Sixth Circuit Decision Highlights the Risk of Initiating Collection Remedies During the FDCPA’s Validation Period

Section 1692g(a) of the FDCPA mandates the sending of a “validation” notice within five days of a debt collector’s initial communication with a consumer. Section 1692g(b) provides that if the consumer provides timely, written invocation of his or her rights, the debt collector must cease all of its collection efforts until it has complied with…

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Second Circuit Rejects Alleged Duty to Itemize in an FDCPA validation Notice

In the latest decision on the adequacy of validation notices the Second Circuit Court of Appeals has rejected a plaintiff’s Argument that an FDCPA validation notice must itemize the component elements of the debt.  The court of appeals held that “a debt collection letter that informs the consumer of the total, present quantity of his…

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Credit Reporting: Need to do it right the first time every time

As with so many things in life, credit reporting is something that if done must be done precisely. Errors impact not only the credit reporting system and business decision making but it also impacts real people. A recent consent order pointed out how even innocent errors can harm individuals and violate the law. The use…

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Supreme Court to Consider Role of District Courts in Reviewing Agency Rules

Supreme Court to Consider Role of District Courts in Reviewing Agency Rules In granting certiorari in the case of Carlton & Harris v. PDR Network, LLC, the United States Supreme Court appears poised to guide district courts in their interpretation of administrative agency rules.  The facts of the case are straightforward.  Carlton & Harris, a…

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Minnesota Fines Collection Agency for Violating Escheat Laws and Inadequate CMS

The Minnesota Department of Commerce has entered into a consent order with Range Credit Bureau, Inc.  The order fines the collection agency for a number of practices including: noncompliance with State escheat laws by failing file reports of Unclaimed Property for funds owed to customer who failed to negotiate refund or payment checks; failing to…

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Brit Suttell profiled in Creditor Collections Today

Creditor Collections Today wrote a nice profile of BNPC attorney Brit Suttell. Highlights include how Brit grew up addressing green cards in her father’s law office and how she wooed her wife by catching and grilling a salmon. Read the profile at https://www.creditorcollectionstoday.com/edition/weekly-lender-loans-2021-03-06?open-article-id=15633807&article-title=getting-to-know-brit-suttell-of-barron—newburger&blog-domain=accountsrecovery.net&blog-title=account-recovery-

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Court Rules “Informational” Letters Did Not Violate Discharge

A recurring problem in bankruptcy is how lenders can provide information about a debt to a borrower without violating the discharge or the automatic stay.    In some cases the borrower may wish to continue making payments and would appreciate receiving payment notices.   In other cases, the lender may be required to send notices to the…

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Proofs of Claim on Time-Barred Debts Do Not Violate the FDCPA

A divided Supreme Court has ruled in Midland Funding, LLC v. Johnson that filing a time-barred proof of claim in bankruptcy does not violate the Fair Debt Collection Practices Act.  The opinion by Justice Breyer was joined by four conservative justices.  The opinion drew a dissent from Justice Sotomayor who was joined by Justices Ginsberg…

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Insights from CFPB Annual FDCPA Report — Customer Complaints

Last month, the CFPB published its annual report on the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq. As with its former reports, the CFPB included a section about consumer complaints. In his introduction to the report, Director Richard Cordray states that debt collection was the number one category consumers complained about.…

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CFPB Annual FDCPA Report – An Introduction

The Consumer Financial Protection Bureau issued its annual report to Congress on the Fair Debt Collection Practices Act.  As always, this report mixed a healthy dose of natural, self-congratulatory rhetoric with significant insights to the state of the industry and the regulatory environment.  While future posts will address specific issues raised by the report,   the…

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