A class-action lawsuit has been filed in federal court in California, accusing a collection agency of not notifying the plaintiff that calls between the two parties were being recorded until after the plaintiff had confirmed his identity and the representative of the defendant had disclosed certain information about the debt. …
Read More »Appeals Court Denies Creditor’s Bid for Attorney Fees in Spat with Former Collection Agency Partner
A battle between a failed partnership between a creditor and a collection agency has spilled over into the Court of Appeals for the Eleventh Circuit, with a panel of judges yesterday affirming a lower court’s decision not to award the creditor attorney’s fees after it accused the agency of breaching …
Read More »Rep. McHenry to seek Chair of Financial Services Committee if Republicans Take Back House
With the midterm elections little more than six months away, the jockeying for positions has already begun among Republicans, who are expecting to regain control of the House of Representatives. One important Republican to companies in the accounts receivable management industry — Rep. Patrick McHenry [R-N.C.] — yesterday said he …
Read More »CFPB Revives ‘Dormant’ Rule to Regulate ‘Risky’ Nonbanks
The Consumer Financial Protection Bureau has issued a procedural rule to expand its supervision over nonbank entities that the regulator “has reasonable cause to determine pose risks to consumers” and is seeking comment on reviving the rule, which has been “dormant” and unused for a number of years. Initially invoked …
Read More »Mich. Appeals Court Upholds Ruling on Post-Judgment Interest Case
The Michigan Court of Appeals has upheld the dismissal of a post-judgment interest class-action on the grounds that state law in Michigan that precludes “actions” based on claimed violations of statutes that permitted recovery of statutory damages in lieu of actual damages means the plaintiff lacks standing to sue. A …
Read More »Compliance Digest – April 25
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Read More »Class Action Accuses Collector of Leaving out Some Reg F Disclosures in Initial Notification
A class-action lawsuit has been filed in federal court in Nevada, accusing a pair of companies of violating the Fair Debt Collection Practices Act by allegedly sending an initial notification to the plaintiff without including all of the required validation information required under Regulation F. The notification was sent in …
Read More »Victims of Alleged Collection Law Firm Scammers Sue in State Court After Striking out in Federal Court
A trio of plaintiffs who unsuccessfully tried to sue a collection law firm and three attorneys — who are facing charges for multiple felonies after allegedly forging proofs of service in collection lawsuits — in federal court have taken their case to state court, claiming violations of the Michigan Collection …
Read More »Senators Spotlight Collection Aspect in Asking CFPB to Investigate TRAs
A group of Senate Democrats have written a letter to Rohit Chopra, the Director of the Consumer Financial Protection Bureau, calling on the agency to investigate the use of Training Repayment Agreements (TRAs) which some companies use to require employees to pay a pre-determined amount of money if they leave …
Read More »CFPB, NY AG Sue ‘Repeat Offender’ MoneyGram as Company Vows Not to be ‘Strong-Armed’
Continuing to fulfill its commitment to going after repeat offenders, the Consumer Financial Protection Bureau — in partnership with the Attorney General of New York — yesterday announced a lawsuit against MoneyGram Payment Systems for “systematically and repeatedly violating” consumer protection laws by failing to deliver funds promptly and failing …
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