Check by Phone Payments Still Cause Legal Headaches for Debt Collectors ("The Debt Collection Drill")
Confusion and threats of class action lawsuits continue to plague the debt industry regarding the appropriate method for accepting recurring check payments by phone or via a website. Specifically, issues arise regarding the type of consent that a consumer must give to authorize recurring payments from a checking account or debit card. Further, the types of disclosures that must be provided by a debt collector accepting such payments are buried in the regulations. Clarity was originally provided on this topic in the article, "Legal Headaches of Check by Phone Payments in Debt Collection" (by John Rossman, insideARM.com, Jan. 21, 2013).
In the most recent episode of The Debt Collection Drill podcast, attorneys John Rossman and Mike Poncin discuss recent issues and questions regarding compliance with the requirements for accepting payments by phone or via a website.
Also discussed during the podcast is a recent scholarly study, "The Law and Economics of Consumer Debt Collection and Its Regulation" (by Todd J. Zywicki, Mercatus Working Paper, Sept. 2015), on the damaging impact of strict debt collection regulations on consumers.