The CFPB announced that it has entered into
a consent order to settle the CFPB’s allegations that a debt collector, Yorba Capital Management, LLC (Yorba), and its owner, Daniel Portilla, Jr., violated the Consumer Financial Protection Act and that Yorba violated the Fair Debt Collection Practices Act. The consent order permanently bans both Yorba and Mr. Portilla from the debt collection business and orders Yorba and Mr. Portilla to pay consumer redress of $860,000 and a civil money penalty. However, due to the respondents’ limited financial resources, the order suspends full payment of the $860,000 judgment upon their payment of a $2,200 civil money penalty.
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CFPB Proposes 60-Day Extension For Debt Collection Rules
Law360 (April 7, 2021, 6:26 PM EDT) The Consumer Financial Protection Bureau is looking to give the nation s debt collectors 60 extra days to comply with two rules issued last year that impose new disclosure and communications requirements on them, according to a proposal issued Wednesday.
The regulator said it wants to extend the effective date of both rules from Nov. 30, 2021, to Jan. 29, 2022, in light of the COVID-19 pandemic. Both rules were issued under the Fair Debt Collection Practices Act. The proposed delay would allow stakeholders affected by the pandemic additional time to review and implement the rules, the regulator said.
Ninth Circuit Holds Debt Collector s Statute Of Limitations Mistake Can Qualify For FDCPA Bona Fide Error Defense - Finance and Banking mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.
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On March 2, Rep. Madeleine Dean (D-PA) introduced a bill, the Fair Debt Collection Practices for
Servicemembers Act (H.R. 1491), proposing to amend two sections
of the Fair Debt Collection Practices Act (FDCPA or the Act) -
namely Section 805 of the FDCPA (15 U.S.C. § 1692c) and
Section 808 of the FDCPA (15 U.S.C. § 1692f) - to afford
additional protection to servicemembers from certain debt
collecting practices.
Proposed Amendment to 1692c: Communication Involving Debt
Collection
The proposed amendment would add a Subsection (e) at the end of
Federal Activities:
On March 6, the U.S. Senate passed a $1.9 trillion COVID-19 relief package, which will now head back to the U.S. House of Representatives for approval. The stimulus package includes a provision that would end the current policy of considering any student debt forgiven taxable income. Currently, any student loan debt canceled by the government can be considered taxable and levied at the borrower’s normal income tax rate. For more information, click
On March 5, the Federal Reserve Board clarified guidance relating to definitions for minority depository institutions (MDIs), expanded the MDI definition to include women-owned financial institutions, and highlighted resources available to MDIs through its Partnership for Progress program. By law, the term “minority” means any Black American, Native American, Hispanic American, or Asian American. The definition of MDI is consistent with the statutory definition of “minority bank,” and states that an MDI deno