The Superior Court of New Jersey, Appellate Division in Jennifer Woo-Padva v. Midland Funding, LLC, recently affirmed the dismissal of consumer fraud claims brought against a debt collector pursuant to the New Jersey Consumer Finance Licensing Act (CFLA), holding that a debt purchaser is not liable under the New Jersey Consumer Fraud Act (NJCFA) for failing to obtain a state license under the CFLA.… Continue Reading
Debt Collection
NY federal court denies motion to dismiss CFPB lawsuit against debt buyer companies and their owners/officers for unlawful debt collection practices based on third-party conduct
A New York federal district court has denied a motion to dismiss the lawsuit filed in January 2022 by the CFPB against three companies that purchase portfolios of defaulted debts (Corporate Defendants) and three individuals who are owners and/or officers of the Corporate Defendants (Individual Defendants).
The lawsuit alleges that the Corporate Defendants contracted with debt collectors to collect consumer debts on their behalf either directly or through other debt collectors or sold consumer debts to debt collectors, some of whom were contractually required to make ongoing payments to the Corporate Defendants. … Continue Reading
RFI Industry Commenters Urge CFPB to Stay in its Lane on Medical Debt Payments
By Kristen E. Larson on
American Bankers Association (ABA), Association of Credit and Collection Professionals (ACA International), U.S. Chamber of Commerce (Chamber), Synchrony Bank (Synchrony), and National Consumer Law Center (NCLC) submitted comment letters in response to the Consumer Financial Protection Bureau’s request for information, about medical credit cards and other lending products used to pay for health care expenses.… Continue Reading
Ninth Circuit confirms discrete actions in debt collection litigation can trigger FDCPA one-year statute of limitations
By John L. Culhane, Jr. & Erik L. Johnson on
Posted in Debt Collection, Litigation and Court Decisions
A panel of the U.S. Court of Appeals for the Ninth Circuit recently held that because of the timing of a filing in a collection action against a student loan borrower, his claim that debt collectors violated the Fair Debt Collection Practices Act (FDCPA) was not time-barred, reversing the lower court’s dismissal. … Continue Reading
Nevada enacts amendments allowing collection agency employees to work from remote locations
By John D. Socknat on
Posted in Debt Collection, State Licensing
The Nevada Legislature recently passed Senate Bill 276 (“SB 276”), which permits employees of Collection Agencies to work from remote locations and exempts certain entities from qualifying as a “Collection Agency.” The provisions of SB 276 relevant to Collection Agencies will become effective on October 1, 2023.
SB 276 amends Nev.… Continue Reading
CFPB, jointly with Dept. of Health and Human Services and Dept. of Treasury, issues request for information regarding medical payment products
By John L. Culhane, Jr. & Michael Gordon on
In advance of a hearing scheduled for tomorrow on medical billing and collections in which the focus will be medical payment products such as medical credit cards and installment loans, the CFPB, jointly with the U.S. Department of Health and Human Services (HHS) and U.S. Department of Treasury (Treasury), has issued a request for information (RFI) regarding medical payment products. … Continue Reading
Nevada enacts amendments regarding working from remote locations for Installment Loan Company licensees and collection of medical debt
By John D. Socknat on
Nevada’s Governor recently approved amendments to Nevada laws that concern the ability of employees of Installment Loan Company licensees to work from remote locations and the collection of medical debt. The amendments become effective on October 1, 2023.
Senate Bill 355 (“SB 355”) permits employees of Installment Loan Company licensees to work from remote locations. … Continue Reading
CFPB to host hearing on medical billing and collections
By Michael Gordon & Alan S. Kaplinsky on
The CFPB announced that on July 11, 2023 it will host a hearing on medical billing and collections, with a focus on medical payment products, such as medical credit cards and installment loans. In addition to Director Chopra, the hearing will include agency officials from the White House, the U.S. Department of Health and Human Services, and the U.S.… Continue Reading
Ninth Circuit affirms district court’s denial of preliminary injunction blocking enforcement of Nevada medical debt collection law
By Joel E. Tasca on
Posted in Debt Collection, Litigation and Court Decisions
The U.S. Court of Appeals for the Ninth Circuit, in a 2-1 decision, recently affirmed the district court’s decision denying the plaintiffs’ motion for a temporary restraining order and preliminary injunction to block enforcement of Nevada Senate Bill 248 (S.B. 248). S.B. 248, which took effect on July 1, 2021, was enacted in response to the COVID-19 pandemic and requires debt collectors to provide written notification to debtors 60 days “before taking any action to collect a medical debt.”… Continue Reading
Seventh Circuit rules $3.95 in postage spent by plaintiff to respond to second validation notice sufficient to establish FDCPA standing
The U.S. Court of Appeals for the Seventh Circuit has ruled that a plaintiff in a putative class action had standing to assert FDCPA claims against the purchaser of her debt and the purchaser’s servicer based on the $3.95 she paid in postage to respond to a second validation letter after she had already responded to the first validation notice.… Continue Reading