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Cases in Point: A Validation Notice FDCPA Fumble?

Ever think common courtesy would land you a lawsuit? An unpaid auto loan prompted a validation notice that included the phrase “We look forward to hearing from you.” The plaintiff claimed there was a violation of Sections 1692e and 1692g of the FDCPA. Here’s what you need to know.

  • According to the FDCPA, you cannot use false and deceptive means to collect a debt
  • By using the phrase “We look forward to hearing from you,” the plaintiff alleged the potential for misinterpretation
  • The letter also said “If you…” which the plaintiff claimed could have been interpreted as an invitation to verbally dispute the debt
  • It is required for a consumer to verbally dispute a debt in writing
  • As a result, the plaintiff argued the verbiage was misleading
  • The judge disagreed, stating that even the least sophisticated consumer could have gathered the contrary
  • She observed that the Defendant carefully relied on statutory language required by the FDCPA
  • The letter neither threatens nor encourages the consumer to challenge the validity of the debt

Looking for more information about validation notices? Check out Ferrulli v. BCA Financial Services and Ortiz v. Diversified Consultants, Inc. for more on what can and cannot be included in a notice. Looking for FDCPA compliance guidelines? Click here!

 

 

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Debt Collection 101: Episode 64 – Debt Collection Legal Advice And Best Practices

Debt Collection Legal Advice and Best Practices

Now more than ever debt collection law and compliance is something that agencies can’t ignore. In today’s episode, Alex and Spencer are joined by Monica Littman of Fineman, Krekstein & Harris where she shares debt collection legal advice and best practices to keep your firm legal savvy.

The Key Points

  • The first reason people file a lawsuit is they’re angry. They got a phone call they didn’t like. There’s something that they believe is impacting their credit report. They’re just unhappy.
  • The second reason that lawsuits get filed is when an attorney files a lawsuit and those are a little different. The consumer’s attorney may be looking for technical violations of the FDCPA. Looking at language in a letter or what was said on a telephone call.
  • collection agency should have their telephone scripts and letter templates reviewed by lawyers or compliance officers. They should always be aware that the attorneys are either listening to calls and also are looking at the letters when coming up with telephone scripts or letters.
  • When You Get served a lawsuit the best first step is call your lawyer. when you get served when a lawsuit, deadlines In court start ticking right away. It’s important that your lawyer gets them so you can calendar in those deadlines and evaluate your potential strategy.
  • To Navigate the debt collection legal field stay on top of it and know the different areas where there are different changes in the law. It’s been in the news lately that laws in California are very different than laws back here on the east coast so go speak with your lawyer to make sure that you’re doing everything should.

Looking for more educational information? Check out these Debt Collection 101 episodes covering Debt Collection Lawsuit: Overly Aggressive Tactics and TCPA Lawsuits and the Three Second Pause. Sharing is caring! If you like what you see, don’t forget to like, share and subscribe to Arbeit U for the latest in collections and small business!

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Debt Collection 101: Episode 56 – Fair Debt Collection Practices Act Regulations: Are Debt Buyers Debt Collectors?

Are Debt Buyers Subject Fair Debt Collection Practices Act Regulations?

Though a previous case went against debt buyers falling under Fair Debt Collection Practices Act regulations a new case might turn that ruling around. In today’s episode, we’ll be discussing the Tepper vs. Amos Financial case and what it means for debt buyer regulations.
Watch and Keep Reading!

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Debt Collection 101: Episode 22 – Skinner vs. LVNV Funding


What decides a business as acting as a debt collector?

Court decisions are very tricky. When you think one decision is going to be made, the evidence tends to point to another conclusion. The court case of Skinner vs. LVNV is one of those primary examples. We give you a brief rundown of this court case, and it’s proceedings. What decision was made? Does this court case impact the future of debt collection? Watch and Keep Reading!