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Daily Digest – October 3. Collector Not Obligated to Notify Creditor of Dispute; Legal Challenges to Student Loan Debt Cancellation Plan Launched

Account Recovery

COLLECTOR NOT OBLIGATED TO NOTIFY CREDITOR OF DISPUTE A judge in Oklahoma has granted a motion to dismiss, ruling the defendant was not obligated under the Fair Debt Collection Practices Act to notify the original creditor that a debt was being disputed.

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The Ripple Effect of Student Loan Defaults: What Creditors Should Be Watching in 2025

Optio Solutions

Student loan repayments are backand the ripple effect is real. As borrowers juggle renewed obligations, creditors across all sectors could see rising delinquency. Heres what to watch for in 2025 The post The Ripple Effect of Student Loan Defaults: What Creditors Should Be Watching in 2025 first appeared on Optio.

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Pa. AG Settles With Collector Over Payday Loan Scheme

Account Recovery

The Attorney General of Pennsylvania announced separate settlements with the former Chief Executive Officer of Think Finance and a debt collector, National Creditor Adjusters (NCA), in relation to a $133 million allegedly illegal online payday lending scheme.

Loans 241
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Judge Awards Plaintiff 25% of Requested Attorney’s Fees in Settled FDCPA Case

Account Recovery

The background: The case stemmed from attempts to collect on a 2007 mortgage loan. The plaintiff claimed he had paid off the 2004 loan, and argued that the 2007 loan was no longer valid due to a procedural issue: while the creditor had served a collection complaint in 2011, it never filed the complaint with the court.

Law Firms 130
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Lenders to Make More Subprime Loans in 2022, Delinquency Rates Expected to Rise: TransUnion

Account Recovery

Creditors and lenders are going to be a little more aggressive in their risk-taking in 2022, according to data provided by TransUnion, thanks to delinquency and charge-off rates that have remained stable through this year.

Lender 246
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What Are Creditors’ Rights During Insolvency Proceedings?

Hudson Weir

If your business is struggling to pay its debts when they fall due, its important to keep in mind what are creditors rights during insolvency proceedings? As a director of an insolvent company, your overriding duty moves from maximising profits for the owners to preventing further losses, with creditors repayments in mind.

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Appeals Court Partially Reverses Dismissal of FDCPA Case Over Consumer Status and Debt Definition

Account Recovery

The background: The lawsuit was filed after the defendant, a servicing corporation, sent two letters to the plaintiff concerning his residential mortgage loan. More than five years later, the plaintiff received a letter from the defendant stating that it was attempting to collect on the loan. Read the ruling.