Archive for the ‘ Debt Collection Laws – Federal ’ Category
Oral Argument on the Bona Fide Error Defense
The United States Supreme Court has taken up the issue of whether the Bona Fide Error (“BFE”) defense under the Fair Debt Collection Practices Act (“FDCPA”) applies to mistakes of law committed by debt collectors. In Jerman v Carlisle, et al, the defendant law firm transmitted a collection letter to Ms. Jerman that may not […]
The FDCPA Bona Error Defense goes before the Supreme Court early next year
The Fair Debt Collection Practices Act is a federal statute that governs every debt collector involved in collecting debts related to personal, home or consumer items. In 1995, the United States Supreme Court in Heinz v Jenkins, made clear that the FDCPA applies to attorneys as well. The FDCPA contains a defense to debt collectors […]
Angry judge cancels mortgage debt owed by couple
A Long Island couple who were in foreclosure, recently had their debt canceled by an angry judge. They now own their home free and clear. The New York Post reported that Judge Jeffrey Spinner wiped out the $525,000 debt that the couple owed to OneWest Bank. Kieran Crowley, from the New York Post reported Mr. […]
COLLECTORS – Get your demand letters reviewed before they turn into big problems
I have had the displeasure of suing a collection agent and agency that I had done work for a number of years ago. Why? The agency (which is owned by the agent) sent out a bad check demand letter to client that did not contain all of the requirements of MCL 600.2952. This statute requires […]
FTC takes aim at lawyers and law firms with its new “Red Flag” rules
On May 11, 2009, I wrote a blog post about the FTC’s new Red Flag rules. These rules require prospective lenders to develop policies and procedures to identify identity theft. Sounds like a good idea, right? Sure…right up until the FTC said that these Red Flag Rules apply to lawyers and law firms as well. […]
FTC renders an advisory opinion as to what happens when the FDCPA runs afoul of the FCRA
The Federal Fair Trade Commission just issued an advisory opinion to the American Collectors Association. In that opinion, the FTC answered the question, what is a collector supposed to do when a debtor sends in a cease and desist communication letter to a collector while, at the same time, disputing an item on his credit […]
FTC “Red Flag” rules may apply to YOU….
Since January 1, 2008, the Federal Trade Commission Red Flag Rules has required businesses to establish policies and procedures for identifying identity theft. These rules require 4 things: 1. That business have reasonable policies and procedures in place to identify the red flags of i.d. theft; 2. the business must have a program designed that […]
There may be a private cause of action against a Furnisher for failing to flag a debt as disputed by the Consumer.
Red Orbit report on the case of Saunders v. Branch Banking and Trust Co. of Virginia, No. 07-1108 (decided May 14, 2008) (Judges Michael, MOTZ, & Keeley (sitting by designation), as follows: FACTS: On August 31, 2003, Rex Saunders purchased an automobile from Richmond Mitsubishi, and the dealer assigned his loan for the car to […]
“Effectively conveyed notices” and other fairy tales
Wow. The U.S. Court of Appeals either cut a break to the Defendant in Federal Home Loan Mortgage Corp v Lamar or it is signaling a new direction in the enforcement of the Fair Debt Collection Practices Act, against the consumer (“FDCPA“). In this case, Federal Home Loan foreclosed on the debtor’s mortgage through its […]
The 7th Circuit gives major clarification to collectors under the Fair Debt Collection Practices Act.
Many commentators believe that the Fair Debt Collection Practices Act creates more questions than it solved when it was passed into law. Kudos to the Seventh Circuit for taking a number of these issues in the case of Evory v RJM Acquistions Funding, LLC decided on October 23, 2007. Evroy is actually a number of […]