Yesterday the FTC announced a consent decree with Asset Acceptance obliging them to pay a $2.5 million fine. The consent decree also requires the collector to disclose to consumers when the collector's suit would be time-barred that the collector will not sue them on the debt. The FTC's statement is here; coverage in the Times is here.
Meanwhile, the Baltimore Sun reports that the number of suits brought by debt buyers in the Maryland courts may have dropped because of the tough new Maryland rules on collection suits.
And, to round out the banner day for debt collection reform, the California state senate approved SB890, the Fair Debt Buyers Practices Act, which -- similar to the new Maryland rules -- would require debt buyers to provide documentary evidence establishing that they have the right person and the right debt before obtaining a default judgement and garnishing wages and levying bank accounts. http://oag.ca.gov/news/press_release?id=2620
Anyone with the stomach for it can watch the drama (SB 890 begins at ~50:20).
http://www.calchannel.com/channel/viewVideo/3291
Posted by: Ted Mermin | Wednesday, February 01, 2012 at 12:42 PM