During D.C.’s declared State of Public Health Emergency, several financial protections have been put in place, including some that severely limit, among other things, collection activities relating to consumer contracts, repossession, and legal actions on accounts. On September 1, Mayor Muriel Bowser signed the most recent pair of emergency and temporary legislation to land on
debt collection
This week’s podcast: Preparing for the CFPB debt collection rule’s November 30, 2021 effective date
By Barbara S. Mishkin on
We discuss a range of practical issues related to the rule’s rapidly-approaching effective date, including: the prospects for further CFPB rulemaking or guidance; the aspects of the rule that should be prioritized by third-party collectors and debt buyers; the rule’s impact on creditors (for internal collections and third-party collector/debt buyer oversight), state law considerations, and…
California DFPI Invites Comments on Proposed Second Rulemaking Under Debt Collection Licensing Act
By Aileen Ng on
The California Department of Financial Protection and Innovation (DFPI) recently issued an Invitation for Comments on the Proposed Second Rulemaking under the Debt Collection Licensing Act. The Invitation for Comments seeks further information on topics relating to the scope of certain definitional terms, the types of information required on annual reports, and surety bond amounts.…
This week’s podcast: The CFPB’s Summer 2021 Supervisory Highlights: A close look at credit reporting, debt collection, fair lending and mortgage loan origination and servicing issues
By Barbara S. Mishkin on
We look at the practices found to be unlawful by CFPB examiners in these markets, discuss what the findings signal for future scrutiny of these markets by the “new CFPB”, and share practical takeaways for companies operating in these markets. Issues highlighted in our conversation include the CFPB’s findings regarding “unreliable furnishers,” furnisher handling of…
Friday afternoon surprise: CFPB announces final debt collection rule will be effective November 30
By Stefanie Jackman on
Posted in CFPB, Debt Collection
To the surprise of the debt collection industry, the CFPB announced this past Friday afternoon that its final debt collection rule (Parts I and II) will take effect on November 30, 2021 as originally scheduled.
Many in the industry were expecting the CFPB to extend the effective date to January 29, 2022, consistent with its…
Industry groups challenge Nevada’s new medical debt collection law
By Christine Emello on
Posted in Debt Collection, State regulation
On June 25, a group of collection agencies, law firms, and industry associations filed a lawsuit against the Nevada State Commissioner requesting the Court declare invalid Nevada Senate Bill 248, which regulates medical debt collection. The new law took effect on July 1, 2021. Nevada enacted the new law last month.
The complaint alleges…
Nevada and New Mexico State Medical Debt Collections Laws to Take Effect July 1, 2021
By Christine Emello on
State legislatures in New Mexico and Nevada enacted laws this session targeting medical debt collections. Both laws have been signed by the states’ Governors and take effect July 1, 2021.
New Mexico Patients Debt Collection Practices Act
The New Mexico Patients Debt Collection Practices Act places a number of requirements on health care facilities and…
Second Circuit rules debt collector did not violate FDCPA by sending settlement offer without disclosing interest would continue to accrue if consumer did not meet payment deadline
By Stefanie Jackman on
Posted in Debt Collection, Litigation and Court Decisions
The U.S. Court of Appeals for the Second Circuit has ruled that a debt collector did not violate the Fair Debt Collection Practices Act by sending the plaintiff a settlement offer that did not disclose that his balance could increase due to interest and fees.
In Cortez v. Forster & Garbus, LLP, the debt…
Ballard Spahr files amicus brief on behalf of communications client in support of en banc review of 11th Cir. decision applying FDCPA restriction on third-party communications to debt collector’s transmittal of debtor’s personal information to letter vendor
By Stefanie Jackman & William Rooks on
Posted in Debt Collection, Litigation and Court Decisions
On behalf of our client RevSpring, Inc., Ballard Spahr has filed an amicus brief in support of the petition for rehearing en banc filed in the Eleventh Circuit by the defendant in Hunstein v. Preferred Collection and Management Services. In that case, a unanimous Eleventh Circuit panel reversed the lower court’s dismissal of the…
CFPB brings claim against former debt collection company executive and his family for allegedly seeking to fraudulently transfer assets to undermine earlier consent decree
By Elanor A. Mulhern on
Recently, the CFPB and New York Attorney General filed a Complaint against Douglas MacKinnon and members of his immediate family to unwind the allegedly fraudulent conveyance of MacKinnon’s $1.6 million home made shortly after he learned his business practices were the subject of CFPB and NYAG investigations.
This Complaint follows a 2019 consent decree, in…