The CFPB had a busy November. In this article, we’ll share some of our top CFPB “bites” of the month so you can stay on top of recent developments. 

Bite 10: Director Chopra’s Statement on Proposed Rule on Lifetime Bans

On October 24, 2023, CFPB Director Chopra, in his role as a member of the FDIC Board of Directors, released a statement on the new FDIC proposed rule that will implement new legislation to revise the current employment bans under the Federal Deposit Insurance Act (“FDIA”). The FDIA prohibits banks from employing people convicted of certain criminal offenses, and the new proposed rule will revise this prohibition by excluding certain offenses and reducing bans for individuals who were 21 years old or younger at the time of their offense. Director Chopra said that recruiting and retaining qualified employees is one of the biggest challenges facing banks today, and this proposal will create opportunities for more individuals to access employment opportunities and for banks to recruit qualified individuals. The CFPB director pointed out that while low-level employees can lose the ability to ever work in the industry after committing a crime, high-level executives repeatedly preside over financial crimes at banking institutions and must only pay a fine to continue their careers. He said that this proposed rule will help to correct that imbalance.

Bite 9: Director Chopra’s Statement on “Shadow Banking”

On November 3, 2023, CFPB Director Chopra issued a statement on the Financial Stability Oversight Council’s effort to promote market discipline in the “shadow banking” sector, after the FSOC voted to issue final versions of a new analytic framework for financial stability risks and updated guidance on the Council’s nonbank financial company determinations process. He stated that Congress created the Council under Section 113 of Dodd-Frank to designate systemically important nonbank financial institutions that could pose a threat to financial stability. However, the FSOC currently has zero “shadow banks” designated as systemically important, which has led market participants to believe that this designation authority is a dead letter. The FSOC removed procedural restrictions that were placed in 2019, and Chopra says this move “establishes a more appropriate and durable process for using the designation authority.” Director Chopra said that the CFPB will now turn to implementing the guidance by evaluating whether any shadow bank meets the statutory threshold for enhanced oversight, and will build on the work that FSOC Committees, such as the Hedge Fund Working Group and Nonbank Mortgage Task Force, have already conducted in the context of sector-wide reviews.

Bite 8: Statement on Community Reinvestment Act

On October 24, 2023, CFPB Director Chopra, in his role as a member of the FDIC Board of Directors, released a statement on the final rule that will implement the Community Reinvestment Act. He stated that the final rule is the product of compromise between the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Federal Reserve Board of Governors, and it should help increase investment and lending in historically excluded communities, including rural communities. Now that the rules have been completed, he said the next step would be to address the “convenience and needs” factor in bank merger applications covered by the Bank Merger Act. Director Chopra stated that reforms are needed for existing merger application review protocols, and the agencies should carefully evaluate whether the community would be better served by the combined entity in the future than it was in the past by the banks individually. He also called on state legislatures to accelerate efforts to ensure certain nonbank entities have Community Reinvestment Act-like requirements, particularly in sectors where there is significant public subsidies or support for their business activities.

Bite 7: CFPB Issues Report on Record-High Credit Card Costs

On October 25, 2023, the CFPB issued a report on credit card costs claiming the card industry charged a record-high $130 billion in interest and fees in 2022. The biennial report to Congress claims that in 2022 credit card companies charged consumers more than $105 billion in interest and more than $25 billion in fees. Total credit card debt rose above $1 trillion for the first time since the CFPB started collecting this data. The CFPB said this report highlights areas of concern, including more consumers carrying balances month to month, with many falling deeper into debt over time, while credit card company profits remained significantly above pre-pandemic levels. Additionally, the report found that annual percentage rates continue to rise above the cost of offering credit, with the average APR margin 15.4% points above the prime rate, even though charge-off rates fell during the pandemic. Late fees continued to be the most significant fee assessed to consumers, in both dollar amounts and in frequency, and more cardholders are carrying balances month to month. The report also found that consumers have shifted toward the use of digital portals, such as websites and mobile apps, to manage their cards and make payments.

