Compliance

In what can be described as an eye-opening reversal, the Massachusetts Division of Banks has reversed its position and now will not require lawyers who collect debts to obtain licenses. The reversal was announced in a letter that the regulator sent to the law firm of Lustig, Glaser & Wilson. …

A federal court has granted a request from the Federal Trade Commission and the Illinois Attorney General to temporarily force a series of six companies that were allegedly threatening and intimidating individuals into making payments on phantom payday loans that were not owed, or not owed to the defendants to stop operating. The …

For the second time in less than a year, the Consumer Financial Protection Bureau has shined a spotlight on complaints filed by consumers against regarding the debt collection industry. Last year, the CFPB began issuing what it calls a “monthly complaint snapshot,” which provides additional context and data on the …

An attorney at the Federal Trade Commission posted a blog on the agency’s website yesterday, entitled “Debt collectors: You may “like” social media and texts, but are you complying with the law?” What follows is the attorney saying that the Fair Debt Collection Practices Act does not forbid using text …

The Consumer Financial Protection Bureau has issued its annual report from the Office of Servicemember Affairs and the key takeaway is that servicemembers are filing complaints about debt collectors and collection-related activities at a rate that is twice as high as those filed by non-servicemembers. Nearly half of the 19,000 complaints …

The Consumer Financial Protection Bureau has obtained a $172 million judgment against Morgan Drexen, a debt relief company. The company was accused of charging upfront fees to consumers and misrepresenting services it provided. The order also included Walter Ledda, the founder and CEO of Morgan Drexen. “The CFPB’s victory sends …

The number of debt collection companies sued alleging violations of the Fair Debt Collection Practices Act, Telephone Consumer Protection Act, and Fair Credit Reporting Act, increased by more than 26% in February, compared with January, according to data released by WebRecon. The number of lawsuits filed increased from January to February, …

Rep. Jeb Hensarling [R-Texas], the chairman of the House Financial Services Committee vowed today to introduce legislation that would overhaul the Dodd-Frank Wall Street Reform and Consumer Protection Act, which, among other things, created the Consumer Financial Protection Bureau. Hensarling made his remarks at an American Bankers Association event in …

A collection agency was awarded a summary judgment dismissal by a Circuit Court in Pennsylvania that it did not violate the Fair Debt Collection Practices Act after it placed, but did not connect, two calls to an individual whose phone number was listed as the contact number for a collection …

The Justice Department is sending a letter to chief judges and court administrators in all 50 states, warning them that the practice of assessing fines and fees to “fill their jurisdictions’ coffers” may be unconstitutional. The department has a “strong interest” in making sure the rights of citizens are protected, according …