industry news

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 22, 2010

1. BBB Warns About Bogus Debt Collectors; Local Woman Targeted

(KWTX.com, 08/27/10)

The Better Business Bureau issued a bulletin Friday warning about phony debt collection callers who claim to be from the Kentucky-based payday loan company U.S. Cash Advance.”

2. HEPSEN v. J.C. CHRISTENSEN AND ASSOCIATES, INC.

(Leagle.com, 08/25/10)

This appeal concerns an award of attorneys’ fees under the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692 et seq. After a one-day bench trial before a magistrate judge, Defendant J.C. Christensen and Associates, Inc. (“Christensen”), was found to have committed two violations of the FDCPA. The magistrate judge awarded Plaintiff Ahmet Hepsen (“Hepsen”) $500 in statutory damages. Having prevailed in his FDCPA action, Hepsen filed a motion for an award of attorneys’ fees under the FDCPA. At the time the magistrate judge ruled on the motion, Hepsen sought $54,273.50 in attorneys’ fees. Hepsen did not receive the requested $54,273.50..”

3. Debt collector accused of continuing to run an agency from prison

(Buffalo News, 08/25/10)

A Lancaster man imprisoned on a parole violation has been accused by Attorney General Andrew M. Cuomo of illegally operating his Buffalo debt collection agency from federal prison.

4. Ramos bill would set criteria for reporting outstanding health care debt

(NJ.com, 08/24/10)

Hoboken Assemblyman Ruben Ramos Jr. will introduce legislation that would require health care providers to notify patients with outstanding debt before reporting them to a private collection agency or consumer reporting agency.”

5. City approves new system to collect unpaid taxes

(Lancaster Eagle Gazette, 08/24/10)

Lancaster will enter into a new agreement with a tax collection agency in an effort to acquire money owed to the city, but not paid.”

6. Lawsuits Filed Against Agencies, Creditors Decline

(Credit & Collections Risk, 08/24/10)

The number of collection agencies and creditors sued between August 1-15 totaled 426, down from 488 sued in the July 16-31 period, but up from 389 in the first half of July, according to data from U.S. District Courts.”

7. Collection Agencies Maintain Growth Posture in Tough Economy

(insideARM.com, 08/18/10)

An increase in placements and portfolio supply has prompted collection agencies and debt buyers to hire people recently. Meanwhile, the performance outlook for the ARM industry remains strained.”

8. Kaulkin Gingsberg’s Michael Lamm asks, “What is Your “Plan of Attack”?

(insideARM.com, 08/24/10)

I love the summer. Who doesn’t?  It is a great time to be with your family and friends and to be outside if it is not 100 degrees and humid, like it has been in the Philadelphia area recently!  It is also a good time to reflect on how the year has been going with your debt collection agency, and to figure out your “plan of attack” for the remainder of the year and 2011.”

9. Final Changes Restricting Credit Cards will have Lingering Impact on ARM

(insideARM.com, 08/23/10)

The rules of the game governing credit cards are changing yet again, as the final provisions of federal legislation involving credit card interest rates and fees went into effect yesterday. The big buzz this is creating is centered on credit card interest rates reaching a nine-year high, expected to go up even further in light of these new restrictions.”

10. TOTAL U.S. BANKRUPTCIES IN FIRST HALF OF 2010 UP 14 PERCENT OVER FIRST HALF OF 2009

(American Bankruptcy Institute press release, 08/17/10)

The total number of U.S. bankruptcies filed during the first six months of 2010 increased 14 percent over the same six-month period in 2009, according to data released today by the Administrative Office of the U.S. Courts. Total filings reached 810,209 during the first half of the calendar year of 2010 (January 1-June 30), compared to 711,550 cases filed over the same period in 2009. The totals represent the highest number of filings for the first six months of a calendar year since 2005, when the Bankruptcy Code was amended.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 15, 2010

1. ‘The Huckebee Show’ Features ‘Debt Collectors Gone Wild’ (VIDEO)

(TVSquad.com, 08/17/10)

The Huckebee Show‘ (weekdays, syndicated) on Tuesday featured the cautionary tale of Michelle Minton. The mother of two young children received a call from a bill collector — who also represented himself as a lawyer — claiming she owed $4,500.”

