At a glanceFriday, November 11, 2022

Collection Industry News At A Glance - November 11, 2022
Friday November 11, 2022
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Permanent Version of DC’s Protecting Consumers From Unjust Debt Collection Practices Amendment Act Takes Effect January 1, 2023

As we previously discussed here, in March 2022, the D.C. Council of the District of Columbia Committee of the Whole met in a full hearing, in part to hear amendments introduced to B24-0357, known as the Protecting Consumers From Unjust Debt Collection Practices Amendment Act (Act).

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Protections Against Employment Discrimination for Service Members and Veterans

Service members and veterans have made great sacrifices to guarantee the freedoms and liberties that all Americans enjoy.  And service members and veterans themselves are also guaranteed rights, such as the right to be free from discrimination in civilian employment.  This document helps explain where to get help if you are a service member or veteran and you feel that you have been discriminated against in employment because of your military status, veteran status, or another protected basis.

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Veteran-owned businesses

Devoted exclusively to promoting veteran entrepreneurship, the OVBD facilitates the use of all U.S. Small Business Administration (SBA) programs by veterans, service-disabled veterans, reservists, active-duty service members, transitioning service members, and their dependents or survivors.

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Proposition 209: Arizona voters back lowering maximum interest rates on medical debt

The measure has been touted as a way to protect Arizonans with medical debt from bankruptcy and poverty. Opponents from the business community say it's too broad and will have the unintended consequence of making it more difficult for working Arizonans to get loans.

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Statement from Secretary of Education Miguel Cardona on District Court Ruling on the Biden-Harris Administration Student Debt Relief Program

U.S. Secretary of Education Miguel Cardona issued the following statement regarding today’s district court ruling on student debt relief: "We believe strongly that the Biden-Harris Student Debt Relief Plan is lawful and necessary to give borrowers and working families breathing room as they recover from the pandemic and to ensure they succeed when repayment restarts.

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New York DFS Announces Updated Cybersecurity Regulation 

Superintendent of Financial Services Adrienne A. Harris announced in a press release this week that the New York State Department of Financial Services (DFS) proposed an updated cybersecurity regulation.

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BECU Announces Beverly Anderson as Next President and Chief Executive Officer

SEATTLE, Nov. 10, 2022 /PRNewswire/ -- BECU, the country's largest community credit union with over 1.3 million members and $30.2 billion in assets, today announced the selection of Beverly Anderson as its next president and chief executive officer (CEO).

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CFPB Issues Guidance to Address Shoddy Investigation Practices by Consumer Reporting Companies

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a circular to affirm that neither consumer reporting companies nor information furnishers can skirt dispute investigation requirements. The circular outlines how federal and state consumer protection enforcers, including regulators and attorneys general, can bring claims against companies that fail to investigate and resolve consumer report disputes.

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California Court of Appeal Ruling Limits Application of Default Interest

The California Court of Appeal recently ruled that California law treats default interest measured against the unpaid principal balance of a loan as an unenforceable penalty. In Honchariw v. FJM Private Mortgage Fund, LLC (see link), the court held that under section 1671 of the California Civil Code, a default interest charge must bear a "reasonable relationship" to the lender's actual damages from the breach to be enforceable.

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More And More Americans Are Struggling To Pay Their Auto Loans

The percentage of automotive loans that are at least 60 days delinquent hit 1.65 percent in the third quarter of 2022. That’s the highest rate of delinquencies in more than a decade, which indicates that vehicle owners are increasingly struggling to make payments on their vehicles.

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CFPB Begins Rulemaking on Data Access and Portability

The Consumer Financial Protection Bureau (CFPB) on October 27, 2022 took the long-anticipated first step to issue a regulation implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.1 This followed a preview by CFPB Director Rohit Chopra at the Money 20/20 conference on October 25 in which he outlined the “CFPB’s new approach to regulation,” which is designed to create “catalysts for more competition.” With respect to Section 1033, Director Chopra said that the CFPB is “exploring safeguards to prevent excessive control or monopolization by one, or even a handful of, firms”2 and will be working toward avoiding regulations that could be “rigged in favor of some players over others.”3 Director Chopra’s focus on competition as an essential element of consumer protection has been a hallmark of his directorship.4

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Complaint Bulletin: An analysis of consumer complaints related to crypto-assets

Crypto-assets are increasingly offered and marketed to consumers, including being incorporated into other products. Even large financial firms have begun offering and marketing crypto-asset custodial services to certain customers. As these offerings have increased, so too have consumers’ complaints to the Consumer Financial Protection Bureau

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The CFPB finalizes rule to increase transparency regarding key nonbank supervision tool

Today, we finalized changes to our nonbank supervision procedural rule. The changes will provide transparency to the public about how we are using an important supervisory tool to keep pace with fast-moving consumer finance markets.

