Archives for May 2016

F. H. Cann & Associates Employee John MacDonald Receives Service Award

May 29, 2016 By admin Leave a Comment

John MacDonald, Director of Business Development & Client Services, for F. H. Cann & Associates, Inc. (FHC) receives the American Society of Public Administration award.

john-macdonald-distinguished-veteran-award The Massachusetts Chapter of the American Society of Public Administration recently held its annual meeting and awards night. The well-known organization gathered at the Harvard Club in Boston, Massachusetts, where it honored professionals in several categories one of which was Distinguished Veterans. The Distinguished Veteran’s award had several nominees including Congressman Seth Moulton and FHC’s John MacDonald.

MacDonald won the award for his volunteer service in many veterans’ causes and initiatives. John serves as a board member on the non-profit Veterans Assisting Veterans (VAV) which raises money for causes such as Track Wheel Chairs for combat veterans and established a program designed to help veteran first responders combating PTSD, through equine therapy.

john-macdonald-fhcann-award In addition, MacDonald helped create, and now serves as Vice Chairman on the Lowell Veterans Commission which is believed to be the first of its kind in Massachusetts. The Lowell Veteran’s Commission focuses on the broader issues of veteran’s homelessness, employment and healthcare services.

FHC is proud to have this distinguished veteran and veterans’ advocate amongst its ranks. Congratulations John MacDonald and thanks for your continued service!

F. H. Cann & Associates Employee John MacDonald Receives Service Award

http://www.insidearm.com/doing-it-right/f-h-cann-associates-employee-john-macdonald-receives-service-award/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Purple Heart Vet Receives ARM Charity Grant with Help from Long-Time Donor CAI

May 29, 2016 By admin Leave a Comment

COLLINGSWOOD, N.J. – In the news today, ARMing Heroes (www.armingheroes.org), the collection industry’s charity for military veterans, shared the story of Sergeant Ben Graham, a highly-decorated U.S. Army veteran who served as an active member of the Military Police, including time spent in Iraq in an imminent danger pay area. During his nearly six years of service, Sgt. Graham earned a Bronze Star, two Army Commendation Medals, the National Defense Service Medal, the Global War on Terrorism Expeditionary Medal, an Iraq Combat Medal, and several others. Unfortunately, Sgt. Graham was critically wounded in the line of duty, prompting his medical retirement from service. Ben was awarded a Purple Heart.

Sgt. Graham’s battle to right his finances, a battle he had to wage solely due to his service, would prove challenging after his separation from the Army. He returned home to his wife, Lori, facing permanent physical disabilities, unable to work. Lori had to leave her job as a school teacher to care for him full time. The couple used credit cards to help make ends meet while waiting for Ben’s disability compensation benefits. Resulting financial problems seemed impossible to overcome. He turned to ARMing Heroes for help in mid-2015, and had this to say upon hearing news of his grant award.

“My wife Lori and I would like to take thank all of the donors that allowed us to receive this much-needed grant from ARMing Heroes. When I was medically retired from the Army, my wife and I accrued some debt on a credit card while waiting for my government pay to change over. This grant will go directly towards that credit card debt, and I am happy to tell you that it will pay it off.”

Ben Graham

ARMing Heroes relies on the generosity of ARM industry companies across the country to make this grant program possible. One such firm, Credit Adjustment, Inc. (CAI) of Defiance, Ohio, has been a long-time supporter of the charity, and participated once again in the 2015 No Debts for Vets Charity Fundraising Drive. Centered around Veterans Day, the company fund drive was led by a committee of military veterans employed in each of the four company locations. Employees were given the opportunity to donate to the charity through voluntary payroll deductions or direct contributions. As an incentive, those who participated in the drive could wear red, white, and blue on Veterans Day to celebrate their efforts and show their support.

Director of Human Resources Amy Bains commented, “We’re proud to once again support ARMing Heroes, and we have encouraged all of our employees to show their appreciation for service members who struggle with their transition to civilian life. With so many veterans on staff, we recognize the importance of helping those who served, and supporting this charity is just one more way we can give back. We are honored to be part of such a noble cause and look forward to continuing this tradition in the future.”

