At a glanceFriday, April 19, 2019

Collection Industry News At A Glance - April 19, 2019
Friday April 19, 2019
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CREDIT UNION, MILLENNIAL, FINTECH LENDERS AND AUTO FINANCE PEER GROUPS TO MEET AT COLLECTION AND RECOVERY SOLUTIONS 2019 MAY 8 -9 IN LAS VEGAS

It’s not too late to register for the Collection and Recovery Solutions 2019 and attend a peer group session.  The Collection and Recovery Solutions events began in 2002, when creditors specifically requested an event for senior level collection executives, where they could learn about compliance and collections, effectiveness and efficiencies, in an environment where they were not inundated by salespeople and vendors.  At this invitation only conference for creditors, we have peer groups that get together to network and discuss what is happening in the industry today.

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“Text me $$$”: Debt collectors may soon be able to text and email consumers

Debt collecting is an age-old business but it may soon receive a 21st-century revamp when the Consumer Financial Protection Bureau, an agency created in the wake of the financial crisis to protect consumers, proposes new rules for the industry. Among the changes may be whether debt collectors can text and email borrowers as they pursue overdue funds. 

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UDAAP first in CFPB symposia series

Following comments Wednesday from CFPB Director Kathy Kraninger, the bureau has officially announced its symposia series "exploring consumer protections in today's dynamic financial services marketplace." The first symposium will be focused on clarifying "abusive" under unfair, deceptive or abusive acts or practices (UDAAP).

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Here is the FDIC Small Business Lending Report All Fintech Lenders are Reading

Recently, the Federal Deposit Insurance Corporation (FDIC) published its Small Business Lending Survey for 2018. Included within the report was an ongoing discussion of “non-bank lenders” or online lending platforms including direct and marketplace lenders. First, the FDIC acknowledges the profound importance of small business and their survival being tied to access to capital. IF SMEs cannot access credit they do not grow or survive. Small businesses are the foundation of the US economy driving the majority of job creation and wealth.

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CFPB may allow debt collectors to send you texts, emails

The Consumer Financial Protection Bureau will unveil new debt collection rules in a few weeks, the agency’s director said Wednesday, potentially unleashing a battle over the industry’s tactics and consumers’ rights. The proposal, which would be the first update to the Federal Debt Collection Practices Act in more than 40 years, will address how often debt collectors can call someone and the industry’s use of emails or text messages, said CFPB Director Kathy Kraninger. The CFPB will “modernize the legal regime for debt collection,” Kraninger said in her first major speech since becoming the bureau’s director in December.

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Consumer Financial Protection Bureau Announces Symposia Series

Washington, D.C. — Consumer Financial Protection Bureau Director Kathleen L. Kraninger announced a symposia series exploring consumer protections in today’s dynamic financial services marketplace. The series is aimed at stimulating a proactive and transparent dialogue to assist the Bureau in its policy development process, including possible future rulemakings. During each symposium, the Bureau will host a discussion panel of experts with a variety of viewpoints on the topic.

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CFPB’s Kraninger Signals Next Steps on Clarifying ‘Abusive’ Standard in UDAAP

The Consumer Financial Protection Bureau will take the next step in its effort to clarify the meaning of “abusive acts or practices” under Section 1031 of the Dodd-Frank Act, CFPB Director Kathy Kraninger said today in her first public remarks. Plans to provide clarity—long sought by ABA and other industry participants—have been signaled for months; Kraninger said the bureau would hold a public symposium in the coming months to solicit stakeholder feedback on the abusive standard, which is much less defined and understood than the unfair or deceptive acts or practices standard.

Kraninger broadly outlined her vision for the bureau under her leadership, emphasizing that “supervision is the heart of this agency.” Kraninger noted that she intends to focus the bureau’s work on the prevention of harm and ensuring the consistent applications of the CFPB’s supervisory tools.

