At a glanceFriday, December 30, 2022

Collection Industry News At A Glance - December 30, 2022
Friday December 30, 2022
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Loan Depot class action alleges company made unsolicited, automated phone calls

Loan Depot LLC engaged in unlawful telemarketing practices by repeatedly placing unwanted solicitation calls and automated voice messages, including to numbers listed on the National Do-Not-Call Registry, a new class action lawsuit alleges. 

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Congress and the Federal Reserve Could Be Setting Us Up for Economic Disaster

In the final week of 2022, we Americans can foresee two significant economic risks in 2023. The first one is a probability that the Federal Reserve will get weak-kneed and stop raising interest rates before inflation is truly under control. The second risk is that Congress will continue to spend and borrow money irresponsibly. The likely mix of these two hazards would all but ensure that our economic misery lasts much longer than necessary.

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Customer Loyalty Lessons Traditional Banks Can Learn From FinTechs

The study “Digital-First Bankingn: Experience-Oriented Digital-First Banking,” a PYMNTS and NCR collaboration, found that all age groups, led by younger generations, are moving toward making digital-only banks their primary providers. However, total consumer adoption of these neobanks is a long way off, with just one in 10 primarily using them. Digital-only banks, therefore, have been looking to gain consumer trust (and thereby market share) through enhanced customer service.

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AG Ferguson, Rep. Leavitt propose legislation holding telecommunications providers accountable for allowing illegal robocalls

OLYMPIA Attorney General Bob Ferguson announced that he is partnering with Rep. Mari Leavitt, D-University Place, on legislation to combat robocalls. Washington’s current anti-robocalling law is weak and out-of-date. Ferguson and Leavitt’s Robocall Scam Protection Act, HB 1051, modernizes the law and makes it a violation of the Consumer Protection Act to:

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Congress Is Trying To Pass a Bill That Will End Credit Card Rewards Programs

This month, congress will vote on a bill to eliminate almost all the funding for popular credit card reward programs like cash back and travel points. This Legislation would allow retailers to process credit card transactions without getting charged a processing fee. Putting millions of dollars into big-box retailer pockets. Senator Dick Durbin (D-IL) and Senator Roger Marshall (R-KS) introduced the bill to the Senate, and Peter Welch (D-VT) and Lance Gooden (R-TX) submitted it to the House and are planning on getting passed and signed by the end of this year.

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Hundreds of US hospitals sue patients or threaten their credit, a KHN investigation finds

Despite growing evidence of the harm caused by medical debt, hundreds of U.S. hospitals maintain policies to aggressively pursue patients for unpaid bills, using tactics such as lawsuits, selling patient accounts to debt buyers, and reporting patients to credit rating agencies, a KHN investigation shows.

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Toyota Financial Services Offers Payment Relief to Customers Affected by New York Area Storm

PLANO, Texas (Dec. 27, 2022) – Toyota Financial Services (TFS) announced it is offering payment relief options to its customers affected by the recent winter storm in the New York area. This broad outreach includes any Toyota Financial Services (TFS) or Lexus Financial Services (LFS) customers in the designated disaster areas.

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Republican House Financial Services Members to CFPB: Rescind Actions Impacting Consumer Protection and Nonbank Entities

Republican members of the House Financial Services Committee (HFSC) have called on Consumer Financial Protection Bureau Director Rohit Chopra to rescind actions related to nonbank entities that exceed the bureau’s statutory authority.

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Federal Student Loan Delinquency and Default: What to Know

Delinquency paves the way to default when it comes to repaying student loans, and millions of Americans who borrowed to fund their postsecondary education find themselves on that problematic path each year.

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Credit Unions Set Sights on Financial Wellness for 2022

For credit unions, helping consumers achieve financial wellness will be top-of-mind in 2023. But as Yvonne Stelpflug, senior vice president of Advisors Plus Consulting at PSCU, told PYMNTS, CUs will need to grapple with any number of challenges of their own as they seek to help end users navigate macro-economic pressures

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Truth in Lending Act (Regulation Z) Adjustment to Asset-Size Exemption Threshold

The Bureau is amending the official commentary that interprets the requirements of the Bureau’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending in November.

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Civil Penalty Inflation Adjustments

The Bureau is adjusting for inflation the maximum amount of each civil penalty within the Bureau’s jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The inflation adjustments mandated by the Inflation Adjustment Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. 

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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). 

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More debt and fewer rewards: Credit card trends to watch in 2023

If you want a good prediction of tomorrow’s economy, watch what moves credit card issuers make today. “It’s almost like watching a crystal ball to some extent,” John Ulzhemier, a credit expert formerly of FICO and Equifax, says of card issuers. “They are usually ahead of the curve with respect to reacting to downturns in the economy.”

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Arizona Proposition 209, which addressed medical and other debt, faces legal challenge

(The Center Square) – Arizona voters on Nov. 8 approved Proposition 209 with 72% of the vote. The citizen-initiated measure is designed to reduce interest rates on debt accrued from receiving healthcare services, as well as increase the value of certain property and assets exempt from debt collection processes.

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November 2022 was a mixed bag for litigation. FDCPA (-10.4%) and FCRA (-2.4%) lawsuits were both down for the month, but TCPA (+4.5%) lawsuits had a mini (and relatively uncharacteristic) surge. Year-to-date, FDCPA (-31%!) and TCPA (-11.2%) continued year-over-year declines, while FCRA (+4.1%) is still trending up. CFPB complaints were down both for the month (-10.4%) and for the year (-17.4%).

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Industry Events

Collection and Recovery Solutions 2023

An invitation-only event for senior level Collection and Recovery Professionals

Four Seasons Las Vegas ,
May 10 - 12 , 2023

Mark Naiman -

RMAi 2023 Annual Conference

Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference.

Las Vegas , Nevada
February 06 - 09 , 2023

916 462 2462