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Compliance Digest – August 26

Account Recovery

WHAT THIS MEANS, FROM STACY RODRIGUEZ OF ACTUATE LAW: After a collection law firm garnished an Arizona judgment debtor’s bank account, the debtor raised FDCPA claims alleging that all funds in the account were social security benefits and, thus, exempt from garnishment. More details here.

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Law Firm's Garnishment Activities Do Not Violate FDCPA

Consumer Financial Services Law

The case arose from the law firm’s post judgment efforts to garnish wages. After serving a garnishment summons, the consumer claimed the funds as exempt. The defendants then made four additional attempts to garnish funds. Unifund CCR, LLC, 2016 U.S. LEXIS 168707 (Dec. The defendants moved to dismiss.

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Debtor Education Course After Filing for Bankruptcy

Sawin & Shea

Since 2005, a debtor education course from an approved provider is mandatory for anyone who files for bankruptcy. Debtor education classes provide customized guidance based on your unique circumstances. Since then, bankruptcy filers have been required to take both a bankruptcy credit counseling course and a debtor education course.

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8th Cir. Holds FDCPA Plaintiff Lacked Article III Standing In Garnishment Communication Case

Collection Industry News

Rodenburg Law Firm is available at: Link to Opinion. In Minnesota, a creditor may issue a garnishment summons to any third party “at any time after entry of a money judgment in [a] civil action.” Debtor brought suit under 15 U.S.C. A copy of the opinion in Ojogwu v. 1692c(a)(2) of the FDCPA. Creditor appealed.

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Texas Court Denies Defendants’ Motion to Dismiss FDCPA Claim Over Statute of Limitations Defense

Collection Industry News

In early 2019, a garnishment action was filed by Pallida in Denton County, Texas to collect on the default judgment. Thus, the court held the defendants failed to demonstrate the statute of limitations barred plaintiff’s FDCPA claims, allowing plaintiff to bring claims as to both the 2010 collections action and the 2019 garnishment action.

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Texas Court Denies Defendants’ Motion to Dismiss FDCPA Claim Over Statute of Limitations Defense

Troutman Sanders

In early 2019, a garnishment action was filed by Pallida in Denton County, Texas to collect on the default judgment. Thus, the court held the defendants failed to demonstrate the statute of limitations barred plaintiff’s FDCPA claims, allowing plaintiff to bring claims as to both the 2010 collections action and the 2019 garnishment action.

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What New Business Owners Need To Know To Collect Debt

The McHughes Law Firm

Myth No 3: If I Can Not Collect the Debt Myself, the Debtor Will Not Pay. 5: Debt Collectors Hound Debtors and Make Threats. Debt collection is governed by the Fair Debt Collection Practices Act , which has specific guidelines for contacting debtors. For example, a debtor can request not to be contacted at work.