We are pleased to announce that Troutman Sanders attorney David Anthony will be hosting a Consumer Data Industry Association (CDIA) Webinar on October 16th at 2pm EST, titled “Navigating the Challenges in Today’s Litigation and Enforcement Environment.” David will be providing insight on litigation and enforcement trends throughout the consumer reporting industry. Discussion Topics include: Rethinking Article III Standing Requirements Investigating Recent Class Action Trends Analyzing the FCRA Ruling: Permissible Purposes & Independent Contractors Examining…

Showing its continuing regular focus on the background screening industry, on October 3, 2019, the Consumer Financial Protection Bureau (CFPB) published a report, entitled Market Snapshot: Background Screening Reports. The report highlights the increased demand for background screenings by employers as well as consumer challenges that may arise from their use given the vast array of data sources and consumer reporting agencies. The report follows an announcement by the Federal Trade Commission (FTC) and CFPB…

The Consumer Financial Protection Bureau filed a lawsuit in the United Stated District Court for the District of Maryland against FCO Holding, Inc. and its subsidiaries, as well as Michael E. Sobota, the chief executive officer and 100% owner of FCO Holding, Inc. The Maryland debt collector entities operate collectively under the name Fair Collections & Outsourcing (“FCO”). The CFPB alleges that FCO violated the Fair Credit Reporting Act, Regulation V, the Consumer Financial Protection…

One of the most ambitious (i.e., bad) arguments ever made by a defendant in a TCPA case was rejected by the Western District of New York in Gerrard v. Acara Sol. Inc., 1:18-cv-1041, 2019 U.S. Dist. LEXIS 108038, 2019 WL 2647758 (W.D.N.Y. June 27, 2019). Acara Solutions argued their text messages with job offers were not telemarketing in nature and therefore not subject to the TCPA. Acara Solutions tried to argue in its motion to dismiss…

A pro se plaintiff’s lawsuit brought pursuant to the Fair Debt Collection Practices Act was dismissed by the District of New Jersey for lack of standing in Kraft v. Phelan Hallinan Diamond & Jones, P.C., U.S. Dist. LEXIS 126323 (D. N.J. July 30, 2019). Plaintiff Warren R. Kraft inherited real estate from his deceased father who previously had taken out a mortgage on the property. The mortgage was in default, and when Phelan Hallinan pursued foreclosure,…

A new court decision raises important compliance issues for creditors who use an internal debt collection unit: whether separately naming the unit in a document also naming the creditor in its main business name can cause confusion, giving rise to a claim under the Fair Debt Collection Practices Act.  On September 4, a U.S. district court in Florida denied a hospital’s motion for summary judgment against a patient’s claims under the FDCPA where the communication…

On August 28, a district court judge in the Southern District of Indiana denied a defendant debt collector’s motion to dismiss under Rule 12(b)(6) for failure to state a claim. Plaintiff David F. Driver sued LJ Ross Associates, Inc. (“LJRA”), claiming that a collection letter violated the Fair Debt Collection Practices Act because it was misleading. The Court agreed with Driver and ruled that because the total interest added and charges/adjustments were listed as $0.00, “it…