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Showing 4 posts from January 2018.

Consumer Financial Services: What to Expect in 2018

2017 was a highly volatile year for the consumer financial services industry, featuring significant court rulings, regulatory changes and other developments.

With a new year upon us, Consumer Crossroads blog wanted to ask some of our Hinshaw financial services attorneys about what we might expect in 2018. Here they are, specifically prognosticating trends in FCRA litigation, reverse mortgages, student loan regulatory and litigation, CFPB developments, cryptocurrencies, TCPA litigation, lost promissory notes, federal regulatory conduct and local government responses to the foreclosure crisis. More ›

Hinshaw's Dave Schultz Addresses Massachusetts Supreme Court in Debt Collection Licensing Dispute

The Massachusetts Supreme Court recently heard oral argument about whether a passive debt buyer is required to be licensed. An active and engaged panel questioned the attorneys on the issues, earlier this month. The debt buyer defendant was represented in oral argument by Hinshaw partner David Schultz. More ›

New Jersey Federal Judge Dismisses RICO suit against FDCPA Plaintiff Law Firms

Late last year, a debt collection agency went on the offensive and filed a RICO lawsuit against three FDCPA Plaintiff Law Firms, alleging that the Plaintiff Firms filed frivolous class action lawsuits under the FDCPA as a way to generate a quick settlement from them. Last week, Judge Michael Vazquez, in a sometimes scathing opinion, dismissed the suit, siding with the Plaintiff Firms. Judge Vazquez ultimately concluded that the filing of numerous class action lawsuits violates no laws, but is actually "standard practice." He found that the Amended Complaint was both factually and legally deficient, and the allegations that the Plaintiff Firms engaged in frivolous litigation were baseless. Moreover, Judge Vazquez concluded that filing litigation cannot form a basis for mail or wire fraud under RICO.  More ›

Department of Education Announces Award of Student Loan Collections Contracts: the Latest Chapter in a Long-Running Saga


The Headlines

After much anticipation, on January 11, 2018, the Department of Education filed its Notice of Completion of Corrective Action. The filing announced its hotly contested award of unrestricted contracts for collection of federal student loans to two primary private collection agencies, Performant Recovery, Inc. and Windham Professionals, Inc. Several other small business contractors will also receive portions of the business.

According to the Department of Education, the total contract award amount for the base period and option period is not to exceed $400,000,000, and the base period of performance for this contract is January 11, 2018 through January 10, 2023. More ›

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