At a glanceWednesday, March 15, 2023

Collection Industry News At A Glance - March 15, 2023
Wednesday March 15, 2023
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Articles

 
Financial Institutions are Required to Meet Contractual Obligations with Bridge Banks

In recent days, the FDIC has established two bridge banks, Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A., to assume the deposits and obligations of two failing banks. All contracts entered into with banks before they failed, and their counterparties were transferred into the bridge bank by the FDIC as receiver.

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CFPB Reports on Illegal Fees Levied by Mortgage Servicers

The Consumer Financial Protection Bureau (CFPB) has released a special edition of its Supervisory Highlights that reports on unlawful junk fees uncovered in the mortgage servicing space, student loans, payday lending, and in financial institutions via deposit accounts. As described in the Supervisory Highlights, the CFPB continues rooting unlawful fees out of consumer financial markets.

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“Life takes Visa” but debt collectors don’t? New debt repayment rules are coming for collection agencies on April 15, 2023

Move over, Tax Day!  This year, April 15 falls on a Saturday so the IRS moved the tax filing deadline to April 18.  What will you do with all that extra time?  Don’t worry, Visa’s got you covered.

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CFPB Launches Inquiry Into the Business Practices of Data Brokers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) has launched an inquiry into companies that track and collect information on people’s personal lives. In issuing this new Request for Information, the CFPB wants to understand the full scope and breadth of data brokers and their business practices, their impact on the daily lives of consumers, and whether they are all playing by the same rules

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Education Department Announces Use of Secret Shopping to Protect Students, Crack Down on Institutions that Lure Students with Lies  

The U.S. Department of Education (Department) announced today that the Enforcement Office of Federal Student Aid (FSA) will use secret shoppers as an additional tool to monitor postsecondary institutions’ compliance with the laws and regulations governing their participation in the federal student aid programs.

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Most medical debt in America is owed to hospitals

When Americans have medical debt, it's typically to a hospital, according to new research. The Urban Institute found that more than 15% of non-elderly adults in the United States have past-due medical debt. Nearly 73% owe some or all of that money to hospitals.

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Oregon Legislature Considers Wage Garnishment Bill

The Oregon Legislature is considering a wage garnishment bill that had its first hearing in a House committee this month, including testimony from ACA International CEO Scott Purcell and Oregon Collectors Association Lobbyist Matt Markee, president of Markee & Associates.

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FTC and CFPB Investigating Background Screening Issues Affecting Rental Housing Tenants

On February 28, 2023, the Federal Trade Commission (“FTC”) and Consumer Financial Protection Bureau (“CFPB”) issued a Request for Information (“RFI”) seeking public comment on background screening issues affecting rental housing applicants and tenants in the United States.

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House Republicans Consider Proposals to Reform CFPB; Criticize Agency’s War on Fees

On March 9, the U.S. House Financial Institutions and Monetary Policy Subcommittee held a hearing entitled “Consumer Financial Protection Bureau [CFPB]: Ripe for Reform.” The memorandum released in advance stated the hearing would “examine the leadership structure, funding, budget, and operations of the CFPB and areas in which reforms are needed.”

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Silicon Valley Bank, Signature Bank collapses explained, live updates on new developments

It's been a tumultuous few days for banks since the now-shuttered Silicon Valley Bank announced Wednesday it had suffered a $1.8 billion after-tax loss and urgently needed to raise more capital to quell depositors' concerns.

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Bringing tech enforcers together to protect consumers

Regulators across the country are working to ensure that new technologies meaningfully help consumers in their financial lives. Large-scale technology companies often produce new technologies that want to reshape the consumer financial marketplace to benefit their growth and market share instead of to benefit consumers.

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Litigation Practice Group’s Credit Repair Practices Violate Federal Law, Class Action Alleges

The Litigation Practice Group, PC (LPG) has violated the federal Credit Repair Organizations Act (CROA) and the Georgia Debt Adjustment Act (GDAA) in the course of providing credit repair services, a proposed class action alleges.

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FTC Finalizes Order Requiring Fortnite maker Epic Games to Pay $245 Million for Tricking Users into Making Unwanted Charges

The Federal Trade Commission has finalized an order requiring Epic Games, the maker of the Fortnite video game, to pay $245 million to consumers to settle charges that the company used dark patterns to trick players into making unwanted purchases and let children rack up unauthorized charges without any parental involvement.

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Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination Case

The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. 

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Housing market could see relief from shock move in Treasury market after SVB collapse

Mortgage rates tumbled Monday in the wake of Silicon Valley Bank’s collapse that has rattled markets. The average 30-year mortgage rate dropped to 6.57% on Monday, according to the latest Mortgage News Daily quote.

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Debt collectors starting to become more lenient on unpaid medical bills

PHOENIX (3TV/CBS 5) - Unexpected, large medical bills are the number one reason why some people are forced to file for bankruptcy. But it turns out some collection agencies are becoming more lenient when it comes to asking you to pay a medical debt.

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Third Bank Failure Prompts Fed To Launch Emergency Lending Program

The federal government launched an emergency rescue of the U.S banking system on Sunday evening, in an effort to halt contagion from the rapid collapse of Silicon Valley Bank last week.

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FTC Submits Annual Budget Request to Congress

The Federal Trade Commission submitted to Congress its Fiscal Year 2024 budget request, in support of the President’s FY 2024 budget for the federal government. The budget request also includes the Performance Plan for FY 2023 and FY 2024 and Performance Report for FY 2022, as required under the GPRA Modernization Act of 2010.

