Tennessee Gov. Bill Lee on May 11 signed into law House Bill 1181, making Tennessee the eighth state to enact a comprehensive consumer data privacy law, following California, Virginia, Colorado, Utah, Connecticut, Iowa, and Indiana. The law will take effect July 1, 2024.

Privacy Program

Under the new law, controllers and processors must create, maintain, and comply with a written privacy program that reasonably conforms to the National Institute of Standards and Technology (NIST) Privacy Framework entitled “A Tool for Improving Privacy through Enterprise Risk Management Version 1.0,” and update the program as the Framework is revised.   

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Applicability

The Act applies to persons that conduct business in Tennessee or produce products or services that are targeted to residents of Tennessee and that:

1. During a calendar year, control, or process personal information of at least 100,000 consumers; or
2. Control or process personal information of at least 25,000 consumers and derive more than 50% of gross revenue from the sale of personal information.

Exemptions

Importantly, the Act exempts financial institutions and affiliates, or data subject to the Gramm-Leach-Bliley Act. Other exemptions include covered entities or business associates governed by the privacy, security, and breach notification rules issued pursuant to the Health Insurance Portability and Accountability Act, and the use of personal information to the extent the activity is regulated by and authorized under the Fair Credit Reporting Act.

Consumer Rights

Consumers are provided the right to:

1. Confirm whether a controller is processing the consumer’s personal information and to access the personal information;
2. Correct inaccuracies in the consumer’s personal information;
3. Delete personal information provided by or obtained about the consumer;
4. Obtain a copy of the consumer’s personal information that the consumer previously provided to the controller;
5. Request that a controller that sold personal information about the consumer, or disclosed the information for a business purpose, disclose the: (i) Categories of personal information the business sold; (ii) Categories of third parties to which the personal information was sold; (iii) Categories of personal information disclosed for a business purpose;
   
6. Opt out of the sale of personal information.

Sensitive Data

A controller may not process “sensitive data” without a consumer’s consent.

“Sensitive data” includes:

1. Personal information revealing racial or ethnic origin, religious beliefs, mental or physical health diagnosis, sexual orientation, or citizenship or immigration status;
2. The processing of genetic or biometric data for the purpose of uniquely identifying a natural person;
3. The personal information collected from a known child; or
4. Precise geolocation data.

Contract Requirements

A contract between a controller and a processor must clearly set forth instructions for processing data, the nature and purpose of processing, the type of data subject to processing, the duration of processing, the rights and obligations of both parties, and require that the processor:

1. Ensure that each person processing personal information is subject to a duty of confidentiality with respect to the data;
2. At the controller’s direction, delete or return all personal information to the controller as requested at the end of the provision of services, unless retention of the personal information is required by law;
3. Upon the reasonable request of the controller, make available to the controller all information in its possession necessary to demonstrate the processor’s compliance with the obligations in this part;
4. Allow, and cooperate with, reasonable assessments by the controller or the controller’s designated assessor;
5. Engage a subcontractor pursuant to a written contract in accordance that requires the subcontractor to meet the obligations of the processor with respect to the personal information.

Data Protection Assessments

A controller must conduct and document a data protection assessment if the processing involves

1. targeted advertising;
2. the sale of personal information;
3. certain profiling;
4. sensitive data;
5. activities involving personal information that present a heightened risk of harm to consumers.

Enforcement

The Attorney General has the exclusive authority to enforce the Act. Prior to taking any action, the Attorney General must provide a controller or processor 60 days to cure the violation. In the absence of a cure, civil penalties up to $15,000 may be sought for each violation.

Maurice Wutscher Impression

The Tennessee Act is similar to the other non-California data privacy laws recently enacted, though the requirement to have a privacy program based on the NIST Framework is unique.

The Framework was developed by a private-public collaboration that began in 2018, and “is a voluntary tool intended to help organizations identify and manage privacy risk so that they can build innovative products and services while protecting individuals’ privacy.”

For a chart comparing the state comprehensive data privacy acts, and more information and insight from Maurice Wutscher on data privacy and security laws and legislation, click here.

