Appeals Court Affirms Dismissal of FCRA Lawsuit Over ‘In Collections’ Credit Reporting
- The Court of Appeals for the Third Circuit has affirmed the dismissal of a Fair Credit Reporting Act lawsuit accusing a credit reporting agency and debt buyer of inaccurately reporting a debt as “active and in collections” after a prior collection lawsuit had been dismissed with prejudice. The ruling is notable because the court stopped short of deciding whether legal disputes about the enforceability of a debt can create an actionable inaccuracy under the FCRA, but still found the plaintiff’s theory failed because the alleged legal issue was not “objectively and readily verifiable.”
- More details here
‘People Think Better in the Dark’: Utility Collection Comments Trigger State Investigation in New York
- A statewide investigation into utility collection practices is now underway in New York after comments made by employees from a utility provider at an industry collections conference sparked backlash from regulators, elected officials, and consumer advocates.
- More details here
S.C. Medical Billing Bill Moves Closer to Becoming Law
- A healthcare collection bill that would establish new patient billing requirements for healthcare facilities and place new restrictions on medical debt collection activity is progressing through the South Carolina legislature and appears to be on its way to becoming law.
- More details here
Judge Rules Plaintiff Failed to Plausibly Allege ID Theft in FCRA Case
- A District Court judge in New Jersey has granted a defendant’s motion to dismiss claims it violated the Fair Credit Reporting Act by not adequately investigating her claims that the debts in question ended up on her credit report because of identity theft.
- More details here
Judge Dismisses FDCPA Suit Over Threat to Withhold College Transcripts
- A federal judge in Missouri has dismissed a Fair Debt Collection Practices Act lawsuit accusing a collection agency of threatening to withhold the plaintiff’s college transcripts over unpaid tuition, finding the plaintiff failed to show the school was prohibited from taking that action under recently updated Department of Education regulations.
- More details here
Compliance Digest – May 11
- Check out this week’s Compliance Digest, featuring Jenna Williams on the importance of strict mail-processing timelines, Lauren Burnette on how phrases like “I reject to pay” are reshaping FDCPA cease communication litigation, and Dale Golden on the unusual procedural twists in a decade-old FDCPA class action revived after the plaintiff’s death. Rick Perr weighed in on the limits of the bona fide error defense, Brooke Conkle examined growing scrutiny around coverage attorneys in high-volume debt litigation, and Khari Griffin and Michael Poncin both highlighted courts reinforcing the requirement that FCRA disputes be submitted through consumer reporting agencies to trigger furnisher duties. Additional insights came from David Schultz on accurate late-payment reporting despite autopay mistakes, Brent Yarborough on mass-produced dispute letters and “suspicious mail” procedures, Mitch Williamson on bankruptcy omissions derailing FDCPA claims, Brendan Little on identity theft investigations that exceeded legal requirements, and Justin Penn on why signed documents and payment histories continue to undermine alleged vehicle purchase fraud claims
- More details here
- This series is sponsored by Frost Echols
WORTH NOTING: Buying a new house hasn’t been this cheap since 2021 … A new report ranks Minnesota’s hospitals as among the least charitable in the country … Why AI may be making your administrative burdens even worse … Workplace surveillance is getting an emotional upgrade … Those whispers you’re hearing around the office likely aren’t people talking about you … A handful of signs that you might be avoiding the opportunity to become wealthy … A look at credit card interest rates … Why you should think twice before throwing out that old tech.
Music Monday, part I
Music Monday, part II
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