With Memorial Day quickly approaching, the charity is encouraging interested parties to honor the holiday by considering how they would like to support this worthy cause. The 2016 grant application process is set to begin in July, but potential donors, as well as hopeful grant applicants, are already showing interest. Information on how to get involved can be found here.

Most grant applicants struggle with service-connected disabilities, unemployment, and delinquent debt, and have turned to ARMing Heroes to help get their lives back on track. These American heroes are all hoping for a grant to help fill the gap between income and expenses, for needs that are largely unmet by government programs or even by other military charities. Stories of past grant recipients remind us all how rewarding this program can be.

The charity’s flagship No Debts for Vets Charity Fundraising Drive runs from September 11^th through Veterans Day, November 11^th every year, however tax-deductible donations are accepted at any time online at www.armingheroes.org and via mail to PO Box 353, Collingswood, NJ 08108, payable to ARMing Heroes. Pledges may be made to info@armingheroes.org. Any amounts pledged or donated now will be applied to the 2016 drive.

About Credit Adjustments, Inc.

Credit Adjustments is a leading provider of collection solutions for higher education, healthcare, and consumer organizations nationally. The company has four locations across the country.

About ARMing Heroes

ARMing Heroes was founded and began operating in March, 2009. The organization’s mission is to serve the needs of U.S. military veterans, including their spouse and children. ARMing Heroes fills a charitable niche by linking people identified with employment, credit, and financial counseling needs with the accounts receivable management industry, an industry uniquely poised to help in these areas. Persons interested in volunteering their time and others interested in applying for benefits or pledging other forms of support are encouraged to contact the organization at www.armingheroes.org.

What Can I Do Right Now to Help?

Visit www.armingheroes.org and donate now.
Make ARMing Heroes your designated charity through the AmazonSmile program.
Like the ARMing Heroes page and post this article to your page on Facebook.
Tweet about this article on Twitter.
Join our group on LinkedIn, the ARMing Heroes Veterans Charity Supporter / Assistance Center.
Forward this article via email to your key contacts.
Print this article and fax it to your local congressional office and ask them to post our website on theirs as a resource for vets.

Purple Heart Vet Receives ARM Charity Grant with Help from Long-Time Donor CAI
http://www.insidearm.com/doing-it-right/purple-heart-vet-receives-arm-charity-grant-with-help-from-long-time-donor-cai/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Podcast: Do Consumers Need to Show “Concrete” Injury to Sue Debt Collectors?

May 29, 2016 By admin Leave a Comment

The Supreme Court decision in Spokeo v. Robins was expected to provide clarity to debt industry defendants facing FDCPA and related consumer lawsuits where the Plaintiffs’ allege no actual harm. Unfortunately, the case did little to specify exactly what type of “concrete” harm a consumer must allege to pursue a claim, but did provide some excellent language that can be used to refute consumer lawsuits where no actual harm is or could be alleged.

In this episode of the Debt Collection Drill podcast, attorneys John Rossman and Mike Poncin focus on the Supreme Court ruling in Spokeo and how it may (or may not) help in defeating the seemingly never ending FDCPA and related lawsuits alleging violations of the law where no consumer is harmed.

Download it here: http://traffic.libsyn.com/thedrill/TDCD_ep57.mp3

Podcast: Do Consumers Need to Show “Concrete” Injury to Sue Debt Collectors?
http://www.insidearm.com/daily/debt-collection-news/accounts-receivables-management/do-consumers-need-to-show-concrete-injury-to-sue-debt-collectors/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

How to Increase Productivity While Decreasing IT Costs

May 29, 2016 By admin Leave a Comment

Does IT play an integral role in your collections operations? If not, your company’s productivity is likely to suffer.

Intentional or not, the various departments within your organization may fall back on operating within functional silos. When that happens, redundancies occur that lead to weakened productivity. IT, in particular, must act as an integrated, company-wide solution.

IT departments must understand the full scope of how technology is used in the collections process. Once they have a better grasp of the collector’s technology needs, they often can provide a solution to improve processes and productivity.

