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Maryland High Court Rules Debtors’ Attempts to Void Judgments for Unlicensed Debt Collection Subject to 3-Year SOL

The Maryland Court of Appeals, the state's highest court, recently held that judgments obtained by an unlicensed debt buyer were not void, and that the debtors' claims for unjust enrichment and money damages under the Maryland Consumer Protection Act (MCPA) and the Maryland Consumer Debt Collection Act (MCDCA) were subject to Maryland's general three-year statute of limitations.

3rd Cir. Clarifies Procedure for ‘Hybrid Wage-and-Hour’ Aggregate Litigation

In a “hybrid wage-and-hour” action brought by mortgage loan officers (MLOs), the U.S. Court of Appeals for the Third Circuit recently:  1) reiterated its prior holding that “an FLSA opt-in collective action is not, by its nature, incompatible with a parallel state law Rule 23 opt-out class action”, and 2) held that the trial court should not have required a trial in the FLSA opt-in collective action before deciding Rule 23 class certification on the parallel state-law claims.

Illinois Supreme Court Holds Homeowner’s Insurer Could Not Reduce Loss Reimbursements by Depreciating Cost of Labor

The Supreme Court of Illinois recently held that a homeowner’s insurance company could not deduct depreciation from reimbursements for labor costs from the actual cash value of a covered loss, because the policy at issue did not specifically and unambiguously allow the practice.

DC Expands Debt Collection Law to Cover More Creditors, Debt Types

The District of Columbia recently passed legislation to substantially revise its debt collection law on an emergency basis. The amended law became effective Sept. 23, 2021. DC’s debt collection law was first enacted in 1971 and the amendments not only make it more burdensome for debt collectors but also for most financial services companies and other businesses operating in the District who were not previously within the scope of the law.

7th Cir. Holds Collecting ‘Fees on Fees’ Did Not Violate the FDCPA

The U.S. Court of Appeals for the Seventh Circuit recently affirmed judgment in a debt collector’s favor against claims that its efforts to collect attorney’s fees incurred to collect a debt — including the fees incurred in collecting the attorney’s fees — violated the federal Fair Debt Collection Practices Act.