Nearly two years after the Supreme Court’s 2021 decision in Transunion v. Ramirez, courts and litigants continue to grapple with standing issues in Fair Debt Collection Practices Act (FDCPA) cases brought by plaintiffs alleging intangible harms to reputation and privacy interests. Prominent among these post-Ramirez FDCPA cases was Hunstein v. Preferred Collection & Management Services. (11th Cir. 2022), where the plaintiffs alleged a debt collector violated the FDCPA’s prohibition on debt collector communications with third parties, 15 U.S.C. 1692c(b), by disclosing their debts to a third-party letter-vendor who formulated and mailed collection letters. Citing to Ramirez, the Hunstein court differentiated between the limited disclosure to a private party alleged by the plaintiffs and the broad public dissemination actionable at common law. Because the former caused no concrete harm to the plaintiffs’ privacy interests, the Hunstein court dismissed the case for lack of standing.

While Hunstein remains the law of the land in the Eleventh Circuit, other courts have reached the opposite result. A recent opinion out of the Western District of Washington in the case of Jennings v. IQ Data International Inc. illustrates courts’ growing divergence on this issue.

The facts in Jennings were indistinguishable from those in Hunstein. The plaintiff alleged the defendant debt collector used a third-party letter vendor to transmit a collection letter, thereby disclosing plaintiff’s debt obligation to a third party in violation of § 1692c(b). Relying on Ramirez and Hunstein, the defendant moved for judgment on the pleadings, arguing that, despite the alleged purported violation, the plaintiff failed to allege any concrete harm stemming from its limited disclosure and, therefore, lacked Article III standing. The court disagreed. Though the plaintiff alleged no tangible injury stemming from the disclosure — e.g., physical or monetary harm — the court held that the alleged intangible injury to plaintiff’s privacy interest was sufficient for Article III purposes.

The court’s analysis began with a summary of Ramirez, which held that intangible injuries caused by statutory violations may be concrete if they bear a “close relationship” to claims traditionally actionable at common law. Though Ramirez requires a “close relationship,” it did not hold that an asserted intangible injury must be an “exact duplicate” of its common law antecedent. Applying these principles to the plaintiff’s claim, the court found her asserted injury was similar to the common law action for “publicity given to private life,” which imposed liability for a person’s publication of another’s private affairs that would be “highly offensive to a reasonable person” and “not of legitimate concern to the public.” To be actionable at common law, however, an aggrieved plaintiff was required to show publicity — i.e., “disclosure to the public or several people.” While the court acknowledged that the plaintiff’s complaint had not alleged publicity, it nonetheless found “the harm that both the common law tort . . . and § 1692c(b), seek to remedy is the same: it protects people’s privacy.” According to the court, the publication at common law and the defendant’s disclosure to its letter vendor caused the same type of harm, with any difference being simply “a matter of degree.”

In holding that the plaintiff had standing, the court acknowledged the Eleventh Circuit’s opposite holding in Hunstein. The court’s opinion, however, devoted little discussion to the reasoning underpinning that decision — observing instead that “[t]his out of circuit decision is not binding.”

Troutman’s Take:

The Jennings court gave short shrift to Hunstein. Nonetheless, its holding exemplifies courts’ diverging application of Ramirez‘s “close relationship” test to FDCPA claims alleging intangible injuries. With respect to letter-vendor claims specifically, the lack of uniformity on the standing issue will, at least for the time being, continue to pose a particular challenge to collections companies operating across multiple jurisdictions.

The ARM industry is complex, and it’s often difficult to keep up with industry-shaking cases, emerging technologies, and regulatory entities throwing the occasional wrench into the machinery. Despite the challenge, staying on top of the newest cases, laws, and trends is essential to succeeding in the current debt collection landscape.

That’s why we’ve compiled the must-know takeaways from the insideARM Legal Advisory Board’s (LAB) recent webinar “Arm Industry Legal Trends to Know Now” presented by the Consumer Relations Consortium (CRC).  In the April 27, 2023 webinar, LAB members Justin Penn of Hinshaw & Culbertson, Jim Schultz of Sessions, Israel & Shartle, and Jedd Bellman of Orrick, tackled the following topics: 

• Hunstein’s aftermath in state courts  and how it can benefit debt collectors;
• The dos and don’ts of texting, emailing, social media, chatbots, and AI in debt collection; and
• The future of debt collection under a more consumer-friendly Consumer Financial Protection Bureau (CFPB). 