Bite 6: CFPB Issues Report from Education Loan Ombudsman

On October 20, 2023, the CFPB issued a report from the Education Loan Ombudsman, analyzing over 9,000 complaints about student loans over the past year. According to the report, about 75% of the complaints about student loans during this period related to the servicing and collection of federal student loan debt, an increase over previous years. The complaints outlined problems with customer service, errors related to basic loan administration, and problems accessing loan cancellation programs. The other 25% of the complaints were related to private student loan debt, including those related to loan cancellation, misleading origination tactics, and coercive debt collection practices. The overall increase in complaints is attributed to ongoing systemic changes in the federal student loan system, the end to the payments pause, and increased financial uncertainty among borrowers. These issues coincided with servicers being responsible for the transfer of millions of accounts, new payment policies, and a requirement to address long-standing servicing failures.

Bite 5: CFPB Analyzes State Community Reinvestment Laws

On November 2, 2023, the CFPB announced that it had published a new analysis on state Community Reinvestment Act laws, which highlighted how states ensure financial institutions’ lending, services, and investment activities meet the credit needs of their communities. The report analyzed the laws of eight states and the District of Columbia and found that many of these states adopted laws similar to the federal Community Reinvestment Act. The CFPB also found that state enactments of Community Reinvestment Acts can be more wide-ranging than the federal law; the federal Community Reinvestment Act law applies strictly to banks, but state laws can apply to a wide range of financial institutions, like nonbank mortgage companies. The key findings of the report showed that some states independently examine their covered institutions, while others review federal examinations; that enforcement mechanisms include limitations on mergers, acquisitions, branching activities, and licensing; at least one state requires additional lending data above federal requirements; and that the state laws have been amended in response to changing markets.

Bite 4: CFPB Proposes New Rule on Digital Wallets and Payment Apps

On November 7, 2023, the CFPB announced that it was proposing a new rule on digital wallets and payment apps that will subject larger providers to examinations like banks. The CFPB announced a Notice of Proposed Rulemaking, which it said is designed to define a market for general-use digital consumer payment applications. The proposed market would cover providers of funds transfer apps and digital wallets for consumer use, and larger participants of this market would be subject to the CFPB’s supervisory authority under the CFPA. The CFPB indicated that the proposed rule would ensure that these nonbank financial companies, specifically larger companies handling more than 5 million transactions per year, adhere to the same rules as large banks, credit unions, and other financial institutions already supervised by the CFPB. According to the CFPB, Big Tech and other companies operating in consumer finance markets blur the traditional lines that have separated banking and payments from commercial activities, and this can put consumers at risk, especially when traditional banking safeguards like deposit insurance don’t apply. The CFPB also noted that it has opened the Office of Competition and Innovation to ensure a level playing field for new firms to compete with Big Tech in the consumer finance space. Comments on the proposal are due by January 8, 2024, or 30 days after publication of the proposed rule in the Federal Register, whichever is later.

Bite 3: CFPB Proposes Rule on Personal Financial Data Rights

On October 19, 2023, the CFPB announced that it was proposing a new rule that will give consumers more control over data about their financial lives and new protections against companies misusing their data. This proposed rule implements Section 1033 of the Consumer Financial Protection Act, which charged the CFPB with implementing personal financial data sharing standards and protections. According to the CFPB, this rule will ensure that consumers can access their data without paying “junk fees,” will give people a legal right to grant third parties access to information about their financial accounts, and will enable consumers to more easily walk away from bad service by facilitating portability of their data to competing products and services. It will also prohibit companies who receive consumer data from using it for anything but the specific purpose requested by the consumer. Under the proposal, the requirements would be implemented in phases, with larger providers being subject to them first. In addition, community banks and credit unions that have no digital interface at all with their customers would be exempt from the rule’s requirements. In prepared remarks, CFPB Director Chopra said that this rule will help decentralize the financial services market, give consumers more control, and allow smaller institutions and startups to compete fairly with major market players.

