Posts by Barron & Newburger
Supreme Court Provides Harsh Lesson on the Importance of a Writing
Bankruptcy is intended to allow an honest but unfortunate debtor to obtain a fresh start. In order to keep dishonest debtors from abusing the process, Congress has defined a class of debts which cannot be discharged in a bankruptcy proceeding. One of the common exceptions to discharge is debts incurred through fraud. However, the Bankruptcy…
Read MoreColorado Supreme Court to Decide If Subrogation Claims Are Consumer Debts
The Colorado Supreme Court has granted a petition for Writ of Certiorari to decide the following question: Whether the court of appeals erred in holding that an insurance subrogation claim made against an individual is not a “debt” under the Colorado Fair Debt Collection Practices Act, sections 12-14-101 to -137, C.R.S. (2016). Like the FDCPA,…
Read MoreFTC Order Impacts Voicemail Messages by Debt Collectors
The Federal Trade Commission has announced a settlement with GC Services, a large debt collector accused of using unlawful tactics to collect federal student loans and other debts. The Stipulated Order, which includes a $700,000 civil penalty and a variety of injunctive relief, contains a series of provisions setting conditions on placing collection calls and…
Read MoreNew York Federal District Court Holds Communications to Attorneys Not Actionable Under the FDCPA
A plaintiff seeking to recover damages for purportedly misleading communications to his attorney saw his claims dismissed by the U.S. District Court for the Eastern District of New York after the judge determined that such communications were not actionable under the FDCPA. In Vernot v. Pinnacle Credit Services, LLC, 2017 U.S. Dist. LEXIS 14835 (E.D.N.Y.…
Read MoreSCOTUS Nominee Has Written Few Consumer Financial Protection Opinions
Law360 reports that Tenth Circuit Judge and Supreme Court nominee Neil M. Gorsuch has authored 723 opinions – but a Lexis search reveals that only one of those opinions touched on matters of consumer protection. While the public debates the impact of Judge Gorsuch’s nomination on a host of issues, one question remains largely unanswered:…
Read MoreJury awards Over $25M in Texas AG Enforcement Action
It is rare for an enforcement action against debt collectors to go to a contested trial, and a jury verdict is even rarer. On June 7, 2017, a Harris County, Texas jury awarded over $25 million in in civil penalties against a Houston debt buyer, its attorney, and his law firm for a variety of…
Read MoreAnother Court Rejects Rulemaking-by-Enforcement Action Attack on BCFP
On August 3, 2018, a federal district judge rejected the defendants’ motion to dismiss in Consumer Fin. Prot. Bureau v. Think Fin., LLC. The motion, which was supported by a joint amicus curiae brief from The Native American Financial Services Association and the State of Oklahoma, asserted multiple grounds for dismissal, including: that the structure…
Read MorePlaintiff Who Denied Knowledge of a Debt Could Not Meet Burden of Proving Consumer Status
A decision by a U.S. Magistrate Judge in Wisconsin may provide an interesting defense for debt collectors who are sued by plaintiffs who will not acknowledge incurring the debts at issue. In Burton v. Kohn Law Firm, S.C., Burton sued a debt buyer and its law firm for alleged violations of the FDCPA. However, in…
Read MoreSecond Circuit Holds that Letter Need Not Reference Nonexistent Interest
The U.S. Second Circuit Court of Appeals has issued its decision in Taylor v. Fin. Recovery Services, Inc., affirming that a debt collector’s letters did not violate the FDCPA by failing to state affirmatively that interest was not accruing. Taylor sued FRS asserting that it violated the FDCPA because its initial collection letter stated the…
Read MoreSixth Circuit Dismisses FDCPA Claims for Lack of Article III Standing
Holding that “Congress cannot override [the] baseline requirement of Article III of the U.S. Constitution by labeling the violation of any requirement of a statute a cognizable injury,” the U.S. Court of Appeals for the Sixth Circuit has ordered dismissal of an FDCPA suit predicated upon a letter’s lack of a “mini-Miranda” warning for lack…
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