In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that changes mandated by the Federal Bureau of Investigation (“FBI’) to state agency protocols for requesting
Debt Collection
CFPB Spring 2022 Supervisory Highlights looks at auto servicing, credit reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing
The CFPB has released the Spring 2022 edition of its Supervisory Highlights. The report discusses the Bureau’s examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, prepaid accounts, remittance transfers, and student loan servicing that were completed between July 2021 and December 2021. Accordingly, many…
CFPB issues report on consumer complaints involving medical debt; Biden Administration announces actions relating to medical debt
By Michael Gordon & John L. Culhane, Jr. on
Just a little more than a month after issuing a report taking aim at medical debt collections, the CFPB has issued a new report on “Medical billing and collection issues described in consumer complaints.”
The report analyzes debt collection and credit or consumer reporting complaints submitted to the Bureau in 2021 that…
CFPB issues annual FDCPA report; FTC issues annual letter on debt collection to CFPB
By John L. Culhane, Jr. & Michael Gordon on
The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021. The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2021 activities in the debt collection market, including information about the FTC’s enforcement actions involving collection practices directed at…
CFPB updates debt collection examination procedures
By John L. Culhane, Jr. on
Posted in CFPB Supervision, Debt Collection
The CFPB has updated the section of its Supervision and Examination Manual on debt collection examination procedures. The update reflects the requirements of Regulation F, the Bureau’s final debt collection rule that implements the Fair Debt Collection Practices Act. Regulation F became effective on November 30, 2021.
CFPB issues report on medical debt
By John L. Culhane, Jr. on
A new CFPB report titled “Medical Debt Burden in the United States,” takes aim at medical debt collections, with the CFPB indicating that it intends to “[d]etermine whether policies should be implemented to eliminate unpaid medical billing data on credit reports altogether.”
The CFPB found that as of 2021, medical debt was the…
Seventh Circuit issues decision on FDCPA standing and bona fide error defense
By John L. Culhane, Jr. on
Posted in Debt Collection, Litigation and Court Decisions
A new decision from the U.S. Court of Appeals for the Seventh Circuit in two consolidated cases analyzes the requirements for Article III standing in a FDCPA case. It also addresses what a debt collector must show to establish that it maintained procedures reasonably adapted to avoid an error as required by the FDCPA’s bona…
Fourth Circuit rules mortgage servicer violated Maryland Consumer Debt Collection Act by charging convenience fees for phone or online payments
By Reid F. Herlihy on
The U.S. Court of Appeals for the Fourth Circuit recently ruled that a mortgage servicer violated the Maryland Consumer Debt Collection Act (MCDCA) by charging a $5 convenience fee to borrowers for monthly payments made by phone or online.
In Alexander v. Carrington Mortgage Services, LLC, the plaintiffs filed a class action complaint against…
CFPB issues bulletin on medical debt collection and consumer reporting requirements in connection with No Surprises Act
By John Devine & Ballard CFS Group on
The CFPB has issued a compliance bulletin and policy guidance on medical debt collection and consumer reporting requirements in connection with the No Surprises Act.
The No Surprises Act sets forth requirements that apply to certain individuals who receive care from an out-of-network provider that furnishes emergency services, inpatient services an in-network facility, or air…
CFPB sues debt buyer companies and their owners/officers for unlawful debt collection practices based on third-party conduct
By Ballard CFS Group on
The CFPB filed a complaint earlier this week in a New York federal district court against three companies that purchase defaulted debts (Corporate Defendants) and three individuals who are owners and/or officers of the Corporate Defendants (Individual Defendants). (Click here to read the statement from United Holding Group, LLC, one of the Corporate Defendants,…