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How to clarify ‘abusive acts’ is first topic for coming CFPB symposia, Kraninger says

A symposia series planned in the coming year by the Consumer Financial Protection Bureau (CFPB) will focus on topics related to the bureau’s mission, beginning with a look at clarifying the meaning of “abusive acts or practices” under Section 1031 of the bureau’s enabling statute, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), agency Director Kathleen Kraninger said in a speech Wednesday.

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Payday lending reform started in Springfield goes into effect this month

A law restricting payday lending in Ohio that was co-sponsored by a Springfield representative is about to take effect. House Bill 123 was passed and signed into law last year. Rep. Kyle Koehler, R-Springfield, and co-sponsor Rep. Michael Ashford, D-Toledo, introduced the bill to close loopholes and clarify statutes regulating the payday lending industry, including the Short-Term Loan Act, to ensure payday lenders are operating under intended guidelines.The law, which goes into effect April 27, prohibits borrowers from owing more than $2,500 in outstanding principal at a time from multiple payday lenders while continuing to protect them from unscrupulous lending practices. The law limits monthly maintenance fees to either 10 percent of the principal or $30, whichever is less, and caps the overall fees for a loan at 60 percent of the principal, according to a news release from Koehler’s office.

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CFPB to focus on protecting consumers, not enforcing laws on financial institutions

In her first public speech as director of the Consumer Financial Protection Bureau, Kathy Kraninger said the agency would focus on supervising and working with financial institutions on protecting consumers, rather than enforcing laws against them.   Kraninger announced Wednesday that the CFPB would soon propose rules to update one of the nation’s older consumer protection statutes, which prohibits abusive practices from debt collectors. One proposal would be a clear limit on the number of phone calls per week debt collectors could make.

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Speech at the Bipartisan Policy Center By Kathleen L. Kraninger, Director, Consumer Financial Protection Burea

Thank you to our hosts for the invitation, and to all of you for coming today. I’m particularly honored to be at a forum focused on bringing people together from across the political spectrum to forge commonsense solutions for the pressing issues facing our Nation. That’s the approach I am taking to advance consumer protection and mature the Bureau to meet that mission. I want to specifically thank Jason Grumet, President of the Bipartisan Policy Center as well as BPC staff Shai Akabas, and John Soroushian. BPC has supported dialogue on myriad issues, including the CFPB mission.

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COLLECTION EFFECTIVENESS TAKES THE STAGE AT THE COLLECTION AND RECOVERY SOLUTIONS 2019 CONFERENCE ON MAY 9 IN LAS VEGAS

CRS2019 is not just Compliance – it’s collection and recovery success strategies too! Hear Ken Evancic discuss training methodology for maximizing collection performance – with Compliance, Coaching and Accountability.

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Treasury yields fall as Fed Beige Book shows a tight labor market and a growing economy

U.S. government debt prices rose on Wednesday as the Federal Reserve said the economic activity grew at a slight-to-moderate pace in March and early April.    The Fed’s Beige Book report, a region-by-region assessment of the U.S. economy based on anecdotal information collected by the 12 regional Fed banks, found that the U.S. economy continues to grow and labor markets remains tight across the country.

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TCPA FCC Petitions Tracker April 2019

Kelley Drye’s Communications Practice Group presents this tracker of active Telephone Consumer Protection Act (“TCPA”) petitions before the Federal Communications Commission (“FCC”).  With the recent increase in litigation regarding alleged violations of the TCPA, many issues relating to the interpretation of the statute have been presented to the FCC by impacted parties.  These petitions can be primary jurisdiction referrals or be presented directly by a litigant in a TCPA action.  The FCC currently has a number of petitions pending related to TCPA interpretation.  The tracker below briefly summarizes each petition and the issues presented in them.

