Links in “Debt Collection”

The FTC has joined with other law enforcement authorities around the country to launch "Operation Collection Protection" against debt collectors who use illegal tactics. The crackdown announcement was accompanied by the announcement of 30 new law enforcement actions. [11/5/15]

FTC is expected to announce today an initiative to crack down on the debt collection industry. [11/4/15]

A debt-collection agency called a consumer's business and left a message in the business's general mail box asking for someone in the payroll department to call. The consumer sued. The court ruled that because the voicemail message did not imply the existence of a debt, it was not a "communication" as defined by the Fair Debt Collection Practices Act. [10/28/15]

A professor cautions the CFPB to consider carefully any proposed changes to debt collection rules for unintended consequences. For example, limits on communications using newer technologies will likely result in more intensive collection actions earlier in the debt collection cycle. More lawsuits, increased interest rates and a reduction in lending volume for higher-risk customers are also among the potential side effects. [10/15/15]

A Los Angeles-based indirect auto lender called consumers under false pretenses, used a phony caller ID, threatened to refer borrowers for criminal prosecution, and illegally disclosed information about debts to borrowers' employers, friends, and family. Other than that, though, they ran a fairly tight operation. [10/2/15]

What happens to those who engage in fraudulent debt collection practices? The FTC has the answer. Hint: Money is involved. [9/17/15]

$67 million later, World Law Group has assuaged the CFPB for its illegal debt collection practices. Specifically, charging illegal upfront fees and making false promises. [9/16/15]

Being an effective collector is similar in many ways to being an effective salesperson. This 3-step guide recommends a new approach to collections based on research, effective communication and closing the sale. The end result should be about creating a win-win situation for both your member and the credit union. [9/16/15]

Senator Sherrod Brown (D-Ohio) called on federal regulators to take action against zombie debts, debts which remain on consumer credit reports even though they are no longer owed. [9/14/15]

Two of the nation’s largest debt buyers and collectors, Encore Capital Group and Portfolio Recovery Associates, were nailed by the CFPB for deceptive tactics to collect bad debts. The two companies must refund millions of dollars, cease collections on millions of dollars of debt, and rehaul their debt collection practices. [9/10/15]