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Today, the Consumer Financial Protection Bureau (CFPB) issued guidance to prevent families from being targeted by illegal medical debt collection tactics. The advisory opinion clarifies that debt collectors, which may include third-party “revenue cycle management” companies, are violating federal law when they collect on inaccurate or legally invalid medical debts.

Selecting the right recovery agency is a critical decision for any creditor, but it’s easy to fall into common traps that lead to suboptimal results. From assuming bigger is better to thinking aggressive sales tactics reflect the agency’s collection abilities, many misconceptions influence the selection process. This blog explores the fallacies that often cloud agency selection, the theories guiding agency performance, and the fundamentals you should consider to ensure you’re partnering with the right agency for your delinquent accounts.

The U.S. District Court for the District of Nevada granted a defendant’s motion for summary judgment in a case arising under the Fair Debt Collection Practices Act (FDCPA) and the Telephone Consumer Protection Act (TCPA). It found that the evidence did not reasonably support an inference that the defendant had actual knowledge of the plaintiff’s legal representation regarding an account and that the plaintiff providing her phone number regarding the original transaction is consent to communications originating from that transaction, including efforts to collect on the debt.

The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in August 2024.  There is one administrative hearing scheduled for October 2024.

On July 25, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies) issued a “Joint Statement on Banks’ Arrangements with Third Parties to Deliver Bank Deposit Products and Services” to “note potential risks related to arrangements between banks and third parties to deliver bank deposit products and services to end users”. On the same day, the agencies issued a “Request for Information on Bank-Fintech Arrangements Involving Banking Products and Services Distributed to Consumers and Businesses” (the RFI).