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Protecting homeowners from discriminatory home appraisals

Homeownership is one of the best paths to building intergenerational wealth, especially within communities historically shut out from fair access to the housing market. For families of all races and income levels to prosper and successfully pursue the American dream of homeownership, home appraisals must be accurate and free of bias.

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Achieving PCI DSS Compliance Through Penetration Testing

If you’re reading this blog post, chances are you already know what PCI DSS and penetration testing is. But don’t worry – if you don’t, we’re breaking it down for you!

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Attorney General releases list of top 10 consumer complaints

NEW YORK – New York Attorney General Letitia James kicked off National Consumer Protection Week by releasing a list of the top 10 consumer complaints received by the Office of the Attorney General (OAG) in 2022. The top complaints range from price gouging of infant formula and children’s medication, flight cancellations, and the dramatic increase in gasoline prices.

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Mortgage Rates Climb Further Past 7%

The 30-year fixed mortgage rate increased for the fifth week in a row, now averaging 7.16%. Adjustable mortgage rates also ticked up.

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Signature Bank becomes next casualty of banking turmoil after SVB

March 12 (Reuters) - State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits.

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CFPB Supervisory Highlights Report Covers ‘Junk Fees’

The Consumer Financial Protection Bureau has released a special edition of its Supervisory Highlights report, an overview of the agency’s findings on fees in the areas of deposits, auto servicing, mortgage servicing, payday and small-dollar lending, and student loan servicing, completed between July 1, 2022, and Feb. 1, 2023.

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CHSPSC, Inc. Files Notice of Data Breach Following Cybersecurity Event at Cybersecurity Company Fortra

On March 8, 2023, Community Health Systems Professional Services Company (“CHSPSC, Inc.”) filed a notice of data breach with the Maine Attorney General's Office after the organization learned that a cybersecurity event at one of the company’s vendors subjected patient information to unauthorized access.

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FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California

WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.

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WalletHub Reports: Record $180B Rise in Credit Card Debt in 2022 + Fed Rate Hike to Cost $3.4B & Cities with the Biggest Debt Increase

WalletHub’s Credit Card Debt Study found that consumers racked up a record $180.3 billion in new debt during 2022, and WalletHub’s Fed Rate Hike Report revealed that the interest rate increase expected on March 22 will cost people with credit card debt an extra $3.4 billion over the next 12 months.

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‘Big 3′ credit bureaus received most consumer complaints in record-setting year

Consumer complaints about credit reporting companies nearly doubled from 2021 to 2022, according to an analysis released Thursday by the MASSPIRG Education Fund.

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New Wyoming Bill Requires Licensure for Debt-Buyers

On February 27, Wyoming Governor Mark Gordon signed into law House Bill 284, which requires debt buyers be licensed as “collection agencies” starting July 1, 2023.

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CFPB starting mandated review of mortgage loan originator rules

The mortgage loan originator rules, part of the Truth in Lending Act’s Regulation Z, protect homebuyers from anti-competitive practices, like double-dealing or steering activities, that lead consumers into more expensive loans.

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Visa Rule Updates for Collection Agencies and Repayments of Debt or Overdue Receivables

Visa is introducing a new merchant category code and rules for collection agencies. New rules are also being introduced for the repayment of overdue receivables, and existing debt repayment rules will be updated. 

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SUPERINTENDENT ADRIENNE A. HARRIS ANNOUNCES DFS SECURES MORE THAN $157.4 MILLION TO CONSUMERS & HEALTH PROVIDERS IN 2022 

Marking National Consumer Protection Week this year, Superintendent of Financial Services Adrienne A. Harris announced the New York State Department of Financial Services (DFS) recovered more than $124.5 million in 2022 for consumers and healthcare providers who filed complaints with the Department, as well as $32.9 million in restitution in addition to penalties collected from DFS enforcement and supervisory actions against financial institutions and service providers.

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SoFi Bank sues to block Biden’s student loan payment pause

WASHINGTON — A private bank is trying to force the Biden administration to end its pause on federal student loan payments, arguing the moratorium has no legal basis and has cost the bank, known for its refinancing business, millions of dollars in profits.

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DFPI Statement: Silvergate Bank to Begin Voluntary Liquidation

SACRAMENTO – The California Department of Financial Protection and Innovation announced today that Silvergate Bank, a state-chartered bank under the supervision of the DFPI, has voluntarily begun the process of liquidation. Silvergate Bank is based in La Jolla, California.

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Attorney General Bonta: California is Heeding President Biden’s Call to End Hidden Fees

SACRAMENTO — California Attorney General Rob Bonta today issued a statement in response to the call from the Biden Administration and the Consumer Financial Protection Bureau for states to better address the nationwide concern of hidden fees. On February 14, 2023, Attorney General Bonta, with Senator Bill Dodd and Senator Nancy Skinner, introduced Senate Bill 478 (SB 478), landmark legislation seeking to prohibit in California the practice of hiding mandatory fees, also known as junk fees

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FTC Announces Tentative Agenda for March 16 Open Commission Meeting

Today, Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Thursday, March 16, 2023. The open meeting will commence at 11am ET and will begin with time for members of the public to address the Commission.

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DOJ’s Top Ten Consumer Complaints List of 2022

To kick off National Consumer Protection Week (March 5-11), Attorney General Ellen Rosenblum today released the Oregon Department of Justice’s (DOJ) list of 2022’s top ten consumer complaints.

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Portfolios For Sale

 
$1,221,651.75 Medical
Capital Asset Management, Inc.

(317) 633-6633

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$10,016,921 Medical
Capital Asset Management, Inc.

(317) 633-6633

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$43,000,000 Payday Loans
DSP Holdings, Inc., dba Debt Sales Partners

(330) 573-8448

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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 - Mark@collectionrecoverysolutions.com