At a glanceWednesday, December 07, 2022

Collection Industry News At A Glance - December 7, 2022
Wednesday December 7, 2022
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Collections Industry Sees Significant Split Between Large and Small Firms’ Investments in Customer Contact Channels

More than one in three (37%) collections firms are now using text/SMS messaging — a modest increase from last year when 31% were utilizing this communications channel with consumers.

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Pax­ton Encour­ages the Fed­er­al Trade Com­mis­sion to Take Con­crete Steps to Pro­tect Amer­i­cans’ Privacy

Attorney General Paxton has joined a Massachusetts-led multistate comment letter to the Federal Trade Commission (FTC) conveying the need for stronger privacy protections related to commercial surveillance and data security.  

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Arizona Debt Collection Law and Ballot Initiative Under Fire in the Courts

A group of plaintiffs led by the Arizona Creditors Bar Association and Protect Our Arizona, an Arizona political action committee, are challenging the constitutionality of the Arizona Predatory Debt Collection Act, which passed through a ballot initiative in the Nov. 8 midterm elections.

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Update on state laws on lending to businesses

In the run-up to the 2008 financial crisis, federal banking regulators took numerous steps to undermine state regulators and enforcers. For example, the Office of the Comptroller of the Currency and the now-defunct Office of Thrift Supervision took steps to nullify state laws protecting the public from predatory mortgage lending. This proved to be catastrophic.

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CFPB Finds Members of the Reserves and National Guard Paying Millions of Dollars in Extra Interest Each Year

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) released research revealing that Reserve and National Guard members called to active duty are paying an extra $9 million in interest every year because they are not always receiving the benefit of their right to rate reductions under the Servicemembers Civil Relief Act.

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CFPB Targets Garnishment Practices: Banks Need a Robust Compliance Plan

The Consumer Financial Protection Bureau (CFPB) entered into a consent order against a large national bank regarding the bank's garnishment-related practices.

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Receivables Performance Management Hit with Class Action Over 2021 Data Breach Affecting 3.7 Million People

A proposed class action claims the failure of Receivables Performance Management (RPM) to properly secure the private information of approximately 3.7 million customers is to blame for a 2021 data breach.

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Student loan forgiveness “highly unlikely” as Supreme Court reviews case, says expert

December 1st 2022, the federal Supreme Court rejected President Biden’s immediate request to revive his student debt relief plan. The court will review oral arguments in February 2023 and then determine whether the leading lawsuit against the program has merit.

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Protecting Those Who Protect Us: Evidence of activated Guard and Reserve servicemembers’ usage of credit protections under the Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act (SCRA) provides important legal and financial protections to active duty servicemembers. These protections include the ability to reduce the interest rate on any pre-service obligations or liabilities to a maximum of 6 percent. Existing literature suggests that the interest rate reduction benefit is underutilized. To address this information gap, this report seeks to quantify, for the first time, the use of the SCRA interest rate reduction benefit.

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House Committee Announces Hearing with CFPB Director

Consumer Financial Protection Bureau Director Rohit Chopra will testify on Capitol Hill next month in a hearing before the House Financial Services Committee (HFSC) just before leadership in the chamber will switch over to a Republican majority.

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Changes to HMDA’s closed-end loan reporting threshold

On September 23, 2022, the United States District Court for the District of Columbia issued an order vacating the 2020 Home Mortgage Disclosure Act (HMDA) Final Rule as to the loan volume reporting threshold for closed-end mortgage loans. The decision means that the threshold for reporting data on closed-end mortgage loans is now 25 loans in each of the two preceding calendar years, which is the threshold established by the 2015 HMDA Final Rule, rather than the 100 loan threshold set by the 2020 HMDA Final Rule.

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Semi-Annual Report of the Consumer Financial Protection Bureau

The Bureau of Consumer Financial Protection is pleased to present our Semi-Annual Report to Congress for the period beginning October 1, 2021 and ending March 31, 2022. Full report

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LexisNexis Risk Solutions Global State of Fraud and Identity Report Reveals Surge in Fraud as Digital Transactions Dominate the Global Marketplace

ATLANTA, Dec. 6, 2022 /PRNewswire/ -- LexisNexis® Risk Solutions released the results of its first Global State of Fraud and Identity Report, exploring research and insights from industry experts on recent statistics and trends from our industry-recognized studies on the Global True Cost of Fraud and transaction data from over 39B transactions from the LexisNexis® Digital Identity Network® from January 2022 to June 2022.

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Why Credit Unions Are ‘More Affordable’ Than Traditional Banks Right Now

Though inflation is cooling off ever so slightly it still remains at a near 40-year high, and we will likely see higher-than-usual prices stretch into the new year. During these tough times, credit unions could be better options for consumers than big banks.

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CFPB seeks to limit banks’ ability to collect on delinquent HELOCs

The Consumer Financial Protection Bureau is taking the position that banks cannot secure repayment on certain home equity lines of credit by pulling funds from their delinquent customers’ checking accounts.

