Last week, the U.S. Court of Appeals for the Eleventh Circuit ordered rehearing en banc in Hunstein v. Preferred Collection and Management Services, Inc. Yesterday, the Eleventh Circuit issued a memorandum indicating that for purposes of the en banc rehearing, the Court wants counsel to focus their briefs on the question: “Does Mr. Hunstein
Debt Collection
Eleventh Circuit orders en banc rehearing in Hunstein
By Stefanie Jackman on
Posted in Debt Collection, Litigation and Court Decisions
In a surprising turn of events this morning, the U.S. Court of Appeals for the Eleventh Circuit issued an order sua sponte to rehear Hunstein v. Preferred Collection and Management Services, Inc. en banc. The sua sponte order was issued after an Eleventh Circuit judge requested a poll on whether the case should…
New York enacts significant changes impacting debt collection lawsuits
By Stefanie Jackman on
Posted in Debt Collection, State regulation
On November 8, 2021, New York Governor Hochul signed into law the “Consumer Credit Fairness Act” (S.153). The Act contains a series of amendments to the New York Civil Practice Law and Rules that significantly impact debt collection lawsuits filed in New York state courts by creditors or debt collectors.
The key amendments…
NYDFS proposes amendments to debt collection regulation
By Stefanie Jackman on
On October 29, the New York Department of Financial Services issued proposed amendments to 23 NYCRR 1, its regulation titled “Debt Collection by Third-Party Debt Collectors and Debt Buyers.” The proposed amendments would make significant changes to the sections of the current regulation dealing with initial disclosure requirements, statute of limitations disclosures, substantiation…
CFPB publishes new debt collection rule FAQs and guidance document on validation notice
By Stefanie Jackman on
On October 29, the CFPB published additional frequently asked questions on Regulation F, its final debt collection rule, as well as a guidance document. The new FAQs address validation notice requirements (including for residential mortgage debts) and the guidance document deals with how to disclose the validation information on the itemization table on the model…
Eleventh Circuit vacates prior Hunstein opinion but leaves door open for Hunstein copycat claims to continue; Ballard Spahr to hold Nov. 2 webinar
By Stefanie Jackman & Christine Emello on
Posted in Debt Collection, Litigation and Court Decisions
On October 28, 2021, in a 2-1 split panel decision, the Eleventh Circuit Court of Appeals vacated its prior opinion in Hunstein v. Preferred Collection and Management Services, Inc. (published at 994 F.3d 1341 (11th Cir. 2021)), and substituted a new opinion in its place. The new opinion is published, meaning it has immediate…
CFPB releases Spanish translation of model validation notice
By Stefanie Jackman on
Last week, the CFPB released a Spanish translation of the model-English language validation notice set forth in Appendix B of Regulation F.
The final debt collection rule allows a debt collector to send a validation that is completely and accurately translated into any language if the debt collector either (1) sends an English-language version in…
Illinois federal court rejects plaintiffs’ attempt to avoid federal court jurisdiction in cases alleging FDCPA violations based on Hunstein
By Stefanie Jackman on
Posted in Debt Collection, Litigation and Court Decisions
In two cases in which the plaintiffs alleged that the debt collector defendants violated the FDCPA by sharing information about their debts with third party vendors used to prepare collection letters, an Illinois federal district court rejected the plaintiffs’ attempts to have their cases remanded to state court based on a lack of Article III…
CFPB releases debt collection rule FAQs
By Stefanie Jackman on
The CFPB has released frequently asked questions on the limited-content message and call frequency provisions of its debt collection rule (Regulation F) that becomes effective on November 30, 2021. While many of the FAQs repeat what is stated in the rule, they do provide some clarifying information which we highlight below.
Limited content message (LMC). …
CA DFPI brings first enforcement action against a debt collector and debt buyer for violating the state’s Consumer Financial Protection Law
By Christopher J. Willis on
Last week, the California Department of Financial Protection and Innovation (DFPI) brought its first enforcement action against a debt collector and debt buyer for violating the state’s Consumer Financial Protection Law (CCFPL). The DFPI’s Desist and Refrain Order and Order Assessing Penalties (totaling $375,000) charges F & F Management Inc. (F&F) with violating the CCFPL…