Consumer Law
Attorney Representation Is Not Tied to Formal Appearance
The FDCPA forbids communicating with a consumer “if the debt collector knows the consumer is represented by an attorney with respect to such debt and has knowledge of, or can readily ascertain, such attorney’s name and address, unless the attorney fails to respond within a reasonable period of time to a communication from the debt…
Read MoreCan Spokeo Give Debt Collectors a New FDCPA Defense?
Many debt collectors have struggled with the question of whether a failure to send a timely validation notice pursuant to the Fair Debt Collection Practices Act is curable. The Act itself provides no mechanism to cure or repair a violation, and a debt collector that fails to send a timely validation notice as required by…
Read MoreFederal Court Limits Vicarious Liability for TCPA Claims
Earlier this week United Student Aid Funds prevailed on a summary judgment motion in a suit under the Telephone Consumer Protection Act, providing a measure of hope for creditors that are sued for dialer calls placed by independent third-party debt collectors In Henderson v. United Student Aid Funds, No.: 13cv1845, 2017 U.S. Dist. LEXIS 28165…
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 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…
Read MoreMinnesota and Wisconsin Fine Agency for Failure to Escheat and Individual Collectors for Failure to Give Mini-Miranda Warnings
The Minnesota Department of Commerce and the Wisconsin Department of Financial Institutions, Division of Banking have entered into their first joint consent order with a collection agency. American Accounts & Advisers, Inc. agreed to a civil penalty of $200,000 of which $125,000 will be stayed upon full completion of all action items listed in the…
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