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Posts published in “Class Actions”

Clas Actions

7th Circuit FDCPA Decision Sides with CFPB, FTC on Time Barred Debt

Earlier this week the Seventh Circuit Court of Appeals issued its opinion in the consolidated appeals of McMahon v. LVNV Funding, LLC and Delgado v. Capital Management Services, L.P., concerning the collection of time barred debt without the threat of litigation. The result is not good for the credit and collections industry, principally because it further confuses application of the Fair Debt Collections Practices Act across the nation. Background In both cases the debt collectors offered to settle the debts, without mention of a lawsuit or any legal action. Both suits claimed that the letters were false, deceptive and misleading, in violation…

Breaking Down the Second Circuit’s Recent Decision Re Disclosure Disputes Under FDCPA’s 1692g(a)(3): What Debt Collectors Need to Know

The Second Circuit’s recent decision in Hooks v. Forman has received quite a bit of attention since it was handed down May 29.  The case held that a disclosure made pursuant to 1692g(a) violated the Fair Debt Collection Practices Act when it instructed the recipient of the letter that if she wished to dispute the debt, she could only do so in writing. The decision recognized that under section 1692g, some disputes can be verbal. It also recognized that under other sections (particularly sections 1692g(a)(4) and 1692g(b), a dispute must be in writing to be effective. Most debt collectors have 1692g disclosures…

A Slice With Sausage, Peppers and Prior Express Consent: The Papa John’s TCPA Class Action

Yesterday, Lawyers.com reported that Papa John’s, the national pizza chain, had reached an agreement to settle for $16.5 million a Telephone Consumer Protection Act class-action claim. If approved by the court, the settlement will put an end to an interesting lawsuit involving the TCPA’s prior express consent requirements. The TCPA proscribes the use of an “Automatic Telephone Dial System” to call a person’s cell phone, without first obtaining the called party’s “prior express consent” to receive such a call. Enacted in 1991, many courts, including the Ninth Circuit Court of Appeals, have found that the sending of  text messages to cell phones using an…

Violation of the New Jersey Professional Services Corporation Act Sufficient Basis for Violation of the FDCPA

When a New Jersey law firm purchased charged-off debt, then filed suit to collect it, it found itself facing a Fair Debt Collection Practices Act (“FDCPA”) putative class action. The lawsuit alleged that Hudson Law Offices, P.C. violated the New Jersey Professional Services Corporation Act (“PSCA”) by engaging in the business of purchasing defaulted credit-card debt and then suing alleged consumers to collect those debts. In denying the law firm’s motion to dismiss the Complaint, a New Jersey Federal Court Judge found that the a law firm organized under the New Jersey PSCA is prohibited from engaging in any business…