A Colorado law firm that specializes in representing landlords in eviction cases has been targeted with another federal lawsuit. The suit, filed on Tuesday, alleges that the firm breached debt collection laws by billing tenants for attorney fees before eviction proceedings had been concluded. This latest legal challenge raises significant questions about the firm’s compliance…
The U.S. Supreme Court has delivered a significant ruling, affirming in a 7-2 decision that the Consumer Financial Protection Bureau (CFPB) can continue to receive funds through the Federal Reserve rather than through congressional appropriations. This ruling overturns a previous decision by a Louisiana federal appeals court that had questioned the bureau’s funding structure. Had…
On Wednesday, Second Circuit judges expressed reservations regarding a district court’s decision that permits non-lawyers to provide legal advice to low-income New Yorkers involved in debt collection cases. The initial ruling, which is being challenged by New York Attorney General Letitia James, asserts that such guidance constitutes protected speech under the First Amendment. Judge Richard…
Husch Blackwell, the prominent legal firm, is enlarging its consumer financial services sector with the addition of new partners noted in their recent announcement. Ryan DiClemente and Colleen Fox have been incorporated as partners in this respect. Both DiClemente and Fox are expected to provide significant contributions to Husch Blackwell’s consumer financial services practice. Their…
A recent legal development in the state of North Carolina could substantially impact the practices surrounding attorney fees in debt collection cases. Two Republican lawmakers from the state have put forth a proposal for state legislation designed to address what is viewed as a loophole in the current system. The proposed legislation appears to give…
Consumer protection attorney, situated in Florida, has reportedly filed over 1,000 lawsuits alleging that debt collectors have blatantly disregarded their legal obligations. These allegations, if substantiated, could potentially create a tectonic shift in the industry’s legal landscape. This Florida-based attorney has been aggressively pursuing legal action against debt collection agencies. The allegations claim that these…
Rudolph Giuliani’s creditors are pushing back against his attempts to leverage bankruptcy protections for his benefit. The former New York City mayor is under pressure for a $148 million judgment connected to his unsuccessful campaign to retain former President Donald Trump in office. Giuliani had positioned his bankruptcy filing as a means to halt debt…
As modern technological advancements reshape various traditional services, billing practices in law firms have remained predominantly static, with many firms still relying heavily on paper checks for payments. This antiquated practice can often hurdle timely payments, impacting the firm’s liquidity and the client’s ability to blot their debt. When it comes to payment options, variety…
In ongoing legal news, a proposed class action lawsuit against SoloSuit, a company that provides assistance to pro se defendants in defending debt collection lawsuits, will uphold in federal court, a U.S. judge decided. SoloSuit is positioned as a service akin to TurboTax, but for legal suits. The lawsuit against SoloSuit had its origin in…
A new litigation trend appears to be on the rise as debt collectors who contact delinquent payers through email run the risk of falling into legal quagmires. The crux of the matter lies in the timing of electronic collection notices, particularly those sent out late at night. Several debtors have already reacted to this prevalence,…
Caution is a virtue being urged upon businesses following a trend of lawsuits based on the Florida Consumer Collection Practices Act (FCCPA). This recent spurt of litigation primarily targets companies dispatching billing-related correspondences outside conventional business hours, notably between 9 p.m. and 8 a.m. This wave of action is aimed at class actions rising from…
In a significant legal shift, vocational training program Prehired will pay back a sum of $4.2 million and cancel any outstanding loans following a settlement reached with a bipartisan coalition of 11 Attorney Generals (AGs), in collaboration with the Consumer Financial Protection Bureau (CFPB). The conclusion of this dispute marks the resolution of allegations that…
In a significant legal development, Rent-A-Center, a dominant player in the rent-to-own industry, has agreed to shell out an $8.75 million settlement following allegations of consumer harassment. This case was initiated by Andrea Joy Campbell, the Massachusetts Attorney General. She alleged that Rent-A-Center, Inc. violated state consumer protection laws and debt collection regulations. The lawsuit…
The Delaware Bankruptcy Court recently approved a stipulated judgement concerning deceptive student loan practices, dealing with a case where a settlement in excess of $30 million was reached between Delaware Attorney General, Kathy Jennings, the Consumer Financial Protection Bureau (CFPB) and 11 other states against Prehired LLC and affiliated debt collection companies. The settlement pertains…
In a recent ruling causing ripples in the industry, an Illinois Federal District Court granted summary judgement, dismissing claims that the use of a local area code by a non-local debt collector gives rise to a Fair Debt Collections Practices Act (FDCPA) claim – a decision sure to generate considerable discussion among legal professionals worldwide….
In an intriguing legal turnaround, a district court ruling, barring tenants from challenging costs in a state suit, has been reversed by the Ninth Circuit. This decision represents a significant shift in interpretation of the Rooker-Feldman doctrine and the case has been remanded for further proceedings. The Rooker-Feldman doctrine, a pivotal component of this case,…
The Consumer Financial Protection Bureau (CFPB) has recently issued its annual report detailing Fair Debt Collection Practices Act (FDCPA) activities during 2022. Additionally, the Federal Trade Commission (FTC) forwarded its annual letter encompassing its 2022 operations within the debt collection market to the CFPB. Initial information on these developments was reported by JDSupra. The annual…
In a recent development, a federal magistrate in the Northern District of Georgia has recommended dismissal of a case involving the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). This decision was made as the plaintiff’s FDCPA claims were found to be time-barred, and the cause of action under the…
In a comprehensive move to shed light on debt collection practices, the Consumer Financial Protection Bureau (CFPB or Bureau) released its Fair Debt Collection Practices Act (FDCPA) Annual Report on November 16 documenting its activities during 2022 according to Jd Supra. The report offers an extensive overview of everything FDCPA-related conducted by CFPB in 2022….
The Federal Trade Commission (FTC) has released a correspondence detailing a summary of their activities for the year 2022 to the Consumer Financial Protection Bureau (CFPB). This summary’s findings were utilized by the CFPB in their annual report to Congress on the Fair Debt Collection Practices Act (FDCPA). The letter gives an insight into the…
Australian war crimes whistleblower, David McBride, pleaded guilty to three charges of stealing and unlawfully sharing military information. Kieran Pender, senior lawyer at the Human Rights Law Centre and legal counsel to McBride, made a statement outside the courtroom following McBride’s plea. “There is no public interest in prosecuting whistleblowers, and certainly no public interest…
In a recent decision that provides valuable insight into the interpretation of the Fair Debt Collections Practices Act (FDCPA), the U.S. Court of Appeals for the Second Circuit affirmed a district court’s decision to dismiss a case challenging the nature of “initial communication”. In a summary order, the Court set a defining precedent indicating that…
In September, New York City’s Department of Consumer and Worker Protection (DCWP) put forth proposals for amending its rules pertaining to debt collectors. The changes, if implemented, could mean a significant shift in requirements and procedural considerations concerning debt collection in New York City. (Hinshaw & Culbertson – Consumer Crossroads) Notably, these are not the…
After a grueling eight years of litigation, two healthcare providers have come to a $3.5 million settlement over a suit related to alleged violations of the Fair Debt Collection Practices Act (FDCPA). The cycle of legal battles have been taking place from district court to the U.S. Court of Appeals for the 6th Circuit. The…
A recent decision by a district court in Nevada has sparked new conversations among legal professionals worldwide. The ruling stated that an undated, model form debt validation notice does not violate the Fair Debt Collection Practices Act (FBCPA). Although this might seem like an unforeseen turn of events, the case of Bergida v. PlusFour, Inc.,…