Debt collection

Fair Debt Collection Practices Act (FDCPA) lawsuits spiked to 441 in the Sept. 16-30 period, compared to 390 in the first half of September, according to data from U.S. District Courts. The number of consumer statute lawsuits in the second half of the month totaled 481, up from 421 in the prior reporting period. The total includes 59 Fair Credit Reporting Act (FCRA) lawsuits and 26 Truth-in-Lending Act cases.

The Federal Trade Commission wants public comment on a proposed policy statement clarifying when the FTC will take action under the Fair Debt Collection Practices Act and the FTC Act against companies trying to collect the debts of deceased consumers.

A firm that placed charges on the telephone bills of thousands of small businesses and consumers for Internet-related services they never agreed to buy has been ordered permanently shut down by the U.S. District Court for the Northern District of California.

Huntsman Gay, a private equity firm, announced today that it has purchased a majority stake in iQor, a New York-based accounts receivable management company. iQor has more than 21 locations worldwide and 11,000 employees. The firm reported more than $345 million in revenues in 2009. Terms of the deal were not disclosed.

U.S. credit card delinquencies fell in August as the six top issuers reported improved numbers, according to Moody's Investors Service.

New York regulators filed felony criminal charges against the owner of a collection agency that targeted military personnel and harassed active military members and their families.

The passage of the financial reform bill has introduced quite possibly the most sweeping reform of financial regulations since the Great Depression.

An estimated 409 different collection agencies and creditors were sued in the Sept. 1-15 period, down from an estimated 534 sued in the second half of August and 426 sued in the first half of August, according to data from U.S. District Courts.

Editor's Note: Collection agency owner Michelle Janik sent the following letter for publication after reading an earlier statement from a consumer attorney that CollectionsCreditRisk.com published, see story. To comment, contact Darren Waggoner, Editor, CollectionsCreditRisk.com at 815.463.9008 or darren.waggoner@sourcemedia.com.

A California-based mortgage lender and its owner have agreed to settle Federal Trade Commission charges that they illegally charged Hispanic consumers higher prices for mortgage loans than non-Hispanic white consumers.

Consumers sued an estimated 534 collection agencies and creditors under consumer statutes between August 16-31, an increase of more than 100 compared with 426 that were sued in the first half of the month, according to data from U.S. District Courts.

Consumer borrowing fell again in the U.S. in July as households reduced credit card use for a 23rd consecutive month. Borrowing dropped at an annual rate of $3.6 billion, according to the Federal Reserve's G.19 report. That marked the 17th drop in credit in the past 18 months.

The former president of a payment processing company has agreed to settle charges brought by the Federal Trade Commission and seven states for his role in an operation that allegedly debited more than $200 million in bogus charges from consumers’ bank accounts.

With the recent upheaval in the financial sector, consumers have changed the way they borrow, spend and save. In a quest for better customer service, more competitive rates and less fee gouging, many have moved from larger institutions to smaller community banks, credit unions and online banking.

The State Foreclosure Prevention Working Group (SFPWG) recently released a study showing that as many as 60% of mortgage borrowers did not have their accounts forwarded to the mortgage lender’s loss mitigation department after becoming 60 days or more late on their payments.

New York regulators are conducting an investigation into deceptive credit card marketing practices that target students at their colleges.

One of the owners of a payday loan and collection operation agreed to settle Federal Trade Commission charges for his role in a scheme that illegally tried to garnish borrowers’ wages and used other illegal collection practices.

A credit repair operation agreed to stop making false claims and stop charging upfront fees under a settlement with the Federal Trade Commission.

The rate of auto payments 60 days or more past due dropped to 0.53% of outstanding auto loans in the second quarter, from 0.73% a year ago, according to TransUnion.

American Home Mortgage Servicing Inc. (AHMS), a Coppell, Texas-based mortgage servicer, faces charges by Texas investigators of using unlawful and aggressive collection tactics and improperly misleading homeowners, Texas Attorney General Greg Abbott's office announced Monday.