2. Judgments Are Not Worth The Paper They’re Printed On

(JD SUPRA, 08/19/10)

The current economic crisis is making the debt collectors scared. When there’s no money to put food on the table, even a favorable judgment through the courts means nothing. The judgment by itself doesn’t get you paid, according to Cincinnati debt collection law firm Slovin & Associates partner Randy Slovin.”

You can download a .pdf copy of the story here.

3. Minnesota orders debt collector out of business

(Star Tribue, 08/19/10)

A Wayzata debt collector who allegedly told a debtor “I will hunt you down like a dog” was ordered by state regulators to cease operations in Minnesota.”

4. Local debt-collection business expands to Sartell

(sctimes.com, 08/19/10)

A local debt collector’s business is booming — and its space is growing along with it.  Array Services is building a new home for one of its companies, ProSource Billing. Later this fall it will move into a new 23,000-square-foot facility in Sartell. Construction has already begun.”

5. SMITH v. ARROW FINANCIAL SERVICES, LLC

(Leagle.com, 08/17/10)

This is a Fair Debt Collection Practices Act (“FDCPA”) case in which Plaintiff Pamela E. Smith alleges that Defendant violated provisions of the Act through three voicemail messages and one email exchange. Defendant’s position is that both the voicemails and emails were left or sent in response to a specific request by Plaintiff at least a year into an ongoing and regular communication between Plaintiff and Defendant, and therefore were not in violation of the Act.”

6. Five men detained over debt collection released

(IrishTimes.com, 08/19/10)

FIVE MEN arrested by gardaí investigating aggressive debt collecting practices in the building trade in Dublin have been released without charge.”

7. Actions taken by debt collection agencies are limited by law in Oklahoma

(NewsOK, 08/18/10)

Seniors, beware. If you’re being harassed by calls from debt collectors, don’t be bullied into paying anything before knowing the law. In Oklahoma, the statute of limitations on most debt is three years and if you pay even as little as $5 on an old debt, you’ll reset the clock.”

8. Collection effort pays off

(TribToday.com, 08/18/10)

Warren’s debt collection agency has netted nearly $340,000 for city coffers since it started working on delinquent accounts four months ago.”

9. ANCHONDO v. ANDERSON, CRENSHAW & ASSOCIATES, L.L.C.

(Leagle.com, 08/16/10)

Defendant Anderson, Crenshaw & Associates, L.L.C. (ACA) appeals from a district court order awarding plaintiff Elsa Anchondo $63,333.52 in attorney fees, gross receipts tax, and costs under 15 U.S.C. § 1692k(a) after ACA agreed to a settlement in favor of Ms. Anchondo and the class she represents on their claims against ACA under the Fair Debt Collection Practices Act (FDCPA). ACA contends the district court erred in certain respects in determining the amount of the attorney fee award. We review the district court’s award for an abuse of discretion, see, e.g., Jane L. v. Bangerter, 61 F.3d 1505, 1509 (10th Cir. 1995), and affirm for the reasons expressed below.”

10. Collection Agency Opens Case On Anthony’s Court Debt

(WESH.com, 08/17/10)

ORLANDO, Fla. — Court records show that a collection agency has opened a case to recover money Casey Anthony owes on her theft case.”

Each week we bring you 10 of our most favorite stories from around the industry.

Week of August 8, 2010

1. Woman suing loan company after debt collector goes to her work

(WFAA-TV, 08/13/10)

Being late on a loan has turned into a fiasco that a Fort Worth woman never expected. The debt collector showed up at her job and the ensuing drama didn’t end until police were called.”

2. Debt Collector Gives His Time and Money to Feeding Kansas Citys Hungry

(Debtcollectionagencysoftware.com, accessed 08/13/10)

What started four years as a selfless way to give back to people in his community has grown into a passion for Shawnee, Kan. resident Arthur Lott. Today, Lott purchases, prepares and delivers more than 450 meals to men, women and children at three Kansas City, Mo. homeless shelters each month.”

3. Article On Why The FDCPA Is Designed To Protect Debt Collectors

(Alabama Consumer Law Blog, 08/04/10)

When we think about who the Fair Debt Collection Practices Act (FDCPA) is designed to protect we don’t normally think of . . . debt collectors. In a new article we explain how the FDCPA is designed to protect honorable . . . law abiding debt collectors from those debt collectors that are abusive and dishonorable.”

