Judge Finds Standing for Single Letter but Dismisses FDCPA Suit as Time-Barred
- A District Court judge in Alabama has granted a defendant’s motion to dismiss claims it violated the Fair Debt Collection Practices Act when it sent a collection letter to the plaintiff, who was represented by an attorney at the time, on the grounds the statute of limitations had expired, denying the plaintiff’s attempt to argue that extraordinary circumstances were involved.
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The $165 Billion ‘Annoyance Economy’ and What It Means for Credit and Collections
- Americans are losing at least $165 billion each year to what a new report calls the “Annoyance Economy,” a system of junk fees, robocalls, subscription traps, and administrative friction that drains both time and money. According to the study by Groundwork Collaborative, families collectively lose billions to surprise charges, health insurance paperwork, phone scams, and endless customer service loops. For professionals in the credit and collection industry, the data underscores a broader trend: consumer frustration is measurable, growing, and increasingly tied to financial services interactions.
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Appeals Court Reverses FCRA Liability in Tenant Screening Case
- The Court of Appeals for the Second Circuit has reversed a ruling against a defendant that was found to have violated the Fair Credit Reporting Act, ruling the defendant did not place an “impossible condition” on the plaintiff to provide additional documentation that it requested. In a significant decision for companies operating in the tenant screening and background reporting space, the court held that the defendant did not violate the FCRA when it declined to accept a conservatorship certificate that was facially invalid and initially requested a power of attorney. The court also affirmed the dismissal of Fair Housing Act claims, concluding the screening platform did not proximately cause the denial of housing.
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Student Loan Delinquencies Surge to 25% as 9 Million Borrowers Enter Default: Report
- Student loan delinquencies have climbed to nearly 25% of borrowers with payments due, up from 9.2% in 2019, according to new analysis from The Century Foundation and Protect Borrowers. Nearly 9 million borrowers are now in default, and an estimated 7.9 million entered delinquency in the first three quarters of 2025 alone. Credit scores have dropped sharply as a result, with 2 million borrowers seeing their scores fall from near prime levels around 680 to roughly 580. Researchers warn that if borrowers exiting the SAVE Plan default at similar rates, total borrowers in distress could reach 17 million.
- More details here
Compliance Digest – March 2
- Insights from seven different experts — Stefanie Jackman, Jessica Klander, Rick Perr, David Schultz, Leslie Bender, Nabil Foster, and Xerxes Martin — on appeals court rulings dealing with AI-generated briefings and motions, a Hunstein case still circulating in the courts, and insights on a new coerced debt bill introduced in Maryland, among other important updates.
- More details here
- This series is sponsored by Frost Echols
WORTH NOTING: Why some people just love a good conspiracy theory … “Destination charges” are one reason why it’s costing more to buy cars these days … Members of Generation Z do not want fully remote work, according to a new poll … A lot of people like to go to bed earlier just to have more time to enjoy their morning cup of coffee … People calling the Washington Department of Licensing and pressing 2 for Spanish are getting a big surprise these days … If networking is awkward for you like it is for me, here are some tips to help make it work for you … What happens when you celebrate too early … There is a new leader among the most expensive ZIP codes in the United States.
Music Monday, part I
Music Monday, part II
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