Collection Industry News

AUGUST 3, 2021

July 22, 2021), the Eastern District of Michigan granted summary judgment in favor of a debt collector, holding that it did not violate the Fair Debt Collections Practices Act (FDCPA) by failing to report that the plaintiff disputed the debt at issue. Source: site. In Burns v. Keybridge Med. Revenue Care , No. 2:20-cv-12732 (E.D.

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Troutman Sanders

NOVEMBER 16, 2021

The Act amends provisions of New York’s Civil Practice Law and Rules, commonly referred to as the CPLR, and the Judiciary Law to require original creditors and third-party debt collectors to include certain information and documents when filing and prosecuting debt collection actions.

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Credit Corp

FEBRUARY 23, 2024

It may be possible to settle zombie debt with your original creditor. When Judgments Revive Debts If a judge rules that the creditor can renew the debt, it could be collectible for years. First, contact the creditor that originally secured the judgment. How Does Zombie Debt Work?

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Troutman Sanders

SEPTEMBER 21, 2022

A recent federal district court opinion highlights the potential pitfalls associated with renewals of unsatisfied default judgments. serves as a reminder that judgment creditors must still tread carefully when seeking to collect on, or revive, judgments from yesteryear. The case, Sarah Pitera v. 2:22-cv-00255-TL (W.D.

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Troutman Sanders

JANUARY 12, 2023

The conduct provisions in the Stipulated Final Judgment and Order look substantially similar to those in the Hanna and Pressler cases previously entered into by the CFPB. Under the settlement agreement, the law firm agreed to obtain proper supporting documents before filing collection lawsuits and also to pay a $100,000 civil penalty.

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Credit Corp

JUNE 14, 2020

Zombie Debts and Judgments. If the original creditor went to court and obtained a judgment against you for a debt, the zombie debt cycle can be more complicated. First, judgments provide the creditor with the legal means to collect via actions such as wage garnishments or bank account liens.

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Collection Industry News

MARCH 23, 2021

If you notify this office in writing within THIRTY (30) days of receiving this notice that this debt, or any portion thereof, is disputed, this office will obtain verification of the debt, or a copy of a judgment against you, and mail you a copy of such verification or judgment. This timely appeal followed. Wilson , 225 F.3d

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Credit Corp

JUNE 3, 2021

The original creditor takes some actions to collect, sending you bills and statements. The creditor may turn your account over the collections, and a collections agency repeats the process. A hearing is held, and the matter is decided for or against the creditor. You are billed for the debt and fall behind.

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FFGN COLLECT NY

DECEMBER 12, 2023

The letter must detail the specific information you require, such as proof of agreement with the original creditor, a final account statement issued by the creditor, and a breakdown of the debt (due dates, interest rate, and principal amount). There are many ways to request debt verification, such as writing a request letter.

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Troutman Sanders

OCTOBER 17, 2023

The trial court granted summary judgment to the defendant on all claims finding that because the defendant was not a consumer lender it was not required to obtain the license at issue. Additionally, the appellate division found that the plaintiff had not suffered an ascertainable loss.

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Debt Collection Answers

MAY 18, 2023

They can request a default judgment from the court if they contact you and you fail to respond within 20 days. A default judgment enables DNF Associates, LLC to seize your bank account, garnish your wages, and take other damaging legal actions against you. DNF Associates initiates legal proceedings against numerous individuals.

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Troutman Sanders

OCTOBER 13, 2023

Immigration status may broadly overlap with or, in certain circumstances, serve as a proxy for [ ] protected characteristics [including race and national origin]. Creditors will be left to make their best judgments about whether their policies are permissible or “overbroad” and hope for the best.

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Collection Industry News

AUGUST 8, 2022

Section 1788.206 provides that, in an action initiated by a private education lender or private education loan collector, no default or other judgment may be entered against a defendant unless documents are submitted by the plaintiff to the court to establish the facts required to be alleged. There are additional rules for class actions.

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Debt Free Colorado

FEBRUARY 21, 2022

The Fair Debt Collection Practices Act (FDCPA) does not apply to original creditors or cover company obligations. The Colorado UCCC, in addition to the federal FDCPA, gives additional safeguards to original creditors, third-party debt collectors, and debt buyers.

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Collection Industry News

OCTOBER 12, 2020

Here’s some bedrock—debt collectors can call numbers supplied by the consumer to an original creditor as part of a credit transaction. Defendant moved for summary judgment and court granted. TCPAWorld is so topsy-turvey that it is good to level set and remind ourselves of some basics once in a while. Back to Amadasun.

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Troutman Sanders

OCTOBER 12, 2021

Because the sale of the car did not cover the full balance on the auto loan, Adams filed a lawsuit against Cheatham in state court to obtain a deficiency judgment on behalf of her client. The case began when Cheatham defaulted on a car loan and surrendered the vehicle, which was sold at auction. Cheatham was also awarded attorney’s fees. .

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Troutman Sanders

AUGUST 26, 2020

The defendant argued that it relied on information provided by the original creditor, based on which it should be entitled to the bona fide error (BFE) defense. The district court agreed and granted summary judgment to the defendant.

