In Pounds, et al. v. Portfolio Recovery Associates, LLC, the North Carolina Court of Appeals recently issued an opinion that may have a significant impact on collections law and arbitrability.

Defendant is an entity that purchases consumer debt.  Plaintiffs are individual credit card holders who had racked unpaid bills on their cards.  Defendant purchased the debts of those individual plaintiffs, then brought suit and obtained default judgments against each.… Continue Reading

When a borrower gets behind on payments to a lender, she is often given the chance to restructure that debt. After all, you can’t squeeze blood from a turnip. But such debt restructuring is often coupled with execution of a “forbearance agreement,” whereby the borrower acknowledges the validity of the debt and waives any lender liability claim she might have. If the borrower later fails to meet the new payment plan, then the lender need only sue on the forbearance agreement, without reaching back to the circumstances underlying the initial loan.… Continue Reading