Fair Debt Collection Practices Act
On June 8, 2023, the Consumer Financial Protection Bureau (Bureau) issued an order against Phoenix Financial Services, LLC (Phoenix), an Indiana-based debt collector that collects primarily past-due medical debts and furnishes information about consumers to consumer reporting agencies (CRAs).
On December 15, 2023, the Bureau issued an order against Commonwealth Financial Systems, Inc. (Commonwealth), a Pennsylvania-based third-party debt collection company that collects past-due medical debts and furnishes information about consumers to consumer reporting agencies (CRAs).
The Fair Debt Collection Practices Act (FDCPA) is a federal consumer financial protection law that aims to protect consumers from a host of harmful debt-collection practices. As relevant here, the Act prohibits debt collectors from collecting any amount unless the amount is expressly authorized by the agreement that created the debt or permitted by law.
The Model Family Financial Protection Act (Rev. Nov. 2023) has two titles—the first deals with consumer contract and collection protections and the second with property exempt from creditors. Among other provisions, the first title limits terms that can be found in consumer form contracts, establishes verification and disclosure requirements for debt collectors, limits collector recording of calls with consumers, and restricts imprisonment for debt.
This is an amicus brief submitted by the CFPB and FTC in support of the plaintiffs in Glover v. Ocwen Loan Servicing, LLC before the Eleventh Circuit , filed February 27, 2024. The brief argues in support of an FDCPA § 1692f(1) violation where debt collectors charge a fee on top of the consumer's payment to the collector (pay-to-pay fees) since the fees are not authorized by contract or law. The FDCPA violation does not apply only to fees incidental to the debt.
This is a January 2, 2024, CFPB amicus brief before the First Circuit arguing that FDCPA Section 1692e’s prohibition on false, deceptive, or misleading representations is not limited to intentional or knowing representations.
This is a federal. interagency interpretation of FDCPA Regulation F, issued in December of 2022, interpreting the various provisions of CFPB Reg. F. It is found on the CFPB website at https://files.consumerfinance.gov/f/documents/cfpb_fair-debt-collection-practices-act-fdcpa-procedures_2022-12.pdf.
This CFPB Amicus Brief before the Seventh Circuit in Hopkins v. Collecto deals with whether a debt collector violate the FDCPA by accurately stating that the debt it is seeking to collect includes $0.00 in interest and collection fees, including when interest and collection fees are not currently accruing.
This CFPB amicus brief before the Seventh Circuit in DeGroot v. Client Services deals with two questions. 1. Does a debt collector violate the FDCPA by accurately itemizing the interest and fees that are included in a debt it is seeking to collect, including when the interest and fees are $0.00? 2. Does a debt collector violate the FDCPA by accurately disclosing as part of a time-limited settlement offer that interest will not be charged
while the collector services the consumer’s account?