Bite 2: The Small Business Lending Rule Stayed Nationwide

On October 27, 2023, the U.S. District Court for the Southern District of Texas issued a nationwide injunction prohibiting the CFPB from implementing or enforcing its Small Business Lending Rule, which was written to implement Section 1071 of the Dodd-Frank Act. The Small Business Lending Rule requires banks, credit unions, and small business lenders to collect and report information on the small businesses who apply for loans, including applications from minority businesses. Opponents of the rule have claimed the rule is burdensome and will significantly increase borrowing costs. The district court had previously issued an injunction against the rule only for the named plaintiffs in a case challenging the rule based on doubts about the Bureau’s constitutionality, a question which initially arose in the same circuit that issued this injunction. After other covered institutions filed motions to intervene in the case, the district court decided to expand the scope of its previous injunction to all covered entities nationwide.

Bite 1: CFPB Takes Action Against Large Bank for Discrimination

On November 8, 2023, the CFPB announced that it has ordered a large bank to pay $25.9 million in fines and consumer redress for allegedly intentionally and illegally discriminating against credit card applicants the bank identified as Armenian American. From at least 2015 through 2021, the bank allegedly targeted applicants with surnames that employees associated with Armenian national origin as well as applicants in or around Glendale, California because the bank allegedly stereotyped this group as being likely to commit crime and fraud. Allegedly, the bank specifically targeted surnames ending in “-ian” and “-yan,” and Glendale is home to approximately 15% of the Armenian American population in the United States. According to the CFPB, supervisors at the bank conspired to hide the discrimination by instructing employees not to discuss the discriminatory practices in writing or on recorded phone lines, and employees lied about the basis of denial, providing false reasons to denied applicants. One employee was allegedly instructed to blame denials based on surname as being declined for “suspected credit abuse”- which blames the consumer for the denial. The CFPB also alleges that the actions the bank took towards people it believed were Armenian American included denying these consumers outright, requiring additional information, or placing a block on the account. The bank is accused of violating the Equal Credit Opportunity Act and will pay $1.4 million to affected consumers and a $24.5 million fine to the victims relief fund.

Extra Bite 1: FTC Amends the Safeguards Rule

On October 27, 2023, the FTC announced that it has approved a new amendment to the Safeguards Rule, requiring non-bank institutions to report certain data breaches and other security events to the agency. Under the existing rule, non-bank institutions, which include mortgage brokers, motor vehicle dealers, payday lenders, finance companies and others must develop, implement, and maintain comprehensive security programs to keep their customers’ information safe. The amendment to the rule requires these financial institutions to notify the FTC as soon as possible, and no later than 30 days after discovery, of a security breach involving the information of at least 500 consumers. The notice must include information about the event, including the number of consumers affected or potentially affected. The Commission voted 3-0 to publish notice of the amendment, which becomes effective 180 days after publication of the rule in the Federal Register (or, May 13, 2024).

Extra Bite 2: FTC Refunds $100 Million to Consumers

On November 3, 2023, the FTC refunded $100 Million to consumers saying that consumers were trapped in subscriptions by dark patterns and junk fees. The FTC is refunding nearly $100 million to consumers who it says lost money to their internet phone service provider after the provider allegedly imposed junk fees and used dark patterns to make it difficult for consumers to cancel their subscriptions. The FTC says the provider allowed numerous ways to sign up for the service, but made cancellation much more difficult. Customers could only cancel after speaking to a live agent, and the FTC alleges that the provider made it difficult to find the phone number on the company website, didn’t consistently transfer customers to that number from the normal customer service number, reduced the hours during which the line was available, and failed to provide promised callbacks. Allegedly, in some cases, the provider continued to illegally charge customers for phone services even after the customers spoke to an agent directly and requested cancellation. The provider also allegedly charged surprise termination fees that were not clearly disclosed when the customers signed up for the service. The provider has agreed to a court order that requires the provider to change its practices and turn over $100 million to the FTC that will be used for consumer refunds.

Still hungry? Please join Hudson Cook for our next CFPB Bites of the Month. If you missed any of our prior Bites, including the webinar that covered the above topics, request a replay on the Hudson Cook website here. 

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This article is provided for informational purposes and is not intended nor should it be taken as legal advice.  The views and opinions expressed in this article are those of the authors in their individual capacity and do not reflect the official policy or position of the partners of Hudson Cook, LLP or clients they represent.

