Collector Facing FDCPA Class Action for Allegedly Parking Debt
- Debt parking is not a common claim made in lawsuits against collection operations these days. It’s so rare that I feel like I need to explain it because there are likely people in the industry who have never heard the term. A collection operation is facing a class-action lawsuit in Pennsylvania state court for allegedly violating Regulation F and the Fair Debt Collection Practices Act by reporting information about a consumer’s debt to the credit reporting agencies without first providing notification to the consumer about the debt.Making this complaint slightly less interesting is the absolute dearth of details about what happened.
- More details here
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Ed. Dept. to Restart Collections on Defaulted Student Loans
- The Department of Education announced yesterday that it will resume collections on federal student loans beginning on May 5, ending a five-year hiatus prompted by the COVID-19 pandemic. This move will affect approximately 5 million borrowers currently in default, with the department planning to begin wage garnishments and other collection measures in the coming months.
- More details here
Debt Negotiation Firm Faces Sanctions in Connecticut for Violating State Laws
- A debt negotiation operation, along with its president and affiliated entities, has been sanctioned by the Connecticut Department of Banking, which will see the operation repay consumers nearly $800,000 while also being barred from operating in the state. The action arises from a Consent Order involving Accelerated Debt Settlement Inc. (ADS), Financial Solutions Group LLC (FSG), and their president, Jeffrey A. Lakes.
- More details here
Arbitration Motion Granted in FDCPA Case Involving Major Restaurant Chain
- The world’s largest full-service restaurant company, which operates chains like The Olive Garden and LongHorn Steakhouse, has had its motion to compel arbitration in a Fair Debt Collection Practices Act suit granted by a federal judge in Washington state.
- More details here
WORTH NOTING: If you were to ask a bunch of people if they feel good about their finances right now, not many would say yes … The best self-care gifts you should buy for yourself … There are that many of you who watch videos with subtitles on? I’m stunned … More people across the country are turning to solar power … A lot of people are planning on staying put this summer as a way to spend less money … How to clear your mind if you want to spend time thinking about the big picture … Being nice to ChatGPT means OpenAI has to spend millions more than if you skip saying “please” and “thank you” … What the college graduates of 2025 are looking for in their new careers.
Trailer Tuesday, part I
Trailer Tuesday, part II
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