Debt Collection & Buying
Well versed in collection lawLegal 500
Practice Overview
Buckley represents major creditors on issues involving in-house collection operations, debt purchasers, and third-party debt collectors. Our team includes attorneys with private sector debt collection backgrounds and government experience, including as a former deputy general counsel of a publicly traded debt purchasing and collection firm; a former Federal Trade Commission (FTC) attorney with significant governmental experience addressing debt collection issues; and long-time outside counsel to the nation’s largest creditors and collection companies. We offer a unique perspective on risk mitigation options and a practical understanding of what regulators and enforcement agencies expect from the industry.
Our team is involved in debt collection matters on a regular basis, handling a variety of regulatory, transactional, litigation, and enforcement matters related to first- and third-party collections. We also have handled numerous matters advising clients on the risks and mitigants related to the use of social media and other technologies in the context of debt collection. Our experience includes: evaluating and applying state and federal law; drafting corporate policies and procedures tailored to each client’s specific circumstances; risk assessments, Consumer Financial Protection Bureau (CFPB) gap analyses, and CFPB supervisory examinations; and the design, review, and implementation of vendor management guidelines.
We also represent the private equity and strategic investors who buy and sell collection companies and debt portfolios. We have advised on and performed due diligence for parties involved in some of the largest transactions in the receivables management space in recent years, as well as resulting licensing and change-in-control filings with state licensing authorities.
Our firm has a track record of success defending clients in debt collection litigation and enforcement matters before the CFPB, FTC, and other federal and state agencies. We are well-versed in the Fair Debt Collection Practices Act (FDCPA), Telephone Consumer Protection Act (TCPA), and state collection laws, including application of unfair or deceptive acts or practices (UDAP) laws. We understand the Fair Credit Reporting Act (FCRA), Equal Credit Opportunity Act (ECOA), and data protection / breach regulation, particularly as such laws are applied to debt collection.
In the post-Dodd-Frank era, creditors selling portfolios of nonperforming debt must understand the regulatory challenges governing the sale of consumer debt in order to mitigate the potential risk and liabilities involved, including risks that may result from the acts of those to whom the debt has been sold. Buckley provides counsel in developing, implementing, and maintaining robust debt sales measures that comply with OCC Bulletin 2014-37, CFPB guidance, and other applicable laws that impact debt sales and purchases.
Well versed in collection lawLegal 500
Articles
"Debt collection, convenience fees, and the FDCPA" by Jon David D. Langlois and Elizabeth R. Bailey (The Review of Banking & Financial Services)
In the era of online banking and the Internet of Things, the ability to pay your mortgage in a manner other than sending in a paper check evidences both convenience and complication. Convenience to the borrower, in that there are many avenues to quickly make a payment, even a late payment, to avoid...
Articles"Neither forgiven nor forgotten: Taxation and UDAAP concerns with collecting charged off debt" by John C. Redding, Sasha Leonhardt, and Jessica M. Shannon (Bloomberg BNA)
When debtors are unable to pay their debts, creditors are left with a choice: (i) allow the consumer to pay a lesser amount, if possible, to settle the obligation and recover some funds; or (ii) charge off the debt and cease all collection efforts. Regardless of the path chosen, each has potential...
Articles"Between a Rock and Hard Place: Debt Collection, Consumer Remediation and Tax Consequences" by John C. Redding, Sasha Leonhardt, and Jessica M. Shannon (Bloomberg BNA)
In recent years, debt collection has become a focal point for regulatory oversight and government enforcement actions. The Consumer Financial Protection Bureau (CFPB) considers debt collection to be a priority and scrutinizes the conduct of debt collectors for violations of the Fair Debt Collection...
Articles"The role of State AGs in solving student loan crisis" by Sasha Leonhardt and Dana Walsh Kumar (Law360)
State attorneys general are the chief legal officers of their state; state attorneys general are the chief law enforcement officers of their state; and state attorneys general must protect their citizens and vigorously enforce their state’s consumer protection statutes. As broad as these powers and...
ArticlesSpecial Alert: Supreme Court Holds that a Person May Collect Defaulted Debts Purchased for Its Own Account Without Triggering the FDCPA
On June 12, the United States Supreme Court issued a ruling in Henson v. Santander Consumer USA Inc., affirming the Fourth Circuit’s holding that the Fair Debt Collection Practices Act’s (“FDCPA” or the “Act”) definition of the term “debt collector” does not necessarily apply to a company...
ArticlesSpecial Alert: Madden Class Action Moves Forward
On February 27, the U.S. District Court for the Southern District of New York issued a ruling in Madden v. Midland Funding, LLC , [1] holding that New York’s fundamental public policy against usury overrides a Delaware choice-of-law clause in the plaintiff’s credit card agreement. The court allowed...
ArticlesSpecial Alert: CFPB Releases Outline of Proposed Rule for Third Party Debt Collectors
On July 28, the CFPB announced that it is considering proposing a rule to “overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt.” The CFPB released several related documents, including a report on third-party debt...
