Building a Relationship Over the Phone?

After countless collection calls and careful observation, I have come to a key realization: forming genuine connections with people you may never meet face-to-face is vital for productive conversations. While some may argue that building relationships over the phone is unrealistic, I beg to differ. Let’s talk about some practical tips to make this happen smoothly during your next collection call. 

Prepared Remarks of CFPB Director Rohit Chopra for CBA Live

I want to focus on that third word, competitive. Competition creates the structure that both demands – and rewards – providing great products that meet real needs. Competition drives lower prices, better service, and progress that moves people’s lives and the economy forward.

Data At Issue: FTC Focus on Browsing Information and Location Data

Since the start of the year, the Federal Trade Commission (FTC) has brought actions against – and reached proposed settlements with[1] – three business ventures engaged in the collection, use and sharing of certain consumer information.

Florida Federal District Court Grants Debt Collector’s Motion for Summary Judgment Citing Lack of Evidence of Inadequate FCRA Dispute Investigation

A U.S. District Court in the Southern District of Florida recently granted a motion for summary judgment filed by debt collector, I.C. Systems, finding that the plaintiff failed to provide any evidence of an inadequate investigation under the Fair Credit Reporting Act (FCRA).

Plaintiffs Seek Emergency Ruling on Effective Date of CFPB Credit Card Fee Rule

Banking groups argue the CFPB violated statutes for rule implementation while the bureau seeks a different court to hear the case.

28% of BNPL Applicants Motivated by No Interest Rate

The 2023 PYMNTS Intelligence report “The Credit Accessibility Series: BNPL’s Wide-Ranging Impact on Consumers and Merchants” drew on a survey of more than 3,100 consumers to understand the increasing prevalence of BNPL products as a credit option, as well as to dig into consumers’ reasons for choosing to use it and the potential of BNPL to improve their credit profiles.

America’s Credit Unions urges CFPB to retract auto loan data collection proposal

America’s Credit Unions joined with several organizations to urge the CFPB to abandon its request for comment under the Paperwork Reduction Act (PRA) regarding a proposed new information collection on auto lending, noting the bureau lacks legal authority to collect the information outlined in the proposal and “grossly underestimates the burden of the information collection.” 

CFPB encourages New York to ban unfair or abusive conduct

On March 19, 2024, the Consumer Financial Protection Bureau (“CFPB”) published a blog touting letters it has sent to New York Governor Kathy Hochul, New York State Senate leaders, and New York State Assembly leaders to highlight the importance of a ban on abusive or unfair conduct that is being considered in pending New York legislation.

CFPB Takes Action to Halt False Claims of ‘Free’ International Money Transfers

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a new circular warning remittance transfer providers that false advertising about the cost or speed of sending a remittance transfer can violate federal law.

Setting the Standard: CFPB to Codify Attributes for Standard-Setters Before Finalizing Personal Financial Data Rights Rule

On March 13, at the Financial Data Exchange Global Summit, CFPB Director Rohit Chopra delivered a keynote address that focused on “the role of standard setters and standard-setting” as the CFPB pushes towards finalizing is its proposed Personal Financial Data Rights Rule (see October 2023 GT Alert).

TopLine Financial Credit Union Advocates for Members in Washington D.C.

MAPLE GROVE, Minn., March 26, 2024 (GLOBE NEWSWIRE) -- TopLine Financial Credit Union, a Twin Cities-based member-owned financial services cooperative, visited Capitol Hill in Washington, D.C., March 3 to March 7, 2024, as part of the annual America’s Credit Unions Governmental Affairs Conference, the credit union industry’s largest advocacy event.

Visa and Mastercard agree to $30 billion settlement that will lower merchant fees

New York CNN — Two of the world’s largest credit card networks, Visa and Mastercard, as well as the banks that issue cards with them, have agreed to settle a decades long antitrust case brought upon by merchants.

CFPB to Investigate Credit Card Reward Programs Following Consumer Complaints

The Consumer Financial Protection Bureau (CFPB) will reportedly take a closer look at credit card reward programs. This move follows an increase in the number of complaints the agency has received from consumers, CFPB Director Rohit Chopra said Tuesday (March 26), Reuters reported.