You can watch the full webinar here, but read on for some of the main takeaways

With the caveat that nothing below should be considered legal advice, and you should always consult your own counsel for legal advice, here’s what Justin, Jim, and Jedd had to say:

The Aftermath of the Hunstein Case

In Justin’s view, while the Hunstein case turned the debt collection industry on its head for the better part of a year, the battle is not over, but it has shifted primarily from federal courts to state courts. The good news is FDCPA lawsuits fell 43% in the six months following the final Hunstein decision and state courts are not consumer attorneys’ preferred venue. 

In state court, consumer attorneys have to show up personally, oral arguments are more prevalent, and state court judges are more likely to make their own decision instead of following non-binding cases from other courts. Many consumer attorneys are trying to force debt collectors into arbitration rather than attempt to litigate their cases in state court.

Justin shared some of the successful tactics he’s seen in state court Hunstein cases including:

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• Using oral argument as an opportunity to make common sense arguments that may not translate well to written motions.  For example, asking whether telegraph companies are considered “third-party vendors” to highlight the absurdity of the Hunstein decision.

• Raising practical arguments about the effects of eliminating the use of third-party letter vendors. The cost of doing business for the big collectors is going to go up, and that cost will be passed along to the consumer. Smaller collectors couldn’t possibly survive without leveraging the help of third-party letter vendors.

Texting, Emails, Social Media, and Chatbots

Jim remarked that the use of digital communication and technology in debt collection has revolutionized the industry and created new collection strategies. However, it is essential for debt collectors to be aware of the legal implications of using these channels and recognize that laws and regulations have not yet caught up with this change.

Here are some things to keep in mind if you plan on implementing these strategies:

• To qualify for the Reg F Safe Harbor protection, you must obtain consumer consent for sending them an email or text, even though Reg F doesn’t explicitly require it otherwise.
• Make sure to include opt-out notices in your emails and monitor for bounce-backs to ensure delivery.
• Be aware that some state laws, like those in New York and Washington D.C., limit the ability to email consumers.
• Your text message should have a company name, an opt-out notice, and a debt collector disclosure.
• State monitoring laws may come into play with a chat function on your website if it is keeping a transcript of the conversation.

The CFPB’s Abusive Conduct Guidance & State Issues

Jedd‘s experience in government service for over a decade has given him some insight into the recent changes at the CFPB. The CFPB has increasingly emphasized outcomes over intent and is demanding that companies be accountable while minimizing the responsibilities of the consumer, using “abuse” as a vehicle for implementing these changes. However, the lack of guidelines as to what “abuse” means has led to a significant blur of the line. This lack of clarity may result in individual circumstances determining the outcome of cases.

Here are some things to keep in mind as we watch the CFPB moving forward:

• They see “dark patterns” as a trick by the industry and will look to eliminate those practices.
• The CFPB wants to prevent predetermined outcomes and may even consider a high default rate as evidence of an abusive practice.
• They believe servicers are driving outcomes that benefit them and want to prevent that from happening. 
• Many states are now including “abuse” in their debt collection laws
• CFPB has stated that a debt collector obscuring information and maximizing excessive profits is an “abuse of conduct” which could affect how the industry handles settlement negotiations with consumers.
• They are attempting to throw out the guardrails of “good faith and fair dealings” that comes with a contractual relationship between consumer and collector by moving towards a fiduciary relationship.

Compliance these days is like a game of whack-a-mole and it’s difficult to stay on top of everything. We thank Justin, Jim, and Jedd for sharing their insights with us.  

You can watch the full webinar here

* The Legal Advisory Board’s next “legal trends to know now webinar” will be 5/24 at 2pm EST.  You can check out the topics and presenters as well as register here.

For more info on the Legal Advisory Board click here.

For more info about the Consumer Relations Consortium, including how to apply for membership, click here and follow CRC on LinkedIn here. 

About the Consumer Relations Consortium 

The Consumer Relations Consortium (CRC) is a premier organization comprised of more than 60 national companies representing the diverse ecosystem of debt collection including creditors, data/technology providers and compliance-oriented debt collectors that are larger market participants. Established in 2013, CRC is evolving the debt collection paradigm by engaging stakeholders—including consumer advocates, Federal and State regulators, academic and industry thought leaders, creditors and debt collectors—and challenging them to move beyond talking points and focus on fashioning real-world solutions that actually improve the consumer experience. CRC’s collaborative and candid approach is unique in the market.  CRC is managed by The iA Institute.