Articles"Key Points in the CFPB’s Outline of Proposed Rule for Third Party Debt Collectors" By Marshall T. Bell, John C. Redding, and Walter E. Zalenski (Consumer Finance Law Quarterly Report)
On July 28, 2016 the Bureau of Consumer Financial Protection (CFPB) announced that it is considering proposing a rule to “overhaul the debt collection market by capping collector contact attempts and by helping to ensure that companies collect the correct debt.” The CFPB released several related...
ArticlesDebt Collection and Beyond in 2015
In 2015, the CFPB further expanded its reach into debt collection through a number of enforcement actions. The CFPB also continues to conduct research on a potential rulemaking regarding debt collection activities, which may address information accuracy concerns involving debt sales and other...
ArticlesNew Day For RESPA: The UDAAPification Of Section 8
The Real Estate Settlement Procedures Act has gone the "UDAAPified" way of debt collection — this time, through enforcement rather than guidance. In July 2013, Consumer Financial Protection Bureau Bulletin 2013-07 announced that the principles underlying the Fair Debt Collection Practices Act...
Articles
News & Blogs
3rd Circuit: QR code on debt collection letter violates FDCPA
On August 12, the U.S. Court of Appeals for the 3rd Circuit affirmed a district court ruling that an envelope containing an unencrypted “quick response” (QR) code that revealed a consumer’s account number when scanned violated the FDCPA. The plaintiff in this case received an envelope containing a...
InfoBytes7th Circuit: FDCPA claims fail due to insufficient evidence
On August 9, the U.S. Court of Appeals for the 7th Circuit affirmed a district court ruling that a consumer could not proceed on FDCPA or Wisconsin Consumer Act (WCA) claims because he failed to demonstrate that the incurred credit card debt in question was a “consumer debt” entitled to FDCPA and...
InfoBytes7th Circuit: Debt collector’s email not a “communication” under the FDCPA
On August 8, the U.S. Court of Appeals for the 7th Circuit affirmed a summary judgment ruling in favor of a consumer, concluding that a debt collector’s emails did not constitute a “communication” under the FDCPA. According to the opinion, the debt collector sent a consumer two emails about...
InfoBytesCFPB extends debt collection comment period
On August 2, the CFPB announced that it is extending the comment period on its Notice of Proposed Rulemaking implementing the FDCPA to “facilitate the ability of commenters to consider the issues raised in the NPRM, gather data, and prepare their responses.” The comment period now closes on...
InfoBytes2nd Circuit: Consumer plausibly alleged discrepancies between collection letters and mortgage note
On July 22, the U.S. Court of Appeals for the 2nd Circuit affirmed in part and vacated in part a district court’s dismissal of a consumer’s FDCPA claims concerning communications received from a creditor and a collection firm (defendants) related to his defaulted mortgage. The consumer alleged that...
InfoBytesCFPB, New York AG settle lawsuit against debt collection network
On July 25, the CFPB and New York attorney general announced (see here and here ) proposed settlements with a network of New York-based debt collectors (defendants) to resolve allegations that the defendants engaged in improper debt collection tactics in violation of the Consumer Financial...
InfoBytes7th Circuit holds collection fee was authorized by contract, did not violate FDCPA
On July 19, the U.S. Court of Appeals for the 7th Circuit affirmed the district court’s determination that a percentage-based collection fee was expressly authorized by the contractual agreement and therefore, did not violate the FDCPA. According to the opinion, a consumer entered into a contract...
InfoBytesDistrict Court concludes collection attempt on old debt did not violate FDPCA
On July 11, the U.S. District Court for the Eastern District of Washington granted a debt collector’s motion for summary judgment, concluding the attempted collection of an old debt did not violate the FDCPA. According to the opinion, a consumer filed a class action lawsuit against the debt...
InfoBytesNorth Carolina AG sues unlicensed debt collector for multiple violations
On July 17, the North Carolina attorney general announced a lawsuit filed against multiple debt collection entities and their owner for allegedly collecting or attempting to collect on consumer debts in North Carolina without filing the appropriate registration or obtaining the necessary permits to...
InfoBytes3rd Circuit: Debt collector cannot enforce original creditor’s arbitration agreement
On July 12, the U.S. Court of Appeals for the 3rd Circuit affirmed the denial of a debt collector’s motion to compel arbitration, concluding the debt collector did not establish authority to enforce the arbitration agreement made between the consumer and the original creditor. According to the...
InfoBytes
Press Releases & Announcements
Buckley Sandler launches APPROVED licensing service
WASHINGTON, D.C. (March 7, 2018) – Buckley Sandler LLP today formally announced the launch of APPROVED , a new approach to licensing for financial services companies. Buckley Sandler is building upon years of financial services experience and licensing know-how to offer APPROVED, a technology-...
Press Releases
Our Debt Collection & Buying Team
Partners
Recent Blog Posts
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August 15, 2019
3rd Circuit: QR code on debt collection letter violates FDCPA
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August 14, 2019
7th Circuit: FDCPA claims fail due to insufficient evidence
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August 13, 2019
7th Circuit: Debt collector’s email not a “communication” under the FDCPA
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August 7, 2019
CFPB extends debt collection comment period
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August 1, 2019
2nd Circuit: Consumer plausibly alleged discrepancies between collection letters and mortgage note