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
"Email notice lessons from 7th Circ. debt collection ruling" (Lavallee v. Med-1 Solutions LLC) by Marshall T. Bell and John C. Redding (Law360)
Consumers increasingly expect to have access to information and the ability to conduct business at the time and place of their choosing, whether shopping for goods and services or managing their finances. Often, that means they expect service providers to communicate with them by email, text or...
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...
Articles
News & Blogs
California: Consumer debt now includes mortgage debt under Rosenthal Fair Debt Collection Practices Act
On October 7, California’s governor signed SB 187 , which amends the state’s Rosenthal Fair Debt Collection Practices Act and provides that consumer debt under the act now includes mortgage debt. SB 187 also removes the exception for an attorney or counselor at law from the definition of debt...
InfoBytesDistrict Court rules debt collection attorney can invoke arbitration provision
On October 8, the U.S. District Court for the Northern District of Illinois granted a defendant’s motion to compel arbitration in a putative class action suit alleging that he threatened to charge unauthorized late fees on defaulted consumer debt. The suit claimed that the defendant, who was an...
InfoBytesDistrict Court denies TCPA class certification involving collection calls placed to wrong number
On September 27, the U.S. District Court for the Middle District of Florida denied class certification in an action alleging violations of the TCPA, the Florida Consumer Collection Practices Act, and the FDCPA brought against two companies. The action alleged that defendants used an automated...
InfoBytesDistrict Court: Law firm's professional debt-collection services exempt from MCPA
On September 17, the U.S. District Court for the District of Maryland partially granted a law firm’s motion for summary judgment in a consolidated debt-collection action concerning alleged violations of the Maryland Consumer Debt Collection Act (MCDCA) and the Maryland Consumer Protection Act (MCPA...
InfoBytes28 state AGs argue CFPB’s debt collection proposal “falls far short”
On September 18, 28 state attorneys general filed a comment letter in response to the CFPB’s Notice of Proposed Rulemaking (NPRM) amending Regulation F to implement the Fair Debt Collection Practices Act (FDCPA) (the “Proposed Rule”), urging the Bureau to reconsider the proposal. As previously...
InfoBytesFTC supports CFPB on debt collection proposal
On September 18, the FTC issued its comment letter to the CFPB’s Notice of Proposed Rulemaking (NPRM) amending Regulation F, to implement the Fair Debt Collection Practices Act (FDCPA) (the “Proposed Rule”). As previously covered by InfoBytes , on May 7, the CFPB issued the Proposed Rule, which...
InfoBytesCFPB argues no “benign language” exception under FDCPA
On September 5, the CFPB filed an amicus brief in a case on appeal to the U.S. Court of Appeals for the Seventh Circuit concerning a debt collector’s use of language or symbols other than the collector’s address on an envelope sent to a consumer. Under section 1692f(8) of the FDCPA, debt collectors...
InfoBytesCFPB issues summer 2019 Supervisory Highlights
On September 13, the CFPB released its summer 2019 Supervisory Highlights , which outlines its supervisory and enforcement actions in the areas of automobile loan origination, credit card account management, debt collection, furnishing, and mortgage origination. The findings of the report cover...
InfoBytesDistrict Court rules cardholder agreement transferred arbitration rights to third party
On September 10, the U.S. District Court for the Eastern District of Arkansas granted a motion to compel arbitration in a putative class action alleging violations of the Arkansas Fair Debt Collection Practices Act (AFDCPA) and the FDCPA. According to the order, the plaintiffs contended that the...
InfoBytesDistrict Court: Debt collector must pay $267 million in robocall damages
On September 9, the U.S. District Court for the Northern District of California entered a final judgment against a debt collection agency that was found guilty of violating the TCPA by making more than 500,000 unsolicited robocalls using autodialers. The court’s final judgment is consistent with...
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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October 15, 2019
California: Consumer debt now includes mortgage debt under Rosenthal Fair Debt Collection Practices Act
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October 11, 2019
District Court rules debt collection attorney can invoke arbitration provision
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October 10, 2019
District Court denies TCPA class certification involving collection calls placed to wrong number
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September 25, 2019
District Court: Law firm's professional debt-collection services exempt from MCPA
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September 25, 2019
28 state AGs argue CFPB’s debt collection proposal “falls far short”