Class Action Lawsuit Alleges Violations of Pennsylvania, NJ Licensing Laws
- Two of the areas where collection areas are likely to make mistakes are around the licenses they need to operate in certain states and the statutes of limitations. A number of companies, including a creditor, a debt buying organization, a collection operation, and a collection law firm are facing a class-action lawsuit in New Jersey federal court accusing them of violating the Fair Debt Collection Practices Act and state law in Pennsylvania over how it attempted to collect on a deficiency balance after a vehicle was repossessed.
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Seventh Circuit Revives FDCPA Class Action Over Alleged ‘Artificial’ Acceleration Threat
- The Court of Appeals for the Seventh Circuit has reversed a lower court’s dismissal of a Fair Debt Collection Practices Act class-action lawsuit, ruling that the threat of accelerating the debt which induced the plaintiff to make a payment is sufficient for the plaintiff to have standing to sue. The panel also questioned whether the defendant, a mortgage servicer, could rely on the mortgage’s notice-and-cure provision without proving it was an assignee of the lender under Illinois law.
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Judge Allows FCRA Reverification Claim to Proceed While Dismissing Report Preparation Allegations
- A District Court judge in Alabama has partially granted a defendant’s motion to dismiss claims it violated the Fair Credit Reporting Act, but denied the motion on a claim over how it conducted its investigation after the plaintiff disputed the debt. The court’s opinion offers a detailed look at what consumers must allege to state a viable report preparation claim and also reinforces the statutory obligations that apply once a dispute is submitted.
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21 States Sue Trump Administration Over ‘Illegal’ Defunding of CFPB
- A coalition of nearly two dozen Democratic state attorneys general is asking a federal judge to force the Trump administration to keep the Consumer Financial Protection Bureau open, escalating the already-intense legal fight over whether the White House can effectively shut down the nation’s consumer finance watchdog by cutting off its funding.
- More details here
Ed. Dept. to Restart Wage Garnishments in January: Report
- The Trump administration will restart wage garnishments for federal student loan borrowers in default beginning the week of January 7, marking the first time since early in the pandemic that the federal government will withhold paychecks to recover unpaid student loan balances, according to a report in The Washington Post.
- More details here
WORTH NOTING: the governor of Arizona yesterday announced a plan to forgive $642 million in medical debt … The three things leaders must do differently in 2026 to reduce burnout and boost well-being … The governor of New York has vetoed a health information privacy measure … If you feel like you are stuck in a rut, here are some ways to appreciate your life again … At least one economist is predicting next year’s income tax refunds will be the biggest ever … If you want more money in your pocket, focus on your paycheck, not your portfolio … How to protect your privacy when using AI assistants … Which car models are losing their resale values the fastest?
Trailer Tuesday, part I
Trailer Tuesday, part II
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