In Hanrahan v. Statewide Collection, Inc., No. 21-16187 (9th Cir. Sep. 1, 2022), the Ninth Circuit affirmed an award of attorneys’ fees in favor of the plaintiff in an action brought under the Fair Debt Collections Practices Act (FDCPA). The case makes clear that, although the amount is discretionary, attorney fee awards to prevailing plaintiffs are mandatory under the FDCPA.
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On Oct. 25, 2022, the Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, announced at a fintech conference that the CFPB “will launch the process to activate a dormant authority under Section 1033 of the Consumer Financial Protection Act . . . [to] provide for personal financial data rights for Americans . . .”
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When the CFPB released their advisory opinion on “pay-to-pay fees” in debt collection, it caused confusion in the debt collection industry. The opinion emphasized the existing provision in the FDCPA that says debt collectors may not collect fees that are “incidental” to the principal amount of the debt unless expressly permitted by law or within the consumer’s agreement with the creditor.
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