Articles

CRS2019 SPECIAL 2 FOR 1 OFFER FOR ORIGINATING CREDITORS ONLY ENDS DECEMBER 31, 2019

Collection and Recovery Solutions 2019 conference, will be held at the Four Seasons Hotel, Las Vegas May 8 – 10, 2019.  For originating creditors only, the special 2 for 1 registration offer ends on December 31, 2019.  

Registrations will be accepted on a first-come, first-served basis. If you are a senior level creditor involved in collection and recovery, and are interested in receiving an invitation, please contact us at (562) 906-1101 or E-Mail: CRS@resourcemanagement.com. For more information on the Collection and Recovery Solutions 2019 conference, please visit us at www.crs2019.com.

New Head of Watchdog Agency Vows Consumers Will Be Top Focus

WASHINGTON (AP) — The new head of the U.S. consumer watchdog agency says she doesn’t have immediate targets in mind for rolling back actions taken by her controversial predecessor, and will put protecting consumers in the forefront while also encouraging financial innovation.   Kathy Kraninger, nominated by President Donald Trump and confirmed by the Senate last week on a narrow, party-line vote, has replaced Mick Mulvaney as director of the Consumer Financial Protection Bureau.

Minnesota attorney general sues tax debt company

ST. PAUL, Minn. (KARE) – Minnesota Attorney General Lori Swanson has filed a lawsuit against a “tax debt relief” company that Swanson said fails to deliver on its promises. The lawsuit claims Wall & Associates, Inc. failed to register in Minnesota and collected advance payments from clients of up to $15,000 before services were fully delivered. “State law prohibits these tax assistance companies from getting paid in advance. If you hire a tax assistance company, number one they have to be licensed. Number two, they’re not supposed to collect any money until they’ve actually helped you,” Swanson said.

Former ITT Tech students get $600M in debt relief from bankruptcy judge

While the bankruptcy fight over failed for-profit educator ITT Educational Services continues, the biggest group involved in the legal battle has scored a big victory. In late November, a federal bankruptcy judge in Indianapolis gave final approval to a $600 million settlement that will affect about 750,000 former students of ITT Technical Institute. The settlement cancels all of the debt those students owed directly to the defunct education chain, which operated 136 campuses in 38 states when Carmel-based parent ITT Educational closed it down in September 2016.  The agreement covers student borrowers who attended ITT Tech at any time from 2006 to 2016. It also returns $3 million to students who made loan payments to the school after ITT Educational declared bankruptcy more than two years ago.

Home Personal Finance Alleged student debt relief scam leads to arrest of CEO

In the summer of 2017, Beverly Sills, a Memphis, Tennessee Veterans Affairs Hospital employee, discovered she hadn’t made a payment on her student loans since December 2015, despite sending roughly $3,000 during that period to Ameritech, a company she believed was managing her debt, according to court documents.

BCFP enters into consent order with State Farm regarding alleged FCRA violations

Last Thursday, the Bureau of Consumer Financial Protection (the “Bureau”) announced a settlement with State Farm Bank, FSB (“State Farm”) regarding alleged violations of the FCRA as well as the Consumer Financial Protection Act of 2010. In the Consent Order, available here, the Bureau indicated that it found that State Farm violated the FCRA in numerous ways including: obtaining consumer reports without a permissible purpose; failing to promptly update or correct information furnished to credit-reporting-agencies (“CRAs”); furnishing information to CRAs without providing notice that the information was disputed by the consumer; and failing to establish and implement reasonable written policies and procedures regarding the accuracy of the information provided to CRAs. State Farm did not admit or deny the Order’s findings of fact or conclusions of law.

Data Security, Privacy to Be Early Focus of CFPB’s Kraninger

Newly sworn-in Consumer Financial Protection Bureau Director Kathy Kraninger will focus on data security and privacy in her early days in office, she said at a press briefing on her first day at the bureau this afternoon. The bureau collects a significant amount of consumer data in the form of surveys, consumer complaints and expanded Home Mortgage Disclosure Act data reporting. “Data security and data privacy [are] going to be a big focal point in terms of what the bureau collects, how it’s used, how long it’s stored . . . what information’s appropriate to be shared among regulators,” Kraninger said. “We absolutely will put consumers first in the decisions I make.”

Press statement by Mick Mulvaney, acting director

I commend the U.S. Senate for confirming Kathy Kraninger as the next director of the Bureau of Consumer Financial Protection. Next week begins a new chapter of service in Kathy’s career. The American consumer and our economy’s financial sector will benefit from her commitment, expertise, and professionalism. This last year has been an important step in the history of the Bureau as we take our place among the most notable regulatory bodies of our country—and frankly the world. Like all transitions, it was not always as smooth as we would’ve all liked, but the Bureau has emerged stronger for it. I wish Kathy the best of luck, and I look forward to the next five years of her leadership.

College student bank accounts charge more, CFPB report reveals

College-sponsored bank accounts charge students substantial and “legally dubious fees,” a new report from the Consumer  Financial Protection Bureau (CFPB) revealed. The report covers some 573 colleges during the 2016-2017 Award Year that were in marketing agreements with banks to promote services to students. Schools were awarded payments on a per-account basis, including a fixed amount for each student, or annual payments based on the total number of students using an account. The report raises concerns about these marketing agreements between banks and schools, questioning whether the deals bring a “conflict of interest” and result in higher-fee products.

FTC Hearings on Competition and Consumer Protection in the 21st Century Continue With Examination of Data Security

The Federal Trade Commission will host the ninth session of its Hearings on Competition and Consumer Protection in the 21st Century, which will examine data security.    Tuesday, December 11, 10:10 a.m.-4:30 p.m. and Wednesday, December 12, 9:30 a.m.-4:30 p.m