In a development that was first pointed out by the team at Troutman Pepper, the Governor of Wyoming has signed a bill into law that requires debt buyers to be licensed as collection agencies starting later this year. A copy of the bill — House Bill 284 — can be …
Read More »N.C. Supreme Court Splits on Debt Collection Case
The Supreme Court of North Carolina voted three-to-three — with one justice abstaining — in a case involving a consumer suing a debt buyer alleging it violated the North Carolina Economic Protection Act when the debt buyer sued to collect on an unpaid debt but allegedly did not submit all …
Read More »Appeals Court Revives Case for Debt Buyer Suing Creditor for Breach of Contract
The Court of Appeals for the Fifth Circuit has reversed a lower court’s dismissal of a lawsuit filed by a debt buyer against a creditor that sold portfolios of delinquent and defaulted debt, ruling that the disputed portion of the contract between the two parties was enforceable. A copy of …
Read More »Portfolio Supply Remains Low, But Higher Default Rates are on the Horizon: PRA Group CEO
Decreasing supply of portfolios available to be purchased led to a marked drop in the amount of portfolio purchases by PRA Group in the first quarter of 2022, according to financials released by the company yesterday, while company Chief Executive Kevin Stephenson noted that, “if history teaches us a simple …
Read More »Court Rules in Favor of OCC in ‘Valid When Made’ Suit
A District Court judge in California has sided with the Office of the Comptroller of the Currency, a federal regulator of banks, after it was sued by three states — California, Illinois, and New York — for allegedly overstepping its authority when it issued a rule ensuring the terms of …
Read More »Debt Buyer Sues Citi for ‘Bait and Switch’ When Selling Portfolios
A debt buyer has filed suit against Citigroup, accusing the mega-bank of a “classic ‘bait and switch’ ” by promising to sell delinquent credit card portfolios containing accounts with certain characteristics, but instead putting accounts into the portfolios that had a much lower chance of recovery. A copy of the …
Read More »Debt Buyer Sued by CFPB Plans ‘Vigorous’ Defense
A debt buyer that was sued yesterday by the Consumer Financial Protection Bureau said in a statement that it intends to fight the lawsuit and said the CFPB’s suit referenced six accounts in which allegedly illegal activity took place before the debt buyer was even in business and “embellishes them …
Read More »California Legislature Passes AB1020
The California state Senate has followed the Assembly in passing AB1020, a bill that would restrict hospitals from selling certain patient debts, require collectors to certify that patients have been screened for public programs and financial assistance before filing a collection lawsuit, and extend the period before a debt could …
Read More »Joel Tucker Sentenced to 12 Years in Prison for Role in Debt Selling Scam
Joel Tucker was ordered to immediately begin serving a prison term of 12.5 years yesterday and ordered to pay more than $12 million in unpaid taxes, penalties, and interest after being sentenced by a federal judge after pleading guilty to selling fake debt portfolios that earned him more than $7 …
Read More »Minn. Gov. Signs Omnibus Bills into Law, Include Provisions For Debt Buyers
The governor of Minnesota has signed a number of omnibus bills into law, one of which contains provisions that expand the regulation of the accounts receivable management industry to include debt buyers, a new term that the state is defining for the first time. Gov. Tim Walz signed the bills …
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