How often are debt collectors allowed to call

My firm's General Counsel, indefatigable in her mission, opens my eyes on a weekly basis to new and creative ways in which lawyers can be sued, lately in situations where the mistake is not an obvious one that allows you to think, "Sure, but that could never happen to me!" In that regard, heed the latest warning that hails from the Sixth Circuit and rings loudest in the ears of the real estate practitioners among us. The 6th Circuit's January 2013 decision in Glazer v. Chase Home Finance LLC (Case No. 10-3416) represents a significant expansion – or confirmation of the reach – of the application of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §1692 et seq. The FDCPA was enacted some 35 years ago with the objective of protecting consumers by eliminating abusive, deceptive and unfair debt collection practices by debt collectors. It generally applies to third party debt collectors, but has the potential to affect a much broader … [Read more...] about Attorneys Can Be Considered Debt Collectors Under Fair Debt Collection Practices Act (FDCPA)

For those tracking Fair Debt Collection Practices Act (“FDCPA”) litigation for financial institutions and loan servicers, an opinion recently issued by the Eleventh Circuit Court of Appeals provides new insight on the definition of ‘debt collector’ under 15 U.S.C. §§ 1692a(6).  Following Davidson v. Capital One Bank (USA), N.A., No. 14-14200 (August 21, 2015), a bank collecting on a debt acquired while it was in default does not categorically qualify the bank as a debt collector under the FDCPA. Under the FDCPA, 15 U.S.C. § 1692a defines a ‘debt collector’ as follows:(6) . . .  any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. . . .  The term does not include--(F) any person … [Read more...] about Eleventh Circuit Examines “Debt Collector” Under the FDCPA

The U.S. Supreme Court handed debt collectors a victory in its recent decision in Midland Funding LLC v. Aleida Johnson.The Court held debt collectors do not face liability under the Fair Debt Collection Practices Act (“FDCPA”) for filing a claim in bankruptcy seeking to recover a stale debt. The Court’s decision reversed the Eleventh Circuit Court of Appeals, which had ruled that the debt collector in the case could be held liable for attempting to collect a credit card debt in bankruptcy despite the fact that the debt was nearly 11 years old, and any state court actions to collect on the debt had become time-barred by a six-year statute of limitations. The Supreme Court’s decision resolves the circuit split created by the Eleventh Circuit’s decision, and provides a significant measure of protection to the debt buying industry, whose business model was placed at risk. The Supreme Court’s decision is significant because: 1) it clears up the … [Read more...] about Supreme Court Gives Debt Collectors Victory on Stale Debts

Often, the living have no obligation to pay the debts of dead relatives. But a growing legion of sympathetic debt collectors is seeking to persuade them to do so.With the help of today’s database technology, it’s relatively easy to determine when an estate is opened in any of the nation’s 3,000 probate courts, allowing bill collectors to file timely claims when estates have the money to pay them. But when that’s not an option, what one collection agency calls “empathic active listening” comes into play, reports the New York Times.“I am out of work now, to be honest with you, and money is very tight for us,” one man said recently, when told over the phone of a $280 credit card bill owed by his late mother-in-law. Nonetheless, he promised to $15 monthly on the debt, the newspaper reports.Strong-arm tactics aren’t exactly unheard of in debt collection matters, MarketWatch columnist Chuck Jaffe wrote a year ago.And, in a follow-up … [Read more...] about Debt Collectors Find the Dead Can Be More Lucrative Than the Living

The state attorney general has sued a New York attorney for fraud and violation of the federal Fair Debt Collection Practices Act, contending that John Nicolia sold his name for $141,000 for to a debt collector who used it to bolster its illegal collection tactics during 2008 and 2009.The collector, Eastern Asset Management, allegedly threatened consumers across the country with litigation that it apparently had no intention of filing as well as other sanctions, such as loss of a driver’s license, that it couldn’t enforce, according to Business First of Buffalo.The state-court complaint (PDF) filed by Attorney General Andrew Cuomo in Erie County seeks injunctive relief and a $5,000 penalty for each deceptive act.The article doesn’t include any comment from Nicolia and the Buffalo News says he couldn’t be reached for comment. Neither article includes any comment from Eastern Asset Management.The attorney general says Nicolia was paid $141,000 by the debt … [Read more...] about AG Cuomo Sues Lawyer for Fraud, Says He Sold His Name to Debt Collector for $141K