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Kaspersky: 70 percent of attacks now target Office vulnerabilities

Microsoft Office products are today's top target for hackers, according to attack and exploitation data gathered by Kaspersky Lab. In a presentation at its security conference --the Security Analyst Summit-- the company said that around 70 percent of the attacks its products have detected in Q4 2018 are trying to abuse a Microsoft Office vulnerability. That's more than four times the percentage the company was seeing two years before, in Q4 2016, when Office vulnerabilities had accounted for a meager 16 percent.

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Study: Health care industry worst at protecting consumer data, federal government is best

The federal government is best at protecting consumer data and the health care sector is the worst, according to a new study by the not-for-profit Internet Society’s Online Trust Alliance.   The 10th annual Online Trust Audit and Honor Roll analyzed more than 1,200 consumer-facing websites to determine which industry values security and privacy the most.

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RMAI EXPANDS NATIONAL CERTIFICATION PROGRAM TO INCLUDE VENDORS

April 15, 2019 (Sacramento, CA) – The RMAI Certification Council announces the adoption of version 7.0 of the Receivables Management Certification Program (RMCP) after a nine-month development and review process. The most significant enhancement to the RMCP in version 7.0 is the addition of vendor certification.  “With the launch of vendor certification, RMAI continues to secure its position of maintaining the most comprehensive receivables management certification standards in the nation,” said Marian Sangalang, President of the Receivables Management Association International (RMAI). “Offering the industry a single compliance footprint that sets high-level professional standards from the point of account origination through account conclusion is not only good for the industry but also the consumers we serve.”

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AG FERGUSON BILL PROHIBITING “POCKET SERVICE” DEBT COLLECTION PRACTICES PASSES LEGISLATURE

OLYMPIA — Today, with a bipartisan vote of 31-17 in the Washington State Senate, state legislators passed a bill prohibiting “pocket service” debt collection practices, which allow debt collectors to blindside consumers with default judgments in order to seize wages, bank account funds, or other assets. Attorney General Bob Ferguson requested the legislation, House Bill 1066, sponsored by Rep. Christine Kilduff, D-University Place. The House of Representatives passed the bill with a bipartisan vote of 59-37 on Feb. 14. Pocket service allows debt collectors to send a court summons and complaint to Washingtonians before filing them with the superior court. The individual receives these documents with no case number or court date. These individuals do not realize that the 20-day deadline to respond starts when they receive the documents, regardless of whether the collection agency filed the complaint with the court.

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PAUL LOWRY JOINS REVSPRING AS BUSINESS DEVELOPMENT DIRECTOR

LIVONIA, Mich. (April 16, 2019) – RevSpring is pleased to announce the addition of Paul Lowry as Director of Business Development, focused on the southeast region. Lowry brings extensive consumer communication and technology sales expertise as well as a track record for creating comprehensive, results-oriented solutions

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Attorney General Frosh Charges Company with Making Predatory Loans

BALTIMORE, MD (April 11, 2019) – Maryland Attorney General Brian E. Frosh announced today that his Consumer Protection Division has filed charges against Cash-N-Go, Inc., Brent M. Jackson, and related businesses owned and operated by Jackson under the “Cash-N-Go” name for allegedly making unlicensed and usurious consumer loans, referred to as “title loans” or  “title pawns,” which put vulnerable Maryland consumers at risk of losing their motor vehicles.

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Mark Calabria takes over as FHFA director, begins push for housing finance reform

After being confirmed by the Senate earlier this month, Mark Calabria officially took over Monday as the director of the Federal Housing Finance Agency, the federal agency charged with overseeing Fannie Mae, Freddie Mac, and much of the U.S. housing finance system. Calabria was sworn in Monday as director of the FHFA, replacing Comptroller of the Currency Joseph Otting, who was picked by President Donald Trump to serve as acting director of the FHFA while Calabria awaited Senate confirmation. Calabria received confirmation from the Senate two weeks ago, when the Senate voted to confirm him as FHFA director by a 52-44 margin. Now, Calabria, who previously served as Vice President Mike Pence’s chief economist, will take the reins at the FHFA.

