The U.S. District Court for the Southern District of California has dismissed a suit alleging a violation of the Telephone Consumer Protection Act (TCPA) by a bank that made unwanted autodial calls to a plaintiff’s cell phone, ruling that the plaintiff did not show sufficient “concrete injury” to confer standing under the U.S. Supreme Court case of Spokeo v. Robins.
The Consumer Financial Protection Bureau (CFPB) announced on July 28, 2016, that it is considering proposals to overhaul the debt collection industry that would include the following measures:
Substantiation of the debt prior to contact. Debt collectors would be required to substantiate a debt prior to making any contact with a consumer to ensure they have sufficient information, including the debtor’s full name, address, phone number, account number, default date, amount owed and any payments made following the default date.
On August 8, 2016, the U.S. Court of Appeals for the Ninth Circuit ruled that a voicemail message left by a debt collector that did not specifically state, “This communication is from a debt collector,” did not violate the Fair Debt Collection Practices Act (FDCPA).
In a case of first impression, the U.S. Court of Appeals for the Ninth Circuit has ruled that when multiple debt collectors have attempted to collect on the same debt, each debt collector must send a verification notice.
The U.S. Court of Appeals for the Eleventh Circuit has ruled that debt collectors must disclose to consumers that any disputes must be in writing as required by the Fair Debt Collection Practices Act (FDCPA).
A draft of a bill to replace the Dodd-Frank Act — entitled the Financial CHOICE Act — has been released by the House Financial Services Committee with the goal of reforming the Consumer Financial Protection Bureau (CFPB) and financial institution regulations.
The five companies — BAM Financial LLC, d/b/a as West and Associates, Chelsea & Associates, and Chelsea Financial; Everton Financial LLC, also d/b/a West and Associates; and Legal Financial Consulting LLC, also d/b/a West and Associates Services — were charged by the FTC last October with using false threats and other illegal collection practices.
The U.S. Supreme Court has agreed to hear a case next term to determine whether bankruptcy courts can authorize the distribution of settlements that violate the priority scheme established by the U.S. Bankruptcy Code.
On July 5, 2016, the U.S. District Court for the Southern District of California ordered Citizens Bank to pay more than $4.55 million to settle a consumer class action that claimed the bank violated the TCPA by using an automated dialing system to call consumers without their permission.