Your journey toward financial empowerment, innovation, and community impact

Your credit union is not just a financial institution. It is a community partner dedicated to empowering individuals, fostering financial well-being, and leaving a lasting impact on the lives of its members.

Washington-Based Harborstone Credit Union to Expand With Acquisition of SaviBank

Harborstone Credit Union plans to expand its presence in Washington with an acquisition of SaviBank and its parent holding company, Savi Financial. The credit union has entered into a purchase and assumption agreement for the transaction, the companies said in a Saturday (March 23) press release.

Credit Unions Cure Churn With Enterprise Focus on Innovation

Credit unions (CUs), those member-owned financial cooperatives that have always prided themselves on their community focus, are embracing innovation with open arms, proving that size does not always equate to strength — particularly across the 21st century’s shifting digital landscape.

2023 HMDA Data on Mortgage Lending Now Available

WASHINGTON, D.C. – The Home Mortgage Disclosure Act (HMDA) Modified Loan Application Register (LAR) data for 2023 are now available on the Federal Financial Institutions Examination Council’s (FFIEC) HMDA Platform for approximately 5,089 HMDA filers. The published data contain loan-level information filed by financial institutions and modified to protect consumer privacy.

Vermont House unanimously passes Vermont Data Privacy Act

The bill has data minimization requirements that set meaningful limits on the amount of personal data companies can collect and use, strong civil rights protections to prohibit digital discrimination, and a private right of action that will allow consumers to hold businesses accountable for violations.  

Third Circuit Ruling Gives CFPB Green Light to Enforce Against Student Loan Trusts

In a significant ruling on March 19, the Third Circuit Court of Appeals held that the CFPB can proceed with its lawsuit against a group of Delaware student loan trusts rejecting their claims that they are just passive financing entities outside the reach of the Bureau’s authority. 

Credit Card Delinquencies Slip as Charge-Offs Keep Rising

Credit card delinquencies fell slightly last month while net charge-offs continued with their upward trajectory. That’s according to a report Monday (March 25) by Seeking Alpha, citing data from eight lenders. It showed that the average delinquency rate of 3.20% rose from 3.24% in January and 2.59% in February of last year.

New Utah law protects consumers from artificial intelligence fraud

SALT LAKE CITY (KUTV) — Utah Gov. Spencer Cox recently signed Senate Bill 149 (Artificial Intelligence Amendments) into law, in a move aimed at protecting consumers from potential scams or deceit by artificial intelligence systems.

No FEAR Act Annual Report for fiscal year 2023

The CFPB presents its Notification and Federal Employee Antidiscrimination and Retaliation Act of 2002 (No FEAR Act) Annual Report of Fiscal Year (FY) 2023. This report summarizes the CFPB’s EEO complaint activity, the most significant accomplishments in our EEO program, our strong commitment to abide by civil rights and whistleblower protection laws and merit systems principles, and to promote accountability.

Statement of CFPB Director Rohit Chopra and Chief Technologist Erie Meyer on Enhancing Agency Capabilities to Address Transformative Technologies

The Consumer Financial Protection Bureau (CFPB) is charged with ensuring that consumer financial markets are fair, transparent, and competitive. The agency recognizes that market participants are quickly adopting new data-intensive business practices at every stage of the consumer finance lifecycle, from marketing and loan origination to credit reporting and collections. At the same time, large technology conglomerates are increasingly entering a number of consumer finance markets.

CFPB Joins Federal and State Agencies in Coordinated Statements on Tech & Enforcement

WASHINGTON, D.C. – Today, federal and state agencies, including the Consumer Financial Protection Bureau (CFPB), released agency-specific action statements on tech capacity. These statements reflect concrete actions to increase tech capacity, including actively hiring technologists – which will help enforce the laws on the book and design remedies that work for consumers, workers, small businesses, and others in the digital era.

24 International Competition Network Participants Issue Joint Statement on Increasing Tech Capacity to Keep Pace with Increasing Digitization of the Economy

The Federal Trade Commission and other member agencies of the International Competition Network (ICN) jointly issued a statement about how regulatory agencies can increase their tech capacity to keep pace with the increasing use of technology across industries.

Best Practices in Building Tech Capacity in Law Enforcement Agencies

It is increasingly important to use existing legal and enforcement tools in digital and technology cases and develop and implement new or updated tools and approaches to strengthen investigations and agency missions. 

