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 to the vendor it used to generate and send collection letters “constituted a communication ‘in connection with the collection of any debt’ within the meaning of [FDCPA Section 1692c(b)].” … Continue Reading
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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 FDCPA debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. … Continue Reading
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’ within the meaning of [FDCPA Section 1692c(b)]”. … Continue Reading
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.”… Continue Reading
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 a medical clinic contained a provision pursuant to which the clinic agreed that it would assign debts for collection “‘with only accurate data and that the balances reflect legitimate, enforceable obligations of the consumer.’” … Continue Reading
The CFPB’s final collections rule: using electronic communications to send required disclosures
By Ballard CFS Group on
On November 13, 2020, from 12:00 p.m. to 1:00 p.m. ET, we will present a webinar on the CFPB’s final collection rule. Click here for more information and to register.
One of the initial promises of the CFPB’s NPRM was a level of certainty as to the use of electronic communications to provide legally-required collection disclosures to consumers. … Continue Reading
The CFPB’s final collections rule: using email and text messages
By Sarah T. Reise & Ballard CFS Group on
Posted in Debt Collection, Regulatory and Enforcement
On November 13, 2020, from 12:00 p.m. to 1:00 p.m. ET, we will present a webinar on the CFPB’s final collection rule. Click here for more information and to register.
Continuing our series of blog posts breaking down the CFPB’s final debt collection rule, we now discuss the use of email and text messages, and how to qualify for a safe harbor from civil liability for unintentional third party disclosures resulting from these types of communications.… Continue Reading
CFPB files amicus brief in Third Circuit FDCPA case in support of debt collector
By John L. Culhane, Jr. & Ballard CFS Group on
The CFPB filed an amicus brief in Hopkins v. Collecto, Inc., an appeal before the U.S. Court of Appeals for the Third Circuit, in support of the debt collector’s position that it did not violate the FDCPA by sending the plaintiff a letter that included an itemization of the plaintiff’s debt that indicated “$0.00” was owed in interest and collection fees.… Continue Reading
FTC Shuts Down Debt Collector as Part of “Operation Corrupt Collector”
By Ballard CFS Group on
A Georgia federal district court has entered a temporary restraining order against a Georgia-based debt collection operation in response to a complaint filed by the Federal Trade Commission.
According to the complaint, the debt collection operation engaged in a variety of illegal debt collection practices, including:
- “Masquerading” as law-enforcement officials, government officials or attorneys.
District of Columbia enacts emergency debt collection law in response to COVID-19 pandemic; Massachusetts AG issues guidance on emergency debt collection regulation
By Ballard CFS Group on
On April 7, the District of Columbia passed the COVID-19 Response Supplemental Emergency and Temporary Amendment Act of 2020 which goes into effect immediately and lasts until 60 days after the emergency ends. The law prohibits debt collectors from initiating any communication with a debtor through any written or electronic communication, including email or text message, or telephone. … Continue Reading