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The CFPB has issued an advisory opinion that addresses when the Fair Debt Collection Practices Act permits a debt collector to charge “pay-to-pay” or “convenience fees,” such as fees imposed for making a payment online or by phone. 

FDCPA section 808(1) prohibits debt collectors from collecting “any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.”  … Continue Reading

A divided panel of the U.S. Court of Appeals for the Eleventh Circuit in Daniels v. Select Portfolio Servicing, Inc. held last week that monthly mortgage statements required under the Truth in Lending Act and Regulation Z can constitute communications in connection with the collection of a debt under the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA). … Continue Reading

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

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 fide error defense. … Continue Reading

The U.S. Court of Appeals for the Fourth Circuit recently ruled that a mortgage servicer violated the Maryland Consumer Debt Collection Act (MCDCA) by charging a $5 convenience fee to borrowers for monthly payments made by phone or online.

In Alexander v. Carrington Mortgage Services, LLC, the plaintiffs filed a class action complaint against Carrington, their mortgage servicer, challenging the convenience fees in which they alleged that the servicer had violated Section 14-202(11) of the MCDCA by engaging in conduct that violates the Fair Debt Collections Practices Act (FDCPA) (Sec.… Continue Reading

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, about the lawsuit.)… Continue Reading

The U.S. Court of Appeals for the Eleventh Circuit has scheduled oral argument in the rehearing en banc in Hunstein v. Preferred Collection and Management Services, Inc. for February 22, 2022.  After ordering the rehearing en banc in November 2021, the Eleventh Circuit issued a memorandum indicating that for purposes of the rehearing, the Court wanted counsel to focus their briefs on the question: “Does Mr.… Continue Reading

Last week, the U.S. Court of Appeals for the Eleventh Circuit ordered rehearing en banc in Hunstein v. Preferred Collection and Management Services, Inc.  Yesterday, the Eleventh Circuit issued a memorandum indicating that for purposes of the en banc rehearing, the Court wants counsel to focus their briefs on the question: “Does Mr.… Continue Reading

In a surprising turn of events this morning, the U.S. Court of Appeals for the Eleventh Circuit issued an order sua sponte to rehear Hunstein v. Preferred Collection and Management Services, Inc. en banc.  The sua sponte order was issued after an Eleventh Circuit judge requested a poll on whether the case should be reheard en banc and a majority of the active judges voted in favor of the rehearing. … Continue Reading

On October 28, 2021, in a 2-1 split panel decision, the Eleventh Circuit Court of Appeals vacated its prior opinion in Hunstein v. Preferred Collection and Management Services, Inc. (published at 994 F.3d 1341 (11th Cir. 2021)), and substituted a new opinion in its place.  The new opinion is published, meaning it has immediate legal effect and is binding on future Eleventh Circuit judicial panels and district courts within the circuit.… Continue Reading