debt collection

Subscribe to debt collection via RSS

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.”
… Continue Reading

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

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

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

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.

In Kaiser v.… Continue Reading

In a blog post published at the end of last week, Acting CFPB Director Uejio shared with the public the statement that he sent to the staff of the Bureau’s Division of Research, Markets, and Regulations (RMR) outlining his regulatory priorities and directing staff to “explore options for preserving the status quo with respect to QM and debt collection rules.”… Continue Reading

Earlier this month, the Consumer Financial Protection Bureau issued a consent order against a New Jersey debt buyer accused of threatening and suing consumers to collect debts in states where it did not have a legally required license.

Specifically, the Bureau alleged that RAB Performance Recoveries, LLC’s (RAB) purchased consumer debt accounts from debt brokers and placed the accounts for collection with collections law firms in the states where the consumers were located. … Continue Reading

The CFPB completed its Fair Debt Collection Practices Act rulemaking today with the release of Part II of its final collection rule.

Part II has three primary components dealing with validation notices, passive debt collection through negative reporting, and the collection of time-barred debt.  Most notably, the provisions dealing with time-barred debt depart significantly from the Bureau’s proposal.… Continue Reading