Court Narrows FCRA Case Over COVID Forbearance Reporting, Dismisses Most Claims
- A District Court judge in Washington has largely granted a defendant’s motion to dismiss claims it violated the Fair Credit Reporting Act related to how it reported information about the plaintiff’s mortgage, which was in forbearance, during the COVID-19 pandemic. The ruling pares back a wide-ranging complaint that accused the defendant of improperly reporting mortgage delinquencies during and after pandemic-related forbearance periods, while allowing a narrow portion of the FCRA claims tied to earlier reporting activity to move forward.
- More details here
Misidentified Creditor in Bankruptcy Claim Not Enough for FDCPA Liability
- A District Court judge in Illinois has affirmed a bankruptcy court’s ruling in a Fair Debt Collection Practices Act case involving attorneys, a bankruptcy filing, and an unpaid sanctions award.
- More details here
What the End of Grad PLUS Means for Lenders, Servicers, and Student Loan Collections
- The Consumer Bankers Association has released a new white paper outlining how the student lending market will change as the federal Grad PLUS loan program is phased out, a shift that could reshape how graduate education is financed starting this July. The report analyzes how private lenders may step in to fill the gap, estimates that roughly 75% of borrowers who would have relied on Grad PLUS could still access private credit, and lays out policy recommendations aimed at improving transparency, underwriting, and borrower outcomes as the market transitions. For organizations that service, collect, or otherwise engage with borrowers carrying student loan debt, the paper offers an early look at how repayment dynamics and borrower profiles may evolve.
- More details here
FTC Shuts Down Credit Repair Scheme, Imposes Lifetime Bans and $48.6M Judgments
- The Federal Trade Commission yesterday announced a settlement that permanently bans the operators behind the Growth Cave enterprise from marketing or selling credit repair services or business opportunities, capping a case the agency says caused nearly $50 million in consumer harm. The orders impose lifetime industry bans, require the liquidation of high-value personal assets, and enter judgments totaling $48.6 million.
- More details here
39 Companies Seeking Collection Talent
- Which debt collection agency is looking for a new head of compliance? Which creditors are looking for collection directors? Which creditor is looking for a Chief Technology Officer? Get the answers to those questions and see nearly three dozen other job openings in this week’s job listings summary.
- More details here
WORTH NOTING: The housing market is in hibernation and home prices aren’t changing … Why lawmakers across the country are looking to cut back on property taxes … A look at the best hotel rewards programs … Healthcare systems are hiring chief AI officers. Here are the lessons they have learned so far … A four-question test to tell if you are overindulging your kids … Industry groups weigh in on a proposal to change mortgage credit score rules … UPS said it is cutting up to 30,000 jobs nationwide … “Cold call with me” is the latest TikTok trend
Wisdom Wednesday, part I
Wisdom Wednesday, part II
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