debt collection

Jenn and Tony Bot

FCC Trying To Minimize Annoyances From New Robocall Debt Collection Loophole

Last fall, a rider to a must-pass federal budget bill kicked down the barricade that has prevented government debt collectors from annoying hundreds of millions of consumers with auto-dialed, pre-recorded robocalls. Lawmakers hate the bill, but they won’t consider any legislation to close the loophole. The White House’s own analysis of the loophole shows that it won’t really bring in any more money, and could actually be a revenue loser, but the administration isn’t doing anything to roll back the changes. Attorneys general hate it too, but they enforce laws instead of writing them. With an August deadline looming, the Federal Communications Commission has no choice but to move forward with making the loophole as palatable as possible. [More]

Rich

7 Things To Know About Why So Many Debt Collection Lawsuits Are Filed In Nebraska

When a debt collector decides to file a lawsuit against an alleged debtor, that decision might have more to do with where the defendant lives than with how much they allegedly owe.  [More]

(khrawlings)

Restricting Debt Collection Doesn’t Limit Credit Availability

While federal law already prohibits a wide range of unscrupulous debt-collection practices, some states have gone further, enacting laws and regulations to limit collectors’ ability to pursue repayment. The collections industry claims these restrictions hinder consumers’ access to credit, a new report says that just isn’t the case.  [More]

Rick Drew

Justice Department Advises Against Throwing Poor People In Jail For Not Paying Fines

While debtor prisons have long been outlawed, failure to pay a court-ordered fine or fee can get you locked up. But in a letter sent yesterday to state court administrators, the Department of Justice advises against using the penal system as a way to collect debts. [More]

(thisisbossi)

Student Loan Companies Tell Congress: Debt-Collection Robocalls Are In Borrowers’ Best Interest

Show me someone who supports robocalls, and I’ll show you someone that has very few friends. Which is why it’s baffling that the Senate has yet to act on a bill introduced last fall that would close a loophole allowing the government to make debt-collection robocalls. But you know who does support robocalls? The student loan companies that are currently trying to convince Congress that these invasive annoyances are really for our benefit. [More]

alexkerhead

Lawmakers Renew Push To Curb Unwanted Robocalls

In the last few days, legislators in both the House and Senate have once again pushed the issue of nuisance pre-recorded, auto-dialed robocalls back into the spotlight — urging telecom providers to give customers more tools for blocking these calls, and trying to roll back the government’s ability to abuse robocalls for its own debt-collection purposes. [More]

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

If you had a hunch that Citibank’s credit card division wasn’t terribly good at its job, you were right. Citi sold credit card debt to buyers with inflated interest rates, failed to tell those debt buyers when it accepted payments on these cards after the debt had been sold. [More]

25 Attorneys General Agree: Close Government’s Robocall Debt-Collection Loophole

25 Attorneys General Agree: Close Government’s Robocall Debt-Collection Loophole

Last fall, with a government shutdown looming, Congress passed an emergency spending bill that also included a lovely little loophole giving the federal government the authority to make obnoxious, pre-recorded and/or autodialed debt-collection robocalls. Some lawmakers quickly introduced legislation intended to correct that anti-consumer move, but it’s been stuck in committee since. This week, attorneys general from two dozen states and District of Columbia called on the Senate to finally consider this legislation. [More]

West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations

West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations

When you’re going through the often-tedious process of refinancing your mortgage, getting some bad information can only serve to make things worse. That’s why a West Virginia woman is suing Wells Fargo, alleging that the bank told her to stop making loan payments then put her into collections and foreclosure.
[More]

Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

Law Firm Must Pay $3.1M For Operating Automated Debt-Collection Lawsuit “Factory”

A Georgia-based law firm behind hundreds of thousands of debt-collection lawsuits, and its principal partners, have agreed to pay a total of $3.1 million in penalties to settle federal accusations that they were operating a lawsuit mill in violation of the law. [More]

Debt Collectors Can Sue You, But Court Might Not Let You Sue Debt Collector Back

Debt Collectors Can Sue You, But Court Might Not Let You Sue Debt Collector Back

A new report claims that a growing number of debt collectors are trying to exploit a legal loophole that allows them to bring potentially frivolous lawsuits against alleged debtors, but bars those defendants from bringing their own legal action against the debt collector. [More]

Lender EZCORP Must Pay $10M In Refunds, Fines For Illegal In-Person Debt Collection Practices

Lender EZCORP Must Pay $10M In Refunds, Fines For Illegal In-Person Debt Collection Practices

A small-dollar lender has been slammed with a top-dollar penalty by federal regulators who say that the company’s debt collection practices violated the law.  [More]

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Debt Collector Must Pay $2.5M In Refunds, Penalties For Illegally Collecting Consumers’ Old AT&T Debt

Federal regulators continued their fight against unscrupulous debt collectors today, ordering a Massachusetts organization to pay $2.5 million in refunds and penalties for illegally collecting unverified debt and providing inaccurate information to national credit reporting agencies.  [More]

(Luke Hornick)

Authorities Shut Down 5 Shady Debt Collectors, Secure $6.5M In Relief

The Federal Trade Commission teamed up with two states to put an end to five unscrupulous debt collection operations that illegally deceived millions of Americans. The actions, made under the “Operation Collection Protection” initiative between federal, state and local law enforcement authorities, represent $6.5 million in relief for millions of consumers.  [More]

Provision In Highway Funding Bill Would Require The IRS To Use Private Debt Collectors

Provision In Highway Funding Bill Would Require The IRS To Use Private Debt Collectors

While federal regulators continually work to crack down on private debt collectors that utilize unsavory, illegal tactics to make consumers pay up, government agencies often contract these entities to collect a variety of debts. That practice could continue if a provision in the Highway Trust Fund Bill receives approval.  [More]

JPMorgan To Pay $100M To Settle Unlawful Debt-Collection Allegations In California

JPMorgan To Pay $100M To Settle Unlawful Debt-Collection Allegations In California

Four months after JPMorgan Chase agreed to pay at least $136 million to close the books on state and federal investigations into its credit card collections practices, the company reached a $100 million settlement putting an end to a similar investigation in California.  [More]

See all those stars on this report from the Congressional Budget Office? Those indicate that the robocall clause in the bipartisan budget proposal will have no real effect on our government's finances.

Government’s Own Budget Analysis Shows That Allowing Debt Collection Robocalls Is Pointless

In response to the news that the bipartisan budget deal currently before Congress includes a loophole that would allow the federal government to make debt-collection robocalls, some might say “Well, if it helps the government get back some of the money it’s due, then maybe it’s a necessary evil.” But the government’s own analysis of the budget proposal currently shows this clause as having no measurable impact on our federal finances. [More]

Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers

Auto Lender Must Pay $3.28M In Refunds, Penalties For Illegal Debt Collection Tactics Against Servicemembers

Four months after federal regulators filed a lawsuit against an Ohio-based auto loan company over allegations it violated consumer protection laws – including those protecting servicemembers – in order to collect debts, Security National Automotive Acceptance Company (SNAAC) will pay $3.28 million in refunds and fines to resolve the case.  [More]