Current Industry News
IRS Privatization Program for Collecting Tax Debts Triples Profits in 2019
The federal government’s program outsourcing the collection of longstanding tax debt to private companies tripled the profits it brought to the Internal Revenue Service this year, though it still fell short of the revenues lawmakers had anticipated. The private debt collection program brought in $212 million from taxpayers in fiscal 2019, up from $82 million the previous year. The four companies participating in the program took commissions of $39 million, leaving—after other administrative costs—$148 million in net revenue to the IRS. That is up from $51 million in
Supreme Court rules debt collection lawsuit statute of limitations starts when violation occurs
The US Supreme Court ruled 8-1 Tuesday that the one-year filing deadline for a Fair Debt Collection Practices Act (FDCPA) lawsuit is determined from when the alleged violation occurs, not when it is discovered. The petitioner in this case, Kevin Rotkiske, was originally sued by debt collectors who received a default judgment after Rotkiske failed to respond. Rotkiske was unaware of the suit against him until applying for a mortgage, as all notices were sent to a previous mailing address. Rotkiske then filed suit against the debt collectors under the FDCPA.
Operators of Phantom Debt Scheme Permanently Banned From Debt Collection under Settlement with FTC
The operators of a scheme that conned consumers into paying non-existent debts will be permanently banned from the debt collection business and from misleading consumers about debt in a settlement with the Federal Trade Commission. The FTC filed a complaint against Global Asset Financial Services Group, LLC in February, alleging that the operators of the company falsely claimed to be attorneys or affiliated with attorneys to pressure consumers into making payments on debts they did not owe, and threatened to take legal action against consumers if they did not pay.
RMAI Comments on Proposed California Consumer Privacy Act Regulations
December 11, 2019 (Sacramento, CA) – The California Consumer Privacy Act of 2018 (CCPA) is the most anticipated privacy law of the decade. In an attempt to seemingly double down on the European Union’s 2016 General Data Protection Regulation (GDPR), the hastily drafted, hotly contested CCPA, is considered one of the strictest privacy laws in the United States. It takes effect on January 1, 2020 and has wrapped businesses in a swathe of new terms, ambiguous requirements and hefty penalties.