Judge Rules on MSJ in CFPB Case Against ‘Phantom’ Debt Collectors
Ethan Ostroff was a featured commentator in Accounts Recovery’s ARM Compliance Digest newsletter, providing insight on an article titled, “Judge Rules on MSJ in CFPB Case Against ‘Phantom’ Debt Collectors.” The article details a lawsuit filed by the Consumer Financial Protection Bureau against a group of individuals and companies for engaging in a “robocall phantom debt collection scheme.” A District Court judge in Georgia dismissed allegations against the payment processing and telemarketing companies and the case proceeded against the individuals and entities that were directly involved in the alleged scheme. On the decision, he noted, “The long and winding road of this case seems like it won’t end, as it will continue on to trial against one individual and one limited liability company, and then to a separate damages phase. There are a few take-aways from the Court’s ruling on cross-summary judgment motions that warrant consideration for everyone in the debt collection space, including service providers.”