About the Legal Advisory Board

The Legal Advisory Board(LAB) is an exclusive membership group of outside counsel with expertise in the accounts receivable industry who have each pledged their time and resources to support the mission of the CRC. The LAB is limited to ten law firms and is comprised of fourteen total attorneys. The 2023 members can be found here. Throughout the year, the LAB serves as a legal resource to the CRC membership and assists in fulfilling the mission of promoting forward-thinking approaches to the issues raised by regulatory policy and technology innovation in the accounts receivable industry.

When the CFPB introduced Reg F in late 2020, a lot of attention focused on the change in collector-debtor communication practices. A less discussed, but equally significant change is the increased oversight responsibilities creditors have when outsourcing collections. With the CFPB’s announcement about extending its supervisory authority to non-bank financial institutions, vendor management and auditing is increasingly becoming a priority for originators and lenders. As a result, for collection agencies, robust compliance management and reporting capabilities now represent a competitive advantage when marketing their services to creditors.  

For creditors and collectors alike,  Reg F oversight requirements create a new reality of shared compliance responsibility. In this post we discuss how servicers and creditors can better collaborate by using new tools that provide all parties with critical insights and generate the transparency and trust needed to succeed in a tightening regulatory climate. With the help of these tools, servicers can function as trusted compliance partners for creditors, instead of potential high-risk liabilities. They can also help growing ARM businesses minimize risk when contracting with 3rd parties.  

Easing the Oversight Burden

Reg F transforms the creditor-collection agency relationship equation by requiring close cooperation on compliance issues. But it also raises legitimate concerns about increased workload and financial burdens. For collections agencies, adding staff to extract data and compile reports might be near-impossible in times of declining ARM industry profits. Likewise, for creditors, the new oversight responsibilities also require increased documentation and audits that are resource-intensive.

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Advanced, AI-based compliance management platforms can ease the burden on all parties by automating many processes. In fact, they can transform the burden into benefit by providing insights and reports that are incisive and actionable as well as timely. They can help creditors and agencies develop more trusted relationships with their vendors, automate reporting, reduce risk and compliance management costs, and mitigate reputational and legal threats. 

The most valuable platforms cover the full operational spectrum, from monitoring, archiving and alerting through remediation, reporting and agent coaching. While many servicers have separate archiving, speech analytics, scoring or coaching systems in place, switching to an “all-in-one” solution can reduce risk of critical data being lost in transitions and eliminate manpower-intensive bridging of gaps between systems. They reduce the overhead involved in generating compliance health reports and provide 1st parties with the visibility they need into servicers’ operations and associated risks.  

What to look for in a compliance platform 

When selecting an end-to-end compliance management platform, make sure it comes with these 4 essential capabilities:

Comprehensive reports and audit trails 

New Reg F-mandated oversight responsibilities mean that vendor due diligence and regular audits will  be central elements of creditors’ compliance processes. In case of an external audit, seamless documentation of issue discovery, vendor communication, and remediation activity are a big plus. 

End-to-end compliance management platforms offer comprehensive activity documentation at a single access point. Servicers can easily provide creditors with the data they need, and enable them to track performance and improvements over time. Automated systems allow creditors and servicers alike to be audit-ready at all times, with violation and mitigation logs always current.

100% coverage

Traditional monitoring process sampling covers only a small percentage of interactions. Agencies and creditors may be unaware of misconduct that falls outside of the sample unless (or until) a complaint is filed or a regulator knocks on the door. 

Automated monitoring systems audit 100% of calls, providing a comprehensive picture of legal risks for collectors as well as for creditors. Multi-language capabilities represent an extra “bonus” since they can monitor and transcribe consumer interactions conducted in foreign languages such as Spanish or Chinese, and then automatically translate to English. 

Real-time risk monitoring

Traditional sampling and auditing methods not only fail to cover the entirety of consumer interactions, they also introduce substantial delays and gaps between the moment the violation has occurred and when it is detected and ultimately mitigated. Remediation is most effective when it’s provided immediately following the problematic event. If audit results are received only monthly – or even weekly – intensive monitoring and coaching will be likewise delayed, enabling poor practices to become further entrenched and exposing all parties to risk. By the time post-coaching performance is assessed, several weeks might have passed.

