A new decision from the U.S. Court of Appeals for the Seventh Circuit in two consolidated cases analyzes the requirements for Article III standing in a FDCPA case. It also addresses what a debt collector must show to establish that it maintained procedures reasonably adapted to avoid an error as required by the FDCPA’s bona
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CFPB sues debt buyer companies and their owners/officers for unlawful debt collection practices based on third-party conduct
By Ballard CFS Group on
The CFPB filed a complaint earlier this week in a New York federal district court against three companies that purchase defaulted debts (Corporate Defendants) and three individuals who are owners and/or officers of the Corporate Defendants (Individual Defendants). (Click here to read the statement from United Holding Group, LLC, one of the Corporate Defendants,…
CA DFPI provides assurance of no action to debt collection license applicants experiencing NMLS delays
By Ballard CFS Group on
The California Department of Financial Protection and Innovation (DFPI) has published a notice on its website concerning delays that debt collectors and buyers seeking to comply with the new licensing requirement in the state’s Debt Collection Licensing Act are currently experiencing.
The new law, passed in September 2020, requires debt collectors and buyers to apply…
CA DFPI brings first enforcement action against a debt collector and debt buyer for violating the state’s Consumer Financial Protection Law
By Ballard CFS Group on
Last week, the California Department of Financial Protection and Innovation (DFPI) brought its first enforcement action against a debt collector and debt buyer for violating the state’s Consumer Financial Protection Law (CCFPL). The DFPI’s Desist and Refrain Order and Order Assessing Penalties (totaling $375,000) charges F & F Management Inc. (F&F) with violating the CCFPL…
Utah federal court rules Petition Clause of the First Amendment provides immunity from FDCPA claims
By Ballard CFS Group on
Posted in Debt Collection, Litigation and Court Decisions
A Utah federal district court recently ruled in two cases that the Petition Clause of the First Amendment of the U.S. Constitution provides immunity to debt collectors from FDCPA claims. The two cases are Holmes v. Crown Asset Management, LLC and Reyes v. N.A.R. Inc. and Olson Associates, P.C. Both decisions were issued by…
Debt collector asks 11th Cir. for en banc review of decision applying FDCPA restriction on third-party communications to debt collector’s transmittal of debtor’s personal information to letter vendor
By Ballard CFS Group on
Posted in Debt Collection, Litigation and Court Decisions
Last month, in a very troubling decision of first impression, a unanimous panel of the U.S. Court of Appeals for the Eleventh Circuit reversed the lower court’s dismissal of the plaintiff’s FDCPA claim, instead ruling that the plaintiff stated a claim where the plaintiff alleged that a debt collector’s transmittal of the plaintiff’s personal information…
CFPB issues interim rule applicable to FDCPA debt collectors seeking to evict tenants for non-payment of rent
By Ballard CFS Group on
The CFPB has issued an interim final rule that requires “debt collectors” as defined under the FDCPA who seek to evict tenants for non-payment of rent to provide written notice to tenants of their rights under the Centers for Disease Control and Prevention (CDC) Order that establishes an eviction moratorium. The interim rule also prohibits…
11th Cir. rules FDCPA restriction on third-party communications applies to debt collector’s transmittal of debtor’s personal information to vendor that generated and sent collection letters
By Glen P. Trudel & Ballard CFS Group on
Posted in Debt Collection, Litigation and Court Decisions
In a very troubling decision of first impression, a unanimous panel of the U.S. Court of Appeals for the Eleventh Circuit has ruled that a debt collector’s transmittal of the plaintiff’s personal information to the vendor it used to generate and send collection letters “constituted a communication ‘in connection with the collection of any debt’…
New COVID-19 Economic Relief Legislation Provides Exemption for Economic Impact Payments from Garnishment by Private Creditors and Debt Collectors
By Lori J. Sommerfield on
On December 21, Congress overwhelmingly passed a consolidated bill (H.R. 133) that contains $1.4 trillion in appropriations to keep the federal government funded until October 2021 and $900 billion in coronavirus economic relief. The latter is found in Division N of the lengthy bill (which runs over 5600 pages) entitled “Additional Coronavirus Response and Relief.”…
Ninth Circuit rules debt collector that contractually required creditors to provide accurate information could not rely on FDCPA bona fide error defense
By Ballard CFS Group on
Posted in Debt Collection, Litigation and Court Decisions
The U.S. Court of Appeals for the Ninth Circuit, in Urbina v. National Business Factors Inc., ruled that a debt collector could not rely on the FDCPA’s bona fide error defense by contractually obligating its creditor clients to provide accurate information.
The collection services contract that National Business Factors (NBF) had entered into with…