On September 16, 2020, the New York Department of Financial Services (“DFS”) announced it filed a statement of charges against a debt collector over the debt collector’s alleged failure to comply with New York State’s Debt Collection Regulation, Part 1 of Title 23 of the New York Codes, Rules, and…
On September 14, 2020, New York Attorney General Letitia James announced that she secured protections for thousands of student borrowers who defaulted on student loans and who were allegedly subject to misleading and unlawful actions by one of the nation’s largest debt collectors. The settlement agreement resolves an investigation of…
On August 19, 2020, the Pennsylvania Office of the Attorney General announced that it had entered into a voluntary compliance agreement with a regional bank to stop allegedly aggressive auto loan debt collection practices. The agreement arose out of allegations made by the Pennsylvania AG that the bank engaged in unfair and manipulative practices,…
On June 22, 2020, the Massachusetts Attorney General announced a settlement with a Florida-based mortgage loan servicer following an investigation into the servicer’s debt collection practices. Specifically, the settlement resolves allegations that the servicer made excessive calls to distressed homeowners and failed to provide written notice of their right to…
On May 6, 2020, the U.S. District Court for the District of Massachusetts, in ACA International v. Healey, Case No. 1:20-cv-10767-RGS, enjoined Massachusetts Attorney General Maura Healey (AG Healey) from enforcing provisions of the emergency regulation, 940 CMR 35.00, et seq. (Regulation), prohibiting debt collection calls and initiating lawsuits during…
On May 1, 2020, the Consumer Financial Protection Bureau (Bureau or CFPB) held a joint virtual meeting of its four advisory committees: the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council. The meeting—the Bureau’s first public event since the onset…
A number of state officials and regulators have taken steps to decrease the economic burdens stemming from COVID-19 on consumers in their states, including by placing additional restrictions on debt collection practices. Among the more notable of these efforts took place on March 26, 2020, when Massachusetts Attorney General (AG)…
On March 10, 2020, the Federal Trade Commission (FTC) announced that it obtained a permanent injunction and monetary judgment from the U.S. District Court for the Central District of California (the Court) against three defendants that allegedly deceptively marketed student loan debt relief services. The Court’s order was entered on February 27, 2020, and…
On January 16, 2020, the California Department of Business Oversight (DBO) announced it had reached a settlement with a point-of-sale lender to stop making illegal loans and refund $282,000 in fees it collected from almost 17,000 California consumers. In September 2019, the lender applied to the California DBO for a lender’s license. Upon review of the lender’s product and information, the California…
On December 11, the Federal Trade Commission (FTC) announced it had reached a settlement with the remaining Defendants in an enforcement action against multiple related companies and their controllers involved in an alleged phantom debt scheme in which the Defendants pressured consumers into paying non-existent debts by threatening legal action…
On September 25, 2019, California’s Governor signed into law two bills that impact financial consumer services companies in California: California Assembly Bill 539 and California Senate Bill 187. Both laws go into effect January 1, 2020. California Assembly Bill 539 (AB 539) imposes new regulations and restrictions on loans of…
On November 11, 2019, the Massachusetts Attorney General’s Office (AG) announced that it had settled an investigation against a national debt buyer and collector for alleged violations of Massachusetts’ consumer protection law and debt collection regulations through its debt-collection practices. Specifically, the AG alleged that the debt collector pressured debtors…
On August 8, 2019, the Seventh Circuit, in Lavallee v. Med-1 Solutions, LLC, 932 F.3d 1049 (7th Cir. 2019), ruled that emails to consumers from debt collectors containing hyperlinks to information regarding debt, including validation notices, are not “communications” under the Fair Debt Collection Practices Act (FDCPA). Therefore, the court…
On August 28, 2019, the Consumer Financial Protection Bureau (CFPB) announced a settlement with an Illinois-based debt collection company, resolving allegations that the company engaged in deceptive practices in violation of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531 and 5536, and the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C….
On July 25, 2019, the Consumer Financial Protection Bureau (“CFPB”) and the New York Attorney General (“New York AG”) announced that they have filed two proposed settlements with three debt collection companies and two individuals who conducted business together in Buffalo, New York. The proposed settlements were filed in the U.S. District Court for…
On July 9, 2019, the Consumer Financial Protection Bureau (CFPB) announced that it settled its lawsuit against the nation’s largest debt-settlement services provider for allegedly engaging in deceptive debt-settlement acts or practices. The company agreed to pay $20 million in restitution to affected consumers and a $5 million civil money penalty….
On June 6, 2019, the Federal Communications Commission (FCC) issued a declaratory ruling providing voice service providers with the authority to automatically enroll consumers for call blocking programs that identify and block unwanted telephone calls. This ruling is effective immediately. The ruling comes at a time when unwanted call volume…
On July 1, 2019, New York Attorney General Letitia James (“New York AG”) announced that together with the Federal Trade Commission (“FTC”), the agencies had entered into a settlement with a debt collection company, a related entity, and corporate officers to resolve a case filed in the United States District Court for the Western District of New…
On May 7, 2019, the Consumer Financial Protection Bureau (CFPB or Bureau) released a Notice of Proposed Rule Making (Notice) to implement the Fair Debt Collection Practices Act (FDCPA). The Bureau’s stated purpose for the proposed rules, which would be placed in the existing Regulation F, is to “set clear,…
On April 5, 2019, the Eleventh Circuit Court of Appeals issued a decision holding that a plaintiff asserted a plausible claim under a provision of the Fair Debt Collection Practices Act (FDCPA) that forbids debt collectors from using “false, deceptive, or misleading representation[s] or means in connection with the collection…