Category Archives: Debt Collection

Revisions Coming to the FDCPA Validation Article . . .

by Jeff Sovern We need to make some revisions to our validation article discussion draft, in Part V A.1., beginning on page 27, and captioned "Did Respondents Understand that The Letter Said They Could Dispute the Validity of the Debt?" Consequently, please don't use that part of the article until the new version is on the web. […]

Spector & Baddour Study of Texas Debt Collection

Mary Spector of SMU and Ann Baddour of Texas Appleseed, Fair Financial Services Project, have written Collection Texas-Style: An Analysis of Consumer Collection Practices in and Out of the Courts, 67 Hastings Law Journal (2016).  Here's the abstract: As many as forty-four percent of Texans with credit files have non-mortgage debt in collection; this is more […]

Will the CFPB Also Release a Debt Collection Study on July 28?

by Jeff Sovern As we have previously noted, the CFPB has scheduled a July 28 debt collection field hearing, and could announce the beginning of the SBREFA process, leading to a rule-making, that day.  NCLC's April Kuehnhoff speculates that the Bureau will also release the results of its debt collection studies then.  The Bureau's arbitration study […]

When Is a Threat to Litigate Not a Threat to Litigate? Sometimes in a Debt Collection Letter

by Jeff Sovern Last week, I posted the abstract for our article, Are Validation Notices Valid? An Empirical Evaluation of Consumer Understanding of Debt Collection Validation Notices. In this post, I wanted to write about something that didn’t appear in the abstract: the extent to which respondents thought a collection letter said the collector would […]

CFPB Announces Debt Collection Field Hearing July 28; Sneak Peak at the New Rules?

Here.  The Bureau is likely to announce the Small Business Regulatory Fairness Enforcement Act (SBREFA) proceeding that day, which will entail giving some information about what its proposed debt collection rules are likely to look like.

Are Validation Notices Valid? An Empirical Evaluation of Consumer Understanding of Debt Collection Validation Notices

by Jeff Sovern My co-author, Kate Walton, and I have posted a draft of our new article, Are Validation Notices Valid? An Empirical Evaluation of Consumer Understanding of Debt Collection Validation Notices to SSRN.  We would love comments on this version.  Here's the abstract: A principal protection against the collection of consumer debts that are […]

CFPB Debt Collection Regs SBREFA Panel Reportedly Coming in August

InsideArm.com reports that it "has learned from multiple industry sources" that the CFPB will hold a Small Business Regulatory Fairness Enforcement Act (SBREFA) proceeding the week of August 22 in connection with the Bureau's forthcoming debt collection regulations.  The Bureau has to convene the SBREFA proceeding before proposing the new rules.  Just to give a sense […]

Peter Holland’s Powerful Piece: Current Trends in Consumer Junk Debt Buyer Litigation

Here.  In the Maryland Bar Journal.  And here is the abstract: This article examines current trends in debt buyer litigation, including a review of recent regulatory actions and the impact of debt buyer lawsuits on individual consumers and on small claims courts. The article calls for a ban on the sale of consumer junk debt […]