4. Raleigh woman sues JCPenney Credit for unfair practices

(The West Virginia Record, 08/12/10)

A Raleigh County woman is suing JCPenney Credit Services, General Electric and NCO Financial Systems after she claims they engaged in unlawful debt collection, unfair or deceptive practices and invasion of privacy, among other things.”

5. 3 things you should never say to a debt collector

(Wallet Pop, 08/12/10)

Lynnette Khalfani-Cox offers consumers three tips for dealing with collectors. Do you agree?

6. Lawsuits Against Collection Agencies, Creditors Spike

(Credit & Collections Risk, 08/12/10)

The number of collection agencies and creditors sued under various consumer statutes spiked to 480 in the second half of July, compared with 389 in the first half, according to data from U.S. District Courts.”

7. Debt collector for $200 bill gets nailed for $1.5-million judgment

(Hanna Boucher’s blog, 08/12/10)

I have worked in the  collections field for over 20 years.  I followed the FDCPA and was compliant.  Most collectors I have seen have been in the grey area. Then there are even many more that I see violate the FDCPA completely while the company owners are aware of it.”

8. Collection law firm sued for attempting to collect debt

(The Southeast Texas Record, 08/11/10)

A professional collection law firm is being sued after placing telephone calls to a Texas resident without disclosing they were attempting to collect a debt.”

9. Consumer files two lawsuits against debt collectors

(The Southeast Texas Record, 08/11/10)

A Lewisville resident has filed two lawsuits against debt collectors for violating the Fair Debt Collection Practices Act.”

10. Collection Agency Promotes “Good” Stories of the Collection Industry

(Collections Recon, 08/11/10)

American Profit Recovery,  a collection agency based in Michigan, Massachusetts and North Carolina, recently posted a number of short stories and profiles geared toward showing the general public and others that there are many aspects of the collection industry that go unreported, are misrepresented and intentionally covered in the media one-sided. The stories focus on how the agency has helped businesses and consumers come together in a diplomatic way to resolve debt, not just collect debt. The profiles can be read here at: http://www.collectionagencyblog.com“

FOR IMMEDIATE RELEASE:   

Grand Rapids, MI (June 23, 2010) –  The following statistics are provided to the ARM industry courtesy of WebRecon LLC. 

There were about 503 lawsuits filed under consumer statutes in the first half of June. Here is an approximate breakdown: 

• 419 Fair Debt Collection Practices Act
• 47 Fair Credit Reporting Act
• 5 Telephone Consumer Protection Act
• 17 Truth In Lending Act
• 2 Equal Credit Opportunity Act
• 3 Electronic Fund Transfers Act
• 1 Federal Trade Commission Act
• 2 Homeowners Loan Act
• 2 Home Ownership And Equity Protection Act
• 5 State of California Consumer Statutes
• 1 State of Florida Consumer Statutes
• 2 State of Illinois Consumer Statutes
• 1 State of Maryland Consumer Statutes
• 1 State of Michigan Consumer Statutes
• 1 State of North Carolina Consumer Statutes
• 2 State of West Virginia Consumer Statutes
• 6 Real Estate Settlement Procedures Act
• 1 Right to Financial Privacy Act
• 1 Racketeer Influenced and Corrupt Organizations Act

Summary: 

• Of those cases, there were about 577 unique plaintiffs (including multiple plaintiffs in one suit).
• Of those plaintiffs, about 182 had sued under consumer statutes before.
• Combined, those 182 plaintiffs have filed about 1042 lawsuits since 2001
• Actions were filed in 106 different US District Court branches.
• About 541 different collection firms and creditors were sued.