Integrating IT and operations enables your company to strengthen the connections that lead to maximum productivity. Here’s how:

TRAINING

What happens on the collection floor doesn’t necessarily need to stay on the collection floor. Training opportunities across functions can provide IT resources with a more comprehensive understanding of the challenges faced daily by collections. That greater level of understanding can also help to encourage IT to critically assess common problems, and develop innovative solutions.

COLLABORATION

IT can provide the resources to allow functions to work together more effectively. Integrating collaborative resources for IT and Operational projects improves communication. When there’s more communication, outcomes typically improve.

OUTSIDE EXPERTISE

Augmenting your IT staff, even temporarily, with experts who possess both receivables management IT and Operations experience can jump start the process and achieve dramatic results in a short period of time. One key to success is to focus top talent on process improvement and out of daily, urgent tasks. Augmenting your team with external experts can enable the appropriate level of focus while still maintaining daily operations.

TECH LOCK, a RevSpring company, can help integrate IT and Operations to improve processes, productivity and your bottom line. Many of TECH LOCK’s IT experts have highly successful track records in receivables management operations and technology. For more information about how TECH LOCK’s Managed IT Services can help your organization’s bottom line, please email us at learnmore@revspringinc.com.

Integrating IT with your collections operations leads to improved operations and profits. And in this competitive environment, no organization can afford not to take advantage of every possible improvement strategy.

How to Increase Productivity While Decreasing IT Costs
http://www.insidearm.com/accelerate-revenue/how-to-increase-productivity-while-decreasing-it-costs/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

FTC Announces Suits Against Student Loan Debt Relief Scams

May 29, 2016 By admin Leave a Comment

Yesterday, the FTC and the State of Florida announced lawsuits against two student loan debt relief schemes — Consumer Assistance Project and Student Aid Center. The FTC also announced a settlement in a case they wrote about earlier this year.

According to the FTC, Consumer Assistance Project and Student Aid Center promised to get people’s loans forgiven or significantly reduced. Consumer Assistance targeted people online and over the phone, claiming it would get relief through government programs or by disputing loans. Student Aid Center used radio ads, text blasts, and featured ads in search results to promote “Obama Loan Forgiveness.”

But people who paid the companies didn’t get their loans forgiven or reduced. At best, the companies got people’s loans put into deferment or forbearance, where loan payments are postponed but the interest owed on them can keep growing. Student Aid Center made some situations worse by telling people to stop contacting their lenders and pay the company instead. People often ended up paying thousands, but didn’t get the promised relief.

Student loan forgiveness programs are available in very limited circumstances. You can apply for debt relief yourself; you don’t need to pay a company. The FTC has new education materials to help borrowers:

Student Loan Debt Relief explains how to spot a debt relief scheme, and what people struggling with student loans can do themselves.
Maria and Rafael Learn the Signs of a Debt Relief Scam tells the story of a couple trying to repay debt they accumulated for their daughter’s college education. It’s the latest in a series of graphic novels to raise awareness about scams targeting Latino communities.
This list shows every company and individual ever banned from providing debt relief and mortgage assistance relief services by an FTC order.

FTC Announces Suits Against Student Loan Debt Relief Scams
http://www.insidearm.com/ftc/ftc-announces-suits-against-student-loan-debt-relief-scams/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Eleventh Circuit Court of Appeals Determines that a “Debt Collector” filing a Bankruptcy Court Proof of Claim on a Time-Barred Account is an FDCPA Violation

May 29, 2016 By admin Leave a Comment

In an opinion issued yesterday in two consolidated cases, the Eleventh Circuit Court of Appeals determined that “a particular subset of creditors—debt collectors”—may be liable under the Fair Debt Collection Practices Act (FDCPA) for bankruptcy Proof of Claim filings on debt they know to be time-barred. Both cases were appeals from decisions from the United States District Court for the Southern District of Alabama.

The two cases are Johnson v. Midland Funding LLC (D.C. Docket No. 1:14-cv-00322-WS-Cand, Court of Appeals Case No. 15-11240) and Brock v. Resurgent Capital Services, L.P. (D.C. Docket No. 1:14-cv-00324-WS-M, Court of Appeals Case No. 15-14116). The Court of Appeals Opinion can be found here.

