Current Industry News
NAFCU files amicus supporting FCUs’ ability to bring suit in federal court
NAFCU yesterday announced that it has filed an amicus brief in support of Navy Federal Credit Union as the credit union appeals a lower-court decision that determined it did not have diversity jurisdiction to file a federal lawsuit. In order to sue in federal court, certain criteria must be met: the plaintiff and defendant either have to have a federal case or controversy, or be citizens of different states. If this criteria is not met, then the lawsuit must be filed in state court.
FCC’s Call Blocking Plans Could Create Problems for Collections
Plans announced on May 15 by the FCC to empower voice service providers to offer more aggressive call-blocking programs could create significant problems for creditors and debt collectors. In addition to allowing providers to block unwanted calls by default, the FCC plans to allow providers to offer opt-in blocking in which a consumer can elect to block calls from any numbers that are not on the consumer’s own contact list. Such opt-in blocking could result in the blocking of legitimate communication attempts, such as collection calls from creditors or debt collectors.
CFPB: Proposed rule with request for public comment.
The Bureau of Consumer Financial Protection (Bureau) proposes to amend Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection Practices Act (FDCPA) and currently contains the procedures for State application for exemption from the provisions of the FDCPA. The Bureau’s proposal would amend Regulation F to prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The Bureau’s proposal would, among other things, address communications in connection with debt collection; interpret and apply prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection; and clarify requirements for certain consumer-facing debt collection disclosures.
Fed Chair Powell: Business debt is rising but does not pose a threat to the system
Federal Reserve Chairman Jerome Powell said rising levels of corporate debt need watching but so far do not pose a threat to the financial system. The central bank chief spoke Monday at the Financial Markets Conference in Amelia Island, Florida, on assessing risks to the financial system a decade after the end of the financial crisis that caused the economy to sink into its worst downturn since the Great Depression.