Following its recent “initiative” and request for information to reduce “exploitative junk fees,” the Consumer Financial Protection Bureau (“CFPB”) has on June 29, 2022 released an advisory opinion. The opinion concludes that “pay-to-pay fees,” which the debt collection industry refers to as “convenience fees” violate the Fair Debt Collection Practices Act (“FDCPA”)
Seventh Circuit Adopts CFPB Position On Time-Barred Debt, Creating Circuit Split
The push to restrict collection of old debts is gaining steam. On March 11, 2014, the Seventh Circuit reversed dismissals of two federal Fair Debt Collection Practices Act (FDCPA) claims that challenged dunning letters offering to “settle” debts that were subject to a statute of limitations defense. Although the court made clear that it is
Second Circuit Decision Underscores Risk Of Aggressive Settlement Class Notice Programs
Although defendants settle class actions to “buy peace” through class-wide releases, it is well-established that class releases will not be enforced in certain situations, such as when notice to the settlement class was constitutionally inadequate. In Hecht v. United Collection Bureau, 2012 U.S. App. LEXIS 17374 (2d Cir. Aug. 17, 2012), the Second Circuit