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Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, at the FDIC Systemic Resolution Advisory Committee

Our markets are far different than they were the last time this committee met in person. We look forward to hearing your advice on how the FDIC can be best prepared to resolve institutions whose failure may pose risk to the stability of the financial system.

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NCUA Charters New York Episcopal Federal Credit

ALEXANDRIA, Va. (Nov. 10, 2022) – The National Credit Union Administration has granted a federal charter and Share Insurance Fund coverage to New York Episcopal Federal Credit Union in the Bronx, New York.

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Weekly mortgage demand flattens, as interest rates climb higher to 7.14%

Mortgage rates rose again last week, throwing even more cold water on demand from both current homeowners and potential homebuyers. Weekly application volume fell 0.1% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

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Credit Card and Personal Loan Balances Reach Record Levels as Consumers Navigate High Inflation, Rising Interest Rates (

The third quarter of 2022 saw more consumers turning to unsecured personal loans and credit cards as a means to help stave off the financial pressures brought on by inflation.

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Americans Pile on Another $25 Billion in Consumer Debt

American consumers continue to dig deeper into debt as they try to cope with rising prices using credit cards. Americans added another $25 billion to their record levels of debt in September, according to the latest data from the Federal Reserve.

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Credit card balances reach record $866B as consumers battle economic headwinds

Credit card and personal loan balances have reached record highs in recent months as an increasing number of consumers lean on such means to combat growing financial pressures caused by sky-high inflation. 

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Americans Adjust Debt Management and Investment Strategies as Inflation Continues to Pose Challenges

NEW YORK, November 09, 2022--(BUSINESS WIRE)--As inflation continues to pose challenges for American adults’ financial strategies, New York Life’s latest Wealth Watch survey has found that people are coping by adjusting debt management and investment strategies, although the financial guidance informing these strategy adjustments varies by generational cohort. The latest survey revealed that more than half of adults reported expecting their living expenses to be higher in the second half of 2022 than the first, and 61% of respondents agree that they are more nervous about their financial future now than ever before.

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Troutman Pepper Weekly Consumer Financial Services Newsletter – November 2022

To help you keep abreast of relevant activities, below find a breakdown of some of the biggest events at the federal and state levels to impact the Consumer Finance Services industry this past week:

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After student loan forgiveness, 73% of borrowers plan to spend more on travel and dining out

Any day now, federal student loan borrowers throughout the U.S. could see their balances reduced by up to $20,000 thanks to President Biden’s student debt forgiveness plan. The administration is waiting on a green light from a federal judge to actually start reducing balances, but still says applicants can expect good news in the coming weeks.

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House Committee on Small Business GOP Advances Oversight on Regulatory Burden for Small Businesses

Leaders in the U.S. House of Representative’s Committee on Small Business are seeking answers on the regulatory burden for small businesses from the Consumer Financial Protection Bureau and Federal Trade Commission, among other agencies.

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5 Strategic Steps to Improve Year-End Collections

Financial regulators in the U.S. are worried that inflation is feeding on itself. As we brace ourselves for more interest rate hikes, what are the implications for your business? Before we can answer this question, we need to look at the cumulative effect of the Fed’s latest actions to control spiraling costs.

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New York City Proposes Amendments to Debt Collection Rules

The New York City Department of Consumer and Worker Protection is proposing amendments to its debt collection rules that would strengthen consumer disclosures and update requirements for reports licensed agencies must submit to the department, among other changes.

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Attorney General Frosh Enters into Multistate Settlements Addressing 2015 Experian Data Breach

BALTIMORE, MD (November 7, 2022) – Maryland Attorney General Brian E. Frosh today announced separate settlements with Experian Information Solutions, Inc. (Experian) and TMobile USA, Inc. (T-Mobile) concerning a 2015 data breach experienced by Experian that compromised the personal information of more than 15 million individuals who submitted credit applications with T-Mobile.

