At a glanceFriday, January 20, 2023

Collection Industry News At A Glance - January 20, 2023
Friday January 20, 2023
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Reg F Question of the Week: Can a Person Limit Debt Collector Communications?

The Consumer Financial Protection Bureau has published Debt Collection Rule FAQs for Regulation F, containing questions and answers that pertain to compliance with the rule. The FAQs cover call frequency issues, electronic communications, opt-out requirements and more.

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As Auto Leasing Continues to Slow, Increasingly Targeted Marketing May Play Key Role in Maintaining Brand Loyalty

The auto lease market continued to slow down for much of 2022 causing some automakers to lose traditionally loyal customers. A new TransUnion (NYSE: TRU) study found that the auto lease market was down almost half from 31% in January 2020 to 17% in July 2022, more than twice the decrease in auto financing over the same period.  

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Healthcare Bankruptcies Grew by 84% in 2022, Returning to 2020 Levels

January 19, 2023 - The number of healthcare bankruptcies increased by 84 percent from 2021 to 2022, driven by rising costs, workforce shortages, and high interest rates, according to a report from Gibbins Advisors.

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For many struggling mortgage borrowers with home equity, selling their home could be an alternative to foreclosure

Mortgage servicers are often the first to communicate with struggling homeowners about options available to them to avoid foreclosure. In today’s market, many homeowners, including those potentially facing foreclosure, have sufficient equity in their homes that a traditional sale could be a better alternative to foreclosure.

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CFPB Issues Guidance to Root Out Tactics Which Charge People Fees for Subscriptions They Don’t Want

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a new circular affirming that companies offering “negative option” subscription services must comply with federal consumer financial protection law.

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CFPB Proposes Big Brother Tactics for Consumer Contracts

On Jan. 11, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule that would require nonbanks under its supervisory authority, subject to limited exceptions, to annually register information about their use of certain terms and conditions in nonnegotiable form contracts that seek to waive or limit consumer rights and legal protections.

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Mortgage rates fall to levels last seen in September

Washington CNN—Mortgage rates fell this week as economic data showed inflation is fading. The 30-year fixed-rate mortgage averaged 6.15% in the week ending January 19, down from 6.33% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.56%.

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5 Cyber Trends To Watch As We Move Into 2023

Legend has it that in 390 BC, the Romans were forewarned of the Gaul’s impending attack by a simple, highly sophisticated protection system—honking geese. Today, amid the dizzying speed of digitization, our world has grown infinitely more complex. With every innovation and digital transformation effort, there are equally skilled and well-capitalized adversaries looking to exploit those advancements to make an easy buck.

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The FCC is Cracking Down on Robocall Scammers

Over the last few years, the FCC has been targeting robocallers who are trying to scam Americans. Most recently, the FCC is going after scammers who are using robocalls to trick Americans into giving up personal information or pay a fee to get student loan debt relief.

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The recent rapid and spectacular collapse of the crypto company FTX has clearly shown—again—the fiction and lawlessness of the crypto industry, as did other dramatic crypto-related events this year, including:

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For-profit schools appeal student loan cancelation settlement for 200,000 borrowers

Three for-profit colleges appealed to block a settlement that would cancel more than $6 billion in student loans for 200,000 borrowers who applied for a debt discharge because they believed their schools misled them or engaged in other misconduct.

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CFPB Report Reveals Increase in Servicemember Identity Theft

Identity theft that results in damaging information on a credit report can cause problems for anybody, but for servicemembers it can result in the loss of a security clearance or even discharge, according to a new report from the Consumer Financial Protection Bureau.

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Third Circuit Finds Vacatur of Default Judgment Does Not Make Collection Activity Retroactively Unlawful

On January 11, 2023, the Third Circuit held that attempting to collect on a default judgment did not constitute using "'false, deceptive, or misleading' representations in connection with collecting the judgment" if the default judgment was later vacated. Lowe v. FBCS, Inc., No. 21-3307, 2023 WL 154970, at *1 (3rd Cir. Jan. 11, 2023).

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Rhode Island Federal Court Concludes FDCPA Lawsuit is Barred by the Doctrine of Claim-Splitting

In Laccinole v. MRS BPO, LLC, the United States District Court for the District of Rhode Island denied a frequent pro se plaintiff’s multiple lawsuit attempt at pursuing relief against the same company under the Fair Debt Collection Practices Act (FDCPA).

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FTC Proposes Expansive Ban on Non-Compete Agreements

A new proposed rule from the Federal Trade Commission seeks to ban employers’ noncompete agreements and rescind existing agreements in an effort to increase wages and expand career opportunities for workers in the U.S.

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CFPB releases updates to mortgage servicing exam procedures

Today, the Consumer Financial Protection Bureau (CFPB) is releasing our updated Mortgage Servicing Examination Procedures, providing transparency to stakeholders about how we do our work. 

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OCC Announces Approval of Bank of the West – BMO Harris Bank, National Association Merger

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today approved the merger of Bank of the West, San Francisco, into BMO Harris Bank, National Association, Chicago.

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What’s ahead for Wells Fargo and its customers

Recently, the CFPB took action against Wells Fargo Bank for breaking federal consumer protection laws that apply to financial products, including auto loans, mortgages, and bank accounts. Wells Fargo is required to pay more than $2 billion to customers who were harmed, plus a $1.7 billion fine that goes to the victims’ relief fund.

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Regulatory Recap: CFPB Releases Household Financial Health Report, Resources for Supervised Institutions

The Consumer Financial Protection Bureau continues to issue enforcement actions, research reports and bulletins on a regular basis. Here are a few of the bureau’s updates you should know about this week, as well as a notice of proposed rulemaking from the Federal Communications Commission regarding data breach reporting:

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CFPB’s Fee Focus May Reshape $626B Remittance Payments Industry

With a focus on fees, the Consumer Financial Protection Bureau (CFPB) may reshape cross-border payments, specifically the hundreds of billions of dollars in remittances that are sent overseas.

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Attorney General Josh Stein Defends Targeted Debt Relief for North Carolina’s Student Borrowers

(RALEIGH) Attorney General Josh Stein filed a friend of the court brief in two cases before the U.S. Supreme Court about the Biden Administration’s targeted cancellation of federal student loan debt to help address COVID-19-related difficulties for borrowers.

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Statement by Secretary Cardona in Response to Filing of Student Debt Relief Amicus Briefs

U.S. Secretary of Education Miguel Cardona today issued the following statement in response to the filing of more than a dozen amicus curiae briefs with the U.S. Supreme Court in support of the Biden Administration’s student debt relief program:

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Americans are piling up credit card debt — and it could prove very costly

More Americans are leaning on their credit cards in the face of rising prices. And as interest rates continue to climb, that debt is getting a lot more expensive. The average credit card user was carrying a balance of $5,474 last fall, according to TransUnion, up 13% from 2021.

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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