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CFPB Partners With Local Governments to Protect Consumers

On November 18, the Consumer Financial Protection Bureau (CFPB) published a blog post outlining its recent initiative to share consumer complaint data with cities and counties so they can, “increase their efforts to protect consumers at the local levels.”

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CFPB Analyzes Impacts of Higher Mortgage Interest Rates

The CFPB’s Office of Research recently issued a blog post regarding its analyses of the impacts of higher mortgage interest rates on borrowers and potential homebuyers.  The analyses are based on first and second quarter Home Mortgage Disclosure Act (HMDA) data filed by the 55 mortgage lenders that are required, based on their high volume of mortgage lending, to collect and submit HMDA data on a quarterly basis.

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The CFPB Ombudsman’s Office shares its FY2022 Annual Report

The Ombudsman’s Office is an independent, impartial, and confidential resource that assists consumers, financial entities, consumer or trade groups, and others in informally resolving process issues with the CFPB. As we mark ten fiscal years of advocating for fair process in consumer financial protection, our report includes a 10 Year Anniversary section that highlights some key milestones over the years and describes some of the various ways we have assisted the CFPB and the public from our unique vantage point.

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Student Loan Forgiveness: Federal Court Upholds Ruling That Biden’s Plan is Unlawful

In another blow to millions of borrowers, a federal court declined to reverse a ruling blocking President Joe Biden’s student debt relief program on Nov. 30.

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Supreme Court Agrees to Hear Federal Request to Restore Student Loan Forgiveness Plans

The U.S. Supreme Court has agreed to review a request from the Biden administration to restore its student loan forgiveness plan, The Hill reports. While the court has agreed to review the case, it denied a request to immediately reinstate the program, according to the article.

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New Select Subcommittee Report Reveals How Fintech Companies Facilitated Fraud In The Paycheck Protection Program

Washington, D.C. (December 1, 2022) – Today, the Select Subcommittee on the Coronavirus Crisis, chaired by Rep. James E. Clyburn, released a staff report detailing the poor performance of many financial technology companies (fintechs) in administering the nation’s largest pandemic relief program, the Paycheck Protection Program (PPP). The report details how the investigated companies, despite being tasked with processing PPP applications while screening out those with signs of fraud, abdicated that responsibility—in many cases recklessly—resulting in the approval of large numbers of fraudulent applications.

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Mortgage Rates Drop Sharply, Hitting Lowest Levels Since Mid-September

Mortgage rates had been in a holding pattern for nearly 3 weeks following the November 10th CPI inflation data. On that single day, the average 30yr fixed rate fell by a record amount (as far as day-over-day record keeping is concerned, and we don't have daily records prior to 2009). That took rates from the low 7s to the mid 6's in a matter of hours and there they've stayed until this morning.

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CFPB Cautions That No Surprises Act Violations Can Implicate Fair Lending Laws

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices when collecting consumer debts. The Consumer Financial Protection Bureau (CFPB) enforces the FDCPA and in a in a 2014 study, the CFPB determined that more than 43 million Americans have overdue medical debt reported on their credit reports.

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CFPB Petitions High Court to Consider Decision Holding Funding Structure Unconstitutional

On November 14, 2022, the Consumer Financial Protection Bureau (“CFPB”) filed a petition for a writ of certiorari in connection with the Fifth Circuit’s recent decision in Community Financial, which held that the CFPB’s funding structure violated the Constitution’s Appropriations Clause.

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Protecting borrowers’ control over their money

As the economy recovers from the global pandemic, American families and businesses are experiencing higher prices as well as higher interest rates. This includes the interest rates for some credit cards.

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Attorney General James Reaches Multistate Agreement with CarMax to Protect Drivers’ Safety

NEW YORK – New York Attorney General Letitia James and a multistate coalition of 35 attorneys general today secured $1 million from CarMax for failing to disclose open safety recalls on their used vehicles to consumers before sales.

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Murphy, Van Hollen Reintroduce Legislation to Protect Consumers from Medical Debt

WASHINGTON—U.S. Senators Chris Murphy (D-Conn.) and Chris Van Hollen (D-Md.) on Wednesdayreintroduced legislation to strengthen consumer protections and reform medical debt practices.

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CFPB Takes $19 Million Action Against Loan Doctor and Edgar Radjabli for Offering Fake High-Yield Bank Accounts

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against Loan Doctor to resolve the CFPB’s claims that the company and its founder, Edgar Radjabli, broke the law by deceiving consumers into thinking they were depositing funds into a guaranteed return savings product within a commercial bank.

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FCC Declares that “Ringless Voicemails” are “Calls” that Require Consumer Consent to Avoid TCPA Liability

On November 21, 2022, the Federal Communications Commission (FCC or Commission) issued a declaratory ruling finding that “ringless voicemails” to wireless telephones require consumer consent because they are “calls” made using an artificial or prerecorded voice, and thus are covered by the federal Telephone Consumer Protection Act, 47 U.S.C. § 227 (TCPA)

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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