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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California Supreme Court Continues to Resist Arbitration

On April 6, 2017, the California Supreme Court invalidated a contractual arbitration provision on the basis that California state law prohibits enforcement of arbitration agreements that would bar claims for public injunctive relief.  Its decision – California’s latest in a series of decisions aimed toward invalidating  contractual arbitration provisions –appears inconsistent with the “national policy…

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A Catch-22 for Foreclosure Lawyers?

Foreclosure attorneys struggle to find an appropriate way to comply with the FDCPA’s requirement that a validation notice correctly state the amount of the debt in cases in which the balance is changing constantly due to a variety of factors.  In Carlin v. Davidson Fink LLP, 2017 U.S. App. LEXIS 5438 (7th Cir. Mar. 29,…

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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…

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Can 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…

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Federal 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…

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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…

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FTC 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…

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