Collector Facing FDCPA Class Action Over Missing SOL Notice in MVN
- For those of you who have been around since before Regulation F went into effect, you might remember the days when there was much hand-wringing and consternation about a particular aspect of the Model Validation Notice: no, not the scissors, but the itemization date. Collectors had to choose from one of five different dates: the last statement date, the charge-off date, the last payment date, the transaction date, or the judgment date when itemizing a debt. The issue is that the notice didn’t require collectors to inform consumers which of those dates was being used. A collection operation is facing a Fair Debt Collection Practices Act class action because it allegedly failed to include a notice that a debt was time-barred because the itemization date that was used when the Model Validation Notice was sent to the plaintiff was allegedly outside of the window for a collection lawsuit to be filed.
- More details here
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Treasury’s Student Loan Takeover Comes With a Track Record, and It Isn’t Pretty
- A new Congressional Research Service report is raising questions about whether the Department of the Treasury is ready to take over servicing of the federal government’s defaulted student loan portfolio, a transfer that would more than quadruple the number of debtors handled by its Bureau of the Fiscal Service.
- More details here
Judge Keeps Student Loan Servicing Suit in Federal Court, Refuses to Dismiss Claims
- A District Court judge in California has denied a student loan servicer’s motion to dismiss claims that it violated the Rosenthal Fair Debt Collection Practices Act, the state’s Student Borrower Bill of Rights, and other consumer protection laws, while also denying the plaintiff’s motion to remand the case to state court.
- More details here
Senate Bill Would Force Financial Firms to Disclose AI Exposure
- Sen. Elizabeth Warren [D-Mass.] and Sen. Richard Blumenthal [D-Conn.] have introduced legislation that would require financial institutions to disclose their exposure to the artificial intelligence sector, a signal that the debt financing the AI buildout is now squarely on the radar of lawmakers worried about systemic risk.
- More details here
Judge Recommends Summary Judgment for Collector in TCPA, FDCPA Case Over Text Messages
- A defendant has won a recommendation of summary judgment in a lawsuit accusing it of violating the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act by texting a consumer about an unpaid medical debt and allegedly failing to send a validation notice.
- More details here
Consumers Brace for More Missed Payments as Financial Outlook Sours, Fed Survey Finds
- Consumers are growing more pessimistic about their ability to stay current on their debts, a warning sign for the accounts receivable management industry as the New York Fed’s May Survey of Consumer Expectations showed deterioration across nearly every measure of household financial health.
- More details here
Trump Administration Floats Insurer Loans to Cover Out-of-Pocket Medical Costs
- The federal government has a new suggestion for patients facing crushing out-of-pocket medical costs: borrow the money from their health insurance company, according to a report in yesterday’s New York Times. Tucked inside a 1,121-page final rule governing how the Affordable Care Act marketplace will operate next year, the Trump administration is encouraging insurers to consider offering loans to enrollees who face large bills before hitting their deductibles.
- More details here
USCB America Names Ralph Keith Senior Director, Business Development
- USCB America is thrilled to announce the appointment of Ralph Keith as Senior Director, Business Development.
- More details here
WORTH NOTING: A detailed breakdown of Virginia’s new consumer debt default judgments act … It’s likely that the people in your office who know the most about AI are the ones who are breaking the rules … How to manage kids’ screen time during the summer … Experian and Snapchat are bringing a financial education pilot program to social media … If you feel like you are overdue for a self-care reset, you are not alone … This might be the best site for teaching people all the different ways to tie your shoes … An economist has a theory that smartphones are the reason why women are having fewer babies … The airport “red zone” is a real thing and why it triggers anxiety for so many people.
Funny Friday, part I
Funny Friday, part II
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