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Attorney General Announces Settlement with Court Ventures, Inc. (an Experian-Owned Company) that Allowed an Identity Thief Access to Its System

BALTIMORE, MD (November 7, 2022) – Maryland Attorney General Brian E. Frosh today announced that Maryland, along with 39 other attorneys general, has obtained a $1 million
multistate settlement with Experian Data Corp for failing to warn affected consumers after it learned that an identity thief posing as a private investigator had retrieved sensitive personal
information from Court Ventures, Inc., a data aggregator, that Experian Data Corp had purchased in March 2012.

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FTC Takes Action Against Ed Tech Provider for Failure to Secure Student’s Personal Information

On October 31, 2022, the Federal Trade Commission (FTC) announced it has taken action against education technology provider Chegg Inc. (“Chegg”) for its “careless” cybersecurity practices that exposed sensitive personal information of millions of its customers and employees.  This action highlights the FTC’s continued efforts to aggressively protect consumer personal data.

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CUNA economics: Tight job market continues

CUNA Senior Economist Dawit Kebede issued the following statement in response to the Labor Department’s October Employment Situation:   “The U.S. economy added 261,000 jobs in October, with service-providing industries responsible for 77% of the growth.

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SchoolsFirst FCU Named Among Top Financial Service Organizations

TUSTIN, Calif.--(BUSINESS WIRE)--SchoolsFirst Federal Credit Union, the largest credit union serving school employees and their families, was recently recognized by American Banker and CNET as a top credit union for its outstanding service experience and products. American Banker is one of the oldest and most prominent media outlets covering the financial services industry, and CNET – owned by CBS Interactive – is one of the first online sites providing expert reviews and advice.

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CFPB Targets Financial Industry’s Ability to ‘Hoard’ Personal Data in Proposed Rule

The Consumer Financial Protection Bureau is taking steps to potentially incorporate more financial data protection rules into federal regulations to help individuals maintain control over their sensitive information.

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Home Health Care Company To Pay $425,000 Following Data Breach Impacting Thousands of Massachusetts Residents

BOSTON — A Georgia-based home health and hospice care company will pay $425,000 after it failed to implement proper security measures to protect the personal information of patients and employees, Attorney General Maura Healey announced today.

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Convergent Outsourcing, Inc. Reports Data Breach Following Ransomware Attack

On October 26, 2022, Convergent Outsourcing, Inc. reported a data breach with the Montana Attorney General after the company experienced a ransomware attack. According to Convergent Outsourcing, the breach resulted in the names, contact information, financial account numbers, and Social Security numbers being compromised.

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Ethos Group Confirms Recent Data Breach

On October 31, 2022, Ethos Group filed documents with the Vermont Attorney General announcing that the company recently experienced a data breach impacting the security of consumer information stored on its computer systems. While the company has not yet disclosed the exact data types leaked in the recent breach, based on the relevant data breach reporting requirements, it is likely that the incident affected consumers’ names and one or more of the following: Social Security numbers, financial account information, protected health information or government identification numbers.

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30% of Adults Taking out Loans in Past Six Months Used Them for Emergencies or to Pay Bills, ScoreSense Survey Finds

DALLAS , Nov. 4, 2022 /PRNewswire/ -- Thirty percent of consumers who took out loans during the past six months used them for emergencies or to pay bills, and one out of four people used recent loans to pay towards credit card debt, according to a consumer survey by ScoreSense®, a credit score monitoring product. The survey findings, revealed in the "Survey of Consumers with Recent Loans and Credit Outlook Analysis," focused on consumer loan and credit activity for the third quarter of 2022.

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5.5 million student-loan borrowers will struggle to restart payments in January, a consumer watchdog finds — but a third of them could have their balances completely wiped out if Biden’s debt cancellation plan goes through

Millions of student-loan borrowers are projected to struggle if they're thrown into repayment next year — but that could all change if President Joe Biden's debt relief plan follows through.

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Feds warn of scam student loan debt robocalls

The FCC’s Robocall Response Team is warning consumers about a potential uptick in student loan debt robocalls in the wake of the recent announcement of nationwide federal student loan debt relief. Scammers often use broadly publicized news to add an air of legitimacy and familiarity to their spoofed robocalls. Scammers might use the calls to pressure consumers to make a payment or provide private information. But consumers should be aware that there is no fee to apply for student loan debt relief and that applications are accepted only at

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Industry Events

RMAi 2023 Annual Conference

Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference. Registration opens October 3, 2022.

Las Vegas , Nevada
February 06 - 09 , 2023

916 462 2462