school

New CA Law Prohibits Withholding Transcripts as Debt Collection Tool

On October 4, 2019, California Governor Gavin Newsom signed into law Assembly Bill 1313, prohibiting postsecondary schools in the state from withholding transcripts as a debt collection tool. The new law goes into effect January 1, 2020.   

AB 1313 adds new Title 1.6C.7, the “Educational Debt Collection Practices Act,” to Part 4 of Division 3 of the California Civil Code …

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bankruptcy

What the Small Business Reorganization Act of 2019 Means for Creditors

On August 23, 2019, the Small Business Reorganization Act of 2019 (SBRA) was signed into law, creating “Subchapter V” in Chapter 11 of the Bankruptcy Code as part of an effort to streamline the structuring process for small businesses (defined as those whose total noncontingent liquidated secured and …
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dialer

$267M Verdict Highlights TCPA Risks in Calling Skip Traced Numbers

On September 9, 2019, the judge entered a final judgment in the TCPA case, McMillion v. Rash Curtis & Associates4:16-cv-03396 (N.D. Cal.) to the tune of a whopping $267 million.The verdict, issued by the jury in June 2019, determined that over 534,000 calls using auto dialers and pre-recorded messages were made by the local California collection agency without consent …
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bankruptcy

California SB 616 Makes It Harder for Collectors to Enforce Judgments

The bill, initially introduced February 2019 by Senator Bob Wieckowski (D-Fremont), creates an automatic exemption for the first $1,724 in a consumer’s bank account for bank levies. The result: collectors may have a harder time collecting on judgments.

RMAi, Encore and the California Collectors Associations expressed disappointment …
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