ST. PAUL, Minn– IC System is proud to announce that DebtNext has made our company the inaugural member of its dPlat Partner Accreditation Program. As the first accredited company under the new program, IC System is a trusted partner for creditors looking to select a collection agency and integrate their past-due inventory using DebtNext’s comprehensive recovery management platform. 

DebtNext Software was founded in 2003 and offers the most robust recovery management platform in the market today. The DebtNext Platform (dPlat) is comprised of a comprehensive set of solutions designed to optimize every aspect of recovery operations.

IC System has maintained an ongoing relationship with DebtNext for 14 years. Their platform has enabled us to provide over 20 clients with seamlessly integrated recovery management services. Becoming accredited with DebtNext gives IC System a competitive edge over other debt collection agencies that have not yet undergone the rigorous review standards to become accredited. 

“DebtNext Accreditation is beneficial to have because it is a prestigious endorsement, affirming our commitment to excellence and adherence to industry standards in a formal audit,” said Karen Jonas, IC System’s SVP of Field Sales. “IC System has demonstrated that we meet the accreditation criteria, and this will help clients vet out their next collection agency. This will reduce expenses for future clients to ensure IC System surpasses the compliance and standards of the industry.” 

The accreditation program was developed from a concept proposed by DebtNext’s Thom Majka, Director of Client Success, to provide creditors with peace of mind when selecting a collection partner to integrate with a trusted middleware company. 

To receive the accreditation, IC System underwent a detailed review focusing on the areas of Integration, Authentication, Remittance Management, and SOC 2 Compliance.

The Partner Accreditation Program builds trust among creditors with accredited agencies when it comes to recommendations, compliance assurance, and data security. “It’s about excellence with integration on our platform and a way for us to formalize the evaluation and recommendation process,” said Frank Ellenberger, Director of Strategic Initiatives. “This has more substance than a referral.” 

About IC System

IC System is one of the largest receivables management companies in the United States. Founded in 1938, IC System is a privately held accounts receivable management firm in its third generation of family ownership. IC System provides customized, tailor-made debt recovery solutions for utilities, small business, healthcare, dental, government, and telecommunications industries nationwide. Follow IC System on Twitter or LinkedIn.

On November 15, the CFPB issued a report, titled “The CFPB Language Access Plan for consumers with limited English proficiency,” on expanding consumer needs in the financial marketplace for individuals with limited English proficiency. The CFPB released this report consistent with the mandates under E.O. 13166 to “educate and empower all consumers, provide information and assistance to traditionally underserved consumer and communities, enforce fair lending laws, and promote an equitable workforce for all consumers.”

The CFPB cites that 22 percent of the U.S. population over the age of five speak a language other than English at home. The CFPB commits itself to ensuring that tools, programs, and services are available to those who need language assistance by (i) understanding the needs of the population; (ii) conducting outreach and engagement; (iii) providing products and services in eight different languages other than English; and (iv) promoting fair and equitable access to the financial marketplace.

The CFPB’s report also lists several public enforcement actions involving communicating with consumer with limited English proficiency. The report mainly outlines how well the agency does in addressing the diverse language needs of the U.S. population, including translated disclosures, websites, and outreach and engagement sessions.

WILMINGTON, Del. –November 2023 – Phillips & Cohen Associates, Ltd. (PCA), the global leader in deceased account care servicing and technology solutions, servicing clients in the United States, Canada, United Kingdom, Ireland, Australia, New Zealand, Spain, and Germany is pleased to announce the appointment of Robert Husband as Global Chief Financial Officer.

Robert is a highly experienced global business leader who has spent nearly 20 years in senior executive roles across the Financial Services and Fintech sectors. Following various international CFO roles, Robert became CEO of Provident Mexico, a sub-prime lending business, which he led to become the largest home credit company in the country. More recently, he held the position of CEO of Tower Street Finance, the pioneering inheritance funding business in the UK. Robert brings a wealth of business experience across consumer lending, collections, and the probate sectors. He has worked in publicly listed companies and private equity backed startups.

Adam S. Cohen, Co-Chairman/CEO commented, “We are delighted to add a dynamic leader such as Robert to our executive team. These are exciting times for our organization as we look to transform our already strong customer led propositions, while introducing new products and entering new markets. Robert’s extensive knowledge and international experience will be significant assets to Phillips & Cohen Associates as we continue to drive growth in Europe, Asia and the Americas.”  

