LexisNexis® Legal Newsroom
CFPB Proposes Supervision of Debt Collection and Credit Reporting

The Consumer Financial Protection Bureau has issued a proposal under which it would supervise nonbank providers of consumer reporting and consumer debt collection services considered to be "larger participants" in the markets for those services. The proposal defines as "larger participants"...

Sallie Mae Reaches $24M Settlement in Telephone Debt Collection Class Action

SEATTLE - (Mealey's) Student loan borrowers and a subsidiary of SLM Corp. on Sep. 17 agreed to settle claims that the subsidiary violated the Telephone Consumer Protection Act (TCPA) by making a number of non-emergency autodialed calls and/or automated text messages to the borrowers' cellular...

High Court Hears Oral Arguments in Debt Collection Case Over Costs Awards

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court heard oral arguments on Nov. 7 over whether a prevailing defendant in a Fair Debt Collection Practices Act (FDCPA) lawsuit may be awarded costs even though the lawsuit was not brought in bad faith or with an intent to harass ( Olivea Marx v...

Ballard Spahr: Sixth Circuit Rejects Nationwide Settlement of Robo-Signing Class Actions

A nationwide settlement of three class actions involving claims that a creditor's practice of using "robo-signed" affidavits in debt collection actions violated the Fair Debt Collection Practices Act (FDCPA) has been overturned by the U.S. Court of Appeals for the Sixth Circuit. In...

CFPB Releases Annual Report on Fair Debt Collection Practices Act

by Haydn J. Richards, Jr. On March 20, 2014, as mandated in the Dodd Frank Act, the CFPB released its annual report to Congress concerning the Fair Debt Collection Practices Act (FDCPA). The CFPB reported on more than 30,000 consumer complaints concerning the debt collection market. The three most...

New Debt Collection Rules Announced for New York State Courts

by Amanda L. Genovese , Ethan G. Ostroff and David N. Anthony New York Court administrators recently announced new rules impacting cases involving debt collector-plaintiffs with certain debt claims against consumers. As we discussed on May 7th when the proposed rules were announced, the new rules...

CFPB Supervision Report Targets Illegal Debt Collection Practices

by Brendan H. Connors and David N. Anthony On October 28, the Consumer Financial Protection Bureau issued the latest edition of its “ Supervisory Highlights ” report, covering illegalities it discovered in the debt collection, student loan servicing, and mortgage collection markets between...

FTC Continues Regulatory Scrutiny of the Debt Buying Industry

The Federal Trade Commission (FTC) recently obtained temporary injunctions against two passive debt buyers, which are companies that buy and sell debt portfolios and exclusively use third-party debt collectors. In complaints filed against the companies, the FTC alleged that the debt buyers had engaged...

Cuomo Rolls Out Strict New Debt Collection Rules

Saying his administration "will not tolerate debt collectors who wrongfully take advantage of consumers," New York Gov. Andrew Cuomo (D) announced sweeping new debt collection rules last week for the Empire State. The new rules, which Cuomo unveiled last Wednesday, require debt collectors to...

Federal Court Rejects Unconscionability Argument in Forcing Debt Collection Arbitration

by Brendan H. Connors and David N. Anthony On January 20, a Missouri federal judge issued an order granting a debt collector’s Motion to Compel Arbitration in an action under the Fair Debt Collection Practices Act. Although such motions are frequently granted, the judge here rejected an argument...

NY Department of Financial Services Answers FAQs Regarding New Debt Collection Regulations

by H. Scott Kelly , David N. Anthony , John C. Lynch and Alan D. Wingfield On February 19, 2015, the New York Department of Financial Services (DFS) issued guidance in the form of FAQs on its recently-enacted debt collection regulation (23 NYCRR 1). The guidance came in response to calls from many...

NY Attorney General, FTC Bring Joint Enforcement Actions Against Debt Collectors

The New York Attorney General and Federal Trade Commission recently announced they had filed two joint federal court lawsuits against debt collectors in the Western District of New York. The Attorney General and FTC are seeking injunctive relief and damages for violations of the Fair Debt Collection...