NCUA Releases 2023 Annual Report

“In 2023, the NCUA focused its efforts on protecting consumers and their deposits in federally insured credit unions, maintaining the strength of the credit union system and the National Share Insurance Fund, and expanding access to safe, fair, and affordable financial services,” NCUA Chairman Todd M. Harper said. “America’s federally insured credit unions overall remain safe, stable, and well-capitalized. That is thanks in large part to the work and dedication of the NCUA team and my fellow Board members.”

Fraudulent Bank Website Scam

Beach Cities Commercial Bank (BCCB) has advised the DFPI that they recently received an inquiry regarding a website associated with the domain “Beachcitiescommercialbank.com,” representing themselves as an e-bank. BCCB’s legitimate domain is beachcitiescb.com. This fraudulent website is utilizing their entire name.

Daily Decision Recap: Letter Vendor Claims, Settlement Agreements, and More

Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Here’s a rundown of recent top FCRA, TCPA and FDCPA cases we’ve covered.

CA DFPI Issues Notice of Proposed Rulemaking under the Debt Collection Licensing Act

On February 9, 2024, the Commissioner of the California Department of Financial Protection and Innovation (“DFPI” or “Department”) announced a proposed rulemaking limited to certain requirements related to reporting and assessments under the Debt Collection Licensing Act (“DCLA”). 

Bank Regulators Worry About Merger Systemic Risks, Banks About Fraud

Michael Hsu, acting comptroller of the currency at the Office of the Comptroller of the Currency (OCC), recently voiced support for a new proposal by Federal Deposit Insurance Corp. (FDIC) to apply additional scrutiny when reviewing bank mergers that will result in combined assets that exceed $100 billion. 

Court denies motion for expedited consideration of plaintiff’s preliminary injunction motion in credit card late fees suit

On March 20, 2024, the court forcefully denied the motion for expedited consideration of plaintiff’s preliminary injunction motion in the lawsuit challenging the Consumer Financial Bureau’s (“CFPB”) final credit card late fee rule. 

4th Circuit: Assault settlement, collection fees nondischargeable

Unpaid principal, late payment interest and collection fees due under a settlement agreement for willful and malicious injuries caused by one party’s assault of the other were not dischargeable in the debtor’s bankruptcy, the 4th U.S. Circuit Court of Appeals has held.

Utah Governor Signs Spate of Privacy Bills into Law

Last week, Utah Governor Spencer J. Cox signed three privacy-related bills into law. The bills are focused on, respectively, protection of motor vehicle consumer data, regulations on social media companies with respect to minors, and access to protected health information by third parties. 

New Florida Bill Creates Customer Complaint and Florida Office of Financial Regulation Investigation Process for House Bill 3, and Potentially Broadens the Scope of Financial Institutions Subject to House Bill 3

On Mar. 8, 2024, the Florida Senate passed (35 YEAS / 3 NAYS) Florida House Bill No. 989 (HB 989 or the Bill), potentially amending section 655.0323, Florida Statutes, Titled, “Unsafe and unsound practices,” which was created by 2023 Florida House Bill No. 3 (HB 3).[1] HB 989, if signed into law, would provide customers who suspect that a financial institution acted in violation of an “[u]nsafe and unsound practice” standard established in section 655.0323 (2), Florida Statutes, with a right to submit a complaint to the OFR, which the OFR would then be required to investigate.

State Attorneys General Take Action on Artificial Intelligence

The evolving use of artificial intelligence (AI) across different industries has thrust states into a difficult and rapidly developing regulatory arena. State Attorneys General have and will continue to play an essential role in state responses to and regulation of AI technology.

THIRD CIRCUIT HOLDS SECURITIZATION TRUSTS CAN BE SUBJECT TO CFPB ENFORCEMENT AUTHORITY

In a long-awaited decision, the Third Circuit handed the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) a victory in the National Collegiate Student Loan Trust litigation that could have wide-reaching implications for market participants in the consumer financial services industry. 

Nacha Approves New Rules to Combat Credit-Push Fraud

On March 18, Nacha, the organization that governs the ACH network, announced that its members approved a new set of rules aimed at reducing the incidence of frauds, such as business email compromise (BEC), that exploit credit-push payments.

