FCRA and FDCPA Claims Follow Alleged Post-Payment Reporting
- Credit reporting is not for the faint of heart. There are a lot of places where the process can get confusing and break down. A consumer has filed suit against a collection operation and the original creditor, accusing them of violating the Fair Credit Reporting Act and the Fair Debt Collection Practices Act after allegedly reporting a balance on a debt that had already been settled and then quickly verifying that balance during a dispute.The case, which has been removed to federal court, centers on what many in the industry will recognize as a high-risk moment: the intersection of settlement execution, furnishing timing, and dispute handling.
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Washington Supreme Court Extends Charity Care Notice Requirements to Collection Agencies
- The Washington Supreme Court has ruled that collection agencies pursuing hospital debt must provide notice of charity care, answering a certified question that could reshape how medical accounts are handled once they move beyond the provider. In a decision rooted in both statutory interpretation and public policy, the court held that the obligations tied to charity care do not disappear when a hospital assigns a debt to a third-party collector.
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ID Theft Claims Fall Short as Judge Backs Creditor’s Investigation Process
- A District Court judge in New York has sided with a creditor in a Fair Credit Reporting Act case, concluding that its investigation into an identity theft dispute was not only reasonable, but in several respects went beyond what the law requires. The ruling offers a detailed look at how far furnishers must go when evaluating disputes and where courts may draw the line when consumers fail to provide substantiating evidence.
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Ed. Dept. Finalizes Sweeping Student Loan Changes Impacting Repayment and Borrowing Limits
- The Department of Education has finalized a new rule that will reshape how borrowers take on debt and repay it, with major implications for default rates and collection activity. The changes, which take effect beginning July 1, introduce new borrowing limits, eliminate certain repayment options, and establish a new income-driven repayment framework, while also making targeted updates to the loan rehabilitation process.
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FDCPA Class-Action Lives On After Plaintiff’s Death as Court Allows Substitution
- You don’t often get to see or write about fatalities when it comes to debt collection, but a Magistrate Court judge in New Jersey has approved a request for the daughter of the plaintiff in a Fair Debt Collection Practices Act to replace her deceased mother as the plaintiff in a decade-long running case over a statute of limitations disclosure in a letter. The decision addresses a procedural question that could have ended the case entirely. Instead, the judge found that the claims survive and that the case can move forward through the plaintiff’s estate.
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InterProse Appoints Ron Totaro and Ray Peloso to Board of Directors as It Expands ACE Platform
- InterProse has appointed Ron Totaro and Ray Peloso to its Board of Directors, adding two seasoned executives in fintech, lending, and software as the company accelerates growth of its cloud-based debt recovery platform ACE following a strategic investment from Wingman Growth Partners earlier this year.
- More details here
WORTH NOTING: A lack of financial education leads a lot of consumers to regret decisions they make … How to do a background check on yourself … How American Express is using generative AI to augment customer service … A breakdown of the best frequent flyer programs of 2026 … Think before you flush: the things you shouldn’t be sending down your toilet … The Consumer Financial Protection Bureau has issued a new rule narrowing previous attempts at combatting discrimination in lending to small businesses … Ticket expert shares things to avoid when sending emails to Millennials … Nutrition experts share the five healthiest nuts you should be snacking on.
Funny Friday, part I
Funny Friday, part II
The Daily Digest is sponsored by TCN. Today, contact centers need to do more with less. TCN’s cloud-based predictive dialing tools and services help clients to leverage the most sophisticated inbound, outbound, and blended calling technologies available. TCN’s award-winning platform offers multiple features to assist in compliance while improving performance with no hardware, no monthly minimums, or maintenance fees. Call 866-745-1900 or visit tcn.com today.
