Articles

Seventh Circuit FDCPA decision has implications for CFPB’s approach to validation notices in its proposed debt collection rules

In its proposed debt collection rules, the CFPB would allow a debt collector to satisfy the FDCPA requirement to provide the validation notice by sending the debtor an email or text message that includes a hyperlink to a secure website on which the notice is accessible, subject to a series of specific conditions set forth in the proposed rules.  The permissibility of that approach under the FDCPA was called into question by the decision issued last week by the U.S. Court of Appeals for the Seventh Circuit in Lavallee v. Med-1 Solutions, LLC.  In the decision, the Seventh Circuit ruled that the emails sent by a debt collector to the plaintiff containing hyperlinks to a server operated by the debt collector’s sister company on which the plaintiff could access and download the validation notices did not satisfy the FDCPA validation notice requirement.

DCS2019 – Agencies and Debt Buyers Wanted

In addition to a concentration on collection effectiveness and compliance, Debt Connection Symposium & Expo will once again provide multiple opportunities for networking with peers and prospective clients.  Featured Company meetings will include three opportunities for prospective vendors to meet with potential creditors.   Meetings for prospective vendors planned by CRB Auto, Exeter Finance Corp. and Garnet Capital.

Lender Protection Allows Auto Refinancing for More Credit Tiers

Denver, Colorado, Aug. 14, 2019 (GLOBE NEWSWIRE) —

iLendingDIRECT, a national leader in automotive refinancing, has expanded its partnership with Open Lending, which specializes in alternative risk modeling for loans. iLendingDIRECT can now refinance customers with credit scores as low as 560 using Lenders Protection powered by Open Lending. This program allows lenders to fund near or non-prime auto loans with default insurance coverage. “We are excited to grow our partnership with iLendingDIRECT and to support them and their credit union partners in saying ‘yes’ to more automotive loans. The ability to help more institutions serve the underserved means a great deal to us,” stated John Flynn, Open Lending’s President and CEO.

DEBT SETTLEMENT MINI-SURVEY PRELIMINARY RESULTS RELEASED

Resource Management Services has released preliminary survey results from their Debt Settlement Mini-Survey. The survey consisted up 9 questions, and was responded to by 77 people, representing creditors (48.68%), Debt Settlement Companies (22.37%), Industry Participant Companies, not Debt Settlement (14.47%), Agency/Attorney (22.37%), and Others (6.58%). (It was not directed at consumers, and no “consumers in need” responded or identified themselves.)   There are 9 basic questions, (like defining debt settlement, trust issues, transparency with types of consumers and issues, credit reporting, additional standards and regulatory guidance), and areas for write in regarding future research and comments. 

Home Mortgage Disclosure (Regulation C) Adjustment to Asset-Size Exemption Threshold

The Bureau of Consumer Financial Protection (Bureau) is issuing a final rule amending the official commentary that interprets the requirements of the Bureau’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).