Factual Background

Aleida Johnson filed a Chapter 13 bankruptcy petition in March 2014. In May 2014, Midland Funding, LLC (“Midland”) filed a proof of claim in her case, seeking payment of $1,879.71. Midland is a buyer of unpaid debt. Midland’s claim against Ms. Johnson originated with Fingerhut Credit Advantage, and the date of the last transaction on her account was listed as May 2003. This was over ten years before Ms. Johnson filed for bankruptcy. The claim arose in Alabama, where the statute of limitations for a creditor to collect an overdue debt is six years.

Judy Brock also filed a Chapter 13 bankruptcy petition. Ms. Brock filed her petition in April 2014; in June 2014, Resurgent Capital Services, L.P. (“Resurgent”) filed a proof of claim seeking payment of $4,155.40. Resurgent is a “manager and servicer of domestic and international consumer debt portfolios for credit grantors and debt buyers.” Resurgent’s filing was an attempt to collect Ms. Brock’s debt on behalf of LVNV Funding, LLC, which is a purchaser of unpaid debt like Midland. Ms. Brock’s debt originated with Washington Mutual Bank, N.A., and the date of the last transaction on her account was January 2008. There had been no activity on her account for over six years before Ms. Brock filed for bankruptcy.

Ms. Johnson and Ms. Brock (together, “Plaintiffs”) sued their respective Creditors (Midland and Resurgent) under § 1692e of the FDCPA. That section of the FDCPA provides that “[a] debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.”

Both Plaintiffs alleged in their lawsuits that the claims on their face were barred by the relevant statute of limitations. They argued that the proofs of claim were thus “‘unfair,’ ‘unconscionable,’ ‘deceptive,’ and misleading” in violation of the FDCPA.

Midland moved to dismiss Ms. Johnson’s FDCPA suit, and the District Court granted the motion. The District Court read the Bankruptcy Code as “affirmatively authorizing a creditor to file a proof of claim—including one that is time-barred—if that creditor has a “right to payment” that has not been extinguished under applicable state law. The District Court identified tension between this provision of the Code and the FDCPA, which makes it unlawful to file a proof of claim known to be time-barred.” The court found this conflict to be irreconcilable and applied the doctrine of implied repeal to hold that a creditor’s right to file a time-barred claim under the Code precluded debtors from challenging that practice as a violation of the FDCPA in the Chapter 13 bankruptcy context.

In Ms. Brock’s later FDCPA suit, the District Court granted Resurgent’s motion for judgment on the pleadings based on the rationale and holding in Ms. Johnson’s case. The two cases were consolidated for this appeal.

In yesterday’s opinion the court returns to a similar case from July of 2014 that was also decided in the Eleventh Circuit (but different panel), Crawford v. LVNV Funding, LLC . insideARM published an article about this case on July 14, 2014. That story can be found here. In that case the Crawford court held that the filing of a Proof of Claim on time-barred debt was an FDCPA violation.

However, in a footnote in the Crawford decision, the panel said it “decline[d] to weigh in on a topic the district court artfully dodged: Whether the Code ‘preempts’ the FDCPA when creditors misbehave in bankruptcy.”

This case now answers the question left open in Crawford. In short, the court determined that the Bankruptcy Code does not preclude an FDCPA claim in the context of a Chapter 13 bankruptcy when a debt collector files a proof of claim it knows to be time-barred. The court stated: “We recognize that the Code allows creditors to file proofs of claim that appear on their face to be barred by the statute of limitations. However, when a particular type of creditor—a designated “debt collector” under the FDCPA—files a knowingly time-barred proof of claim in a debtor’s Chapter 13 bankruptcy, that debt collector will be vulnerable to a claim under the FDCPA. Our examination of these statutes leads us to conclude that the Code and the FDCPA can be read together in a coherent way.”

insideARM Perspective

This court drew a distinction between a mere “Creditor” and a “Debt Collector”. The court recognized that the FDCPA does not reach all “creditors.” The court noted that the FDCPA applies only to “debt collectors,” who are defined as “any person who . . . regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.” The court also noted that “debt collectors” are “a narrow subset of the universe of creditors who might file proofs of claim in a Chapter 13 bankruptcy and not all “creditors” who file a proof of claim in a Chapter 13 bankruptcy case can face potential FDCPA liability as “debt collectors.”