The top courts where lawsuits were filed: 

• 35 Lawsuits: Illinois Northern District Court – Chicago
• 25 Lawsuits: California Central District Court – Western Division – Los Angeles
• 24 Lawsuits: Colorado District Court – Denver
• 20 Lawsuits: Pennsylvania Eastern District Court – Philadelphia
• 19 Lawsuits: Florida Southern District Court – Fort Lauderdale
• 16 Lawsuits: Georgia Northern District Court – Atlanta
• 16 Lawsuits: Minnesota District Court – DMN
• 16 Lawsuits: Connecticut District Court – New Haven
• 13 Lawsuits: New York Eastern District Court – Brooklyn
• 13 Lawsuits: Maryland District Court – Baltimore

The most active consumer attorneys were: 

• Representing 25 Consumers: Sergei Lemberg
• Representing 21 Consumers: Donald A. Yarbrough
• Representing 15 Consumers: Brent F. Vullings
• Representing 14 Consumers: Mark H. Rephen
• Representing 12 Consumers: David Michael Larson
• Representing 12 Consumers: Forrest E. Mays
• Representing 11 Consumers: Daniel S. Blinn
• Representing 10 Consumers: David M. Marco
• Representing 10 Consumers: Lara Ruth Shapiro
• Representing 10 Consumers: Jody B. Burton

Statistics Year to Date: 

5306 total lawsuits for 2010, including: 

• 4518 FDCPA
• 466 FCRA
• 21  TCPA
• 189  TILA (Truth in Lending Act)

Number of unique Plaintiffs: 5234 (including multiple plaintiffs in one suit) 

The most active consumer attorneys of the year: 

• Representing 172 Consumers: Sergei Lemberg
• Representing 159 Consumers: Brent F. Vullings
• Representing 132 Consumers: David Michael Larson
• Representing 125 Consumers: Ryan Scott Lee
• Representing 115 Consumers: Todd Michael Friedman

About WebRecon LLC: Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third. 

For more information, please contact: 

Jack Gordon, CEO
WebRecon LLC, The FDCPA Litigant Alert
Web: www.WebRecon.com
Email: admin@webrecon.net
Phone: (616) 682-5327 

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ADEL, IOWA — collector mentor, the credit and collection industry’s premier training aid, announces a new social media strategy today, including a newly designed website aimed at encouraging a deeper interaction with its subscribers.

According to Gary Jensen, editor of collector mentor, the new enhancements are a direct response to the results of a recent subscriber satisfaction survey. “We take subscriber satisfaction very seriously,” he says, “and while the overall survey results greatly exceeded our expectations with positive responses, we felt that there was an opportunity to respond to our subscribers’ needs in these areas.”

NEW WEBSITE
The new site, www.collectormentor.com, will provide visitors with a seamless view of the publication’s online presence by combining the existing product site with an already lively and informative blog component. “The new site was designed specifically for our audience of both frontline collectors and management personnel,” Jensen notes.  “It boasts a more user-friendly interface, which encourages visitor interaction.”

SOCIAL MEDIA INITIATIVES
“Many of our subscribers indicated a desire to interact with collector mentor online,” Jensen says of the survey. “The increased popularity of social media tools such as Facebook, Twitter, and LinkedIn make it easy for companies to connect with their customers and opening those channels is a natural next step for the publication.”

Subscribers can now interact with collector mentor on the following social media platforms:

•  Twitter – www.twitter.com/collectormentor
• Facebook – www.facebook.com/pages/Adel-IA/collector-mentor/124592224220598
• LinkedIn – www.linkedin.com/groups?gid=2835309

Jensen adds, “The more interaction we can have with our readers, the more we know about what they want, and we can use that information to build stronger relationships with our subscribers. We expect this new strategy to provide us with the opportunity to connect with our readers in a powerful way.”

For more details on collector mentor, please visit www.collectormentor.com.

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For more information, please contact:

Gary Jensen
Editor | collector mentor
Phone: (515) 339-5899
Email: editor@collectormentor.com
Web: www.collectormentor.com

For immediate release                         
June 21, 2010

collector mentor Teams Up with InsideARM to Deliver Collector Challenge Series
The collector mentor Challenge™ designed to help industry professionals unleash their full potential

ADEL, IOWA — collector mentor, the credit and collection industry’s premier training aid, announced today that it has teamed up with insideARM.com to offer a weekly content series aimed at motivating and inspiring credit and collection professionals.

“The mission of collector mentor is to inspire, motivate, and educate members of the credit and collections industry, and delivering a recurring, simple challenge that supports our mission made The collector mentor Challenge an ideal fit,” said Gary Jensen, editor of collector mentor. “I’m personally very excited to have the opportunity to inject some positive energy into the industry, especially at the frontline level.”

