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Posts tagged as “1692c”

FTC’s Recent Enforcement Action Sets New Debt Collection Standards

Auto lenders are in the cross-hairs of federal regulators. The Consumer Financial Protection Bureau recently announced it is drafting a larger nonbank participant rule for auto lenders. In the meantime, the Federal Trade Commission announced yesterday the filing of a stipulated order imposing a civil monetary penalty and injunctive relief against a subprime auto lender. Big Penalty, Restitution, Restrictions The Federal Trade Commission announced yesterday that Consumer Portfolio Services, Inc. will pay a civil monetary penalty of $5.5 million arising from its servicing and collection of consumer motor vehicle loans. In addition to the monetary penalty, the lender agreed to make certain changes to…

Section 1692g Written Dispute that also Contains a Cease and Desist Does Not Prohibit a Debt Collector From Sending Verification

Sending verification in response to a consumer’s written demand for verification under 15 U.S.C. § 1692g, which also contains a cease and desist demand, does not violate § 1692c under a holding from the Western District of New York in Marino v. HoganWillig, PLLC, 11-cv-453 (W.D. NY April 24, 2012). The Court refused to read § 1692c(c) to prohibit sending a consumer § 1692g(b) validation because it would place a debt collector “into a frozen state where it could not seek to collect the debt because compliance with Section 1692g(b) would violate Section 1692c(c).” The court cited the unpublished opinion in Recker…