KWA’s own Scott Paris presented two sessions at the National Business Institute’s 2014 Guide to Collection Law Seminar on May 5, 2014: The Telephone Consumer Protection Act Compliance; and Collecting Through the Bankruptcy Process. Written materials can be found here:
Collecting Through the Bankruptcy Process
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act to amend the United States Bankruptcy Code (the “Act”). The changes made to the Act were designed to make it theoretically more difficult for people to file Chapter 7 Liquidation bankruptcy, forcing more filers into reorganization (repayment) through a Chapter 13 bankruptcy. While these changes had the intended effect in the short term, the 2007 financial crisis threw a wrench in the gears of Congress’s intent in amending the Act. According to the U.S. Bankruptcy Courts, the number of filings consistently increased from 2006 through 2011, and by 2010 had reached pre-2005 amendment levels. Since 2011, filings have steadily decreased. This decrease is good for both the economy and the collections industry, but as collection attorneys, knowledge of the Bankruptcy Act and Rules is necessary for a successful practice. Read more
Telephone Consumer Protection Act Compliance
The Telephone Consumer Protection Act (“TCPA”) was passed in 1991, largely as a response to what Congress saw as an excess of unsolicited telemarketing and facsimile communications to residential, emergency and mobile telephone numbers. At its inception, the TCPA did not appear to be directed toward the regulation of debt collection phone calls where an existing commercial/consumer relationship existed. However, over the past 20 years the FCC and various Courts have applied the dictates of the TCPA to debt collectors, specifically those who call consumer debtor mobile phones. Read more
2014 Guide to Collection Law Seminar
KWA’s own Scott Paris will be presenting at the National Business Institute’s 2014 Guide to Collection Law Seminar. Scott will be conducting two sessions: The Telephone Consumer Protection Act Compliance; and Collecting Through the Bankruptcy Process. This seminar will be held on May 5, 2014 at the Holiday Inn Independence, Ohio. Information on registration and/or purchase of written materials can be found at:
Judicial conference increases amounts exempt from execution
Beginning in April 2010, and continuing every 3rd year, the judicial conference shall adjust amounts that are exempt from execution.[i] This adjustment is based on the consumer price index for all urban consumers or other comparable lists.[ii] The adjustments include, but are not limited to, exemptions for vehicles, jewelry, wages, and bank attachments. In 2013, this amount for bank attachments was adjusted from $425.00 to $450.00. Read more
Freddie Mac Updates SCRA and Other Servicing Requirements
On August 15, Freddie Mac issued Bulletin 2013-05, which, among other things, revises requirements relating to the SCRA and clarifies servicer responsibilities to effectively implement legal relief protections for borrowers in military service. Read more
House Bill Would Exempt Collection Attorneys Engaged in Litigation from the FDCPA
A bill that was recently introduced in the House of Representatives would exempt debt collection attorneys from the Fair Debt Collection Practices Act (FDCPA) “when taking certain actions.” The Bill, which was introduced by Rep. Ed Perlmutter (D-Colo.) and co-sponsored by Rep. Spencer Bachus (R-Ala.), is described as a technical fix that does not erode the consumer protections afforded by the FDCPA. Read more
To Leave a Voicemail, or Not to Leave a Voicemail: A Collection Industry Dilemna
Over the past five years, debt collection agencies and law firms have had to struggle with the question of whether or not to leave voicemail messages for debtors. The source of this quagmire, and its potential consequences, lay in the Federal Fair Debt Collection Practices Act (FDCPA), and its interpretation by Federal Courts since 2007. It should be noted at the outset that under federal law, communications from an original creditor does not fall under the rubric of the FDCPA. However, individual state laws may have their own requirements for communications from original creditors. This article only addresses voicemail messages left by collection agencies, law firms or third party collection entities on your behalf. Read more
Debt Collection & Technology: Using Email, Wireless Communications & Social Networking in the Collection of Debts
Congress enacted the Fair Debt Collections Practices Act (“FDCPA”) on September 20, 1977 to protect consumers by eliminating abusive debt collection practices. At that time, the only modes of communication in debt collection were land-line telephones and U.S. Mail (now known as “snail mail”). Steve Jobs had just invented the first Apple I personal computer, the first cellular network had not yet been installed in the United States and Mark Zuckerberg (the “co-founder” of Facebook) was not yet born. For those of you familiar with the text and application of the FDCPA, it is painfully clear that Congress did not anticipate the emergence of new technologies utilized in the consumer collection of debts. Case law addressing the use of voicemail messages confirms this conclusion. Read more
Ohio State Spotlight Webinar FDCPA Update
Sometime in June 2012, the Sixth Circuit Court of Appeals decided that a law firm could be liable, under the Fair Debt Collection Practices Act (“FDCPA”), for stating the wrong identity of the mortgage owner in a foreclosure complaint. In effect, the Sixth Circuit held that a pre-assignment foreclosure filing could violate the FDCPA. Read more