Debt Buyers

News & Analysis as of

CFPB Stops Law Firm & Debt Buyer from Filing Illegal Debt Collection Lawsuits

Recently the Consumer Financial Protection Bureau (CFPB) entered an order to stop a New Jersey debt collection law firm and the junk debt buyer from filing illegal debt collection lawsuits. The law firm Pressler &...more

Sued by Razor Capital in Arizona? We Can Help.

Have you been sued by Razor Capital? Even though Razor Capital is not an Arizona debt buyer they do file a large number of lawsuits in Arizona courts. Razor’s business model is to purchase old charged-off credit cards, auto...more

Sued by Cortez Investment Co. ? We Can Help.

Have you been sued by Cortez Investment Co., LLC? If you live in Arizona and have fallen behind on a Citibank credit card there is a good chance you could get sued by Cortez Investment Co. through their lawyers at the...more

CFPB announces consent orders with debt collection law firm, two law firm partners, debt buyer

The CFPB announced that it has entered into two consent orders involving debt collection litigation practices. A debt collection law firm and two of its partners are the subject of one consent order and a debt buyer is the...more

Madden Update – Petition Request Bodes Well for High Court Review but Raises New Questions

The US Supreme Court’s recent request for an opinion from the US Solicitor General to help inform the Court’s decision on whether to review the Second Circuit’s decision in Madden v. Midland Funding, LLC indicates that the...more

A Consumer’s Guide to Midland Funding Debt Collection Lawsuits (pt. 2) – Service of the Summons and Complaint

Even though Midland Funding is a debt collector its business model really isn’t about calling you on the phone or sending you threatening letters – they sue people. And they do so in huge numbers. In 2008 Midland filed more...more

CFPB Announces Actions against New York-Based Financial Institution and Debt Collection Law Firms

On February 23, the CFPB announced two separate actions, one against a New York-based financial institution and another against the same financial institution, two of its affiliates, and two debt collection law firms,...more

Bibby Factors Northwest Limited v HFD Limited and MCD Group Limited: Buyers of debt beware

In Bibby Factors Northwest Limited v HFD Limited and MCD Group Limited the Court of Appeal held that a company whose debt has been purchased (the “Debtor”) is under no obligation to inform the purchasing party (the “Funder”)...more

Big Win for Consumers against Midland Funding in Arizona Court of Appeals

Recently I had the privilege of arguing a debt collection case on behalf of a client against Midland Funding. The case was heard by the Arizona Court of Appeals and had to deal with one of the big issues when it comes to...more

Madden Tells SCOTUS That Marketplace Lenders Should Not Worry About Madden

As the Marketplace Lending (MPL) industry gears up for the upcoming conference trifecta – ABS Vegas, AltFi Europe and LendIt USA 2016, the effect of the Midland Funding, LLC et al. v. Saliha Madden case and its pending appeal...more

CFPB Takes Action Against Citibank, N.A., and Affiliates for Alleged Debt Collection Violations

On February 23, 2015, the Consumer Financial Protection Bureau (CFPB) announced two separate enforcement actions against Citibank, N.A., its affiliates, and two debt collection law firms, for alleged illegal debt sales and...more

FTC sends letter to CFPB on 2015 debt collection activities

The FTC has sent a letter to the CFPB summarizing the FTC’s debt collection activities in 2015. The letter is intended to provide the CFPB with information for its annual report to Congress on the federal government’s FDCPA...more

Ninth Circuit Narrowly Construes “Insiders” and, in Controversial Decision, Declines to Reverse Bankruptcy Appellate Panel

To cram-down a chapter 11 plan on non-accepting classes, at least one impaired class must accept the plan, not counting the votes of insiders. In what is likely to be a controversial opinion, the Ninth Circuit Court of...more

Human Rights Watch issues report on debt buyers

A new report by Human Rights Watch (HRW) titled “Rubber Stamp Justice—US Courts, Debt Buying Corporations, and the Poor” is likely to find readers at the CFPB, which is expected to move closer early this year to...more

A Cautionary Tale: FTC Warns Industry of Broad Meaning of “Debt Collector”

Although the Fair Debt Collection Practices Act (FDCPA) was enacted decades ago, its amorphous scope continues to frustrate the industry. The FTC recently cautioned debt collectors and creditors alike of the surprising...more

A Consumer’s Guide to Midland Funding Debt Collection Lawsuits – Chapter 1 Who is Midland Funding?

Each and every year there are hundreds of thousands of lawsuits filed across the country by companies known as “junk debt buyers”. Despite the huge volume of lawsuits there are relatively few lawyers who handle these types of...more

Arizona’s Default Judgment Problem

Arizona has a default judgment problem. Every day I meet with families and individuals who have been notified that their wages are about to be garnished based upon a default judgment entered years ago that they didn’t even...more

CFPB Continues to Focus on Reforming Consumer Collection Practices

The CFPB has authority to enforce violations of the Consumer Financial Protection Act’s prohibition on unfair, deceptive, and/or abusive practices (UDAAP). UDAAP violations have figured prominently in multiple enforcement...more

Massachusetts AG Takes Action Against Debt Collection Law Firm

On December 21, Massachusetts AG Maura Healey filed a lawsuit against a Massachusetts-based debt collection law firm and its two owners for allegedly violating consumer protection laws by suing consumers for debts that were...more

Debt Collection and Beyond in 2015

In 2015, the CFPB further expanded its reach into debt collection through a number of enforcement actions. The CFPB also continues to conduct research on a potential rulemaking regarding debt collection activities, which may...more

CFPB issues bulletin on in-person debt collection

The CFPB has issued a bulletin (Compliance Bulletin 2015-07) to provide guidance to creditors, debt buyers and third-party debt collectors about compliance with the CFPA UDAAP prohibition and the FDCPA when conducting...more

3 Strategies for Dealing with Low Dollar Debt Collection Lawsuits

Over the past year I have seen junk debt buyers like Midland Funding and Portfolio Recovery Associates file debt collection lawsuits on account where the amount is relatively small – some for amounts less than $1,000. I have...more

CFPB Singles Out Class Action Waivers for Elimination from Consumer Financial Arbitration Agreements

The Consumer Financial Protection Bureau (“CFPB”) made clear this week that, in its view, class action waivers should be on the chopping block in the agency’s upcoming rulemaking aimed at regulating the use of arbitration...more

Is Midland Funding Even Aware of the CFPB Consent Order?

A few weeks back I reported how the Consumer Financial Protection Bureau (“CFPB”) had sanctioned both Midland Funding and Portfolio Recovery Associates for their illegal debt collection tactics when it came to junk debt buyer...more

Brokers: Rely on Broker Statements at Your Peril

Alamo Group, LLC v. A & G Realty Partners, LLC (In re OSC 1 Liquidating Corp.), 529 B.R. 825 (Bankr. D. Del. 2015) – A purchaser of debtors’ lease designation rights filed a complaint in bankruptcy court against the debtors’...more

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