Category Debt Collection

Ruling on Disclosure in Debt Collection Letters

Earlier this month, a West Virginia federal court ruled a disclosure in a debt collection letter regarding potential tax implications for settling a debt did not violate the Fair Debt Collection Practices Act (“FDCPA”) or the West Virginia Consumer Credit and Protection Act (“WVCCPA”). In Garrettson v. Sentry Credit, Inc. et al., a debt collector […]

Regulatory Expectations for Abandoned Foreclosures

This week, the Federal Deposit Insurance Corporation (“FDIC”) clarified its supervisory expectations for how institutions should handle decisions to discontinue foreclosure proceedings that are underway, commonly referred to as abandoned foreclosures. Although not all institutions fall into the FDIC’s supervisory scope, prudential regulators and examiners often address practical problems (such as foreclosures) similarly. In the […]

CFPB Field Hearing on Medical Debt

Next week, the Consumer Financial Protection Bureau (“CFPB”) will hold a field hearing in Oklahoma City on medical debt collection.  Many hospitals, debt collection law firms, and third-party collectors are well aware of consumer claims related to medical debt collection.  For hospitals that have historically collected their own debts, the current regulatory and enforcement climate […]

Bank Fined $10 Million by CFPB for Violating New Mortgage Servicing Rules

Earlier this week, on September 29, 2014, the Consumer Financial Protection Bureau (“CFPB”) took action against Michigan-based Flagstar Bank, fining it $10 million and ordering $27.5 million in payments to consumers. Flagstar allegedly “took excessive time to process borrowers’ applications for foreclosure relief, failed to tell borrowers when their applications were incomplete, denied loan modifications […]

CFPB Offers More Insight on “Abusive” Standard

In its most recent settlement of an enforcement action alleging unfair, deceptive, and abusive practices, the Consumer Financial Protection Bureau (“CFPB”) offered additional insight into what constitutes “abusive” practices. The Consent Order relates to the debt collection attempts of payday lender ACE Cash Express, which were alleged to include excessive telephone calls, disclosing the existence […]

CFPB Bolsters Student Loan Supervision

On December 3, 2013, the Consumer Financial Protection Bureau (“CFPB”) announced it will issue a new rule that will allow the CFPB to supervise nonbank student loan servicers. Additionally, the CFPB updated its Supervisory and Examination Manual to provide guidance on the CFPB’s monitoring of bank and nonbank servicers of private and federal student loans. […]

CFPB Shows No Signs of Lessening Pace of Reforms

The Consumer Financial Protection Bureau (“CFPB”) issued an update to its rulemaking agenda showing that 2014 will involve significant reform efforts across numerous industries. Although the CFPB has hinted at pending changes to industries such as debt collection, the ambitious agenda for 2014 shows that consumer finance professionals will see additional mortgage-related regulations, as well […]