For the past year, the industry’s attention has been focused on the Debt Collection Rule (the “Rule”), its changes, and the new expectations it will place on debt collectors; but as the rubber meets the road, collection...more
With the CFPB having decided to leave the effective date of the Debt Collection Rule as November 30th, the push is on for debt collectors to ensure their compliance with the Rule by that date. As debt collectors make the...more
The House has passed a bipartisan bill that amends the FDCPA to provide additional protections to servicemembers. The bill, H.R. 5003, amends 15 U.S.C. §§1692c and f to add provisions regarding communications to...more
The CFPB has issued its semi-annual report to Congress. The Report, which covers April through September of 2019, is mandated by Dodd-Frank and was released in conjunction with Director Kraninger’s testimony to the House...more
2/10/2020
/ Annual Reports ,
Consumer Complaint System ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Scores ,
Debt Collection ,
Debt Collectors ,
Dodd-Frank ,
Financial Services Committee ,
Financial Services Industry ,
Proposed Rules ,
Rulemaking Process
The CFPB has issued a Statement of Policy which seeks to “convey and foster greater certainty above the meaning of abusiveness” and provide a framework for its exercise of supervisory and enforcement authority as to abusive...more
1/31/2020
/ Abusive Acts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Covered Entities ,
Enforcement Actions ,
Enforcement Authority ,
Enforcement Guidance ,
Financial Services Industry ,
Good Faith ,
Policy Statement ,
Remedies ,
Restitution ,
Safe Harbors ,
Unfair or Deceptive Trade Practices
The CFPB’s 2020 Rulemaking Agenda provides a preview of the Bureau’s intended rulemaking activities for 2020. Here are the highlights of what we can look forward to in 2020:
Business Lending Data (Pre-rule Stage): Under...more
1/7/2020
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Debt Collection ,
Final Rules ,
Financial Services Industry ,
HMDA ,
Mortgages ,
NPRM ,
Payday Lending Rule ,
Proposed Rules ,
Regulatory Agenda ,
Rulemaking Process ,
Small Business
A district court in Michigan recently dismissed an FDCPA action, holding that a letter which included a bankruptcy disclaimer was for informational purposes only and did not violate the FDCPA. Tyler v. Fabrizio & Brook,...more
For the first time in over a year, the CFPB has issued a Complaint Snapshot. A practice started by Cordray in 2015, the report is a high level snapshot of trends in consumer complaints and provides a summary of the volume of...more
Just four days after the U.S. Supreme Court heard oral arguments in Obduskey v. McCarthy & Holthus LLP regarding whether non-judicial foreclosures qualify as debt collection under the FDCPA, the Sixth Circuit doubled down on...more
Relying upon basic principles of contract law, an Alabama district court has held that there are limitations to revocation of prior express consent. In Few v. Receivables Performance Management, 2018 U.S. Dist. LEXIS 134324...more
District Court Takes Expansive View of Deceptive or Misleading Practices under FDCPA -
The FDCPA prohibits a debt collector from using "any false, deceptive, or misleading representation" in connection with the collection...more
5/11/2018
/ Administrative Appointments ,
Article III ,
ATDS ,
Collection Agencies ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reports ,
Debt Collection ,
Disclosure Requirements ,
FCC ,
FDCPA ,
Fees ,
Financial Services Industry ,
Foreclosure ,
Interest Accrual ,
Proposed Legislation ,
Safe Harbors ,
Strategic Enforcement Plan ,
TCPA ,
Unfair or Deceptive Trade Practices
The CFPB has issued its semi-annual report to Congress, leaving little doubt as to the agenda of Acting Director, Mick Mulvaney. While the information contained in the actual report is largely inconsequential, it is...more
The Seventh Circuit recently joined the Fourth and Ninth Circuits in holding that a debt collection discharges its obligation as to debt validation by verifying that its letters accurately conveyed the information received...more
The Sixth Circuit recently made clear its position that “Congress cannot override the baseline requirement[s] of Article III of the U.S. Constitution by labeling the violation of any requirements of a statute a cognizable...more
A recent decision from the North District of Illinois has expanded on the Seventh Circuit’s holding in Pantoja v. Portfolio Recovery Assocs., LLC, 852 F.3d 679 (7th Cir. 2017) regarding revival warnings in collections letters...more
3/1/2018
/ Banking Sector ,
Class Action ,
Class Certification ,
Collection Action ,
Credit Cards ,
FDCPA ,
Financial Services Industry ,
Midland Funding ,
Statute of Limitations ,
Statutory Violations ,
Time-Barred Debt
Settle (verb): “to conclude (a lawsuit) by agreement between parties usually out of court. Merriam Webster Dictionary -
The Third Circuit has refined its position as to whether collection of time-barred debt may violate...more
Last week, the CFPB issued its Strategic Plan for Fiscal Years 2018-2022. The Plan reflects Acting Director Mick Mulvaney’s vision for the CFPB and reflects a contrasting vision to what was reflected in the prior draft which...more
A recent opinion from a district court in California serves as a reminder to creditors and debt collectors of the limited circumstances upon which convenience fees can be collected. ...more
Any opinion that starts out by stating “[t]his case is about $82.00” is not likely to go well for one party and in this instance, that was the case for Nestor Saroza. ...more
The Tenth Circuit has weighed in on whether a non-judicial foreclosure is debt collection activity. In doing so, the Tenth Circuit has joined a split in the circuits on the issue. With the Tenth Circuit’s decision the...more
With the growth of technology and the development of the fintech market, an unprecedented amount of consumer financial data has become available. While protections through the FTC Safeguard Rule and EFTA provide certain...more
10/26/2017
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Customer Information ,
Data Breach ,
Data Protection ,
Data Security ,
Electronic Data Transmissions ,
Financial Services Industry ,
Information Security ,
Informed Consent ,
Request For Information
An unpublished opinion from the Eleventh Circuit continues its analysis of the definition of a debt collector and continues to narrow the applicability of the FDCPA. As many may recall, the Eleventh Circuit’s opinion in...more
The Seventh Circuit has held that a voice mail message left for a consumer is a “communication” under the FDCPA. In Hart v. Credit Control, LLC, 2017 U.S. App. LEXIS 18375 (11th Cir. Sept, 22, 2017), the debt collector left...more
A recent opinion from the Fifth Circuit should serve as a reminder to debt collectors that their duties as to disputed debts are not governed solely by section 1692g. In Sayles v. Advanced Recovery Systems, Advanced Recovery...more
Mortgage servicers need to carefully review their Transfer Notices when the debt is in default at the time of transfer. In an unpublished decision, the Eastern District of New York recently held that a “Notice of Servicing...more
7/12/2017
/ Banking Sector ,
Debt Collection ,
Disclosure Requirements ,
FDCPA ,
Financial Services Industry ,
Interest Rates ,
Mortgage Servicers ,
Mortgages ,
Motion to Dismiss ,
Principal Balance ,
Transfer of Interest