Finally, the court noted: “However, when that creditor is also a “debt collector” as defined by the FDCPA, the creditor may be liable under the FDCPA for “misleading” or “unfair” practices when it files a proof of claim on a debt that it knows to be time-barred, and in doing so “creates the misleading impression to the debtor that the debt collector can legally enforce the debt.”

insideARM provides an FDCPA case law grid that highlights many significant FDCPA cases. The grid may be found here. The gird is updated on a monthly basis courtesy of Joann Needleman from the Clark Hill law firm. A cursory review of the grid will show several cases relating to the filing of Proofs of Claims. The decisions are not consistent.

The lesson? Any “Debt Collector” filing of Proofs of Claims on accounts that may be outside the applicable Statute of Limitations is engaging in risky conduct.

Eleventh Circuit Court of Appeals Determines that a “Debt Collector” filing a Bankruptcy Court Proof of Claim on a Time-Barred Account is an FDCPA Violation
http://www.insidearm.com/daily/debt-collection-news/debt-collection/11th-circuit-creditors-face-fdcpa-liability-for-pursuing-claims-against-bankrupt-consumers/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Stoneleigh Recovery Associates’ Employee Voted Most Valuable Volunteer at 13th Annual Autism Speaks Chicago Walk

May 29, 2016 By admin Leave a Comment

LOMBARD, Ill. – Stoneleigh Recovery Associates’ (SRA) employees volunteered at the 13^th Annual Autism Speaks Chicago Walk May 14, 2016. SRA employees helped coordinate, setup, and man the registration desk for the more than 20,000 participants that came to walk. The three-mile walk around the Chicago lakefront started and ended at Soldier Field. The walk, hosted by the Chicago Chapter of Autism Speaks, raised over $800,000 in funds to “support vital research and top-quality programs” for those struggling with autism.

SRA is proud to have been a part of this incredible event. Jesse Sanchez, SRA’s Vice Present of Business Development, has been volunteering with Autism Speaks for the past five years. This was Jesse’s forth year serving as the Logistics Chair for the Chicago Walk. Jesse recruited many SRA employees to volunteer with him. Autism Speaks Chicago Director, Mary Rios, said “Jesse Sanchez has been involved for many years and always brings his colleagues to lend a hand at the Walk. When we see his team we know things will be done and executed the right way. We are lucky to have him as a team player, motivator, go-to person and all around good guy helping us.”

Jesse became involved with Autism Speaks when a family member had a child with autism. Jesse explained, “I came to this incredible community as a family member seeking support and guidance to do the best for my grand-nephew who lives with the Autism Spectrum Disorder. In the process of becoming involved, I have met many incredible people, many of whom autism impacts. The Walk, more than any other event Autism Speaks hosts, is special to me. It is the one-day a year when families like mine can proudly step out without fear of judgement and misunderstanding. I’m astounded to see that The Walk continues to grow bigger and better than before.” This year Jesse had the honor of being voted most valuable volunteer on walk day!

Jesse Sanchez, VP Business Development at Stoneleigh Recovery Associates, center (in blue) with volunteers and walkers at the 13th Annual Autism Speaks Chicago Walk May 14, 2016

“We are so proud of Jesse!!” stated Human Resources Manager Keanna Ringer, founder of SRA’s Charity Thursday program. She continued, “by taking a stand for what matters and showing that he cares Jesse, and the other SRA volunteers, help SRA families and others living with autism each day. Giving back to the community is one of SRA’s goals. We will continue to support and dedicate our time for great causes.” SRA is committed to fundraising, educating and spreading awareness to promote understanding about the differences that make each person unique.

Autism is a term for a group of complex disorders affecting brain development and manifesting in varying degrees by difficulty in social interaction, verbal and nonverbal communication and repetitive behaviors. Founded in 2005, Autism Speaks is “the world’s leading autism science and advocacy organization dedicated to funding research into the causes, prevention, treatments and cure for autism.” For more information about Autism Speaks, visit www.autismspeakswalk.org.

