Availability of the FDCPA's Bona Fide Error Defense to Debt Collectors Who Don't Seek Legal Advice :
A recent Federal case has suggested that it is difficult, if not
impossible, for a debt collector to shield itself from liability for
violation of the Fair Debt Collection Practices Act (FDCPA) due to a
misunderstanding of the law unless it has sought the advice of legal
counsel or a governmental agency.
Chrysler Fraudulent Transfer Case Study Part I - Background :
In my last post,
I promised to break down the lawsuit filed recently by Chrysler LLC's
creditors alleging fraudulent transfer against Daimler AG. That project
begins with this entry, which discusses the procedural background, the
parties, and the attorneys.
The Daimler Chrysler Fraudulent Transfer Lawsuit: A Case Study :
Earlier this month,
United States Bankruptcy Judge Arthur Gonzalez in New York entered an
order allowing an organization of creditors of former Chrysler LLC to
file a lawsuit against Daimler AG alleging fraudulent transfer of a
significant portion of Chrysler's assets on the eve of the 2007 sale of
Chrysler by Daimler to Cerberus Capital Management LP. The lawsuit was filed Monday, and I have reviewed a redacted version thereof.
Debt Collection as a Permissible Purpose for Obtaining Credit Reports under the Fair Credit Reporting Act (FCRA) :
A recent case decided by the U.S. Court of Appeals for the Ninth Circuit,
Pintos v. Pacific Creditors Association, No. 04-17485 (April 30, 2009), has held that the Fair Credit Reporting Act (FCRA)
does not give a creditor the right to obtain the credit report of a
consumer in determining the likelihood of collecting a debt unless the
debt has either arisen out of a transaction for which the consumer
actively sought credit or been reduced to judgment. The ruling has been
hailed by consumer advocates as a victory for individual privacy rights as much as it has been feared by credit professionals. According to this reader, however, the effect of
Pintos is not as far-reaching as it appears at first glance.
