New York City Department of Consumer and Worker Protection Issues Proposed Amendments to its Rules Relating to Debt Collectors

In September, the New York City Department of Consumer and Worker Protection (DCWP) requested comment on proposed amendments to its rules relating to debt collectors, which could significantly change the requirements and procedures concerning debt collection with New York City consumers. DCWP had previously proposed amendments in November 2022, which were not finalized. More ›

Utah Governor Cox Signs Bill to Repeal Collection Agency Registration Requirements

Effective May 3, 2023, Utah House Bill 20 (Collection Agency Amendments) will repeal a majority of Utah's collection agency statutes located in Title 12 of the Utah Code. Signed by Utah Governor Spencer Cox on March 13, 2023, the bill will repeal long-standing requirements for collection agencies to file a collection agency application, pay the registration fees, and obtain a surety bond with the Utah Department of Commerce, Division of Corporations and Commercial Code (the Division) in order to receive approval for conducting business in Utah. More ›

New York State DFS Issues Proposed Amendments to its Debt Collection Rules for Third-Party Debt Collectors and Debt Buyers

On October 29, 2021, the New York State Department of Financial Services (DFS) posted proposed amendments to its debt collection rules for Third-Party Debt Collectors and Debt Buyers (under 23 New York Codes, Rules, and Regulations Part 1) that could significantly change procedures for communicating with consumers. More ›

Proposed California Debt Collection Licensing Regulations Raise Scope Concerns

Last month, the Department of Financial Protection and Innovation (DFPI) published proposed regulations under the Debt Collection Licensing Act (DCLA). The regulations largely address procedural matters related to obtaining a license. However, the DFPI's proposed regulations also appear to implicitly address the scope of the license requirement, potentially expanding the category of licensees beyond what the statutory text contemplates. More ›

CFPB Highlights COVID-19-Fueled Regulatory Risks for Examined Industries in Special Edition of Supervisory Highlights

In its recent Special Edition of Supervisory Highlights on COVID-19 Prioritized Assessments, the Consumer Financial Protection Bureau (CFPB) summarized challenges and risks with respect to several industries it had informally examined since the start of the pandemic. Beginning in May 2020, the Bureau rescheduled about half of its planned examinations and instead conducted "prioritized assessments" in response to the pandemic. These assessments included seeking information on how institutions were responding and communicating with consumers, and also examining how institutions were confronting and adapting compliance in response to the pandemic. More ›

SCOTUS Decides Federal Debt is not Exempted from TCPA, While FCC Autodialer Declaration Further Alters TCPA Landscape

With a major U.S. Supreme Court decision leading the way, recent developments continue to reshape the landscape of the Telephone Consumer Protection Act (TCPA). More ›

FCC Clarifies Autodialer Definition, Including in Bulk Text Message Context

The Federal Communications Commission (FCC) recently issued a Declaratory Ruling clarifying the definition of an autodialer. Exactly what constitutes an autodialer under the TCPA has been a burgeoning topic in consumer litigation. The TCPA prohibits any person from texting or calling a cellular telephone number using an automatic dialing system (“autodialer” or “ATDS”) without prior express consent. The TCPA defines an ATDS as equipment which has the capacity to (A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers. More ›

Federal Court Nixes Massachusetts Attorney General's Emergency Debt Collection Regulations

Yesterday, a federal court granted ACA International's request for a temporary restraining order of the Massachusetts Attorney General's emergency regulations prohibiting debt collection calls and enforcement actions during the COVID-19 pandemic.

District Court Judge Richard G. Stearns concluded that the AG's "flat ban" on debt collection calls violates the First Amendment as an impermissible restriction on commercial speech. In addition, Judge Stearns held that regulations prohibiting the initiation of lawsuits—even temporarily—violates the First Amendment right of debt collectors' to petition the government. More ›

Federal Court Hears Oral Argument in ACA's TRO Petition Seeking to Enjoin Massachusetts's Emergency Debt Collection Regulations

On May 1, 2020, U.S. District Court for the District of Massachusetts Judge Richard Stearns heard oral arguments in ACA International's suit to halt the emergency debt collection regulations enacted in Massachusetts, which included a request for a temporary restraining order. In response to ACA's said request, Stearns expressed particular interest in whether the regulations constitute an improper ban on commercial speech under the First Amendment, as well as AG Maura Healey's argument that the federal court does not have jurisdiction to strike down the regulations under the Eleventh Amendment. More ›

Collection Industry Trade Group Sues Massachusetts Attorney General to Halt Emergency Regulations

We recently reported on Massachusetts Attorney General Maura Healey's implementation of temporary regulations halting collection of debt from Massachusetts' consumers in the wake of the COVID-19 crisis. With certain exemptions, the regulations declare the performance of many regular debt collection activities—including placing telephone calls to debtors or initiating collection actions—an unfair or deceptive practice under the Massachusetts Consumer Protection Act. The emergency regulations apply until June 25, 2020, or until the end of Massachusetts' state of emergency, if longer. Now, a leading industry group has sued the Attorney General to enjoin immediate enforcement and to strike down the regulations. More ›