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Second Circuit Holds That FDCPA Does Not Apply to Proof of Claim in Bankruptcy

The Second Circuit has held that an allegedly inflated proof of claim cannot form the basis for a claim under the Fair Debt Collection Practices Act. Simmons v. Roundup Funding , No. 09-4984 (2 nd Cir. 10/5/10). The opinion can be found here . In Simmons , Roundup Funding filed a proof of claim...

Debt Collectors Reach New Low

Just when you thought that you had heard it all.... A debt collection agency in Pennsylvania has been accused by that state's Attorney General of staging fake trials with a fake judge in a fake courtroom against people who allegedly owed debt. "The Attorney General's Office told Team...

Third Circuit Holds That Attorney Letter Can Form Basis for FDCPA Claim

A new opinion from the Third Circuit Court of Appeals could lead to more claims under the Fair Debt Collection Practices Act being filed in Bankruptcy Court. Allen v. LaSalle Bank , N.A., No. 09-1466 (3 rd Cir. 1/12/11) held that correspondence from a debt collector to a consumer's attorney...

Collection Tactics: Take Two

Here is another outrageous situation involving illegal tactics used by some collectors. In this instance, the agency targets only US military and as part of its routine collection efforts, it threatened jail time as well as a dishonorable discharge if the service member did not pay. Happily in this...

High Court: Debt Collection Act Does Not Prohibit Award of Costs Under Rule

WASHINGTON, D.C. - (Mealey's) Section 1692k(a)(3) of the Fair Debt Collection Practices Act (FDCPA) "is not contrary to, and, thus, does not displace a district court's discretion to award costs under" Federal Rule of Civil Procedure 54(d)(1), a divided U.S. Supreme Court ruled today...

Third Circuit Says Technical Procedural Slip-Up in Bankruptcy Proceeding Is Grounds for FDCPA Claim

by Amy R. Jonker A recent Third Circuit reversal paves the way for Fair Debt Collection Practices Act (FDCPA) lawsuits based on minor procedural mishaps in bankruptcy court. This contradicts the law in the Second and Ninth Circuits and in many district and bankruptcy courts that previously have found...

Third Circuit Holds that Debt Collectors Must Generally Comply with the Bankruptcy Code and the Fair Debt Collection Practices Act

In Simon v. FIA Card Services, N.A. , the U.S. Court of Appeals for the Third Circuit recently ruled that a debtor in a bankruptcy proceeding is not unconditionally precluded from bringing claims under the Fair Debt Collection Practices Act (the “FDCPA”) [ an enhanced version of this opinion...