In a noteworthy decision earlier this year, a district court for the Middle District of Florida confirmed a jury award of $225,000 in punitive damages, involving a case of debt collection. The court found the defendant’s behaviour “reprehensible”, primarily on the basis of the mental distress caused to the plaintiff, alongside defendant’s disregard or indifferent…
On October 26, a judge from the U.S. District Court for the District of New Jersey granted a motion to dismiss (MTD) a lawsuit filed under the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). The defendants, a law firm and a credit reporting agency, were alleged to have published…
A recent ruling by the U.S. District Court for the Eastern District of New York has dismissed a Fair Debt Collection Practices Act (FDCPA) suit, affirming that there is no regulation within the FDCPA that prevents debt collectors from reporting details of a debt to credit reporting agencies. As reported in JD Supra, the decision…
In an attempt to safeguard consumers, Ohio State Attorney General, Dave Yost, has recently filed a lawsuit against certain debt collectors under accusations of violating both the Fair Debt Collection Practices Act (FDCPA) and the Ohio Consumer Sales Practices Act. As stated in the formal complaint, these debt collectors seem to have regularly modified the…
New York City’s Department of Consumer and Worker Protection (NYC DCWP) has released a notice of proposed amendments to its current debt collection rules. The proposed changes are comprehensive, detailed, and span various aspects of debt collection. Troutman Pepper has reported on the topic in detail. The amendments include expanded recordkeeping and reporting requirements, alongside…
In a decision that could have significant implications on class action lawsuits brought under the Fair Debt Collection Practices Act (FDCPA), the U.S. Court of Appeals for the Third Circuit recently rejected a district court’s finding on the so-called informational injury doctrine. The Third Circuit issued this decision on October 12, ruling that the informational…
In a recent decision, a Utah state court dismissed a claim against a debt buyer for an alleged failure to register under the Collection Agency Act prior to filing collection lawsuits. The suit, Meneses v. Salander Enterprises LLC, held that a violation of the Utah Collection Agency Act (UCAA) is not deemed a deceptive or…
The Consumer Financial Protection Bureau (CFPB) is preparing proposals that may fundamentally alter the business model of data brokers. In the lead-up to its convening of a panel of small businesses to discuss potential regulatory actions, the CFPB has outlined a series of proposals aiming to stretch its rulemaking authority under the Fair Credit Reporting…
In a recent development, a New York federal district court has denied a motion to dismiss a lawsuit filed by the Consumer Financial Protection Bureau (CFPB) against three companies involved in the purchase of distressed consumer debt. Several owners and officers of these firms have also been named in the lawsuit. The CFPB alleges violations…
In recent legal news, the Superior Court of New Jersey, Appellate Division, has upheld a dismissal of consumer fraud claims against a debt collector. The case in question, Jennifer Woo-Padva v. Midland Funding, LLC, revolved around the interpretation of the New Jersey Consumer Fraud Act (NJCFA) and its pertinence to the New Jersey Consumer Finance…
In a noteworthy development from the U.S. legal sector, the case titled Moore v. Merchants & Medical Credit Corp., Inc. saw a crucial turn. This case, which had initially commenced in state court, witnessed an unexpected twist in proceedings, one that could cause legal teams around the globe to reassess their standing strategies. To provide…
The Consumer Financial Protection Bureau (CFPB) has expressed its concern and detailed its actions regarding medical debt collection. Seth Frotman, the CFPB’s General Counsel and a senior advisor to Director Chopra, made these remarks at the New Jersey Citizen Action Education Fund’s Financial Justice Summit on October 4th. The remarks highlighted the work and mission…
The New York City Department of Consumer and Worker Protection (DWC) has put forward proposed amendments to its rules pertaining to debt collectors. They unveiled these proposals on the 30th of September. These amendments take into consideration the Consumer Financial Protection Bureau’s (CFPB) latest 2020 updates for the Fair Debt Collection Practices Act (FDCPA) and…
In a recent legal development, a New York federal district court has refused to dismiss a lawsuit initiated by the Consumer Financial Protection Bureau (CFPB). Filed in January 2022, this case targets three corporate defendants known to purchase portfolios of defaulted debts, and three individuals acknowledged as the owners and/or officers of these corporations. This…
In a recent ruling by the U.S. District Court for the Southern District of Georgia, it was established that the statute of limitations for claims made under the Fair Debt Collections Practices Act (FDCPA) commences at the point when the consumer is served with a copy of the related complaint. This decision came to light…
For legal professionals actively tracking consumer litigation, August reflected a significant spike in filings. Recentally, WebRecon published a report detailing an upward trend in court filings under the Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and Telephone Consumer Protection Act (TCPA). WebRecon’s findings disclosed that the quantity of complaints filed with…
In a notable U.S. District Court for the Eastern District of New York decision on September 19, the courts allowed claims by two pro se plaintiffs against alleged inappropriate debt collection efforts to partly proceed. This lawsuit pertains to a balance due from a timeshare membership program which allegedly violated the Fair Debt Collection Practices…
In recent times, the Consumer Financial Protection Bureau (CFPB) has increasingly shifted its focus towards the management and collection of medical debt. This shift has seen the CFPB publish informative industry guidance pieces, nearly a dozen press releases and reports discussing various facets of medical debt. Their actions signify a growing trend of regulatory intervention…
Reports have surfaced about a data breach incident involving debt collection company LCS Financial Services, which happened on September 22, 2023. The company has officially filed a notice of the event with the Attorney General of Montana. According to the declaration, LCS Financial Services discovered that hackers managed to infiltrate their computer system, leading to…
In a notable ruling from the U.S. District Court for the District of New Jersey, a summary judgment motion brought forth by the defendant was denied. Instead, the court acknowledged that a bank levy against the plaintiff provided the necessary stance needed to claim under the Fair Debt Collections Practices Act (FDCPA). The case, which…
In recent news, a special episode of the Consumer Finance Podcast has been released by Troutman Pepper Partners, Kim Phan and Stefanie Jackman. The episode, accessible through JD Supra, showcases the firm’s state and federal legislative and regulatory tracking products. These resources were intended to benefit industry professionals by informing them about the most recent…
In a recent report released by the Consumer Financial Protection Bureau (CFPB) on the 14th of September, risks associated with college tuition payment plans have been thrust into the spotlight. Following a close examination of nearly 450 college websites, the report brought to attention that many plans lack lucid disclosures and sport confusing repayment terms….
The Consumer Financial Protection Bureau’s (CFPB) recent request for information (RFI) regarding the usage of medical credit cards and other lending products for health care expenses has been met with notable feedback from industry stakeholders. Among these respondents are the American Bankers Association (ABA), Association of Credit and Collection Professionals (ACA International), U.S. Chamber of…
In a significant legal development, a California Court of Appeals recently ruled that a solar energy company is subject to a California Rosenthal Fair Debt Collection Practices Act (Rosenthal FDCPA) claim. The Court’s decision, made on August 30, 2023, explored whether the Rosenthal FDCPA protects a non-party to an agreement to pay for electricity produced…
In an intriguing turn of legal events, the California Court of Appeals has found that a solar energy agreement can provide a basis for a Rosenthal Fair Debt Collection Practices Claim made by a non-party to the agreement. The case under the microscope was Hagey v. Solar Service Experts, LLC. It is an important development…