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Online Lending Company Agrees to Settle FTC Charges It Engaged in Deceptive and Unfair Loan Servicing Practices

Avant, LLC, an online lending company, has agreed to settle the Federal Trade Commission’s charges that it engaged in deceptive and unfair loan servicing practices, such as imposing unauthorized charges on consumers’ accounts and unlawfully requiring consumers to consent to automatic payments from their bank accounts.

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Controversial payday lending bill dies in House without vote

A controversial bill regulating payday and subprime loans is dead this legislative session.  On the last day for bills to pass out of the Indiana House, the sponsor for Senate Bill 613—Rep. Matt Lehman, R-Berne—declined to call it for a vote.  “After a long discussion, there was some determination that it still needed some additional work, and we’re just out of time,” Lehman said.  The latest version of the bill would have increased allowable interest rates on traditional loans to 36 percent, plus a $150 prepaid finance charge, and created two other loan products that would have been exempt from the state’s loan-sharking rate cap of 72 percent. The installment loans that would have been created by the legislation would have been for six to 12 months and ranged from $605 to $1,500 with interest rates of up to 192 percent. 

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Worried a recession is coming, U.S. online lenders reduce risk

NEW YORK (Reuters) - U.S. online lenders such as LendingClub Corp, Kabbage Inc and Avant LLC are scrutinizing loan quality, securing long-term financing and cutting costs, as executives prepare for what they fear could be the sector’s first economic downturn.

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Compliance: CFPB Supervisory Highlights note UDAAP violations

The Consumer Financial Protection Bureau (CFPB) released its Winter 2019 Supervisory Highlights recently, detailing issues currently on the bureau’s radar, as well as enforcement trends credit unions should be mindful of. A recent CUNA CompBlog post delves into the report’s details. The newsletter contains lots of discussion around Unfair, Deceptive or Abusive Acts or Practices (UDAAP), most notable in auto loan servicing mortgage servicing and deposits.

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WebRecon Stats for Mar 2019: ​Upside Down & Inside Out

So, when is the last time FDCPA and TCPA lawsuits were up while FCRA lawsuits were down? (spoiler alert… you have to go back a full year, to March 2018). Defying all trends for the last couple of years, March 2019 did just that… with robust gains in FDCPA (+9.4%) and TCPA (+7.9%) and a significant drop in FCRA (-9.3%).

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General Electric agrees to pay $1.5 billion penalty for allegations related to subprime lending unit

General Electric agreed to pay the Department of Justice a $1.5 billion penalty for alleged accounting misrepresentations stemming from the company’s now defunct subprime mortgage business WMC.

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Industry Events

 
Collection & Recovery Solutions 2019

Resource Management Services, Inc.

Four Seasons Hotel
3960 Las Vegas Blvd South
Las Vegas , NV
May 08 - 10 , 2019

562-906-1101

National Creditors Bar Association 2019 Spring Conference

National Creditors Bar Association

Hilton Minneapolis
1001 S. Marquette Avenue
Minneapolis, MN 55403

May 15 - 18 , 2019

202-861-0706

PrivacyCon 2019

Federal Trade Commission

400 7th St., SW
Washington , DC
June 27 - 27 , 2019

(202) 326-2222

NACTT 54th Annual Seminar Registration Open

NACTT

JW Marriott Indianapolis 10 S. West Street Indianapolis, IN 46204
Indianapolis , IN
July 16 - 19 , 2019

800-445-8629 | 803-765-0860

ACA International 2019 Annual Convention & Expo

ACA International

Event Location TBA

July 17 - 16 , 2019

800-269-1607

Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd
Las Vegas, Nevada

September 10 - 12 , 2019

(562) 906-1101

National Creditors Bar Association 2019 Fall Conference

National Creditors Bar Association

Marriott Marquis
Washington, Washington, DC

October 16 - 19 , 2019

202-861-0706

More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
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