News & Analysis as of

State and Local Government Debt Collection Financial Services Industry

Orrick, Herrington & Sutcliffe LLP

Oregon prohibits reporting medical debt to consumer reporting agencies

On June 23, the Oregon Legislature chaptered SB 605, enacting new restrictions on the reporting of medical debt to consumer reporting agencies. The law prohibits any person from reporting to a consumer reporting agency the...more

Troutman Pepper Locke

Illinois Passes Bill Prohibiting Collection of Coerced Debt

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On May 22, Illinois House Bill 3352 passed the Illinois legislature and now awaits Governor JB Pritzker’s signature. This bill amends the Illinois Collection Agency Act to provide an individual a way to avoid liability for a...more

Hinshaw & Culbertson - Consumer Crossroads

New York City Department of Consumer and Worker Protection Announced Another Delay to the Effective Date for its Final Rules...

In January 2025, the New York City Department of Consumer and Worker Protection (DCWP) issued a Notice of Change of Effective Date (Notice), further delaying the effective date for the final rules relating to debt collectors...more

Troutman Pepper Locke

NYC DCWP Further Delays Effective Date of Amended Debt Collection Rules

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In our previous post, we discussed the New York City Department of Consumer and Worker Protection’s (NYC DCWP) decision to delay the enforcement of the amended debt collection rules from December 1, 2024, to April 1, 2025....more

Alston & Bird

Consumer Finance State Roundup - July 2023

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The pace of legislative activity can make it hard to stay abreast of new laws.  The Consumer Finance State Roundup is intended to provide a brief overview of recently enacted measures of potential interest....more

Sheppard Mullin Richter & Hampton LLP

Massachusetts AG Settles Enforcement Action Against Auto Lender

On February 2, the Massachusetts Attorney General announced that her office entered into an assurance of discontinuance with an auto loan provider to settle allegations of certain illegal auto loan collection practices....more

Ballard Spahr LLP

New York enacts significant changes impacting debt collection lawsuits

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On November 8, 2021, New York Governor Hochul signed into law the “Consumer Credit Fairness Act” (S.153).  The Act contains a series of amendments to the New York Civil Practice Law and Rules that significantly impact debt...more

Bradley Arant Boult Cummings LLP

New York Adds ADA-Type Requirement and Teeth to Debt Collection Procedure Act

On October 8, the governor of New York signed Bill No. AO-2260A to assist borrowers who need accommodation for visual impairments. Bill No. AO-2260A is “an act to amend the general business law, in relation to requiring debt...more

Ballard Spahr LLP

NYC Department of Consumer Affairs Releases Glossary and Translations of Commonly Used Terms Just Before Expiration of Enforcement...

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The enforcement grace period for the New York City Department of Consumer Affairs’ (DCA) new debt collection rules, ended October 1, 2020....more

Hinshaw & Culbertson - Consumer Financial...

Consumer Law Hinsights – July 2020

Welcome to Consumer Law Hinsights?a monthly compilation of nationwide consumer protection cases of interest to financial services and accounts receivable management companies. This edition highlights our interactive COVID-19...more

Ballard Spahr LLP

Update on California bill to revamp Department of Business Oversight

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California Governor Newsom submitted his updated 2020-2021 budget proposal to the state legislature on May 14, 2020. The proposed budget amendments include substantial cuts to compensate for the anticipated impact to state...more

Ballard Spahr LLP

CFPB announces proposed consent order with companies alleged to have collected loans void under state law

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The CFPB announced that it has entered into a proposed consent order with Think Finance and six subsidiaries (collectively, the “Think Entities’) to settle the Bureau’s lawsuit filed in November 2017 that alleged the Think...more

Ballard Spahr LLP

CA and NY governors propose expansion of state consumer financial protection regimes

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The governors of California and New York have both proposed to expand the authority of their respective state’s consumer financial services regulator.  Both governors have framed their proposals as a response to what they...more

Ballard Spahr LLP

CA enacts law prohibiting postsecondary schools from withholding transcripts as debt collection tool

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On October 4, California Governor Gavin Newsom signed into law Assembly Bill 1313, which prohibits postsecondary schools from withholding transcripts as a debt collection tool.  The law is effective January 1, 2020. ...more

Ballard Spahr LLP

New requirements for collection of medical debt in Washington effective July 28

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Effective July 28, debt collectors licensed in Washington will be subject to new requirements when collecting medical debt. Substitute House Bill 1531, signed into law by Washington Governor Jay Inslee on April 30, amended...more

Ballard Spahr LLP

Texas amends debt collection law to add new requirements for debt buyers

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On June 14, 2019, Texas Governor Greg Abbott signed HB 996, which amends Chapter 392 of the Texas Finance Code dealing with debt collection.  The amendments are effective September 1, 2019. ...more

Lowndes

Collecting Smaller Debts Just Got Easier for Creditors Thanks to New Legislation

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Collecting smaller debts may be getting easier. On May 24, 2019, Governor DeSantis signed HB 337 which increased the jurisdictional limits of the county courts. Presently, county courts handle lawsuits for up to $15,000 while...more

Ballard Spahr LLP

Have the rules for third-party debt collectors changed in Massachusetts?

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It has been reported that, without announcement or warning, the regulations applicable to third-party debt collectors in Massachusetts may have changed.  ...more

Ballard Spahr LLP

Washington State AG Sues Debt Buyers for Operating Without a License

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On September 21, 2018, the Attorney General for the State of Washington filed a lawsuit (see complaint) against several companies engaged in purchasing charged-off consumer debts, for operating as “collection agencies”...more

Ballard Spahr LLP

California Further Expands Protections to Servicemembers, Restricts Credit Reporting About Active Duty Status, Requires Written...

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On September 19, 2018, California enacted AB-3212. The Bill amends the California Military and Veterans Code to expand the protections offered to qualifying servicemembers under state law and to impose new criminal penalties...more

Troutman Pepper Locke

California Requires New Notices Before Attempting to Collect Time-Barred Debt

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On September 5, California Governor Jerry Brown signed a bill amending the state’s debt collection law to place additional restrictions on the collection of time-barred debts. ...more

Ballard Spahr LLP

The Maryland Financial Consumer Protection Act of 2018 significantly increases state regulation

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Noting, among other things, “retrenchment” on the federal level, the Maryland Financial Consumer Protection Act of 2018 (HB 1634) was signed into law on May 15, 2018. ...more

Ballard Spahr LLP

California Enacts Additional Limits on Collecting Time Barred Debts

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Beginning in 2019, all California “debt collectors”—including creditors collecting their own debts regularly and in the ordinary course of business—will be required to provide notice to debtors when collecting on debts that...more

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