Links in “Debt Collection”

A look at the CFPB's planned debt collection survey of 10,000 consumers finds that many of the proposed questions are unlikely to produce responses that yield valid conclusions. [3/13]

FTC notes increased actions regarding enforcement of Fair Debt Collection Practices Act citing various cases brought during 2013. While actions were largely directed at third-party debt collectors, best-practice lessons remain: Ensure authorized contacting of third parties about consumers’ debts, disclose name of involved collectors and facts associated with debt collection efforts, and notify consumer of rights to dispute and obtain verification of their debts. [3/6]

CFPB's Richard Cordray's speech to the National Association of Attorneys General addressed highlights of the agency's work, including efforts with four states Attorneys General offices, use of real-time access to complaints system, mortgage services industry efforts, and collections efforts -- all part of the "crusades we are undertaking together to improve life for American consumers." [2/27]

In an effort to deal with a flood of debt-collection lawsuits, some local courts are issuing summons to large groups of debtors to appear all at once, where they face attorneys representing debt collectors without a judge present. In an era when debt-collection practices are under increasing scrutiny, the "rocket docket" approach is a hotly debated topic. [2/12]

CFPB gives two more weeks (2/28/2014) for commentary from interested persons. Extension also includes promotion of website for interactive commentary on new developments (www.regulationroom.org). [1/14]

Judge will not dismiss California's case that JPMorgan Chase illegally tried to collect debt from 100,000 credit card customers. [1/9]

Ocwen Loan Servicing required to make $2 billion principal reduction to current underwater borrowers and refund $125 million to 185,000 foreclosed borrowers (average $675). Ocwen cites failure at many stages of servicing including improper short-cuts, unauthorized fees, deception, improper consideration of modifications, misleading information, etc. [12/20]

United Recovery (UCR), a Florida-based collection firm used by a number of credit unions, is being sued by the Colorado Attorney General for allegedly faking collection documents. The AG claims that UCR used actual borrower data to falsify affidavits used to verify additional debt that were then sold to third party collectors. [12/12]

U.S. Bank AVP allegedly began taking bribes from a collection agency in the form of expensive cigars, which escalated to cash payments as much as $5K hidden in cigar boxes. [11/26]

CFPB takes enforcement action against Cash America International, Inc., a payday lender for robo-signing court documents in debt collection lawsuits. Total impact $19 million including $14 million in refunds to consumers $5 million to CFPB for destroying records. [11/21]