Class Action Targets Debt Buyer Over Alleged False Chain of Title in Collection Suits
- A debt buyer is facing a class-action lawsuit in New Jersey federal court alleging it violated the Fair Debt Collection Practices Act by including the names of intermediary assignees in the chains of title when filing collection lawsuits against the plaintiffs, when, according to the complaint, the debts were sold directly to the defendant by the original creditors.
- More details here
New York Legislature Reopens Coerced Debt Debate With Expanded Consumer Protections
- A coerced debt collection bill has been introduced in the New York legislature that would expand and clarify how creditors, debt collectors, and collection agencies must respond when a consumer claims a debt was incurred through coercion. The proposal builds on legislation enacted in 2025 and seeks to refine definitions, timelines, and enforcement mechanisms related to claims of coerced debt, while also pushing back the effective date of the underlying law.
- More details here
Judge Says Student Loan Servicer Not Shielded by Sovereign Immunity
- A District Court judge in Florida has denied a defendant’s motion for judgment on the pleadings in a Fair Credit Reporting Act case on the grounds that the defendant is not subject to immunuty under the Eleventh Amendment of the Constitution.
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CFPB Complaint Does Not Equal Cease-and-Desist Under FDCPA, Court Says
- A Magistrate Court judge in California has recommended granting a defendant’s motion to dismiss claims it violated the Fair Debt Collection Practices Act by continuing to attempt to collect on a debt after the plaintiff had requested that the defendant stop its collection attempts on the grounds that the request was filed in the form of a complaint with the Consumer Financial Protection Bureau and not directly with the defendant.
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Nearly Half of New Yorkers Say a $1,000 Medical Bill Would Push Them Into Debt
- Nearly half of New Yorkers say they could not cover an unexpected $1,000 medical bill without going into debt, underscoring the continued strain medical costs place on household finances and the downstream implications for providers, payers, and revenue cycle operations. According to a January MetroPlusHealth Care Crunch Index survey, 46% of respondents reported they would need to borrow or incur debt to manage such an expense, while roughly one in three households said medical debt already affects their finances.
- More details here
WORTH NOTING: A debt reduction strategy that would likely not be recommended by Dave Ramsey … Why people believe misinformation even when they are told facts … Affirm is going to let consumers use its BNPL services to pay their rent … The secret to why you catch colds may be in your nose … How to overcome FOMO … A tactic used by players on the Los Angeles Rams to stay warm during their game in Chicago on Sunday raised a few eyebrows … Americans continue to drive less, which is causing ripples across other areas of the economy … The average time of day when people hit an energy slump is smack-dab in the middle of the work day.
Trailer Tuesday, part I
Trailer Tuesday, part II
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