The collector mentor Challenge will explore a variety of topics including careers, personal growth, health, family and friends, and finances. To help readers get the most out of the program collector mentor has also made available two downloadable tools that readers can use to chart their progress and experiences.

“Similar initiatives have worked well in life coaching and business coaching programs, and we wanted to apply that model to the credit and collection industry,” said Jensen “I fully believe that participation in the The collector mentor Challenge will help industry professionals learn more about themselves, and in turn, lead them to greater levels of success and satisfaction in what they do, ultimately helping them close the gap between where they are and where they want to be.”

According to Michael Klozotsky, managing editor at InsideARM.com, “The lion’s share of media coverage on the ARM industry, much of it overtly negative, is aimed at the corporate level.  So it’s easy to forget that the largest population of collection industry professionals is made up of hard working men and women who do their jobs on the front line every day.  A part of insideARM.com’s mission is to bring to light the human aspects of debt collection that make it an ordinary American job.  We are pleased to partner with collector mentor on this content series specifically developed for the people whose work drives this industry.”

For more details on The collector mentor Challenge, please visit www.collectormentor.com/thechallenge and http://www.insidearm.com/go/collector-challenge.

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 For more information, please contact:

Gary Jensen
Editor | collector mentor
Phone: (515) 339-5899
Email: editor@collectormentor.com
Web: www.collectormentor.com

Michael Klozotsky
Managing Editor | InsideARM.com
Phone: (240) 499-3836
Email: mklozotsky@kaulkin.com
Web: www.insideARM.com

 PRESS RELEASE

HOUSTON, TX –May 6, 2010– Marion Financial Corp. is pleased to announce that two high school seniors have each been awarded a $5,000 scholarship for the 2010–2011 academic years. The recipients of the eleventh annual Marion Financial Corp. Scholarship Award are:

• Emily Stephens, whose father is employed at Resurgent Capital Services, plans to attend Miami University, Oxford, Ohio.
• Alfred von Krusenstiern, whose father is employed at Coface Collections North America, Inc., is finalizing his options regarding several colleges and universities.

The purpose of the Marion Scholarship is to provide assistance to further the educational development of students who have an affiliation with the Accounts Receivable Management Industry. The competition for this year’s awards was open to the graduating class of 2010 high school students who are employed, or the child of an employee, in the Accounts Receivable Management Industry.

The Marion Scholarship is for high school seniors beginning their first year at any accredited public or private college, university or trade school. To apply, students were asked to complete an application form and submit an essay entitled “Why Further Education is Important to Me”. The recipients were selected based on their essay, grade point average and extra-curricular activities.

Marion Financial Corp. would like to extend their gratitude to judges Dan Desatnick, and Loraine Lyons for their continued commitment to the scholarship selection process.

For more information, contact Tom Edens or Jill Mussman, Marion Scholarship Committee by phone at (713) 988-8000, or by e-mail: mussman@marionfinancial.com.

The Litigant Alert is powered by a rapidly growing database of FDCPA, FCRA, TCPA, and other consumer lawsuits filed in U.S. District Courts, as well as some state, county, and local courts. The Litigant Alert uses proprietary logic to find relevant matches to debtors by name, geography, and Social Security number. 

An emerging trend finds that approximately 30% of debtors that have filed consumer litigation have filed more than one lawsuit. As such, agencies are experiencing rapidly escalating legal costs, many of which result from frivolous lawsuits where the FDCPA has not actually been violated. 

“Collection agencies saw a 40% increase in consumer rights lawsuits in 2009,” said Merlin’s VP of Sales and Marketing, Todd Twete. “The Litigant Alert is a tool that will help agencies identify potentially risky debtors in their portfolios. Many of our agency customers understand that identifying these debtors proactively is key to mitigating risk and controlling expenses.” 

