News & Analysis as of

Class Action Debt Buyers Fair Debt Collection Practices Act

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
Orrick, Herrington & Sutcliffe LLP

Illinois appeals court rejects arbitration in FDCPA class action

On August 27, an Illinois appellate court affirmed a trial court’s denial of a motion to compel arbitration in an FDCPA class action. The case involved a 2022 collection email about a charged-off account originally opened...more

Troutman Pepper Locke

Judge Dismisses FDCPA Case Alleging Violations Based on Undated Model Validation Notice

Troutman Pepper Locke on

On November 20, a judge for the Southern District of New York granted a motion to dismiss a Fair Debt Collection Practices Act (FDCPA) class-action holding that a simple lack of a date on a model validation notice did not...more

Troutman Pepper Locke

Citing Recent Precedent, Third Circuit Finds Plaintiff Lacks Standing Based on Informational Injury Doctrine in FDCPA Class Action

Troutman Pepper Locke on

On November 22, the Third Circuit Court of Appeals issued a decision finding that the plaintiff lacked Article III standing in a putative class action brought under the Fair Debt Collection Practices Act (FDCPA)....more

Troutman Pepper Locke

For Your Information: Third Circuit Rejects Article III Standing Based on Informational Injury Doctrine in FDCPA Class Action

Troutman Pepper Locke on

On October 12, the U.S. Court of Appeals for the Third Circuit issued a decision rejecting a district court’s finding that the so-called informational injury doctrine established Article III standing for the named plaintiff...more

Ballard Spahr LLP

Seventh Circuit rules $3.95 in postage spent by plaintiff to respond to second validation notice sufficient to establish FDCPA...

Ballard Spahr LLP on

The U.S. Court of Appeals for the Seventh Circuit has ruled that a plaintiff in a putative class action had standing to assert FDCPA claims against the purchaser of her debt and the purchaser’s servicer based on the $3.95 she...more

Holland & Knight LLP

Federal Court: Unlicensed Debt Buyer Violates FDCPA - Is Ruling in Harmony with the New Jersey Consumer Finance Licensing Act?

Holland & Knight LLP on

• The U.S. District Court for the District of New Jersey has denied a defendant's motion to dismiss a putative statewide class action complaint that alleged that the defendant violated Section e(10) of the federal Fair Debt...more

Ballard Spahr LLP

Parties seek preliminary approval of class action settlement in Madden case

Ballard Spahr LLP on

The parties in Madden v. Midland Funding, LLC. have filed a joint motion with the New York federal district court seeking preliminary approval of a class settlement....more

Hinshaw & Culbertson LLP

Hinshaw Obtains Major Win for Passive Debt Buyer Before Massachusetts Supreme Judicial Court

Hinshaw secured a major victory last week before the Massachusetts Supreme Judicial Court on behalf of passive debt buyers. At issue was whether LVNV Funding, LLC was operating as an unlicensed debt collector in...more

Ballard Spahr LLP

11th Circuit Holds That Entity Collecting Its Own Debt, Which It Acquired After Default, Is Not a “Debt Collector” Under the...

Ballard Spahr LLP on

The 11th Circuit Court of Appeals has affirmed its prior holding in Arencibia v. Mortgage Guaranty Insurance Corp. that an entity that acquires and collects debt on its own behalf does not qualify as a debt collector under...more

Davis Wright Tremaine LLP

Increased Risk for Buyers of Credit Card Loans

Third party debt buyers may face increased threat of state-law class action lawsuits after a recent Second Circuit ruling prohibiting such debt buyers from invoking federal preemption defenses under the National Bank Act to...more

Troutman Pepper

Valid at Inception Rule Shot Down by the Second Circuit

Troutman Pepper on

Marketplace lenders and investors that purchase interests in loans originated by banks should pay close attention as it could spawn a host of class action lawsuits if left standing. In a controversial opinion decided on...more

Carlton Fields

Second Circuit Affirms Certification of Consumer Debt Collection Class, Distinguishing Comcast v. Behrend

Carlton Fields on

These cases, on a consolidated appeal, involved three defendants: a company that purchased consumer debts, a debt collection law firm, and a process server. Plaintiffs had each been sued in various debt collection actions by...more

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