Next steps for CFPB’s debt collection rule

Last week, CFPB Director Richard Cordray announced that the CFPB had decided to drop a requirement that third-party debt collectors would be responsible for ensuring the accuracy of the consumer debt that they purchase or attempt to collect. Last week we wrote about Evan Weinberger’s theory in Law3670 that the decision may have been [...]

By | 2017-06-26T22:13:19+00:00 June 19th, 2017|0 Comments

Why the CFPB wants to separate debt collection regulation into two rules

Last Thursday, CFPB Director Richard Cordray announced that the Bureau intends to separate debt collection rulemaking into two rules. Cordray explained that during the Bureau’s research and industry outreach it became apparent that “writing rules to make sure debt collectors have the right information about their debts is best handled by considering solutions from [...]

By | 2017-06-14T00:29:30+00:00 June 10th, 2017|0 Comments

Cordray: First-party creditors responsible for providing accurate consumer debt information

On Thursday, CFPB Director Richard Cordray announced during a Consumer Advisory Board Meeting that banks and other first-party creditors are responsible for the accuracy of information that they provide to third-party debt collectors. Cordray explained that the CFPB will “consolidate all the issues of 'right consumer, right amount' into the separate rule we will [...]

By | 2017-06-09T20:23:13+00:00 June 9th, 2017|0 Comments

Minnesota AG obtains judgment against unlicensed debt collection company

On May 15, 2017, the Minnesota Attorney General’s office issued a press release announcing that it had obtain a judgment against Global Gateway Solutions, Inc. for making unlicensed collection calls attempting to collect fake payday loan debts from consumers. The judgment bars Global Gateway from collecting debt in the state of Minnesota and requires the [...]

By | 2017-05-22T07:54:21+00:00 May 22nd, 2017|0 Comments

FTC fines debt collector $2 million for FDCPA violations

On April 24, 2017, the FTC issued a press release announcing that a federal court had ordered the president of Commercial Recovery System, Inc. (CRS) to pay a $2 million civil money penalty for violating the Fair Debt Collection Practices Act (FDCPA) by falsely threatening debtors. In January 2015, the Department of Justice filed a [...]

By | 2017-05-01T07:42:48+00:00 May 1st, 2017|0 Comments

CFPB files lawsuit against debt collection law firm

On April 17, 2017, the CFPB announced that it had filed a lawsuit in federal district court against a debt collection law firm for allegedly misrepresenting the level of attorney involvement in demand letters and phone calls placed to consumers. According to the Bureau, the law firm Weltman, Weinberg & Reis (WWR) falsely represented in [...]

By | 2017-04-19T07:22:29+00:00 April 19th, 2017|0 Comments

Colorado AG announces $491,000 judgment against debt collection agency

On April 5, 2017, the Colorado Attorney General’s Office issued a press release announcing that it had secured a judgment requiring a debt collection agency and two of its principals to pay approximately $491,000 in consumer restitution, penalties, and attorney fees. The judgment also prohibits the defendants from conducting business in Colorado or from collecting [...]

By | 2017-04-14T07:49:05+00:00 April 14th, 2017|0 Comments

FTC settles with municipal debt collector for abusive collection practices

On March 24, 2017, the Federal Trade Commission (FTC) issued a press release announcing a consent order with American Municipal Services Corporation, a debt collection company accused of engaging in illegal collection tactics. American Municipal Services Corporation is a debt collection firm that collects court fines, parking tickets, and debts for utility bills and other services [...]

By | 2017-03-28T07:08:56+00:00 March 28th, 2017|0 Comments

Wells Fargo settles two TCPA class action lawsuits for over $17 million

Last week, Wells Fargo settled two separate Telephone Consumer Protection Act (TCPA) class action lawsuits. Both cases were filed in federal court in Georgia. The first case was Luster v. Wells Fargo Dealer Services, Inc. et. al. (Case No. 15-cv-01058, N.D. GA). The second case was Prather v. Wells Fargo Bank, N.A. (Case No. 15-cv-04231, N.D. GA). […]

By | 2017-03-01T06:50:56+00:00 March 1st, 2017|0 Comments

What debt collectors can learn from the FTC settlement with GC Services

Last week, we wrote about the settlement agreement between the FTC and debt collector GC Services Limited Partnership. In most circles, the $700,000 civil money penalty would be the most significant aspect of the settlement. In our opinion, however, the most noteworthy and valuable information appears in the sections of the consent order that prohibit GC [...]

By | 2017-02-22T11:47:49+00:00 February 22nd, 2017|0 Comments
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