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Posts published in “Compliance Management”

Debt Collection Communications Receive New Protection Under U.S. Supreme Court’s Recent TCPA Decision

The U.S. Supreme Court recently decided that a fix was needed to the federal Telephone Consumer Protection Act. But its decision in Barr v. American Assn. of Political Consultants, Inc. provides no TCPA relief for legitimate businesses that use technology to communicate with their customers.

Three of New York City’s New Language Access Rules for Debt Collection Can Apply to Creditors

On June 27, the City of New York’s new rules aimed at language access in debt collection become effective. I am often asked whether they apply to creditors as well. It appears that particular provisions of the new rules do cover creditors collecting their own debt.

Joint Industry Letter to NYCDCA Seeks Extension, Poses 25 FAQs

Yesterday ARM industry trade associations ACA, New York State Collectors Association and the Receivables Management Association International (RMAI), along with the National Creditors Bar Association and the New York State Bar Association submitted a joint letter to the New York City Department of Consumer and Worker Protection (formerly the Department of Consumer Affairs) requesting a 60-day extension to the effective date of its new language preference rules. 

Beware Short-term Lenders – Watch Your Collections! CFPB Announces Consent Decree with Short-term Lenders

The Consumer Financial Protection Bureau on June 2 announced a settlement with a Tennessee-based company and its subsidiaries that provide short-term loans (payday or auto-title) for the lenders' conduct at all stages of their operations, including providing “deceptive finance charge disclosures … failing to refund overpayments ... and engaging in unfair debt collection practices.”

5th Cir. Holds No FDCPA Violation When Collection Letter Stated That Amount Due ‘May’ Increase

The U.S. Court of Appeals for the Fifth Circuit recently affirmed entry of summary judgment against a consumer debtor who claimed that a collection letter’s language, implying that interest or other charges (which the debt collector did not collect on debts referred to it by the creditor and were not referenced in the subject credit agreement) could accrue in the event of a default, violated the federal Fair Debt Collection Practices Act (FDCPA).

COVID-19: Several States Toll Statutes of Limitations on Legal Actions

A number of states have tolled the statutes of limitations on legal actions in response to COVID-19. The Iowa Supreme Court announced a toll on statutes of limitations in a March 17 order regarding court procedures. According to a March 23 operations summary from the Iowa Judicial Branch: “The March 17th order is intended to toll the statute of limitations or similar deadline for commencing an action in district court by 48 days. Tolling means you add that amount of time to the statute of limitations. So, for example, if the statute would otherwise run on April 8, 2020, it…

9th Cir. Rejects Spokeo ‘Standing’ Objection to Nationwide Privacy Class Settlement

The U.S. Court of Appeals for the Ninth Circuit recently held that the trial court had Article III jurisdiction and did not abuse its discretion in approving a settlement between a social media company and a nationwide class of its users who alleged that the social media company routinely scanned and collected their private information without their consent.