Debt Collection

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The Consumer Financial Protection Bureau (“CFPB”) recently issued advisory guidance on the enforcement of time-barred mortgage loans.  A time-barred mortgage loan is one where the statute of limitations has expired.  The statute of limitations for mortgage loans are typically created by state law, and vary by jurisdiction.  In some cases, they create an affirmative defense for the consumer that prohibits a debt collector from suing to collect the debt. … Continue Reading

Third-party debt collectors, first-party creditors, and debt buyers face an ever-evolving federal and state regulatory landscape as well as ongoing private litigation.  We first look at the impact of the CFPB’s most recent rulemaking agenda on debt collectors.  We then discuss compliance and licensing issues under District of Columbia, California, Utah, and New York debt collection laws and the Wyoming “debt buyer” licensing requirement. … Continue Reading

On March 30, 2023, a three-judge panel of the Superior Court of Pennsylvania held in a precedential opinion that debt collectors can send collection letters to debtors after the expiration of the statute of limitations without violating federal or Pennsylvania law, so long as the debt collector does not file suit in court.… Continue Reading

On March 23, 2023, the CFPB filed a complaint and proposed judgment against Portfolio Recovery Associates, LLC (“PRA”), one of the largest debt collectors in the United States.  If entered by the court, the proposed judgment would require PRA to pay $12.18 million to allegedly harmed consumers and $12 million to the CFPB as a civil penalty.… Continue Reading

In recent months, debt relief law firms have mailed volumes of cease and desist letters, credit reporting disputes, and debt validation requests to creditors.  These mailings, which are typically lacking in credibility, place an undue burden on businesses.  We first discuss responsive strategies creditors should consider for each type of mailing, including what obligations, if any, a creditor has to respond and the impact of state law.… Continue Reading

Move over, Tax Day!  This year, April 15 falls on a Saturday so the IRS moved the tax filing deadline to April 18.  What will you do with all that extra time?  Don’t worry, Visa’s got you covered.

Visa recently notified its business network that new rules for debt repayment are coming on April 15, 2023. … Continue Reading

The CFPB issued a new report, “Market Snapshot: An Update on Third-Party Debt Collections Tradelines Reporting,” that looks at trends in credit reporting of debt in collections from 2018 to 2022.  It also published a new blog post, “Debt collectors re-evaluate medical debt furnishing in light of data integrity issues,” that looks at factors that create challenges for medical collections reporting.… Continue Reading

The U.S. Court of Appeals for the Tenth Circuit recently joined the Eleventh Circuit (and a growing majority of courts) in rejecting the “Hunstein theory” of liability under the Fair Debt Collection Practices Act (FDCPA).  In Shields v. Professional Bureau of Collections of Maryland, Inc., the Tenth Circuit affirmed a lower court’s dismissal of FDCPA claims for lack of standing, confirming that a debt collector’s use of an outside mail vendor does not constitute an actionable, concrete injury.… Continue Reading

In an unpublished opinion, a New Jersey federal district court has ruled that a plaintiff did not have Article III standing to assert a claim under the Fair Debt Collection Practices Act based solely on her receipt of an allegedly misleading collection letter.

In Valentine v Unifund CCR, LLC; Distressed Asset Portfolio III, et al.… Continue Reading

Every year, state courts process millions of low-dollar but highly consequential cases that shape the lives of Americans. Debt collection, eviction, foreclosure, and child support actions have long dominated civil court dockets and case volume is on the rise. Debt collection claims have more than doubled over the past twenty years as unsecured consumer credit became more widely available.… Continue Reading