On his appointment, Robert commented “I am delighted to be joining Adam, Matt and the rest of the Executive team at this exciting time for Phillips & Cohen Associates. The company is uniquely positioned, and I look forward to supporting them in the delivery of their ambitious growth plans, both domestically and internationally.”

Matthew Phillips, Co-Chairman/CEO of Phillips & Cohen commented, “We are thrilled to have an executive of Robert’s caliber join the organization to lead our finance & accounting teams. He brings extensive sector expertise, product knowledge and a drive that matches our own.”

About Phillips & Cohen Associates, Ltd. 

Phillips & Cohen Associates, Ltd. is a specialty receivable management company providing customized services to creditors in a variety of unique market segments.  Phillips & Cohen Associates, Ltd is domestically headquartered in Wilmington, DE, with additional offices in Colorado and Florida as well as international offices in the UK, Canada, Spain, Germany, and Australia.  For more information about Phillips & Cohen Associates visit www.phillips-cohen.com. PCA provides Equal Employment Opportunity for all individuals regardless of race, color, religion, gender, age, national origin, disability, marital status, sexual orientation, veteran status, genetic information, and any other basis protected by federal, state, or local laws.

CHESAPEAKE, Va. — Spring Oaks Capital, LLC is pleased to announce the hiring of Andrea Beck as Director of Human Resources. Andrea will be based in the Company’s headquarters in Chesapeake, VA and report directly to President & CEO, Tim Stapleford.

Andrea joins Spring Oaks Capital with broad HR experience in a call center environment, most recently as Human Resources Director at Canon Information Technology Services, Inc. As the HR Director at Spring Oaks Capital, Andrea will be at the forefront of the Company’s people-centric approach, incorporating her strategic vision and operational expertise to drive the development of our workforce and high-growth environment.

Spring Oaks Capital’s President and CEO, Tim Stapleford, stated, “We are excited to welcome Andrea to our world-class team. Andrea will foster a culture of engagement, innovation, and collaboration, while ensuring legal compliance and implementation of Spring Oak’s mission and talent strategy.”

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Andrea added, “I am thrilled to be joining Spring Oaks Capital during such an exciting time for the Company. I look forward to working with their highly experienced management team and contributing to the Company’s increasing success.”

About Spring Oaks Capital, LLC

Spring Oaks Capital is a national financial technology company, focused on the acquisition of credit portfolios. The Company subscribes to an employee and consumer-centric operating philosophy that creates high-value jobs, a significant performance lift, and the highest standards of compliance. Spring Oaks’ business strategy is rooted in innovative data-driven technology to maximize collection results and a contact platform that offers multi-channel options to meet each consumer’s communication preference. Spring Oaks has the management vision and experience to nurture a culture and DNA that is unique in the space. To learn more about Spring Oaks, please visit www.springoakscapital.com.

The U.S. Court of Appeals for the Second Circuit issued a summary order affirming a district court’s holding that an emailed response to the plaintiff’s email did not constitute an “initial communication” under the Fair Debt Collections Practices Act (FDCPA).

In Worley v. Simon, Meyrowitz & Meyrowitz, P.C., the plaintiff had a default judgment entered against her in state court for failure to pay rent. Approximately two years later, the plaintiff contacted her former landlord explaining she was having technical difficulties paying the balance through the landlord’s portal. That same day, the landlord responded to the plaintiff via email informing her that her case was with the defendant collection firm who was copied on the email. The plaintiff then sent an email to the defendant’s collection law firm stating: “[p]lease add to case file thank you.” A few days later, the law firm responded to the plaintiff via email to provide the outstanding balance.

The plaintiff filed a lawsuit against the law firm for alleged violations of the FDCPA, 15 U.S.C. §§ 1692e(11) and 1692g(a). Specifically, the plaintiff alleged that by sending the email the law firm improperly attempted to collect what it knew to be an unlawful debt stemming from the state-court judgment. The district court dismissed the plaintiff’s complaint with prejudice finding, among other things, that the email at issue did not constitute an “initial communication,” as required for certain claims under the FDCPA, because it was sent in response to an email from the plaintiff.

