The Safe Harbor Debt Collection Law Update by Aylix Jensen

September/October 2022

This monthly newsletter provides an update of changes and developments in the law that impact the debt collection industry. It highlights new debt collection laws and practices, discusses what these may mean for the collection industry, and provides tips to ensure compliance. 
Aylix K. Jensen is a member of Moss & Barnett's financial services team. She practices in the areas of compliance and litigation related to the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, and the Telephone Consumer Protection Act, as well as other related state and federal law and regulations.

Aylix K. Jensen

In this month’s newsletter:

Eleventh Circuit Vacates Dismissal of FDCPA Case and Finds that Wasted Time and Emotional Distress Can Confer Article III Standing

In an unpublished, per curiam decision, the Eleventh Circuit found that wasted time and loss of sleep can confer Article III standing. See Toste v. The Beach Club at Fontainebleau Park Condominium Assoc., Inc., et al., No. 21-14348, 2022 WL 4091738 (11th Cir. Sept. 7, 2022). In Toste, the plaintiff fell behind on his monthly payments to his condominium association and the matter was referred to the defendants for collection. The defendants first attempted to collect the debt by threatening to file a claim of lien against the plaintiff’s condominium and then filed a claim of lien and threatened to foreclose on it if the plaintiff did not pay more than $10,000 in past-due association fees, interest, late fees, attorney’s fees, and costs. MORE >

Additional Disclosure Requirements in Massachusetts for Debt Buyers

On September 15, 2022, Encore Capital Group, Inc. (“Encore”) entered into an Assurance of Discontinuance with the Commonwealth of Massachusetts (“Assurance”) based on Encore’s alleged debt collection practices in Massachusetts. As a result of the investigation, the Attorney General concluded that Encore engaged in unfair and deceptive acts and practices in connection with the collection of debts pursuant to G.L. c. 93A, § 2, 940 C.M.R. 7.00 et seq., and G.L. c. 93, § 49. In lieu of litigation, Encore entered into the Assurance with the Attorney General and agreed to pay a total of $4.5 million to the Commonwealth. MORE >

Eighth Circuit Rejects Attorney's Attempt to Expand the Scope of Third-Party Disclosure Violations

In Magdy v. I.C. System, Inc., the Eighth Circuit affirmed the district court’s dismissal of a plaintiff’s complaint on the basis that the plaintiff, a non-consumer, lacked standing to bring his claim under section 1692c(b) of the FDCPA. In Magdy, the defendant debt collector sent a collection letter to the plaintiff, a bankruptcy attorney, identifying him as the attorney for a consumer named in the letter. As it turned out, the consumer identified in the letter was not the plaintiff’s client nor had there been any indication that the plaintiff was the consumer’s attorney. As a result, the plaintiff filed suit in Missouri state court asserting that the defendant violated section 1692c(b) by contacting the plaintiff regarding the debt of a consumer whom he did not represent, without the consumer’s consent. The plaintiff claimed that he suffered an injury as a result of the defendant’s actions because of the valuable time and resources he spent trying to determine if he had ever represented the consumer.  MORE >

Court Finds That Use of the Model Validation Notice is Not Required to Comply with Regulation F

On October 13, 2022, the United States District Court for the Central District of Illinois found that Regulation F does not require debt collectors to use the CFPB’s Model Validation Notice for compliance with the rule and granted a debt collector’s motion to remand to state court for lack of subject matter jurisdiction. This case stems from a collection services agreement between the plaintiff debt collector and the defendant hospital district and municipal corporation. As part of the agreement, the defendant was required to comply with various laws and regulations including the FDCPA and Regulation F (“Reg F”), which was promulgated by the CFPB and went into effect on November 30, 2021Article Text. MORE >

How to Defeat FDCPA Lawsuits Today:

New Strategies + Proven Techniques

While the debt collection industry spent 2022 focused on Regulation F and the Hunstein cases, consumer attorneys remained diligent in filing a record number of other FDCPA lawsuits against debt collectors in 2022. Further, the most effective strategies for defeating these FDCPA cases shifted recently, with motions to dismiss again being considered "the first arrow from the quiver" used by debt collectors to prevail in some of these matters. 


In this episode of The Debt Collection Drill videocast, Moss & Barnett attorneys Aylix Jensen and Mike Poncin discuss specific techniques and strategies that debt collectors are using to defeat recent FDCPA cases, including the use of motions to dismiss and arbitration clauses.

Click Below to View on YouTube:

The Debt Collection Drill Videocast #4

Aylix and Moss & Barnett are proud to support Women in Consumer Finance

2022! Each year this event gives attendees the opportunity to build real relationships and re-envision their careers. We hope to see you there!

Learn more and register here:

Women in Consumer Finance | Dec 5-7, 2022 | Palm Springs (

#WCF2022 #WomeninConsumerFinance

Aylix has authored many articles on debt collection topics, including:

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (August 2022 edition)

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (July 2022 edition)

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (June 2022 edition)

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (May 2022 edition)

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (April 2022 edition)

The Safe Harbor: Debt Collection Law Update by Aylix Jensen (March 2022 edition)

All's Fair in Love and Bankruptcy (Moss & Barnett Advocate, Spring 2022 ed., May 13, 2022)

Are Early Out Services Banned in Texas? An Examination of How Texas Debt Collection Requirements Apply to Early Out Entities (insideARM, March 1, 2021)

Is This the End of Credit Reporting for Debt Collectors? (insideARM, Feb. 18, 2021)

Can We Say Goodbye to Six-Figure Emotional Distress Jury Awards? The Future of Actual Damages Awards in Light of the Seventh Circuit’s Standing Decisions (insideARM, Feb. 9, 2021)

“You Hurt My Feelings!” An Examination of Emotional Distress Damages under the FDCPA (insideARM, Feb. 2, 2021)

Are Your Company's Debt Collection Practices or Policies Creating an Impermissible Disparate Impact? (Moss & Barnett Advocate, Fall 2020 ed., Dec. 15, 2021)

Whose Followers Are They? Establishing Ownership of Company Social Media Accounts (Moss & Barnett Advocate, Fall 2019 ed., Dec. 16, 2019)

Disclaimer: This newsletter does not create an attorney-client relationship between Moss & Barnett, A Professional Association, or attorney Aylix K. Jensen and any reader. Please remember that we can only provide general information and every case is unique. Always check with your individual attorney for any specific legal concerns.
The Safe Harbor Debt Collection Law Update by Aylix Jensen
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