The CFPB has issued an interim final rule that requires “debt collectors” as defined under the FDCPA who seek to evict tenants for non-payment of rent to provide written notice to tenants of their rights under the Centers for Disease Control and Prevention (CDC) Order that establishes an eviction moratorium. The interim rule also prohibits FDCPA debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. … Continue Reading
Debt Collection
11th Cir. rules FDCPA restriction on third-party communications applies to debt collector’s transmittal of debtor’s personal information to vendor that generated and sent collection letters
By Glen P. Trudel & Ballard CFS Group on
Posted in Debt Collection, Litigation and Court Decisions
In a very troubling decision of first impression, a unanimous panel of the U.S. Court of Appeals for the Eleventh Circuit has ruled that a debt collector’s transmittal of the plaintiff’s personal information to the vendor it used to generate and send collection letters “constituted a communication ‘in connection with the collection of any debt’ within the meaning of [FDCPA Section 1692c(b)]”. … Continue Reading
House Financial Services Committee to mark-up bills dealing with debt collection, diversity and inclusion
By John L. Culhane, Jr. on
Tomorrow, April 20, the House Financial Services Committee is scheduled to mark-up a series of bills that include a bill dealing with debt collection and two bills dealing with the diversity and inclusion practices of banks and other federally-regulated entities.
Debt collection. H.R. 2547, the “Comprehensive Debt Collection Improvement Act,” includes the following provisions:
- Title I, the “Small Business Lending Fairness Act,” would amend the Truth in Lending Act to prohibit the use of a confession of judgment, warrant of attorney, “or other waiver of the right to notice and the opportunity to be heard in the event of suit or process thereon,” in both consumer and business purpose credit transactions, “including any advance of funds or sale or assignment of future income or receivables that may or may not be credit.”
CFPB enters into consent order with debt collector and its owner to settle alleged FDCPA and CFPA violations
By Ballard CFS Group on
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 Mr.… Continue Reading
CFPB issues proposal to extend effective date of debt collection rule
By Stefanie Jackman & Ballard CFS Group on
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 Federal Register.… Continue Reading
CFPB issues annual FDCPA report
By Ballard CFS Group on
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.… Continue Reading
FTC provides annual FDCPA update to CFPB
By Ballard CFS Group 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 indicates that it will continue to work closely with the CFPB to coordinate consumer protection activities related to debt collection.… Continue Reading
Third Circuit holds ECOA does not preempt NJ’s doctrine of necessaries and affirms dismissal of FDCPA claims
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 claim that the defendant law firm violated the Fair Debt Collection Practices Act by attempting to collect a debt from her that she did not owe for her deceased husband’s medical expenses.… Continue Reading
Third Circuit rejects debtor’s claim that collection letter stating she could call law firm “to eliminate further collection action” violated FDCPA
By Ballard CFS Group on
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 the district court’s grant of summary judgment in favor of the law firm.… Continue Reading
Ninth Circuit holds debt collector’s statute of limitations mistake can qualify for FDCPA bona fide error defense
By Ballard CFS Group 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.