The CFPB announced at the end of last week that it had entered into a consent order with Phoenix Financial Services, LLC (Phoenix), a third-party debt collector that collects primarily past-due medical debts and furnishes information to consumer reporting agencies (CRAs), to settle alleged violations by Phoenix of the Fair Credit Reporting Act and its implementing Regulation V, the Fair Debt Collection Practices Act, and the Consumer Financial Protection Act. … Continue Reading
debt collection
This week’s podcast episode: Recent federal and state debt collection developments
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
Pennsylvania appellate court rejects claim that dunning letter sent post-expiration of the statute of limitations violated law
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
New CFPB report and blog post look at third-party debt collections tradeline reporting and medical debt furnishing
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
Can the American Law Institute Cure the Collection Claim Crisis for Courts, Creditors, and Consumers?
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
Bill to extend the California Debt Collection Licensing Act’s grace period provisions sent to Governor
On August 31, 2022, the California Senate voted to approve House Assembly Bill 156, and sent the bill to Governor Newsom for consideration and potential signature. If it becomes law, the bill would amend the existing California Debt Collection Act (the “DCLA”) in three ways.
First, the bill would amend provisions of Cal.… Continue Reading
CFPB adds new debt collection rule FAQs
Last week, the CFPB published additional frequently asked questions on Regulation F, its debt collection rule. The new FAQs address third-party communications, electronic communications, and unusual or inconvenient time and place provisions.
Prohibitions on Third-Party Communications. The FAQs address the following questions:
- What is the Debt Collection Rule’s general prohibition on third-party communications?
California DFPI issues draft text for second rulemaking under Debt Collection Licensing Act
As discussed in an earlier blog post, the California Department of Financial Protection and Innovation (“DFPI”) issued an Invitation for Comments on the Proposed Second Rulemaking under the Debt Collection Licensing Act (“DCLA”) on August 19, 2021. The Commissioner is now considering draft regulations related to the DCLA’s scope, annual report, and document retention requirements, and has issued an “Invitation for Comments on Draft Text for Proposed Second Rulemaking Under the Debt Collection Licensing Act.”… Continue Reading
DFPI releases notice addressing processing delays for debt collection license applications
In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that changes mandated by the Federal Bureau of Investigation (“FBI’) to state agency protocols for requesting federal background checks have caused “unforeseen” and unavoidable processing delays.… Continue Reading
CFPB issues annual FDCPA report; FTC issues annual letter on debt collection to CFPB
The CFPB has issued its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021. The report incorporates information from the FTC’s most recent annual letter to the CFPB describing its 2021 activities in the debt collection market, including information about the FTC’s enforcement actions involving collection practices directed at small businesses.… Continue Reading