On July 31, the Consumer Financial Protection Bureau (CFPB) issued a public bulletin intended to provide guidance to covered persons and service providers who take payments from consumers using pay-by-phone services and charge the consumer a fee for such a service. The purpose of the bulletin was to highlight and re-emphasize the potential for violations
Two Key Takeaways from the Defendant’s FDCPA Win in Henson v. Santander
The United States Supreme Court issued a significant decision in Henson v. Santander Consumer USA, Inc. drastically restricting the universe of companies subject to potential liability under the Fair Debt Collection Practices Act (FDCPA). In a unanimous decision authored by new Justice Neil Gorsuch, the Court held that companies that buy defaulted debts are not
CFPB’s Debt Collection Rules May Be Coming Sooner Than Some in the Industry Anticipated
Yesterday, at the Consumer Advisory Board Meeting in Washington D.C., Consumer Financial Protection Bureau (CFPB) Director Richard Cordray provided an update on one of the most highly anticipated areas in the debt collection industry – the CFPB’s intentions with respect to its proposed debt collection rulemaking. The biggest news from the meeting was that the
Alabama Supreme Court Says Cash Advance Company Not a Debt Collector
The Supreme Court of Alabama has reversed a jury verdict awarding the plaintiff $200,000 in damages, ruling on appeal that the Fair Debt Collection Practices Act (FDCPA) did not apply to the pawn transaction at issue.
The case, Complete Cash Holdings, LLC v. Powell, arose from a forged title-pawn agreement. Ms. Powell’s granddaughter stole
State AGs Ask Supreme Court to Spark Major Expansion to Scope of Federal Debt Collection Law
Should a full-service consumer finance company be subject to federal debt collection law when it attempts to collect upon debt it purchased? Attorneys general from Maryland, the District of Columbia, California, New York, and more than two dozen other states have urged the Supreme Court to adopt a startling new interpretation of federal law and
Filing a Collection Suit? The Statute of Limitations for the Forum State May Not Be the Correct Limitations Period
Debt collectors filing suit often assume that the forum state’s statute of limitations will apply. However, a string of recent cases suggests that may not always be the case. The Ohio Supreme Court recently determined that, by virtue of Ohio’s borrowing statute, the statute of limitations for the place where the customer submits payments or
Creditors and Debt Collectors Should Pay Close Attention to the CFPB’s Consent Order with Navy Federal Credit Union
The Consumer Financial Protection Bureau (CFPB) announced a consent order with Navy Federal Credit Union (Navy Federal) on October 11, 2016. While financial institutions should always analyze CFPB consent orders closely and carefully scrutinize their relevant practices in light of the consent order, first-party creditors, debt collectors, and any financial institution that electronically restricts access
CFPB’s Meeting with Community Bank Advisory Council Provides Insights into Upcoming Debt Collection Rules
Last week , the Consumer Financial Protection Bureau (CFPB) met with the Community Bank Advisory Council (CBAC) to discuss the CFPB’s July 28, 2016, outline of the proposed debt collection rules (Outline) intended to “drastically overhaul the debt collection market.” The meeting was available online through the CFPB’s website.
The CBAC did not
Eleventh Circuit Court of Appeals Clarifies Standing Requirements for FDCPA Plaintiffs
The Eleventh Circuit Court of Appeals has clarified the type of injury that must be alleged by a plaintiff suing under the Fair Debt Collection Practices Act (FDCPA). This decision, in Church v. Accretive Health, Inc., is the first from the Eleventh Circuit applying the United States Supreme Court’s recent holding in Spokeo v.
Supreme Court Declines to Review Second Circuit Decision Subjecting Defaulted Debt Buyers to State Usury Laws
On June 27, the United States Supreme Court declined to review the Second Circuit’s decision in Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015). By denying Midland Funding, LLC’s petition for a writ of certiorari, the Court allowed the Second Circuit’s decision to stand. The Second Circuit held that the National