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Category Archives: Debt Collection

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Lost in translation? Ensuring appropriate documentation in the pre-litigation debt collection process

By Trevor Salter on Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

At yesterday’s joint FTC-CFPB roundtable on the debt collection industry, industry representatives advocated for a uniform, national standard for the documentation to be provided to debtors in the pre-litigation phase of the process. (Local court rules govern required documentation during litigation, making it unlikely that a national standard could be adopted for the litigation phase)…. More >

Debt collection litigation: More documents or more face-to-face?

By Trevor Salter on Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

Industry representatives and consumer advocates collectively lamented the high non-appearance rate of debtors in court in debt collection cases at yesterday’s joint FTC-CFPB roundtable on the debt collection industry. The non-appearance rate is around 90% according to most observers, as reported in the FTC’s report on debt collection litigation, Repairing A Broken System. To debt… More >

Does the FDCPA need to get with the times?

By Trevor Salter on Posted in CFPB General, Debt Collection, Federal Agencies, FTC, Hot Issues

At yesterday’s joint FTC-CFPB roundtable on the debt collection industry, the Fair Debt Collection Practices Act (“FDCPA”) was referenced together with the “1970s” a number of times. Commissioner Julie Brill, in an unscripted moment in her opening remarks, smiled at the thought that the FDCPA was enacted the same year she graduated from high school… More >

CFPB/FTC target debt collection data in June 6 roundtable

By Alan S. Kaplinsky on Posted in Debt Collection

The CFPB and FTC have announced that they will co-host a roundtable on June 6, 2013 in Washington, D.C. to examine the flow of consumer data throughout the debt collection process.  Titled “Life of a Debt: Data Integrity in Debt Collection,” the roundtable will look at such topics as:  •             the amount of documentation and other information… More >

CFPB issues second annual report on FDCPA activities

By Barbara S. Mishkin on Posted in Debt Collection

Debt collection will continue to be a major CFPB focus in 2013.  That’s the clear takeaway from the CFPB’s second annual report to Congress on enforcement of the Fair Debt Collection Practices Act.  Another takeaway is that the CFPB’s supervisory authority in the debt collection arena continues to expand.  Dodd-Frank gave the CFPB supervisory authority… More >

Is another expansion of the CFPB’s complaint system imminent?

By Barbara S. Mishkin on Posted in Debt Collection, Payday Lending

The CFPB has announced that it will hold a field hearing on March 28 in Des Moines, Iowa on the Bureau’s consumer complaint system.  The CFPB’s practice has been to use field hearings to announce new initiatives.  Director Cordray is slated to give remarks, and we would not be surprised to see Director Cordray announce at the March… More >

Supreme Court rejects CFPB position in FDCPA case

By Barbara S. Mishkin on Posted in Debt Collection

A prevailing defendant in a Fair Debt Collection Practices Act case can recover costs even without a court finding that the plaintiff filed suit in bad faith and for the purpose of harassment, the U.S. Supreme Court has ruled in Marx v. General Revenue Corp.  The Supreme Court rejected the plaintiff’s argument that a court’s… More >

Remarks of Kent Markus at DBA Annual Conference

By Alan S. Kaplinsky on Posted in CFPB Enforcement, Debt Collection

While attending this year’s DBA International Annual Conference, I had the opportunity to hear remarks from Kent Markus, the CFPB’s Director of Enforcement, regarding the CFPB’s approach to enforcement actions generally, as well as with regard to the debt buying industry.    Mr. Markus began his remarks by stating that the CFPB “believes that people should… More >

CFPB issues paper on credit reporting

By John L. Culhane, Jr. on Posted in Credit Reports, Debt Collection

The CFPB has issued a paper that describes the infrastructure and processes used by Equifax, Experian and TransUnion, the three largest nationwide consumer reporting agencies (NCRAs), to collect, compile and report information about consumers.  The paper is based on research conducted by the CFPB’s Office of Deposits, Cash, Collections and Reporting Markets.  Among the topics… More >

Debt collection exams highlighted in Director Cordray’s remarks to consumer advocates

By Alan S. Kaplinsky on Posted in CFPB Enforcement, Debt Collection

In his remarks last week to the National Consumer Law Center Conference, Director Cordray identified several issues on which the CFPB will be focusing when it begins examining members of the debt collection industry. Those exams are expected to begin on or after January 2, 2013, the effective date of the CFPB’s debt collection larger participant rule issued… More >

