Law Changes Regarding Interest Disclosures, Validation Notices and Settlements

The Debt Collection Drill

Consumer attorneys subjected debt collectors to a barrage of FDCPA lawsuits, especially in New York and New Jersey, on collection letters in 2017. This trend will continue, and likely accelerate, in 2018. Debt collectors hoping for relief from the Courts on the latest consumer attorney claims regarding collection letters may get some clarity in the near future. The Second Circuit Court of Appeals recently considered oral arguments on the issue of whether a debt collector must disclose when interest is not accruing on an account in the Taylor case. A decision is expected in the Taylor case within the next year. Also, a recent decision from New Jersey held that validation language in a collection letter that tracks verbatim the wording of the FDCPA somehow violates the FDCPA. An appeal to the Third Circuit Court of Appeals in that case is expected. In addition, the Third Circuit Court of Appeals recently issued an opinion on whether use of the word "settlement" in a collection letter violates the FDCPA.

In the latest episode of the Debt Collection Drill podcast, Moss & Barnett attorneys John Rossman http://www.lawmoss.com/john-rossman/ and Mike Poncin http://www.lawmoss.com/michael-s-poncin/ discuss these recent cases affecting debt collection letters and specific strategies that agencies can implement today.