Statement Regarding the Termination of Qualcomm’s Proposed Acquisition of Autotalks

Federal Trade Commission Bureau of Competition Director Henry Liu issued the following statement in response to Qualcomm Inc.’s decision to abandon its proposed acquisition of Autotalks Ltd.:

2024 Credit Card Debt Statistics: Analysis Behind the Numbers

Many have been shackled by overwhelming credit card debts simply because their monthly expenses are much more than they earn. Credit card holders can go on a shopping spree without the present funds to make payments.

TransUnion Report Indicates Suspected Digital Fraud in Nearly 14% of All Newly Created Global Digital Accounts in 2023

Largely driven by bad actors using fabricated or stolen identities, the newly released TransUnion (NYSE: TRU) 2024 State of Omnichannel Fraud Report, based on proprietary insights from TransUnion’s global intelligence network, found that nearly one in seven newly created accounts is suspected to be Digital Fraud. This may represent a shift in tactics by fraudsters hoping to engage earlier in the transactional process.

Brown, Colleagues Urge CFPB To Remove Medical Debt From Credit Reports, Ease Burden On Consumers

WASHINGTON, D.C. – Today, U.S. Senators Sherrod Brown (D-OH), Chair of the Senate Committee on Banking, Housing, and Urban Affairs, Jack Reed (D-RI), Elizabeth Warren (D-MA), Tina Smith (D-MN), Raphael Warnock (D-GA), John Fetterman (D-PA), Laphonza Butler (D-CA), Jeff Merkley (D-OR), Chris Murphy (D-CT), and Ben Ray Luján (D-NM) are urging the Consumer Financial Protection Bureau to protect Americans from predatory medical debt collection practices.

Auditing Your Third-Party Collection Agency for Success

In the complex world of debt collection, third-party collection companies play a pivotal role in helping businesses recover outstanding debts. However, ensuring that these entities operate ethically, efficiently, and within legal boundaries is crucial. This is where audits come into play. Auditing third-party collection companies isn’t just a routine task; it plays a crucial role in maintaining compliance, safeguarding customer interests, and preserving your company’s reputation.  Key considerations when auditing your vendors include both emphasizing alignment with company criteria as well as adherence to state and federal regulations. 

CA DFPI Issues Notice of Proposed Rulemaking under Debt Collection Licensing Act

On February 9, 2024, the Commissioner of the California Department of Financial Protection and Innovation (“DFPI” or “Department”) announced a proposed rulemaking limited to certain requirements related to reporting and assessments under the Debt Collection Licensing Act (“DCLA”). 

Washington AG Secures Judgment Against Debt Collection Agency over Medical Debt Practices

Washington AG Bob Ferguson has secured a court order imposing civil penalties on Optimum Outcomes, Inc. for the debt collection agency’s alleged failure to comply with the state’s Consumer Protection Act when it collected medical debt payments from consumers without including legally mandated disclosures in its communications.

FTC Sends More Than $10 Million in Refunds to Consumers Harmed by Real Estate Investment Training Scheme

The Federal Trade Commission is sending more than $10 million in refunds to consumers who paid for a real estate investment training program that allegedly made empty promises about earning big profits “flipping” houses. 

ACA Joins Powerful Coalition Opposing Legislation to Mitigate Illegal ‘Robocalls’

The coalition submitted a letter to Congress against the legislation citing its harm to businesses and consumer communication while supporting efforts to stop bad actors making illegal calls.

Grassley-Backed Bill Prevents Needless Government Intervention In Private Sector Lending Activities

WASHINGTON – Sens. Chuck Grassley (R-Iowa) and Joni Ernst (R-Iowa) joined Sens. Tim Scott (R-S.C.) and John Kennedy (R-La.) to introduce the Protecting Access to Credit for Small Businesses Act. The legislation prohibits the Biden administration from making the Small Business Administration (SBA) a direct 7(a) lender, which would force community banks and credit unions to compete with the federal government. The president included this proposal in his Fiscal Year 2025 budget request.  

Banks Advocate Digital Payments as Defense Against Check Fraud

Despite the growing adoption of digital payment solutions worldwide, financial institutions (FIs) continue to process billions of checks each year, setting the stage for a growing trend: check fraud.

