Check by Phone Payments Still Cause Legal Headaches for Debt Collectors

John Rossman,
Moss & Barnett

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 an article published in 2013.

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