In contrast, AI-based, automated monitoring solutions flag violations as they occur, so that mitigation and agent coaching can be initiated immediately. With information regarding risks available as they emerge, stakeholders can act to protect themselves against costly litigation, potential fines and damage to their brands. Real-time monitoring and reporting can give creditors that “ear” to the ground that is usually not available when using 3rd party services.

Data privacy and security compliance 

Advanced platforms integrate data security and privacy guardrails to ensure full compliance with consumer data protection requirements. Features to look out for include automated PII redaction, out-of-the-box tools for data residency compliance, end-to-end encryption, SOC2, ISO 27001, and PCI compliance.

Looking ahead

Regulations and oversight responsibilities will continue to increase in the coming months and years. Investing in a plan and technology now, not later, will help your organization stay ahead of the curve. 

CINCINNATI, OH – Slovin & Associates, a Cincinnati-based law firm that provides clients with the personal, hands-on accessibility of a small law firm combined with the deep experience of industry veterans, is proud to support dozens of local artists through its new office. 

As Slovin began looking for ways to make its new office more engaging and inspiring, the team turned to local community artists to showcase their work. By displaying local artwork in the workplace, the team not only enhanced the office’s aesthetic appeal with interesting pieces that trigger conversations, inspiration, and positive community discussions but also supported those in the community working hard to make a living. 

“We didn’t want to go to TJ Maxx or Marshalls to buy corporate art to put in the office,” Slovin and Associates Partner Randy Slovin said during a Receivables Roundtable podcast with Receivables Info Founder Adam Parks. “We are going to work with emerging artists and display their work. We’ve acquired about a dozen pieces, and we want to have as many as 30 pieces of local art displayed in this office.” 

Supporting the Community

Slovin and Associates has long valued the impact its organization can make in the community. For decades, its founding partners have made donations to various charities, local hospitals, and other organizations looking to better the global community. Throughout the process of adding artwork to the office, Slovin has met with truly inspiring artists that will continue to make a difference both at the office and in the community. 

Slovin has commissioned additional artwork to fill the office and continues to support other local charities, including the New Life Furniture Bank, as they continue to look for ways to help wherever is needed. 

The New Life Furniture Bank

The New Life Furniture Bank partners with local social service agencies to provide full house furniture to families and individuals overcoming devastating circumstances, so they can start their new life with hope and dignity. At Slovin and Associates, the team realized the value of providing support to not only those afflicted by homelessness but also those who have found permanent housing and cannot afford to provide beds or supplies for their families. 

For Slovin’s 15th anniversary, the company participated in a program called Beds for Sleepy Heads to get kids off the floor and into a bed. Slovin helped purchase several truckloads of beds, nightstands, and lamps for children. The latest American Community Survey estimates that more than 89,000 kids in the Ohio, Indiana, and Kentucky areas are affected by child poverty, with many of them lacking a bed to sleep in. 

“Once they find housing, that’s not the end of it,” Slovin said. “We wanted to help them with something as simple as a bed.” 

Living With Change

Continuing with their support of at-risk children, Slovin and Associates supports their local Cincinnati Children’s Hospital whenever possible. Specifically, there is one program—Living With Change—that partner Randy Slovin holds close to his heart. The Living With Change center at the Cincinnati Children’s Hospital works to bring more resources, more professionals, and, ultimately, better outcomes for transgender youth and their families to the area. 

“That group of people are some of the most at-risk individuals in our society. We support that organization, and they do amazing work through the children’s hospital for education, psychiatrists, and helping the kids adjust at school,” Mr. Slovin said. 

Learn More Online

Slovin and Associates believes that supporting local communities is a vital part of its responsibility as a business. By investing in local charities, artists, and other community initiatives, the business helps to create a more vibrant and connected community. To learn more about what they do and how they help clients, consumers, and their community, visit their website at https://sclpa.com/. 

About Slovin & Associates, Co., LPA

Slovin & Associates, Co., LPAaims to achieve the highest rating for creditor’s rights law firms in Ohio, Kentucky, and Indiana by obtaining expeditious and cost-efficient results in a professional and low-maintenance environment for our clients in the fields of collections, commercial and consumer litigation, bankruptcy, leasing and landlord-tenant law, and Fair Debt consulting.

