Debt-Suit Lawyers Review Falls Short
Sharon Edmondson, Washington Legislative Team Member | August 18, 2015
The CFPB and FTC asked a federal appeals court for a ruling that could increase liability for debt collection attorneys on a question of law that has been given only sparse attention by courts
(Bock v. Pressler & Pressler LLP, 3d Cir., No. 15-cv-01056m brief filed, 8/13/15). At issue is an appeal from a decision that said the Fair Debt Collection Fairness Act (FDCPA) requires debt collection lawsuits to be subject of “meaningful” review by attorneys. The Pressler firm filed an appeal to the US Court of Appeals for the Third Circuit, where the CFPB and FTC have filed their brief in opposition.
The CFPB and FTC filing highlights increased scrutiny of the secondary credit market and its players. The case in the Second Circuit (Madden v. Midland Funding LLC, 2d Cir. No. 14-cv-02131, petition for rehearing denied, 3/12/15) overlaps with the Pressler case because in the Third Circuit case debts were purchased by Midland Funding LLC, and Midland is also the defendant and the appellant in the Second Circuit case that was denied hearing.