Suit Accuses Collector of Attempting to Recover Zeroed Out Home Improvement Loan
- As has been written about many times over the years on this site, the Fair Debt Collection Practices Act is a strict liability statute that holds collectors responsible, even if they did nothing more than rely on the information that was provided to them by their client. A collection operation is facing claims it violated the FDCPA by attempting to collect a debt from a consumer for a home improvement loan where none of the work was ever performed.
- More details here
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New Louisiana Bill Targets Medical Debt Collections With Strict Limits on Liens and Wage Garnishment
- A medical debt collection bill was introduced yesterday in the Louisiana Senate by a Republican which would place a number of restrictions on how medical debts could be collected in the state. The proposed legislation, titled the Louisiana Medical Debt Protection Act, would significantly alter how medical creditors and third party collectors operate by capping interest rates, limiting garnishment practices, and prohibiting certain enforcement actions tied to medically necessary care.
- More details here
Appeals Court Affirms No FDCPA Liability for Mortgage Communications Sent During Bankruptcy
- The Court of Appeals for the Fourth Circuit has affirmed a lower court’s ruling in in favor of a defendant in a Fair Debt Collection Practices Act case over documents sent to the plaintiff while he was in bankruptcy proceedings. The decision provides important clarity for servicers, collectors, and creditors navigating borrower communications during bankruptcy, particularly around what constitutes “debt collection” versus permissible informational outreach.
- More details here
Clickwrap Agreement Sends FCRA File-Mixing Claim to Arbitration
- A District Court judge in Pennsylvania has granted a defendant’s motion to compel arbitration in a Fair Credit Reporting Act case that accused the defendant of reporting inaccurate information about the plaintiff because it mixed his file with someone else’s. The decision reinforces how courts continue to treat online “clickwrap” agreements as binding, even when consumers claim they do not recall agreeing to them, and highlights the evidentiary standards companies can rely on when enforcing arbitration provisions.
- More details here
Senate Bill Targets Credit Repair ‘Jamming’ and Tightens Oversight of CROs
- A credit repair reform bill has been introduced in the Senate, that would, among other provisions, prohibit companies from “jamming” institutions with duplicative disputes while also requiring all CROs to register with a state regulator. The bipartisan Ending Scam Credit Repair Act (ESCRA), introduced by Sen. Chris Coons [D-Del.] and Sen. Lisa Murkowski [R-Ala.] signals a renewed push by lawmakers to address practices that banks, furnishers, and collection agencies have long argued create operational friction and undermine legitimate dispute resolution processes.
- More details here
Frost Echols Welcomes Karen Scheibe Eliason as Firm’s Newest Attorney
- Frost Echols is pleased to announce the addition of a Minnesota attorney with more than 25 years of experience in consumer financial services compliance and creditors’ rights litigation. Karen Scheibe Eliason is licensed to practice in Minnesota and the U.S. District Court for the District of Minnesota.
- More details here
WORTH NOTING: if you think gas is expensive here, you should see how much it costs in Hong Kong … What consumers want, and don’t want, from their banking chatbots … If you’re looking to cut back on your electricity bill, check on these devices … A teenager from Vermont has developed an AI tool to help prevent medical billing errors … You’re probably apologizing the wrong way. Here’s the right way to say sorry … Which fast food chain is home to the best value burger in America … Postpartum depression often shows up at work. Here is the right way to handle it … What looked like a harsh dressing down was actually a coach trying to inspire a player.
Trailer Tuesday, part I
Trailer Tuesday, part II
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