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Credit Corp

NOVEMBER 9, 2020

The name of the original creditor to whom the debt is owed. Sometimes, collectors may be allowed to make a claim if they have taken the consumer to court and received a court-approved judgment. ” Once your debt is transferred, you owe the money to the current company rather than the original creditor.

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Credit Management Company

AUGUST 9, 2022

A statement that if the consumer notifies the debt collector in writing within the 30-day period that the debt, or a portion of the debt, is disputed, the debt collector will obtain proof of the debt of a copy of the judgment against the consumer.

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Collection Industry News

NOVEMBER 2, 2020

(The court did not address whether or not the problematic envelope being inside another envelope has any impact on its decision, but that’s likely because they were reviewing a decision on a motion to dismiss rather than a motion for summary judgment.). Creditor ID Claims—A Mixed Bag. A judgment is a judgment.

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National Service Bureau

MAY 27, 2015

According to §809, “ If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, (..)

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Better Credit Blog

APRIL 3, 2022

In other words, when the original creditor has been unsuccessful in collecting on a debt, it will write off the debt as a loss. There’s a chance some details about your account got lost in the transfer from the original creditor. How Portfolio Recovery Associates Works. This is called a charge-off.

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Taurus Collect

NOVEMBER 15, 2023

As a debtor, you have the following rights: Right to Privacy: Debt collectors are not allowed to share information about your debts with anyone else except your attorney or the original creditor. The FOS can independently review your complaint and provide a judgment.

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Credit Corp

AUGUST 31, 2021

But they also know that most borrowers who are sued for old debts won’t show up in court, and the judge will issue a default judgment. If your debt is past the statute of limitations at this point, you can re-open the default judgment and ask the judge to vacate it because it is time-barred. The creditor closes your account.

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Consumer Financial Services Law

AUGUST 14, 2017

Section 1692g(a) requires that within five days of initial communication, the debt collector provide the consumer with a written notice which contains five pieces of information: (a) the amount of the debt; (b) the name of the creditor to whom the debt is owed; (c) a statement that unless the consumer, within thirty days after receipt of the notice, (..)

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Consumer Financial Services Law

JANUARY 22, 2021

Finally, if the validation notice is being sent electronically, a statement explaining the consumer can dispute the debt or request original creditor information electronically. The Rule additionally requires the following additional prompt: “I want you to send me the name and address of the original creditor.”

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Credit Corp

JUNE 14, 2023

Your creditor may sell your charged-off debt to a collection agency for pennies on the dollar. Pro tip: Even if a debt has been charged off, consider contacting the original creditor to negotiate a settlement. The collection agency may then attempt to collect the debt anew.

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Collection Industry News

JANUARY 29, 2021

The debt collector may select one of five reference dates as the itemization date: 1) the last statement date; 2) the charge-off date; 3) the last payment date; 4) the transaction date; or 5) the judgment date; and. Importantly, the final rule revises the definition of “consumer” to include both living and deceased consumers.

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Better Credit Blog

APRIL 1, 2022

Make sure to follow through, because credit agencies can turn a simple collection into a judgment, legally garnishing wages or your bank account, you will be required to pay the full debt as well as legal fees. If you can, try to settle with the original creditor. The credit bureaus have 30 days to investigate the dispute.

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Consumer Financial Services Law

MARCH 15, 2019

If you notify this office in writing within 30 days of receiving this notice, this office will obtain verification of the debt or a copy of a judgment and mail a copy of it to you. Thank you for your attention to this matter.

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BN Lawyers

JANUARY 14, 2019

The district court granted summary judgment, holding that Trott had ceased collection of the debt because Trott itself performed no more activity. Both the text of the FDCPA and the applicable case law make it clear that Section 1692g does not provide a grace period.

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The McHughes Law Firm

JULY 12, 2016

It’s important to remember that the unpaid debt has passed through the original creditor to a debt collection attorney. If you lose the lawsuit, or a default judgment is granted, your paychecks may be garnished and bank accounts seized.

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Better Credit Blog

APRIL 1, 2022

Write a letter to the original creditor or collection agency and ask them to remove the negative entry from your credit history as an act of goodwill. If disputing the negative entry doesn’t work because you couldn’t find errors, or because the credit bureaus fixed them, your next step should be asking for a goodwill adjustment.

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FDCPA Defense

NOVEMBER 11, 2014

Finally, the notice must contain “a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.” 1692g(a)(4). 1692g(a)(5). at § 1692g(a)(4), (5). at § 1692g(b).

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Debt RR

AUGUST 3, 2020

While the IRS doesn’t need court approval to garnish bank accounts, other creditors can file a lawsuit against businesses – and their owners, in some cases – to receive a judgment that requires payment in full. If the debtor doesn’t make arrangements with the court or creditor, the creditor can request a Writ of Garnishment.

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Consumer Financial Services Law

MAY 25, 2021

It does not mean that the consumer is entitled to a judgment for damages or will ultimately prevail. Carrying this further, the Rule expressly allows debt collectors to include a vendor’s mailing address if that is an address at which the debt collector accepts disputed and requests for original-creditor information.

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Debt RR

DECEMBER 13, 2019

Debts are often sold, so it may not be the original creditor filing the claim. In this case, the same judge will hear both claims at the same time and issue individual judgments for each. Debt attorneys can evaluate the information to determine legal defenses against the debt’s validity. Common legal defenses include: 1.

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