Tag Archives: Fair Debt Collection Practices Act

Bank of America sued over credit card debt

Customers who believe that they have been improperly sued by Bank of America (BoA) have filed a class action lawsuit against the financial institution. The suit alleges that BoA sued customers for unpaid credit card debt on debts that were securitized. These debts were sold, assigned, or transferred to a trust via credit card securitization, a financial move that resulted in BoA relinquishing its debt obligation.

Willard v. Bank of America, et. al was brought by G. Veronica Willard and was filed on March 15 in Pennsylvania’s Eastern District. The case alleges that BoA violated the Pennsylvania Fair Credit Extension Uniformity Act and the Fair Debt Collection Practices Act. It requests BoA pay punitive, actual, treble, and statutory damages along with injunctive and declaratory relief, attorney’s fees, the costs of suits, and other relief.

Read on.

APPEALS COURT RULES FORECLOSURES ARE “DEBT COLLECTION” UNDER FDCPA

The U.S. Court of Appeals for the Sixth Circuit Monday handed down an opinion that defined mortgageforeclosure actions as “debt collection” under the Fair Debt Collection Practices Act (FDCPA), reversing a lower court decision.

In Glazer v. Chase Home Finance, LLC, et. al., the appellate panel said that third parties initiatingforeclosure actions must comply with the provisions of the FDCPA.

The case was brought by plaintiff Glazer after he inherited a home that still had an outstanding and active mortgage serviced by Chase. After six missed payments, Chase engaged with law firm Reimer, Arnovitz, Chernek & Jeffrey Co., LPA (RACJ) to begin foreclosure proceedings.

In a complicated twist indicative of the time, Chase did not own the mortgage in question. In fact, the bank had not even originated it. The loan was owned by Fannie Mae and Chase had been assigned as the servicer from the originator. When RACJ moved to foreclose, it represented as owner of the loan Chase.

More here…

Link

Bill to Amend FDCPA for Attorneys Introduced in U.S. House

Bill to Amend FDCPA for Attorneys Introduced in U.S. House

In the week between Christmas and New Year’s Day, a bill was introduced in the U.S. House of Representatives that aims to amend the Fair Debt Collection Practices Act (FDCPA) to exclude attorneys from the definition of a debt collector “when taking certain actions.”

But due to the timing of the introduction, the bill will not be heard in the current Congress and will need to be re-introduced in the next session, due to begin Thursday.

North Carolina Republican Walter Jones, Jr. filed H.R.6706 — the Fair Debt Collection Practices Technical Correction Act of 2012 – on December 27, 2012. The bill’s stated purpose is “to amend the Fair Debt Collection Practices Act to preclude law firms and licensed attorneys from the definition of a debt collector when taking certain actions.”

Specifically, the bill would insert an additional exemption to the definition of “debt collector.” The new language is as follows:

…The term (debt collector) does not include –

(F) any law firm or licensed attorney–

(i) serving, filing, or conveying formal legal pleadings, discovery requests, or other documents pursuant to the applicable rules of civil procedure; or

(ii) communicating in, or at the direction of, a court of law or in depositions or settlement conferences, in connection with a pending legal action to collect a debt on behalf of a client; and…

The new language is to be added to the section of the FDCPA that already exempts creditors, government employees, and others.

Interesting. This new language would affect this case:

SIKES v. MEL HARRIS & ASSOCIATES | NY Certifies Class Action – “Sewer Service” “RICO” “FDCPA” “Fraudulently obtain default judgments against more than 100,000″ http://shar.es/4y9b4