Debt Collection

CBA responded to the CFPB’s Advanced Notice of Proposed Rulemaking (ANPR) on debt collections. In its notice, the Bureau cites it is the first agency with the authority to issue substantive rules under the Fair Debt Collection Practices Act (FDCPA), a law governing the practices of third-party collectors and debt buyers. The Bureau may address first-party debt collection activities under its unfair, deceptive and abusive practices (UDAAP) authority. The ANPR is the Bureau’s initial step towards issuing new rules regulating the relationship between creditors, third-party debt collectors and consumers.
  • June 12, 2017
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  • June 12, 2017
    On Monday, June 12, 2017, the Supreme Court issued its decision in Henson v. Santander . In a unanimous decision written by Justice Neil Gorsuch, the Court unanimously affirmed the Fourth Circuit decision, the result CBA’s joint-trade amicus brief urged. In particular, the Court held a company may collect debts it purchased for its own ac­count, as Santander did, without triggering the statutory...
  • June 8, 2017
    On Thursday, June 8, 2017, CBA and the Financial Services Roundtable submitted a joint comment letter in response the CFPB’s request for information on the state of the consumer credit market. The CFPB is required under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) of 2009 to conduct a review of this market on a biennial basis. In our letter, the Associations...
  • April 27, 2017
    On Thursday, April 27, 2017, the CFPB took action against four online lenders – Golden Valley Lending, Inc., Silver Cloud Financial, Inc., Mountain Summit Financial, Inc., and Majestic Lake Financial, Inc. – for allegedly deceiving consumers by collecting debt not legally owed. In a suit filed in federal court, the CFPB alleged the four lenders could not legally collect on these debts because the...
  • April 26, 2017
    On Wednesday, April 26, 2017, the CFPB announced it had entered into a consent order with Security National Automotive Acceptance Company (SNAAC), which had been subject to a previous Bureau enforcement action. In the first order, the Bureau alleged the company engaged in deceptive collection practices against servicemember borrowers who had obtained loans to purchase used vehicles. These...
  • April 17, 2017
    On Tuesday, April 17, 2017, the CFPB filed a lawsuit in a federal district court against debt collection firm Weltman, Weinberg & Reis. The Bureau claims the firm sent collection letters to consumers suggesting attorneys were involved in collecting the debt. The law firm allegedly made statements on collection calls and sent collection letters creating the false impression that attorneys had...
  • March 27, 2017
    No. 16-349 In the Supreme Court of the United States —————— RICKY HENSON, IAN MATTHEW GLOVER, KAREN PACOULOUTE, F/K/A KAREN WELCOME KUTEYI, AND PAULETTE HOUSE, P et i t i o n ers, v. SANTANDER CONSUMER USA, INC., Res p o n de n t . —————— On Writ of Certiorari to t h e U nit ed States Court of Appeals f or t h e Fourth Circuit —————— BRIEF O F A MI C I CUR I A E THE CLEARING HOUSE ASSOCIATION L.L...
  • February 11, 2017
    Before the Federal Communications Commission Washington, D.C. In the Matter of Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991 Petition for Reconsideration of Great Lakes Higher Education Corp.; Navient Corp.; Nelnet, Inc.; the Pennsylvania Higher Education Assistance Agency; and the Student Loan Servicing Alliance COMMENTS OF THE AMERICAN BANKERS ASSOCIATION AND...
  • January 30, 2017
    On Monday, January 30, 2017, the CFPB announced its lawsuit against a variety of debt collection law firms including Howard Law, P.C., the Williamson Law Firm, LLC, and Williamson & Howard, LLP, as well as attorneys Vincent Howard and Lawrence Williamson. The individuals ran their firms along with Morgan Drexen, Inc., which the CFPB sued in 2015 and subsequently went out of business. In the...
  • January 24, 2017
    On Tuesday, January 24, 2017, the OCC, Federal Reserve, and FDIC entered into consent order with Servicelink to resolve certain outstanding requirements placed on Lending Processing Services (LPS) under a pre-existing consent order. In April of 2011, LPS entered into a consent order with the prudential regulators following allegations of unsafe or unsound practices in providing default management...

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