On May 8, the Maryland governor signed HB 686 to eliminate a requirement that collection agencies and certain non-depository financial institutions must maintain separate licenses for branch locations. The Act now allows such entities to conduct business at multiple licensed locations under a single license. 

The Act also amends and clarifies other provisions relating to application requirements, licensee information listed in the Nationwide Multi-State Licensing System and Registry, requirements when using trade names, examinations, Commissioner of Financial Regulation assessments, and surety bond requirements. The Act is effective July 1.

On May 4, the Colorado governor signed SB 23-093 to cap the interest rate on medical debt at three percent per year. The Act outlines numerous provisions, including that entities collecting on a medical debt must provide a consumer with a written copy of a payment plan within seven days for medical debt that is payable in four or more installments. 

The Act also outlines requirements for accelerating or declaring a payment plan longer operative, and lays out prohibited actions (such as collecting on a debt or reporting a debt to a consumer reporting agency within a certain timeframe) relating to medical debt that an entity knows, or reasonably should know, is under review or being appealed. An entity that files a legal action to collect a medical debt must provide to a consumer (upon written request) an itemized statement concerning the debt and must allow a consumer to dispute the debt’s validity after receiving the statement. 

Entities are prohibited from engaging in collection activities until the itemized statement is delivered. The Act outlines self-pay requirements and estimates, and further provides that it is a deceptive trade practice to violate outlined provisions relating to billing practices, surprise billing, and balance billing laws. The Act takes effect immediately and applies to contracts entered into after the effective date.

STERLING, Ill. — VeriFacts, a leading location and employment verification service provider, is proud to announce it is sponsoring the third annual Run for Brain Health on May 20. All proceeds from the run will be donated to the Sauk Valley Area National Alliance on Mental Illness (Nami), whose mission is dedicated to improving the quality of life for people with mental illness and their families through support, education, and advocacy. 

“This annual run was started by my best friend, Brenda,” VeriFacts’ Director of Business Development, Traci Oltmans, said. “Brenda works hard to bring awareness to mental health and end the stigma that follows. Countless others have joined in the cause. This third annual event is gearing up to be the biggest run yet. This event is near and dear to my heart, and I’m so happy the VeriFacts team is part of the event this year.” 

Run for Brain Health

For countless people suffering from anxiety, mental illness, and depression, running has become a stable form of focus and meditation. The annual Run for Brain Health event began as a way to focus both Brenda’s own anxiety and to fight for a good cause. Anyone is allowed to sign up for the event— running or walking the 5k race— and all proceeds from the event are dedicated to ending the stigma surrounding mental health.

To learn more about the race, or to donate toward this incredible cause, visit the Run for Brain Health webpage. 

Sauk Valley Area NAMI

The Sauk Valley Area NAMI is an organization that is dedicated to improving the quality of life for people with mental illness and their families. NAMI accomplishes this through education, support, and advocacy. With events held throughout the year and advocacy efforts in full force nationwide around the clock, NAMI works closely with families, consumers, professionals, veterans, students, and dozens of other affected individuals.

For those seeking help, NAMI even offers a helpline and referral service that can help those in desperate need of care. To reach the NAMI team, call (800) 950-NAMI. 

A Culture for Change

VeriFacts is a company firmly rooted within its community and takes great responsibility and commitment to giving back. VeriFacts is proud to have a team that works hard and also plays hard. Team members actively donate their time, energy, and financial resources to both local and national charitable organizations including the Salvation Army, Alzheimer’s Association, YMCA at Camp Benson, the YWCA in Sauk Valley, and countless other charitable organizations. 

About VeriFacts

VeriFacts, LLC is the top employment location and verification service for the receivables management industry. Having been in business for over 30 years, they are committed to offering guaranteed customer location and employment verification services to creditors across the nation. The VeriFacts brand has become synonymous with high-quality service and a positive customer experience. Over the years, their services have expanded into residential location information, data verification, and unique data aggregation. VeriFacts is proud to be a Certified Women-Owned Business by the WBENC.

In Casillas v. Thunderbird Collections Specialists Incorporated, et al., the plaintiff sustained a work-related injury requiring medical treatment for which a worker’s compensation claim was filed. Under state law, an injured worker who receives a workers’ compensation award is not legally responsible for medical bills covered by the award. Unaware of this law, a collection agency began efforts to recover the plaintiff’s unpaid medical bills, including engaging a law firm to file a collection suit.

