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.
[author: Jackie Odum]
On April 6, 2021, the Consumer Financial Protection Bureau (CFPB) announced that it entered into a consent order with a third-party debt collection company and its former owner for alleged violations of the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536 and Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq.
The CFPB alleged that the company mailed deceptive notices to consumers in an attempt to collect debt. According to the Bureau, the letters falsely represented that consumers would be sued or face further legal action upon failure to pay the debt amount on the notices.
The consent order requires the debt collection company and its former owner to pay $860,000 in redress, which is suspended in full due to inability to pay. Additionally, the consent order permanently bans both parties from participating in, or assisting others, in debt collection activities.
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Thursday, April 1, 2021
On March 26, 2021, Judge Maryellen Noreika of the U.S. District Court for the District of Delaware dismissed a lawsuit brought by the Consumer Financial Protection Bureau (“CFPB”) in
Consumer Financial Protection Bureau v. The National Collegiate Master Student Loan Trusts,
1 finding,
inter alia, that the CFPB’s suit was constitutionally defective due to the CFPB’s untimely attempt to ratify the prosecution of the litigation in the wake of the Supreme Court’s decision in
Seila Law LLC v. Consumer Financial Protection Bureau. This case has been closely watched by many participants in the structured finance industry, because the litigants had disputed over the question of whether the trusts at issue in the litigation are “covered persons” liable under the Consumer Financial Protection Act despite their status as passive securitization trust entities a question that has important and wide-reaching implications for the structu
TransUnion v. Ramirez FCRA Class Certifications Case
The Supreme Court of the United States conducted oral argument in the
TransUnion v. Ramirez case yesterday. Hinshaw published a review of oral argument in today s ACA Daily newsletter, along with an overview of the issues at stake. We anticipate the court will issue its ruling before Independence Day.
Third Circuit Says Law Firm s Consumer Call-Back Letter Was Not Deceptive
Earlier this month, the Third Circuit found that the language If you wish to eliminate further collection action, please contact us at 800-832-7675 ext. 8500 was not a violation of the Fair Debt Collection Practices Act (FDCPA). The plaintiff in the matter represented a class of individuals who received a collection letter with the cited language and claimed that the language implied that a phone call would suffice for actions required by the FDCPA to be in writing. Specifically, the rule requires that a debtor provides written notice to the debt collecto