About Stoneleigh Recovery Associates, LLC

Stoneleigh Recovery Associates (SRA) is a nationally licensed, bonded, and fully insured boutique collection agency. Headquartered in Lombard, Illinois, SRA has been in operation since 2007 and provides nationwide debt recovery services on behalf of our clients in multiple vertical market segments with diverse debt profiles, including healthcare, bankcard and finance, and automotive finance. SRA’s modern recovery techniques and audited industry-best practices are enhanced by our state of the art call center. Together, with our strong work ethic and fully transparent process, SRA provides our clients maximum recovery. SRA is a Certified Professional Receivables Management Company by DBA International and a member of the Association of Credit and Collection Professionals (ACA), DBA International (DBA) and the Healthcare Financial Management Association (HMFA). For more information, please visit www.stoneleighrecoveryassociates.com.

Stoneleigh Recovery Associates’ Employee Voted Most Valuable Volunteer at 13th Annual Autism Speaks Chicago Walk
http://www.insidearm.com/doing-it-right/stoneleigh-recovery-associates-employee-voted-most-valuable-volunteer-at-13th-annual-autism-speaks-chicago-walk/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Maryland Debt Collection Litigation Bill Signed Into Law

May 29, 2016 By admin Leave a Comment

SACRAMENTO, Calif. — On Thursday, May 19^th, Maryland Governor Larry Hogan signed SB 771/ HB 1491 (Chapter 579) into law, addressing the treatment of out-of-statute debt and statutorily codifies several provisions contained in the Maryland Rules of Procedure (MRP) concerning the litigation of consumer debt. Given that the language from the MRP was copied verbatim, DBA International does not expect member companies to experience compliance or operational issues.

However, the bill addresses consumer debt that is beyond the “applicable” statute of limitations, which will likely require some operational changes by creditors and companies litigating on older Maryland accounts prior to the bill’s effective date of October 1, 2016. Specifically, it states:

A creditor or a collector may not initiate a consumer debt collection action after the expiration of the statute of limitations applicable to the consumer debt collection action

On the expiration of the statute of limitations applicable to the consumer debt collection action, any subsequent payment toward, written or oral affirmation of, or any other activity on the debt may not revive or extend the limitations period

Additionally, the bill extends the rules of evidence to small claims actions brought by debt buyers or those acting on their behalf. The requirements of the law apply prospectively and do not apply to any debt collection action commenced prior to October 1, 2016.

DBA International worked closely with a coalition of associations, including the Maryland-DC Creditor’s Bar, Mid-Atlantic Collector’s Association, and the Maryland Banker’s Association, in the negotiation of this legislation. This cooperative relationship resulted in a manageable bill from the industry’s perspective and removed from the table: (1) extensive pre-litigation collection requirements, including some provisions that conflicted with the Fair Debt Collection Practices Act, (2) litigation requirements that conflicted with the MRP, and (3) a bill that would have prohibited the resale of receivables on the secondary market.

Maryland Debt Collection Litigation Bill Signed Into Law
http://www.insidearm.com/daily/credit-card-accounts-receivable/charge-off/maryland-debt-collection-litigation-bill-signed-into-law/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

State Court Opinion in TCPA Class Action Lawsuit Takes TCPA to Task; And Includes Interesting Insurance Sub-plot

May 29, 2016 By admin Leave a Comment

Tim Bauer

There was an interesting article published in the Cook County Record (Record) yesterday. The Record, which is owned by the U.S. Chamber Institute for Legal Reform, states: “Our goal at the Record is to cover Cook County’s legal system in a way that enables you, our readers, to make the public business your business.”

This headline caught my eye: “Appeals Panel: Fresh look needed at TCPA Class Actions vs. insurers so don’t only enrich Lawyers.”

The article highlights a May 18, 2016 opinion from a three-justice panel of the Illinois First District Appellate Court in a Telephone Consumer Protection Act (TCPA) case. The case, First Mercury Insurance Company v. Nationwide Security Services, Inc. (Appeal from the Circuit Court of Cook County Case No. 11 CH 28513) involved a TCPA class action proceeding involving “junk” faxes.

