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
Special Alert: CARES Act places significant burdens on servicers of consumer debt but provides some relief to depositories
President Trump late last week signed the Coronavirus Aid, Relief, and Economic Security Act that attempts to soften the negative economic effects of the Covid-19 pandemic on consumers, including by suspending payments for certain student loan borrowers and enabling mortgage loan borrowers to...
Special AlertsSpecial Alert: CFPB releases Supplemental Notice of Proposed Rulemaking on Time-Barred Debt Disclosures
On February 21, the CFPB issued a Supplemental Notice of Proposed Rulemaking (NPRM) to amend Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA), to require debt collectors to make certain disclosures when collecting time-barred debts (the “Supplemental Proposed Rule”)...
Special Alerts"A new era of FCRA scrutiny for consumer data furnishers" by Jessica L. Pollet and Frida Alim (Law360)
Furnishers provide information to consumer reporting agencies on over 1.3 billion consumer credit accounts or other tradelines each month, with the three largest national consumer reporting agencies holding the personal information of over 200 million consumers. Given the extent of the consumer...
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...
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...
ArticlesDebt Collection in the Post Dodd-Frank Enforcement Era
John Redding, Sasha Leonhardt, and Jessica Pollet authored "Debt Collection in the Post Dodd-Frank Enforcement Era," which appeared in the January/February issue of The Journal of Taxation and Regulation of Financial Institutions. Since the passage of the Dodd-Frank Act, government agencies have...
ArticlesSpecial Alert: CFPB Takes Enforcement Action Against "Buy-Here, Pay-Here" Auto Dealer for Alleged Unfair Collection and Credit Reporting Tactics
On November 19, the CFPB announced an enforcement action against a ‘buy-here, pay-here’ auto dealer alleging unfair debt collection practices and the furnishing of inaccurate information about customers to credit reporting agencies. ‘Buy-here, pay-here’ auto dealers typically do not assign their...
Articles
News & Blogs
Illinois Department of Financial and Professional Regulation issues guidance to debt collection agencies and debt buyers
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to Illinois-licensed debt collection agencies and debt buyers regarding Covid-19. The guidance reminds debt collection agencies that the Illinois Collection Agency Act does not contemplate...
InfoBytesMassachusetts attorney general issues emergency regulation prohibiting certain debt collection practices
On March 27, the Massachusetts attorney general issued an emergency regulation that makes numerous standard debt collection actions an unfair and deceptive act or practice during the defined “state of emergency period.” Specifically, the emergency regulation prohibits both creditors and debt...
InfoBytesDistrict court approves $2.3 million class settlement resolving violations of Massachusetts debt collection laws
On March 23, the U.S. District Court for the District of Massachusetts issued an order granting final approval to a nearly $2.3 million class action settlement, reached through mediation, to resolve allegations that a subsidiary of a large U.S. retailer (defendant) made excessive debt collection...
InfoBytesDepartment of Education provides Covid-19 relief by pausing loan collections, issuing refunds
On March 25, U.S. Secretary of Education Betsy DeVos announced that in order to provide additional relief for student loan borrowers, the Department will take a number of actions which include the following: Stop collection activities and wage garnishments for at least 60 days, effective March 13;...
InfoBytesCFPB extends comment period for proposed rulemaking on time-barred debt disclosures; CFPB and FTC release 2019 FDCPA report
On March 20, the CFPB announced it was extending the comment period on its Supplemental Notice of Proposed Rulemaking related to time-barred debt disclosures (covered by a Buckley Special Alert ) for an additional 30 days. Given the challenges created by Covid-19, the comment period will now end...
InfoBytesWashington state amends debt buyer provisions
On March 18, the Washington governor signed Substitute HB 2476 , which clarifies the definition of a debt buyer and outlines prohibited activities. Among other activities, debt buyers are now (i) prohibited from bringing legal actions without providing evidence that the original debt contains the...
InfoBytes11th Circuit reverses dismissal of “shotgun” FDCPA, FCRA, TCPA pleadings
On March 16, the U.S. Court of Appeals for the Eleventh Circuit partially reversed a district court’s dismissal of a lawsuit against several defendants for alleged violations of the FDCPA, the FCRA, and the TCPA, holding that the plaintiff’s third amended complaint was not filled with “shotgun...
InfoBytesMinnesota Commerce Department issues guidance to industrial loan and thrift companies
On March 17, the Minnesota Commerce Department issued a letter to Minnesota industrial loan and thrift companies related to issues and questions arising from the Covid-19 outbreak. The letter notes that companies that choose to close a branch such that it is not open for business or examination...
InfoBytesNevada deems collection agencies “non-essential businesses”
On March 20, the Nevada Financial Institutions Division issued guidance deeming a collection agency a non-essential business under the Nevada Governor’s orders to close non-essential business. The guidance mentioned in particular that courts in Las Vegas have suspended issuing defaults on civil...
InfoBytesNevada orders all non-essential businesses to close; certain court activity suspended
On March 18, the Nevada Department of Business and Industry, Financial Institutions Division, ordered all non-essential businesses to close for 30 days as a proactive measure to fight the spread of Covid-19. Effective March 17, the Las Vegas Justice Court suspended issuing Defaults on all civil...
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
FYI
"Email notice lessons from 7th Circ. debt collection ruling" (Lavallee v. Med-1 Solutions LLC) by Marshall T. Bell and John C. Redding (Law360)
Recent Blog Posts
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March 30, 2020
Illinois Department of Financial and Professional Regulation issues guidance to debt collection agencies and debt buyers
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March 27, 2020
Massachusetts attorney general issues emergency regulation prohibiting certain debt collection practices
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March 27, 2020
District court approves $2.3 million class settlement resolving violations of Massachusetts debt collection laws
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March 25, 2020
Department of Education provides Covid-19 relief by pausing loan collections, issuing refunds
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March 24, 2020
CFPB extends comment period for proposed rulemaking on time-barred debt disclosures; CFPB and FTC release 2019 FDCPA report