regulatory Oversight ,
Unfair or Deceptive Trade Practices
The Committee on Financial Services will hold a hearing entitled, “Examining Legislation to Protect Consumers and Small Business Owners from Abusive Debt Collection Practices,” on Thursday, September 26, 2019, at 10:00 a.m....more
In a precedential opinion, the U.S. Court of Appeals for the Third Circuit concluded that a plaintiff in a class action complaint had Article III standing and was properly awarded summary judgment when a debt collector sent...more
Consumer advocates have heavily criticized Director Kraninger and former Acting Director Mick Mulvaney for taking a much less aggressive attitude towards enforcement than former Director Cordray. ...more
6/4/2019
/ Civil Investigation Demand ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Debt Collectors ,
Enforcement Authority ,
Enforcement Guidance ,
Fair Credit Reporting Act (FCRA) ,
FDCPA ,
Financial Services Industry ,
Motion to Set Aside the Verdict ,
Small Dollar Lenders ,
Unfair or Deceptive Trade Practices
The parties in Madden v. Midland Funding, LLC. have filed a joint motion with the New York federal district court seeking preliminary approval of a class settlement....more
3/19/2019
/ Charge-Off ,
Class Action ,
Debt Buyers ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Settlement Agreements ,
Settlement Negotiations ,
True Lender
Debt collectors should take note of a recent decision by the U.S. Court of Appeals for the Fifth Circuit holding that a Texas federal district court was justified in relying on "special circumstances"...more
The U.S. Court of Appeals for the Seventh Circuit recently ruled that an auto repossession company's alleged demand that a debtor pay an administrative property retrieval fee to retrieve personal property left in her...more
In Loja v. Main Street Acquisition Corporation, the plaintiff filed a lawsuit in federal district court for alleged FDCPA violations against Main Street Acquisition Corporation and the law firm it retained to file a state...more
In Scheffler v. Gurstel Chargo, P.A., the U.S. Court of Appeals for the Eighth Circuit rejected a career plaintiff’s attempts to manufacture a Fair Debt Collection Practices Act (FDCPA) claim by baiting a debt collector into...more
The U.S. Court of Appeals for the Third Circuit has ruled that although the plaintiffs had plausibly alleged facts stating a claim that a debt collector had violated the Fair Debt Collection Practices Act (FDCPA) by not using...more
The U.S. Court of Appeals for the Third Circuit held in Tepper v. Amos Fin., LLC, that debt buyers (i.e., entities collecting, on their own behalf, consumer debts they acquired when the debts were in default), can qualify as...more
The U.S. Supreme Court announced on June 28 that it had granted a petition for a writ of certiorari to review the judgment of the U.S. Court of Appeals for the 10th Circuit in Obduskey v. McCarthy & Holthus LLP, et al.,...more
The U.S. Court of Appeals for the Eighth Circuit recently ruled that a debtor must show that a debt collector's alleged false representation was material for it to be a "false, deceptive, or misleading representation" in...more
A letter sent to collect a time-barred debt that makes a settlement offer can, even without a threat of legal action, violate the Fair Debt Collection Practices Act's (FDCPA) general prohibition against a debt collector's use...more
2/19/2018
/ Appeals ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Debt Collectors ,
FDCPA ,
Financial Services Industry ,
Motion to Dismiss ,
Settlement Offer ,
Statute of Limitations ,
Time-Barred Debt ,
Unfair or Deceptive Trade Practices
A federal district court in Pennsylvania recently granted summary judgment to a debtor in a lawsuit filed against a collection law firm under the Fair Debt Collection Practices Act (FDCPA)....more
A debt collector cannot avoid claims under the Fair Debt Collection Practices Act (FDCPA) by purchasing the debtor's lawsuit, according to a recent opinion from the U.S. Court of Appeals for the Ninth Circuit. ...more
The U.S. Court of Appeals for the Sixth Circuit recently affirmed the dismissal of a lawsuit brought against Midland Funding, LLC (Midland), and its collection law firm under the Fair Debt Collection Practices Act (FDCPA)....more
The U.S. Supreme Court has unanimously ruled that a purchaser of defaulted debt did not qualify as a debt collector under the Fair Debt Collection Practices Act (FDCPA) because it did not collect debts "due another", but...more
A collection letter potentially violated the Fair Debt Collection Practices Act (FDCPA) because a box that the plaintiff could check to indicate that she disputed the validity of the debt was accompanied by a statement that a...more