More about the CFPB’s debt collection larger participant final rule

By Alan S. Kaplinsky on Posted in Debt Collection

On Wednesday, the CFPB released its debt collection larger participant final rule and the examination procedures its examiners will use to examine members of the debt collection industry that qualify as larger participants and other industry members over whom the CFPB has supervisory authority. Those exams are expected to begin on or soon after the… More >

CFPB issues final consumer debt collection larger participant rule and examination procedures

By Alan S. Kaplinsky on Posted in Debt Collection

Today, the CFPB issued its final rule defining larger participants of the consumer debt collection market.  The final rule becomes effective on January 2, 2013.  The CFPB acted pursuant to Section 1024 of Dodd-Frank which grants the CFPB the authority to supervise non-bank covered persons for compliance with Federal consumer financial laws. Dodd-Frank automatically gave… More >

Release of final debt collection larger participant rule could be imminent

By Alan S. Kaplinsky on Posted in CFPB Rulemaking, Debt Collection

The CFPB has announced that it will be holding a field hearing on debt collection in Seattle on October 24.  Since Director Cordray is slated to make remarks, there is considerable speculation that release of the CFPB’s final larger participant rule for the debt collection market is imminent and could be announced by Director Cordray at the… More >

CFPB files amicus brief in US Supreme Court FDCPA case

By John L. Culhane, Jr. on Posted in Debt Collection

The CFPB, jointly with the FTC and Justice Department, has filed an amicus brief in the U.S. Supreme Court supporting the consumer’s position in Marx v. General Revenue Corp.  In May, the Supreme Court agreed to hear the case and decide whether the Fair Debt Collection Practices Act allows an award of costs to the prevailing defendant… More >

Debt collectors and debt buyers obtain temporary reprieve from CFPB supervision

By Alan S. Kaplinsky on Posted in Debt Collection

On Monday, the CFPB issued its final rule defining larger participants of a market for consumer reporting. It acted pursuant to Section 1024 of Dodd-Frank which grants the CFPB the authority to supervise non-bank covered persons for compliance with Federal consumer financial laws. Dodd-Frank automatically gave the CFPB the authority to supervise non-bank covered persons… More >

Just who really is a larger participant?

By John L. Culhane, Jr. on Posted in Debt Collection

In February, the CFPB published its proposed rule defining larger participants in the debt collection and credit reporting industries. In general, the proposal advised that the CFPB would be guided by and would use a definition of annual receipts adapted from that used by the Small Business Administration in identifying small business concerns. In particular,… More >

Cordray remarks and interview highlight CFPB focus on debt collection

By Alan S. Kaplinsky on Posted in Debt Collection

Director Cordray used his recent remarks at the University of Rochester’s Simon School of Business and an interview following his remarks as another opportunity to stress the CFPB’s focus on debt collection. In his remarks, Mr. Cordray spoke about the CFPB’s authority to supervise non-banks. As an example of how the products of non-banks “affect… More >

CFPB files amicus briefs in FDCPA cases

By Barbara S. Mishkin on Posted in Debt Collection

The CFPB has filed amicus briefs in two appeals involving the Fair Debt Collection Practices Act–one in the Tenth Circuit and the other in the Eleventh Circuit.  As reported by Marty Bryce and Chris Willis,  the CFPB filed an amicus brief  last month in an appeal before the Tenth Circuit involving the right to rescind a mortgage loan… More >

ACA Teleseminar on CFPB exams features Kaplinsky, Culhane, and Willis

By Alan S. Kaplinsky on Posted in CFPB Exams, Debt Collection

Intensive examinations by the CFPB are expected to begin soon for debt collectors and debt buyers. To help you get prepared, the Association of Credit and Collection Professionals (ACA) is offering a teleseminar titled “Ready or Not: How to Prepare for a CFPB Examination.” Three members of Ballard Spahr’s CFS Group—Alan S. Kaplinsky, John L…. More >

CFPB files report on FDCPA

By Barbara S. Mishkin on Posted in Debt Collection

The clear takeaway from the Consumer Financial Protection Bureau’s first annual report to Congress on enforcement of the Fair Debt Collection Practices Act is that debt collection will be a major focus of both the CFPB and the Federal Trade Commission in 2012. In addition to giving FDCPA enforcement and rulemaking authority to the CFPB,… More >