Prepared Remarks of CFPB Director Rohit Chopra at the Peterson Institute for International Economics Event on Revitalizing Bank Merger Review

Recently, there has been growing interest in bank mergers and how regulators and law enforcement are reviewing them. In the past eighteen months, we saw some significant transactions abandoned, including the proposed tie-up between State Street and Brown Brothers Harriman, as well as TD Bank’s proposed acquisition of First Horizon.

NCUA Quarterly U.S. Map Review – Fourth Quarter 2023

Four-quarter growth is the growth from the end of the fourth quarter of 2022 through the fourth quarter of 2023. Most maps shown in this review display medians, or the 50^th percentile of the distribution of the variable. In other words, for a given metric, half of all credit unions had a value at or above the median, while the other half had a value that was less than or equal to the median.³

BayPort Credit Union Wins CUNA Diamond Award for $500,000 Accelerating Change Together Grant Community Outreach Initiatives

NEWPORT NEWS, Va., March 21, 2024 /PRNewswire/ -- BayPort Credit Union today announced it was awarded a Diamond Award by the Credit Union National Association (CUNA) Marketing and Business Development Council. BayPort won in the new Public Relations category for the promotion of their $500,000, multi-year transformational grant called Accelerating Change Together (ACT), which was launched in partnership with two other leading corporations based in Newport News, Virginia.

Texans among highest in credit card and auto loan defaults, highest rates in a decade

AUSTIN, Texas — New numbers from the Federal Reserve show more and more people are defaulting on their auto loan and credit card debts, with Texans having one of the highest rates in the country.

CFPB notifies Texas federal court of intention to move to transfer case challenging final credit card late fee rule; plaintiffs seek expedited consideration of preliminary injunction motion before court decides venue issues

Yesterday, the CFPB filed a notice with the Texas federal district court stating that it intends to move to transfer the lawsuit challenging the CFPB’s final credit card late fee rule (Rule).  The notice was filed pursuant to an order entered by the court on March 18 questioning whether the Fort Worth Division of the Northern District of Texas is the correct venue to hear the lawsuit.

Examining Financial Fraud Against Older Adults

The Better Business Bureau reports that older adults[2] lose more than $36 billion to financial fraud every year.[3] According to the FBI’s Internet Crime Complaint Center, 105,301 cases of fraud against persons age 60 or older were reported in 2020.[4] In 2021, 128,216 offenses against persons age 65 or older were reported through the National Incident-Based Reporting System.

ATTORNEY GENERAL’S OFFICE FILES PRELIMINARY INJUNCTION AGAINST DEBT BUYERS, DEBT COLLECTION AGENCIES, AND OWNER TO HALT UNFAIR AND DECEPTIVE PRACTICES

BOSTON — The Attorney General’s Office has filed a Motion for Preliminary Injunction against Champion Funding, Inc., Champion Funding LLC, Judgment Acquisitions Unlimited, Inc., Andrew Metcalf, d/b/a Judgment Acquisitions Unlimited, Inc., and Andrew Metcalf, individually, to halt harmful debt collection practices.

Biden-Harris Administration Approves Additional $5.8 Billion in Student Debt Relief for 78,000 Public Service Workers

The Biden-Harris Administration announced today the approval of $5.8 billion in additional student loan debt relief for 77,700 borrowers. These approvals are the result of fixes made by the Administration to Public Service Loan Forgiveness (PSLF). Today’s announcement brings the total loan forgiveness approved by the Biden-Harris Administration to $143.6 billion for 3.96 million Americans.

How to spot hard-to-spot rental scams

Finding an apartment or house to rent that’s safe, affordable, and near amenities you want can be hard for anyone. Folks in the LGBTQ+ community often use community groups on social media to find housing rentals, and people often assume that what’s posted is vetted and safe for community members.

Attorney General James Sues Large-Scale Predatory Lending Operation Targeting Small Businesses

NEW YORK – New York Attorney General Letitia James today filed a lawsuit against a major operation of over 30 companies and individuals for exploiting small businesses through fraudulent loans at sky-high interest rates disguised as merchant cash advances. 

Third Party Auditing Workshop

Learn to Audit Repossession Vendors and Collection Agencies

Collection and Recovery Solutions 2024

CRS2024

Webinar – Bankruptcy Filings: The New Normal or the Calm Before the Storm?

WEBINAR 2:00 pm - NACTT Academy

RMAI 2024 Executive Summit