Collector Facing FDCPA Suit Over Statement Made During Phone Call
- One question from a consumer, one answer from a collector, and now a federal lawsuit in Georgia. The consumer asked whether making payments toward her balance would show up on her credit report. The answer she says she received is now the basis for claims under four subsections of Section 1692e, along with an argument that the statement carried an implied threat about how long the account would stay on her file.
- More details here
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Judge Grants MTD in FDCPA Suit Over Two Letters Sent Same Day
- Two letters, mailed the same day, carrying different itemization dates, with the second one missing the validation language. The plaintiff said the mailing left her confused and misled, cost her time, and caused emotional harm. A Southern District of New York judge never reached whether any of it violated the statute, and the reason came down to where her theory of injury was borrowed from.
- More details here
Colorado Sues EarnIn, Calling Earned Wage Advances Illegal Payday Loans
- The state attorney general says the earned wage access provider made more than 3.1 million unlicensed loans to Colorado residents over roughly two and a half years, advancing about $300 million and collecting more than $16 million in tips and expedite fees. The complaint pegs the average APR at 387.69% and details the interface tactics EarnIn allegedly called “roadblocks” internally.
- More details here
Nevada Appeals Court Affirms Dismissal of ‘Payment in Full’ FCRA Suit Against Auto Lender
- A borrower sent his auto lender three checks of $660 each, wrote payment in full in the memo line against a $21,000 balance, and watched the lender deposit them and keep reporting. He sued for accord and satisfaction and negligent credit reporting. He walked away owing nearly $29,000 in the lender’s legal fees, and the panel had something pointed to say about furnisher liability on the way there.
- More details here
TransUnion: Debt Settlement Enrollees Saw Steeper Score Drops Than Bankruptcy Filers
- Consumers still current on their accounts when they entered third-party debt settlement saw median scores fall 96 points within a year of enrollment. Bankruptcy filers over a comparable window fell 20. More than half of enrollees were current when they signed up, enrollments grew 41% year over year, and the two years of borrowing behavior leading into enrollment tell their own story.
- More details here
State Appeals Court Affirms $29K Sanctions Award Against Law Firm
- A law firm suing in its own name refiled three claims a judge had already dismissed without leave to amend, including a Rosenthal Act count, then refused to withdraw them. On appeal it argued the sanctions motion was fatally defective because the served copy and the filed copy carried different hearing dates. The court not only disagreed, it broke with two published decisions from another California district.
- More details here
OpenAI, Anthropic, Google Lead 100+ Firms Warning of AI Cyberattack Surge
- More than 100 signatories, including Microsoft, Amazon Web Services, Visa, Mastercard, TransUnion, Capital One and Citi, put their names to a letter warning that AI-enabled attacks will grow more widespread and more sophisticated within months. Hospitals, water treatment plants and internet infrastructure are named as exposed, and the letter hands specific assignments to four separate groups, including one aimed squarely at buyers of technology.
- More details here
WORTH NOTING: Did you know that it costs 13 cents to make a nickel? … Consumers are slightly more confident about their financial outlooks, according to WalletHub … People are saving up their vacation days so they can binge “Grand Theft Auto VI” when it comes out in November … More employees are contributing to health savings accounts than in previous years … Where you live might have more of a bearing on whether AI is coming for your job … Experian is launching a credit cards app on ChatGPT … How Gen Z can generate passive income to help them plan for retirement … Winners of the iPhone photography awards.
Funny Friday, part I
Funny Friday, part II
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