Navigating Debt Collection and Credit Reporting Disputes – A Look at Hammoud v. J.J. Marshall & Associates

This case highlights the complexities of legal disputes involving debt collection and credit reporting and underscores the importance of providing detailed evidence and understanding specific legal standards when pursuing such claims.  A consumer visited her primary physician, who recommended a colonoscopy and introduced her to Dr. Siddiqui, a gastroenterologist. Before meeting Dr. Siddiqui, the consumer signed a form allowing Dr. Siddiqui’s office to bill her for services. Dr. Siddiqui claimed […]

FTC Takes Legal Action Against Student Loan Scam Under New Impersonation Rule 

In a significant move to protect consumers, the Federal Trade Commission (FTC) has taken action against a fraudulent student loan debt relief scheme that deceived people out of over $20.3 million. This marks the first case under the FTC’s new Impersonation Rule.  What Happened?  A federal court has temporarily stopped the fraudulent operation and frozen its assets. The FTC’s complaint states that the company involved falsely claimed to be affiliated […]

Vendor Termination Basics – Prepare Now 

The due diligence required to hire a collection agency can be exhaustive.  Site visits, reference checks, policy and procedure reviews, cyber reviews, testing and more – and that’s not even counting the contracting phase. The last thing anyone wants to think about is termination preparations!  But, the time to think about termination is at due diligence and contracting.  Most creditors include a termination clause in their contracts with agencies.  Most […]

Public Comments Invited – CFPB Proposes New Rule on Medical Debt Reporting 

The Consumer Financial Protection Bureau (CFPB) is inviting public input on a proposed amendment to Regulation V, which enforces the Fair Credit Reporting Act (FCRA). This amendment focuses on medical information in credit reports and aims to enhance consumer protection regarding medical debt.  Key Changes in the Proposed Rule  The CFPB is looking to eliminate a current regulatory exception that allows creditors to obtain or use medical debt information when […]

Why is Auto Deficiency Balance Collections A Challenge? 

If you have listened to collectors working on auto deficiency accounts, you will see that it is very challenging to encourage customers to pay. Part of the problem is that collectors often struggle to understand the loan process for charged-off or repossessed auto loans. The typical response is that it’s not about the vehicle; it’s about the loan taken from the finance company. This often ends the discussion about why […]

New Rule to Stop Unfair Payday Lending Practices Set to Take Effect in 2025 

Several years ago, the Consumer Financial Protection Bureau (CFPB) took a big step to protect consumers from unfair and abusive practices in the payday and installment lending industry. After a thorough review of the market, the CFPB discovered a troubling trend: lenders repeatedly attempting to withdraw money from consumers’ accounts even after the accounts were empty. One particularly shocking example revealed a lender making 11 failed withdrawal attempts in a […]

New Privacy Laws Coming to Montana, Oregon, and Texas in July 2024 

Starting in July 2024, new privacy laws will be enacted in Montana, Oregon, and Texas, providing significant consumer protections regarding personal data. These laws grant consumers the right to know what information is being collected about them, the right to be forgotten, and the right to know who is accessing their information.  “These laws basically give huge superpowers to state attorney generals to enforce them,” it was emphasized.  Here’s a […]

Empowering Consumers: CFPB’s Proposal to Reform Credit Reporting and Medical Debt 

In a notable move to ease the pressures of medical debt and protect consumers’ financial well-being, the Consumer Financial Protection Bureau (CFPB) has introduced a proposal. This proposal aims to update credit reporting practices by removing medical bills from most credit reports, enhancing privacy protections, improving credit scores and loan approvals, and curbing coercive debt collection tactics. The Need for Change  Medical bills have long been a challenge in the […]

New Rule to Improve Consumer Protection: Establishing a Public Registry of Nonbank Orders 

The Consumer Financial Protection Bureau (CFPB) has issued its final rule requiring nonbank entities, including debt collectors, to register with the bureau when they are subject to local, state, or federal court or agency enforcement actions.  Debt collection companies that bring in more than $10 million annually are considered a nonbank entity.  This substantial move to enhance consumer protection involves the creation and maintenance of a registry to collect information […]

FTC’s 2023 Report to CFPB: Key Highlights and Consumer Protections

The Federal Trade Commission (FTC) has recently submitted its annual report to the Consumer Financial Protection Bureau (CFPB), detailing its enforcement and related activities for 2023. This report covers the FTC’s efforts under the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA), reflecting the changes instituted by the Dodd-Frank Act.  Signed into law on July 21, 2010, the Dodd-Frank Act significantly […]