The plaintiff appealed relying on Second Circuit precedent for the proposition that a communication from a debt collector sent in reply to a communication from a consumer can still sometimes be deemed an “initial communication” under the FDCPA. However, the court found the plaintiff’s reliance misplaced because she was never “prompted” by the law firm to contact it regarding the debt. Here, the law firm sent the email at issue in response to the plaintiff’s unprompted communications. As such, the court held it does not constitute an “initial communication” for purposes of the FDCPA.

The court also upheld the district court’s dismissal of the plaintiff’s remaining claims under the Rooker-Feldman doctrine because the injuries alleged were the result of the state-court judgment and were thus barred.

NEW YORK, NY — Skit.ai, the leading
provider of conversational Voice AI solutions, announced today its partnership
with Forest Recovery Services, a third-party collection agency headquartered in
South Carolina focused on medical, municipal, and other types of debt. By enhancing
its recovery strategy with Skit.ai’s Augmented Voice Intelligence platform,
Forest Recovery Services plans to significantly expand its outbound calling
efforts and maximize account penetration.

Throughout 2023,
Skit.ai has emerged as the accounts receivables industry’s preferred Voice AI
solution provider to automate phone conversations with consumers, including
right-party contact (RPC) verification and promise-to-pay (PTP) capture. The
solution is fully compliant with federal and state regulations, enabling
lenders and collection agencies to accelerate revenue recovery and grow their
operations.

“We recently
experienced a significant expansion of our account base since acquiring a new
collection agency. The adoption of Skit.ai’s Voice AI solution has already
resulted in a 10X increase in our outbound collection efforts,” said John Berquist, Owner of Forest Recovery
Services. “With one client’s portfolio in particular, we witnessed a 160%
spike in collections. The results have been remarkable.”

Consumers have
responded positively to the voicebot, appreciating its ability to smoothly
engage in two-way conversations with a natural-sounding flow. The voicebot
transfers the call to a live agent whenever the consumers request it, providing
real-time access to the interaction’s background and context.

“As the accounts
receivables industry experiences an important phase of digital transformation,
it is highly encouraging to see the commitment of Forest Recovery Services to
innovation and its preliminary success with Skit.ai’s Voice AI solution,” said Sourabh Gupta, Founder and CEO of Skit.ai.

Dozens of companies
across the U.S., both large and small, have deployed Skit.ai’s Voice AI
solution to enhance and automate their debt recovery strategy.

Schedule a meeting
to learn more about how Skit.ai can help you accelerate revenue recovery with
higher efficiency and at an infinite scale.

About Forest Recovery Services:

Forest Recovery Services is a collection
agency headquartered in South Carolina. Forest Recovery Services proudly
employs a team of seasoned collection professionals.  The agency focuses on various types of debt,
including medical, municipal, and rental property. Visit https://forestrecoveryservices.com/

About Skit.ai:

Skit.ai is the
accounts receivables industry’s leading conversational Voice AI company,
enabling collection agencies to streamline and accelerate revenue recovery.
Skit.ai’s compliant, configurable, and easy-to-deploy solution enables
enterprises to automate nearly one million weekly consumer conversations.
Skit.ai has been awarded several awards and recognitions, including Stevie Gold
Winner 2023 for Most Innovative Company by The International Business Awards,
Disruptive Technology of the Year 2022 by CCW, and Gold Globee CEO Awards 2022.
Skit.ai is headquartered in New York City, NY. Visit https://skit.ai/

On October 31, 2023 a district court in Nevada held that an undated, model form debt validation notice does not violate the Fair Debt Collection Practices Act (FDCPA). In Bergida v. PlusFour, Inc., the defendant sent a debt validation letter to the plaintiff that followed the model form provided by the Consumer Financial Protection Bureau (CFPB). The letter was not dated. The plaintiff claimed the letter violated FDCPA §§ 1692d, e, f, and g because she could not determine what date was “today” and “now,” which allegedly misled her about the status of the debt, confused her, made the letter seem illegitimate and suspicious, and caused her to spend time and money trying to figure out whether the debt was valid. When considering the defendant’s motion to dismiss, the court applied the least sophisticated debtor standard and found that the plaintiff failed to state a claim.