After the collection suit was dismissed for lack of service, the plaintiff filed an action in Arizona federal court against the collection agency and its law firm for violations of the Fair Debt Collection Practices Act, 15 § USC 1692 et seq. (FDCPA), alleging that the defendants’ representations that the plaintiff was responsible for his medical bills, including the filing of the lawsuit, were false, deceptive, and misleading.

The collection agency made an offer of judgment, which the plaintiff accepted. The law firm then moved for summary judgment, but rather than disputing the violation, argued, in part, that the plaintiff was precluded from recovering against the law firm because the case arose out of a single FDCPA violation, for which the plaintiff had already received the $1,000 maximum statutory damages available from the collection agency.

The court disagreed, noting that while the defendants’ actions related to the same debt, the collection agency’s liability went beyond violations of the FDCPA and therefore its conduct was distinct from that of the law firm. Surveying decisions by other district courts on the issue, the court further concluded that, even assuming that the defendants’ actions were not independent of each other, § 1692k(a) “provides for statutory damages in the amount of $1,000 per defendant-debt collector.”

TAMPA, Fla. — OneTouch Direct, a global business process outsourcing company, has announced the appointment of Yvonne Torrijos as Chief Client Officer (CCO) of OTD Americas, its newest company subsidiary. Yvonne is a recognized industry leader with significant experience building long term client partnerships, developing innovative marketing and sales strategies, and driving strong revenue growth.

In the newly created Chief Client Officer role, Yvonne is responsible for global client management, ensuring clients a consistently exceptional experience integrated across the company. She will oversee all communications, marketing, and client business development for OTD Americas, with a focus on building long term client partnerships in new business verticals and services. 

“Yvonne’s strategic vision and extensive experience make her an excellent addition to OTD Americas’ leadership team,” said Chris Reed, OneTouch Direct’s Executive Vice President. “Her expertise cultivating high profile client relationships will be invaluable to OTD Americas’ growth and expansion.”      

With more than 30 years’ experience, Yvonne is known as the Client Champion, applying a cohesive approach across marketing, sales, client support, project launch and operations to deliver an integrated end-to-end customer experience across the organization and supporting the client goal for success. She will leverage her industry expertise to build long-term, strategic client partnerships, accelerating company growth and expansion.

“It is a privilege to take on this role at an exciting time in OTD Americas growth,” said Yvonne. “I joined OTD Americas because I could see the great potential in the Company to deliver true, sustaining value for our client partners and look forward to working with Toby and the senior management team to help lead the company to its next level of strategic growth.” 

To learn more about OTD Americas, you can reach Yvonne at yvonne.torrijos@otdamericas.com.

About OTD Americas

OTD Americas, the nearshore subsidiary arm for OneTouch Direct, provides full service contact solutions from state of the art centers in Colombia, Mexico, Asia, and Eastern Europe with the ability to build to suit upon client demand. As a contact center outsourcing company, OTD Americas offers integrated omni-channel customer engagement for customer service, collections, back office support, and custom technology solutions designed to drive exceptional customer interactions and enhance our clients’ brands. Partnering with leading global brands representing clients in Banking and Financial Services, Consumer Auto, FinTech, Healthcare, Insurance, Media, Retail and e-commerce, Technology, Telecom, and Utilities industries, OTD Americas is focused on facilitating our clients’ strategic growth with Class A workplace, leveraging exceptional employee attrition rates, and ensuring brand protection in a competitive unique cost benefit structure. Our global delivery model offers flexible onshore, nearshore, offshore, and WAHA service options spanning the US, Mexico, Colombia, Asia, and Eastern Europe. 

About OneTouch Direct

OneTouch Direct, parent company for OTD Americas, is a US based business process outsourcing company delivering best-in-class customer experiences (CX) for some of the world’s largest and most loved brands. Rooted in our passion and deep expertise, OneTouch Direct creates unified brand experiences that break the rules and foster meaningful relationships. For over 20 years, our people-centric, data driven outsourcing solutions have powered better revenues and profitability across the full customer life cycle. For more information visit https://www.onetouchdirect.com/.