AFSA Publishes Amicus in Convenience Fee Case
AFSA joined with other trades in an amicus brief in a Ninth Circuit Court of Appeals decision. The case, Thomas-Lawson v. Carrington Mortgage Services, LLC involves convenience fees. The trades’ brief counters some of the issues raised by the CFPB in its brief. The CFPB filed a brief in October 2021 claiming the Fair Debt Collection Practices Act’s (FDCPA) “permitted by law” language bars debt collectors from collecting convenience fees unless explicitly authorized. The trades responded by pointing out that the CFPB’s strict interpretation of “permitted by law” in the FDCPA is improper, and will deprive consumers’ of important, cost-saving choices. The trades’ brief also notes that convenience fees are not assessed without a borrower’s knowledge, the fact and amount are disclosed before borrowers elect to continue with the payment method.
March 1st, 2022
