A lot happened in 2023 and it can be difficult to remember it all. Take this walk down memory lane …
January
Jan. 13: Disbarred Attorney Secretly Running Debt Resolution Firm, Not Paying Investors, Suit Alleges (link). Tony Diab had been disbarred in Nevada and California for ethics violations, but was secretly running The Litigation Practice Group, which represented consumers in lawsuits against debt collectors.
Jan. 25: Judge Awards $25k in Sanctions Against Collection Law Firm for Attempting to Collect on Discharged Debt (link)
February
Feb. 27: Supreme Court to Hear Arguments in CFPB Funding Case (link). We still don’t have a ruling on this case — one is expected in 2024 — but this is when the Supreme Court decided it needed to weigh in and determine whether the manner in which the CFPB is funded is constitutional or not.
March
March 10: Details About Visa’s New Rule for Collection Agencies and Repaying Debts (link). Remember the hubbub about this? For a while, people in the industry were concerned they weren’t going to be able to accept Visa cards as payment.
March 23: Second Circuit Rules CFPB Funding Structure is Constitutional in Affirming CID Against Collection Law Firm (link). This case has been going on so long, the defendant — a collection law firm — closed its doors and yet the CFPB is still prosecuting it. This ruling conflicted with the ruling from the Fifth Circuit and came after the Supreme Court announced it would hear arguments on the constitutionality question.
April
April 1: White House Announces Plan to Forgive All Medical Debts (link). Even on a Saturday, I proved I can still fool a lot of people. This year’s April Fool’s prank revolved around a fictional Executive Order from President Biden that purported to wipe away all medical debt.
April 13: CFPB Asks Judge in Lexington Law Case to Levy $3.1B in Fines and Redress (link). Noted debt settlement company Lexington Law was in hot water, facing an enforcement action from the Consumer Financial Protection Bureau. This was the beginning of the end for Lexington Law, when the CFPB said it intended to fine the company more than $3 billion.
May
May 2: Collector Facing Class-Action for Including State Disclosure That Purportedly Conflicts with FDCPA (link). Dealing with conflicts between state law and the Fair Debt Collection Practices Act is never easy, as one collection operation found out.
June
June 5: Parent Company of Lexington Law, CreditRepair.com Files for BK Protection (link). Having lost its court fight to prevent or lower a $3 billion fine, the owners of Lexington Law file for bankruptcy protection. The company would subsequently sell its assets and cease operations.
June 6: DFPI Fines Three Collection Operations $85k in Separate Enforcement Actions (link). Attempting to collect in the state of California without having or applying for a license landed three different collection operations in hot water with the state’s regulator.
July
July 6: Remembering: Joe Hawes (link). Joe Hawes from Professional Credit had passed away in late June at his vacation home in Mexico. The loss of the 58-year-old reverberated throughout the collection industry.
July 25: Dale Golden and His Team Unite with Martin Lyons Watts Morgan to Form Martin Golden Lyons Watts Morgan (link). Timed to coincide with ACA International’s annual convention, this announcement caught many in the industry by surprise.
August
August 8: PRA Group Falls to Net Loss in 2Q as Company Looks to Reduce Expenses (link)
August 30: Judge Rules Undated MVN ‘Creates Confusion’ for Least Sophisticated Consumer (link). While we are seeing more judges rule that undated Model Validation Notices are not violations of the Fair Debt Collection Practices Act, at least one judge said the lack of a date creates confusion for the least sophisticated consumer.
September
September 26: CFPB Announces Rulemaking to Remove Medical Debt From Credit Reports (link). For me, this is one of those “you remember where you were when you heard it” moments. I was driving to my son’s soccer game when I received the CFPB’s email announcing the rulemaking. Do you remember where you were?
October
October 4: Judge Grants MSJ for Defense, Sanctions Plaintiff in FDCPA Case (link). This is one of those “you need to read this” rulings because of all the juicy details that are in it.
October 23: Bills Introduced in House, Senate to Prohibit Medical Debt Credit Reporting (link). Not one to let the CFPB hog the medical debt credit reporting spotlight, bills were introduced in both house of Congress to amend the Fair Credit Reporting Act to prevent medical debts from being included on consumers’ credit reports.
November
November 6: Man Pleads Guilty to Making Death Threats to Collection Agency via Automated Chatbot (link). The headline pretty much sums it up — an individual, upset with the agency for attempting to collect on a debt, logged on to the agency’s website and had some choice words for the automated chatbot.
November 7: Appeals Court Reverses Ruling on FCRA Damages (link). Following other Appeals Courts, the Eleventh Circuit ruled that the FCRA does not require individuals demonstrate proof of actual damages in order to recover statutory damages.
December
December 15: Debt Collector to Shut Down Under Enforcement Order with CFPB (link