A secondary result of the alliance is that the litigants will also be identifiable by appended Social Security numbers. WebRecon CEO, Jack Gordon, comments this is crucial to meeting the needs of the collections market. “Matching by Social Security number has been the number one demand of my customer base. We are continually innovating, but I don’t think there is a single more important thing we could have done than bringing SSNs into the mix. Speaking as a former collection agency owner, I could have saved thousands of dollars with an easy tool like this to pre-empt repeat litigants. I wish we had something like this just 2 or 3 years ago – it would have been tremendously helpful. I am very excited to be working with an equally innovative partner in Merlin to make this extraordinary product even better.” 

About Merlin
Merlin Information Services offers data solutions providing information about people, businesses, and assets. A leader in the investigative data industry, Merlin has a reputation for superior customer service, high ethical standards, excellent data, and flexible search and retrieval software. 

About WebRecon
Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

FOR IMMEDIATE RELEASE:

Grand Rapids, MI (April 7, 2010) – The following statistics are provided to the ARM industry courtesy of WebRecon LLC.

FDCPA and Other Consumer Rights Lawsuit Statistics, April 7, 2010

There were about 545 lawsuits filed under consumer statutes in the second half of March. Here is an approximate breakdown:
 476 Fair Debt Collection Practices Act
 42 Fair Credit Reporting Act
 17 Truth In Lending Act
 2 Equal Credit Opportunity Act
 2 Electronic Fund Transfers Act
 1 Higher Education Opportunity Act
 1 Home Ownership And Equity Protection Act
 2 Internal Revenue Code
 1 Personal Injury
 2 State of California Consumer Statutes
 1 State of Florida Consumer Statutes
 1 State of Maryland Consumer Statutes
 1 State of New York Consumer Statutes
 1 State of Ohio Consumer Statutes
 1 State of Vermont Consumer Statutes
 2 State of West Virginia Consumer Statutes
 3 Real Estate Settlement Procedures Act

Summary:
 Of those cases, there were about 588 unique plaintiffs (including multiple plaintiffs in one suit).
 Of those plaintiffs, about 172 had sued under consumer statutes before.
 Combined, those 172 plaintiffs have filed about 1045 lawsuits since 2001
 Actions were filed in 111 different US District Court branches.
 About 525 different collection firms and creditors were sued.

The top courts where lawsuits were filed:
 36 Lawsuits: Illinois Northern District Court – Chicago
 30 Lawsuits: Colorado District Court – Denver
 28 Lawsuits: Minnesota District Court – DMN
 25 Lawsuits: Pennsylvania Eastern District Court – Philadelphia
 25 Lawsuits: Georgia Northern District Court – Atlanta
 24 Lawsuits: California Central District Court – Western Division – Los Angeles
 20 Lawsuits: New York Western District Court – Buffalo
 15 Lawsuits: New York Eastern District Court – Brooklyn
 13 Lawsuits: New York Eastern District Court – Central Islip
 12 Lawsuits: California Northern District Court – San Francisco

The most active consumer attorneys were:
 Representing 23 Consumers: Sergei Lemberg
 Representing 21 Consumers: Brent F. Vullings
 Representing 20 Consumers: David Michael Larson
 Representing 17 Consumers: Todd Michael Friedman
 Representing 17 Consumers: James D. Pacitti
 Representing 17 Consumers: James Marvin Feagle
 Representing 16 Consumers: Craig Thor Kimmel
 Representing 15 Consumers: Adam Jon Fishbein
 Representing 15 Consumers: Nicholas J. Bontrager
 Representing 13 Consumers: Jon N. Robbins

Statistics Year to Date:
2816 total lawsuits for 2010, including:
 2403 FDCPA
 255 FCRA
 8 TCPA
 101 TILA (Truth in Lending Act)

Number of unique Plaintiffs: 2869 (including multiple plaintiffs in one suit)

The most active consumer attorneys of the year:
 Representing 92 Consumers: Ryan Scott Lee
 Representing 90 Consumers: Matthew William Kiverts
 Representing 90 Consumers: Brent F. Vullings
 Representing 83 Consumers: Sergei Lemberg
 Representing 80 Consumers: David Michael Larson

About WebRecon LLC: Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

FOR IMMEDIATE RELEASE:

Grand Rapids, MI (March 9, 2010) – The following statistics are provided to the ARM industry courtesy of WebRecon LLC.

