California is not the only state that is dealing with debtors trying to skip out on what they owe. One other state has even taken the measure of setting up its own Office of Debt Recovery in an effort to get back millions of dollars that was paid out.
Business Torts Archives
Commercial debt collection is already heavily regulated at the federal level with a complex set of rules laid out in the Fair Debt Collections Practices Act (FDCPA). As we have previously mentioned on this blog, California has implemented additional standards under a recent bill signed by Governor Jerry Brown known as the Fair Debt Buyers Practices Act.
There are complaints that too many lawsuits are being put in place by banks and other creditors seeking a judgment against debtors. However, the number of lawsuits brought by lending institutions may simply reflect the economy we live in where individuals are not paying back what they owe.
Banks trying to go it alone when collecting upon judgments and debts are now finding themselves in trouble with federal regulators. Obviously, with the unprecedented number of individuals defaulting upon loans during the past few years, lending institutions wish to find the means to have deficiency judgments paid back. However, it serves no purpose to pursue delinquent accounts only to find your bank the focus of a federal investigation.
Tesoro Corp has received approval from state and federal officials to purchase a refinery from BP for in excess of $2 billion. There had been some question as to whether such an acquisition would bring oil refiner into conflict with various antitrust provisions, but Federal Trade Commission (FTC) decision makers determined that such a move would be highly beneficial to the California economy.