The court rejected the defendant’s claim that using the CFPB model validation notice provided it a safe harbor from suit. The court noted that while Regulation F states use of the model letter provides a safe harbor from claims under 12 C.F.R. §§ 1006.347(c) and (d)(1), the safe harbor provision does not shield debt collectors from liability under any other statutes.

However, an analysis of the plaintiff’s claims under the FDCPA still resulted in judgment in the defendant’s favor. The court found the defendant did not violate § 1692g(a), which requires the debt collector to state the amount of the debt. Nothing in § 1692g(a) requires a date on the notice and the plaintiff did not plausibly allege how omitting the date impacted information about the amount due. The court noted the model notice does not include a date either.

Similarly, there was no overshadowing in violation of § 1692g(b). The plaintiff claimed that without a date, she could not verify the defendant sent her the notice within five days of the initial communication and provided her 30 days to respond. The court noted there was no allegation of any prior communication and because the 30-day time period begins from the date of receipt of the letter, the date it was sent is irrelevant.

The plaintiff’s remaining claims fared no better. The court agreed with the defendant that not including a date on a letter does not rise to the level of harassment, oppression, or abuse prohibited by § 1692d. The plaintiff asserted a violation of § 1692e(2)(A) alleging the letter falsely represented the true character or status of the debt, but failed to state how the information in the letter was false or incorrect. Her claims under §§ 1692e(10) and (g) that the lack of a date made the letter false and misleading because she was unsure about its legitimacy failed because a least sophisticated debtor would not be misled about the legitimacy of the letter simply because it did not have a date. The district court rejected the plaintiff’s § 1692f claim that failing to include a date omitted a material term from the letter which prevented her from making an educated decision. Even for the least sophisticated debtor, the court found, the letter itself offered ways to validate the communication.

The court ultimately granted the defendant’s motion to dismiss, holding that the plaintiff could amend her complaint only if she could assert other conduct that would support a violation of the FDCPA.

DULUTH, Ga. — Crown Asset Management, a receivables acquisition and management firm near Atlanta, GA, was thrilled to participate in a successful Habitat for Humanity build day in Loganville, GA as September drew to a close. The weather was perfect, and the team showed up in full force to put in the work necessary to make a full day’s effort toward the build. 

Gwinnett / Walton Habitat for Humanity

The CAM team partnered with their local Gwinnett / Walton Habitat for Humanity organization to take part in a nearby build for a full volunteer workday. 

“It was a highly successful day, and I couldn’t be more proud of our team for their hard work in making it a worthwhile effort. It is always rewarding to join together and use the combined power of teamwork and work ethic to make an impact right here in our community. We were honored and privileged to have the opportunity to take part in building the future home of a local hard working family who was carefully selected and extremely grateful as the recipients of this new home,” said Brian Williams, CEO at Crown Asset. 

Affordable Housing Worldwide

Habitat for Humanity is a well-known global nonprofit organization dedicated to building affordable homes through volunteer labor, new homeowner sweat equity, donor funding, and no profit from sales (including no-interest mortgages). Founded in 1976, the international operational headquarters are located in Americus, Georgia with the administrative headquarters located in Atlanta. 

Potential homeowners must submit to an application process including criminal background and credit checks, income review, and ability/willingness to pay an affordable mortgage. Additional requirements may include workshop attendance (for financial literacy, home/yard maintenance, and more) as well as a required number of hours of “sweat equity” building the home or the homes of others in the program. Local locations exist all over the US and around the world, and some selection criteria/future homeowner requirements are made at the local level. 

To learn more about Crown Asset Management or their community involvement initiatives, visit crownasset.com. 

About Crown Asset Management

Founded in 2004, Crown Asset Management, LLC, is a professional receivables management firm that outsources purchased accounts to a nationwide, proprietary network of collection agencies and law firms. Crown’s mission is to continually strive to enhance the ethical and respectful treatment of consumers, while providing an inclusive working environment for its dedicated, knowledgeable, and innovative team. Crown Asset Management is an RMAI Certified Receivables Business headquartered in Duluth, GA.