The CFPB announced that it has entered into a consent order to settle the CFPB’s allegations that a debt collector, Yorba Capital Management, LLC (Yorba), and its owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act and that Yorba violated the Fair Debt Collection Practices Act. The consent order permanently bans both Yorba and
Debt Collection
CFPB issues proposal to extend effective date of debt collection rule
The CFPB issued a proposal today that would extend by 60 days the effective date of Part I and Part II of its final debt collection rule issued in, respectively, October 2020 and December 2020. Comments on the proposal will be due no later than 30 days after the date it is published in the…
CFPB issues annual FDCPA report
The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s and FTC’s activities in 2020. Debt collectors should expect increased scrutiny from the CFPB in 2021, with both Acting Director Uejio and Director-nominee Rohit Chopra having identified unlawful debt collection practices as a CFPB priority target.
In addition to a…
FTC provides annual FDCPA update to CFPB
By Christopher J. Willis on
The FTC has provided its annual update to the CFPB on the FTC’s FDCPA activities. The latest update covers the FTC’s 2020 activities. In addition to remaining an FTC focus, unlawful debt collection practices have been identified as a CFPB priority by Acting Director Dave Uejio and Director-nominee Rohit Chopra. In the letter, the FTC…
Third Circuit holds ECOA does not preempt NJ’s doctrine of necessaries and affirms dismissal of FDCPA claims
By Stefanie Jackman & John L. Culhane, Jr. on
Posted in Debt Collection, Fair Credit
The U.S. Court of Appeals for the Third Circuit has held that the Equal Credit Opportunity Act does not preempt New Jersey’s common-law doctrine of necessaries whereby a spouse is jointly liable for necessary expenses incurred by the other spouse. As a result, the plaintiff could not rely on preemption as the basis for her …
Third Circuit rejects debtor’s claim that collection letter stating she could call law firm “to eliminate further collection action” violated FDCPA
Posted in Debt Collection, Litigation and Court Decisions
The U.S. Court of Appeals for the Third Circuit has rejected a debtor’s claims that a collection letter she received from a law firm violated the Fair Debt Collection Practices Act because the letter stated “[i]f you wish to eliminate further collection action, please contact us at [this toll-free number].” As a result, it affirmed…
Ninth Circuit holds debt collector’s statute of limitations mistake can qualify for FDCPA bona fide error defense
By Stefanie Jackman on
Posted in Debt Collection, Litigation and Court Decisions
In a case of first impression, the U.S. Court of Appeals for the Ninth Circuit held that a debt collector’s mistake about the time-barred status of a debt under state law can qualify as a bona fide error within the meaning of the Fair Debt Collection Practices Act.
CFPB settles with New Jersey debt buyer for alleged FDCPA and CFPA violations based on unlicensed collection activity
By Stefanie Jackman & Rene T. McNulty on
Earlier this month, the Consumer Financial Protection Bureau issued a consent order against a New Jersey debt buyer accused of threatening and suing consumers to collect debts in states where it did not have a legally required license.
Specifically, the Bureau alleged that RAB Performance Recoveries, LLC’s (RAB) purchased consumer debt accounts from debt brokers…
New COVID-19 Economic Relief Legislation Provides Exemption for Economic Impact Payments from Garnishment by Private Creditors and Debt Collectors
By Lori J. Sommerfield on
On December 21, Congress overwhelmingly passed a consolidated bill (H.R. 133) that contains $1.4 trillion in appropriations to keep the federal government funded until October 2021 and $900 billion in coronavirus economic relief. The latter is found in Division N of the lengthy bill (which runs over 5600 pages) entitled “Additional Coronavirus Response and Relief.”…
Ballard Spahr offering preview sessions of its Collections, Credit Reporting, and Privacy and Data Security national tracking services
By Kim Phan & Stefanie Jackman on
Subscribers to each service will receive weekly emails and have the opportunity to discuss developments in each area during a monthly call. Additionally, subscribers will be enrolled in an interactive, searchable, online database that enables subscribers to have 24-hour access to our information and analysis.
To further educate our current subscribers and anyone else interested…