Card Issuer Facing FCBA, TILA, FCRA Suit Over Allegedly Reversed Fraud Credits
- The issuer credited $13,300 in disputed online gambling charges, closed the account and mailed a new card. Then it took the credits back, citing merchant “evidence” that allegedly included KYC data with no city, state or street address. After months of form letters, the issuer finally wrote that the plaintiff was not responsible. She sued anyway. The complaint lays out why the paper trail may be the problem.
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Judge Rejects Discovery Rule for FDCPA Clock, Sends Card Claims to Arbitration
- A pro se plaintiff argued her FDCPA claims did not accrue until she researched the statute and realized the validation was deficient. A Tennessee federal judge said no: the clock starts when the violation occurs, not when the consumer figures out it was one. The judge also rejected the argument that the lender waived arbitration by suing in state court, noting the card agreement required it to do exactly that.
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Judge Won’t Let Nonparty Property Manager Skip Deposition in FCRA Case
- An apartment complex allegedly sent thousands of tenant accounts to collections by mistake, including two former tenants who left with a refund. The asset manager overseeing the complex said it had no records mentioning the plaintiffs and asked to be excused from a deposition. A Colorado magistrate judge found a hole in that argument, and the quote about the “raison d’être of the litigation process” is worth the read.
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Fed Beige Book: Households Lean on Credit Cards as Delinquencies Creep Higher
- Ten of 12 districts reported modest growth. The consumer credit picture is less tidy. New York saw delinquencies creep up across most loan types, Chicago lenders noticed more minimum payments, and Kansas City contacts said households were redirecting rent and utility money while taking on new debt as gas prices rose. Two districts reported improvement. See which ones, and what Atlanta banks are doing about underwriting.
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Regulator Alleges Debt Relief Company Collected $488k Without Settling a Single Debt
- Connecticut regulators say CDS Financial took in roughly 1,569 consumer payments in six months, charged a 25% fee against a 10% state cap, and deposited the money into a general operating account. Bank statements allegedly show $113,100 in American Express payments and $62,700 in transfers to a principal’s personal account. What they do not show is a single debt paid off.
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FCC Floats Consumer Scorecard to Grade Voice Providers on Illegal Robocalls
- The FCC wants to publicly grade carriers on how well they stop illegal robocalls. It is not a rulemaking and would not create new obligations, but the proposal includes a metric legitimate callers should watch closely: the false positive rate, or how often lawful calls get blocked by mistake. The commission is asking whether scores should be letter grades, numeric scales or risk tiers.
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Debra Ciskey Inducted into ACA International Hall of Fame – Honoring 46 Years of Industry Leadership
- Only the second woman ever inducted into the ACA International Hall of Fame, Debra Ciskey built a 46-year career training generations of collection professionals before online learning existed. ACA’s CEO, its current president and her colleagues at ARM Compliance Business Solutions weigh in on why she earned it, and one tribute starts with a shared taxi ride.
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OpenAI Releases GPT-6 Astra, Declares ‘AGI Era’ Has Arrived
- OpenAI’s president says the AGI era has arrived. Its CEO says AGI is a poorly defined term. Either way, the new model is built for computer use, including filling out forms and updating CRM records, and it is the first to hit OpenAI’s “critical” cybersecurity threshold, meaning it can find and exploit unknown vulnerabilities on its own. Enterprise access is off by default. Here is what the release includes.
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WORTH NOTING: A look at why both parties should be supporting reform of the Consumer Financial Protection Bureau … A preview of the new plays and musicals coming to Broadway this fall … Hundreds of colleges are offering acceptance letters to kids who didn’t even apply to their schools … Psychologist breaks down how we can use chatbots better … Where humor best fits into the CX experience … Your noise-canceling headphones can and can’t do … Some questions to help you decide whether you should buy something or not … The price for diesel has hit its highest point ever.
Funny Friday, part I
Funny Friday, part II
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