CE Design Ltd. (CE) had claimed First Mercury Insurance Company owed it more than $4 million in insurance coverage. CE had settled an earlier lawsuit against First Mercury’s client, Nationwide Security Services Inc. In that lawsuit CE claimed Nationwide had violated the TCPA by sending unsolicited junk faxes advertising its services. The settlement agreement in the lawsuit purported to obligate the insurance company to cover the settlement costs of some $4 million even though the insurance company was not a party to the settlement and had opposed the previous settlement offer. As part of the settlement, CE was assigned the insured’s rights under the policy.

The insurance company filed a declaratory action asserting the insured, and thus the assignee, were not entitled to be indemnified under the policy. The parties filed cross-motions for summary judgment in the declaratory action, with the trial court ruling for the insurance company. On appeal, the plaintiff/assignee (CE) from the underlying class action lawsuit sought to obtain insurance coverage so as to recover the $4 million settlement amount.

The court’s opinion can be found here. It is relevant and worth reading on many fronts, but two issues stand out:

First, the court’s discussion on insurance coverage for TCPA damages is enlightening. Though no two insurance policies are identical, the issue of insurance coverage for TCPA claims is relevant for every TCPA case in the ARM industry. Though this case involves “junk faxes” as opposed to calls to a consumer’s cell phone, the issues presented are similar.

Second, the discussion of the madness involving TCPA litigation is fascinating. The court labeled a portion of the opinion: “Policy Reasons Supporting Affirmance.”

The court wrote:

“Finally, we must express our concern with the policies implicated by the proliferation of TCPA class actions. Indeed, these cases are not about how insureds face ruinous liability for their conduct in sending unsolicited fax advertisements or compensating members of the class. Rather, they have everything to do with compensating the lawyers of the class.

This case is typical of the TCPA class action cases. Here, for example, putative class members received notice of the settlement more than five years after receiving the unsolicited fax, making the likelihood of filing a claim very low. In this appeal, which consists of a 12-volume record and 120 pages worth of briefs that raise a multitude of arguments, the only ones who stand to reap any significant benefit from a favorable outcome are the attorneys for the class.”

Finally, the authors of the article (Dana Herra and Jonathan Bilyk) had done their research. They wrote: “The lawsuit against Nationwide came as part of a litany of TCPA lawsuits brought over nearly a decade by CE Design through its attorney, Brian J. Wanca, of Rolling Meadows. According to Cook County court records and Chicago federal court records, the engineering firm and Wanca partnered on more than 90 junk fax class action lawsuits filed in Cook and Lake counties, alleging TCPA violations against a number of companies. Illinois corporation records indicate Wanca also served as CE Design’s registered corporate agent.”

State Court Opinion in TCPA Class Action Lawsuit Takes TCPA to Task; And Includes Interesting Insurance Sub-plot
http://www.insidearm.com/daily/collection-laws-regulations/tcpa/state-court-opinion-in-tcpa-class-action-lawsuit-takes-tcpa-to-task-and-includes-interesting-insurance-sub-plot/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

American Profit Recovery Adopts State Park For Clean Up

May 29, 2016 By admin Leave a Comment

FARMINGTON HILLS, Mich. — Collection agency American Profit Recovery once again participated in Michigan’s Adopt a Park Program. For many years the American Profit Recovery team has participated in this program and in year’s past adopted Proud Lake State Park. Over the past several years – the company and staff has had over 600 hours volunteered by the employees as well as thousands of dollars of supplies donated.

This year, American Profit Recovery adopted a new park – Island Lake Recreation Area. Island Lake is the in the top five of the most visited state parks in Michigan and everyone was thrilled to be involved. This year the staff took part in a couple of different projects. They built over 20 brand new picnic tables as well as landscaped and beautified four different areas of the park.

(Back) Mike Hiller, Sean Lennon, Joel Royster, Joe Witkowski, Tim Roberts, Ashley Fillinger, John Wohlgemuth (Front) Sarah Landon, Sarah Sitterlet, Bethany Ramsay, Peggy Quigley, Kaylee Nicefield, Melissa Mallia

Contact David Greenwood
978-568-1374

American Profit Recovery Adopts State Park For Clean Up
http://www.insidearm.com/doing-it-right/american-profit-recovery-adopts-state-park-for-clean-up/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News