FDCPA and Other Consumer Rights Lawsuit Statistics, February 16-28, 2010

There were about 463 lawsuits filed under consumer statutes in the second half of February. Here is an approximate breakdown:

 384 Fair Debt Collection Practices Act (vs. 238 same period 2009, 221 same period 2008)
 49 Fair Credit Reporting Act (vs. 31 same period 2009, 39 same period 2008)
 0 Telephone Consumer Protection Act (vs. 2 same period 2009, 0 same period 2008)
 16 Truth In Lending Act
 1 Credit Repair Organizations Act
 2 Driver’s Privacy Protection Act
 3 Equal Credit Opportunity Act
 1 Electronic Fund Transfers Act
 1 Fair Housing Act
 1 Higher Education Opportunity Act
 1 Homeowners Loan Act
 4 State of California Consumer Statutes
 1 State of Maryland Consumer Statutes
 1 State of Oregon Consumer Statutes
 4 State of Texas Consumer Statutes
 2 State of West Virginia Consumer Statutes
 9 Real Estate Settlement Procedures Act

Summary:
 Of those cases, there were about 502 unique plaintiffs (including multiple plaintiffs in one suit).
 Of those plaintiffs, about 258 had sued under consumer statutes before.
 Combined, those 258 plaintiffs have filed about 947 lawsuits since 2001
 Actions were filed in 105 different US District Court branches.
 About 471 different collection firms and creditors were sued.

The top courts where lawsuits were filed:
 36 Lawsuits: Illinois Northern District Court – Chicago
 34 Lawsuits: California Central District Court – Western Division – Los Angeles
 21 Lawsuits: Minnesota District Court – DMN
 16 Lawsuits: Pennsylvania Eastern District Court – Philadelphia
 16 Lawsuits: Colorado District Court – Denver
 15 Lawsuits: Georgia Northern District Court – Atlanta
 14 Lawsuits: New York Western District Court – Buffalo
 12 Lawsuits: Michigan Eastern District Court – Detroit
 12 Lawsuits: California Northern District Court – San Francisco
 10 Lawsuits: New York Eastern District Court – Central Islip

The most active consumer attorneys were:
 Representing 16 Consumers: Adam Theodore Hill
 Representing 14 Consumers: George Thomas Martin, III
 Representing 14 Consumers: Matthew William Kiverts
 Representing 14 Consumers: Sergei Lemberg
 Representing 13 Consumers: Ryan Scott Lee
 Representing 13 Consumers: Todd Michael Friedman
 Representing 12 Consumers: Brent F. Vullings
 Representing 11 Consumers: David J. Philipps
 Representing 10 Consumers: Diana P. Larson
 Representing 9 Consumers: Lara Ruth Shapiro

Statistics Year to Date:

1742 total lawsuits for 2010, including:
 1470 FDCPA (vs. 1120 same period 2009, 824 same period 2008)
 164 FCRA (vs. 186 same period 2009, 189 same period 2008)
 7 TCPA (vs. 3 same period 2009, 5 same period 2008)
 69 TILA (Truth in Lending Act)

Number of unique Plaintiffs: 1792 (including multiple plaintiffs in one suit)

The most active consumer attorneys of the year:
 Representing 75 Consumers: Matthew William Kiverts
 Representing 66 Consumers: Ryan Scott Lee
 Representing 49 Consumers: Brent F. Vullings
 Representing 48 Consumers: Adam Theodore Hill
 Representing 46 Consumers: David Michael Larson

About WebRecon LLC: Creditors and collection firms use WebRecon’s services to easily segregate predictably litigious consumers from their databases. A significant percentage of consumer litigation is initiated by the same consumers over and over again, and screening them out of the general population can reduce lawsuits by as much as a third.

The FDCPA Litigant Alert Batch up to one million accounts per hour through our massive litigant database
The ‘Litigant Exchange’ Provide your state & local lawsuit data in exchange for access to others’ lawsuit data
The ‘Reputation Tracker’ The industry’s only Consumer Web Site search engine
The ‘Litigant Hotsheet’ A quick snapshot of the most active litigious consumers sent twice monthly

For more information, please contact:
Jack Gordon, CEO
WebRecon LLC, The FDCPA Litigant Alert
Web: www.WebRecon.com
Email: admin@webrecon.net
Phone: (616) 682-5327