At a glanceWednesday, January 04, 2023

Collection Industry News At A Glance - January 4, 2023
Wednesday January 4, 2023
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CFPB and New York Attorney General Sue Credit Acceptance for Hiding Auto Loan Costs, Setting Borrowers Up to Fail

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) and the New York State Office of the Attorney General sued a predatory auto lender, Credit Acceptance Corporation, for misrepresenting the cost of credit and tricking its customers into high-cost loans on used cars. The car-buying experience turns into a nightmare for many of Credit Acceptance’s borrowers, who face unaffordable monthly payments, vehicle repossessions, and debt collection lawsuits.

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Attorney General James and CFPB Sue Auto Lender for Cheating Thousands of New Yorkers

NEW YORK – New York Attorney General Letitia James and the Consumer Financial Protection Bureau (CFPB) today sued Credit Acceptance Corporation (CAC), one of the nation’s largest subprime auto lenders, for deceiving thousands of low-income New Yorkers into high-interest car loans.

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Will America’s national debt become a bigger problem in 2023?

Risk: America's national debt topped $31T for the first time in November, and the number is not getting any lower. The gloomy fiscal milestone has added to worries about the economic health of the country, and lawmakers may need to pursue policy realism, especially if a recession kicks into high gear.

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AG Platkin Announces $27.375- Million Settlement With Yellowstone Capital LLC and Related Entities Over Allegations of Unlawful Lending, Servicing, and Collection Practices

NEWARK – Attorney General Matthew J. Platkin announced today that the State has reached a $27.375 million settlement with Yellowstone Capital LLC, its parent company Fundry LLC, and six other associated companies to resolve allegations that the companies targeted small businesses with unconscionable, misleading, and abusive lending, servicing, and collection tactics that caused financial harm through their merchant cash advance (“MCA”) business.

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Annual report of credit and consumer reporting complaints

Pursuant to Section 611(e)(5) of the Fair Credit Reporting Act (FCRA), this report
summarizes information gathered by the Consumer Financial Protection Bureau (CFPB)
regarding certain consumer complaints transmitted by the CFPB to the three largest
nationwide consumer reporting agencies (NCRAs)—Equifax, Experian, and TransUnion.

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Virginia Is For [Data Privacy] Lovers: Introduction to Virginia’s New Consumer Protection Law

On January 1, 2023, the Virginia Consumer Data Protection Act (VCDPA) will go into effect. With passage of the law earlier this year, Virginia joined Colorado and California as the only states to enact comprehensive privacy legislation.

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2023 New Year’s Resolution: Don’t Get “Whacked” By A State AG for Cybersecurity Compliance

It usually happens after a reported data breach. The organization experiencing the breach sends notifications to affected individuals, as well as federal and or state agencies where appropriate and perhaps other parties. Not long thereafter, the organization receives an inquiry from one or more government agencies.

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Majority of Americans Unhappy With Annual Salary, Considering Switching Jobs

Nearly two-thirds of consumers say they’re working jobs that don’t meet their annual salary requirements.

And 30% of those consumers say they plan to leave their current role for a new one, and hopefully a raise, in the next six months.

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CFPB Issues Report on TransUnion, Experian, and Equifax

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released an annual report that details improvements and deficiencies in the nationwide consumer reporting companies’ responses to consumer complaints transmitted by the CFPB. Today’s report includes considerations for the nationwide consumer reporting companies to improve compliance with consumer financial protection laws and, more broadly, to serve consumers better.

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Call Centers Become Prime Target for Identity Fraud

Retail call centers are the front line of consumer queries and the favorite new target for identity fraud. Daniel Flowe, head of identity strategy at Refinitiv, told PYMNTS that while the majority of consumers still want — and like — to speak to a human, that preference is being regularly abused and targeted by fraudsters and con artists.

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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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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