SVL Quarterly – September 2019
Changes to County and Circuit Court Jurisdiction in Florida
Changes to County and Circuit Court Jurisdiction in Florida
On May 24, 2019, the Governor signed House Bill 337 which was previously passed by the Florida legislature. This law makes major changes to the jurisdictional limits of the Florida Courts. Currently, county courts in Florida have jurisdiction of all claims up to $15,000.00 and circuit court has jurisdiction for claims in excess of $15,000.00.
Under this new law, the jurisdiction of county court is increased to $30,000.00 effective January 1, 2020. As a result, after January 1, 2020, the jurisdiction for the circuit courts will be for any claims in excess of $30,000.00. Then on January 1, 2023, the jurisdiction of the county court is increased to include claims up to $50,000.00, which will give the circuit courts jurisdiction in any claim in excess of $50,000.00.
This law does not impact the jurisdictional limits of small claims court. Small claims court is a division of county court and currently small claims court and small claims procedures apply to claims up to $5,000.00.
Should you have questions about this law, please do not hesitate to contact a lawyer at Sorenson Van Leuven for further guidance.
Annual Credit Union Collections and Bankruptcy Seminar 2019
CFPB Publishes Proposed Debt Collection Rule
CFPB Publishes Proposed Debt Collection Rule
Today, the CFPB issued a Notice of Proposed Rulemaking (NPRM) to implement the Fair Debt Collection Practices Act (FDCPA). The proposal is aimed at providing consumers with protections against harassment by debt collectors. The proposed rule is aimed at four goals: (1) establishing a clear, bright-line rule limiting call attempts and
telephone conversations; (2) clarify consumer protection requirements for certain consumers facing debt collection disclosures; (3) clarify how debt collectors can communicate with consumers; and (4) prohibit suits and threats
of suit on time-barred debts and require communication before credit reporting.
After an initial review of the NPRM, it appears
that the rule is mostly limited to third-party debt collectors and would have limited impact on Credit Unions servicing and collecting their own debts. However, the rule does establish standards of harassment that might be used to establish harassment under state statutes that apply to creditors collecting their own debts. The rule also addresses the use of email and text messaging, providing the first federal guidance on the use of these tools in collecting a debt.
The public is invited to submit written comments on the proposed rule. The public will have ninety days from the date that the NPRM is published in the Federal Register to provide public comments on the proposed rule. A copy of the proposed rule can be found here.
We are still in the process of evaluating this proposed rule and will be providing additional information to our clients. In addition, this will be a topic covered at our Credit Union Seminar, August 7-9th in Orlando. Additional information on the seminar can be found on our website under the News tab.
SVL Quarterly – May 2019
Save the Date – 2019 Collections / Bankruptcy Legal Workshop
SVL Quarterly – January 2019
Changes to FATCA and Impact on Lenders
Changes to FATCA and Impact on Lenders
There is a change to the Foreign Account Tax Compliance Act (FATCA) that will have a limited impact on financial institutions. FATCA was enacted into law to combat tax evasion through foreign accounts and investments. Since the law’s enactment, the IRS has been enacting regulations to enforce this law.
A new regulation goes into effect on January 1, 2019. This new regulation impacts insurance companies and requires that insurance companies distinguish between U.S. and foreign financial institutions. If a financial institution has not been identified as a U.S. financial institution, the insurance company will apply a thirty (30%) withholding to certain payouts and the amount withheld will be paid to the IRS. As such, insurance companies will be requesting a W-9 from financial institutions listed as a loss payee on an insurance policy.
Some of our clients have already received demands for a completed Form W-9 from auto insurance companies. We expect that additional insurance companies will make similar demands. As such, when requested, the Credit Union should submit a W-9 to the insurance company to avoid a thirty percent (30%) withholding on any loss payee payment.
Should you have additional questions, please do not hesitate to contact a lawyer at SVL for further guidance and information.
SVL Quarterly – November 2018
