At a glanceWednesday, July 11, 2018

Collection Industry News At A Glance - July 11, 2018
Wednesday July 11, 2018
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FCC plans to stop reviewing informal complaints—filing a formal one to cost $225.

Ajit Pai's Federal Communications Commission is proposing that it stop reviewing the vast majority of consumer complaints about telecom companies. Going forward, consumers harmed by broadband, TV, and phone companies would have to pay $225 in order to get an FCC review of their complaints.

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The Supreme Court could cripple an Obama-era consumer finance watchdog if agency critic Brett Kavanaugh is confirmed

The Consumer Financial Protection Bureau is likely to face one of its toughest critics at the Supreme Court if President Donald Trump's pick, Brett Kavanaugh, is confirmed by the Senate. Kavanaugh, a judge on the D.C. Circuit Court of Appeals, has repeatedly ruled that the structure of the consumer watchdog is unconstitutional.

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Deputy Attorney General Rod J. Rosenstein Delivers Remarks Announcing the Establishment of the Task Force on Market Integrity and Consumer Fraud

Good morning. I am pleased to announce that President Trump signed an Executive Order establishing a new Task Force on Market Integrity and Consumer Fraud. The Task Force will focus on combating fraud against consumers – particularly the elderly, service members, and veterans – and corporate fraud that victimizes the general public a

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Ohio Senate passes payday loan bill

COLUMBUS, Ohio - The Ohio Senate passed a bill Tuesday afternoon that promises to rein in payday lending -- though the bill has at least one more stop before it could be sent to Gov. John Kasich's desk. Senators voted 21 to 9 for a version of House Bill 123 that ensures payday lenders abide by a 28 percent interest rate cap for loans up to $1,000 for up to 12 months.

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Knoxville, TN – July 11, 2018 – Reliant Account Management (RAM) announces a strategic and operational partnership with Telrock, a global SaaS provider of digital channel customer engagement tools used by creditors and collection professionals across the credit lifecycle. The partnership combines the expertise of both companies to improve how consumers enrolled in debt relief programs can more efficiently and effectively engage in payment transactions and related communications by leveraging Telrock’s advanced digital channel communications platform.

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Debt Connection Symposium and Expo 2018 will be held on September 5 – 7, 2018 at the JW Marriott Austin in Austin, Texas. There is an early bird rate of $1,295 that will end on August 3, 2018, and on August 4, the rate goes up to $1,395. Register today to get the early bird rate!

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NAFCU to CFPB: Collaborate with NCUA, others to improve financial education

NAFCU, in a letter Monday to the Bureau of Consumer Financial Protection, offered ways for the bureau to improve its education programs to strengthen consumers' financial literacy. NAFCU's top recommendation was for the bureau to collaborate with the NCUA and partner with credit unions to distribute financial resources more effectively throughout communities.

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Elizabeth Warren’s claim on number of medical bankruptcies greatly overstated, study shows

Health-care-related bankruptcies, touted as a key justification for passing Obamacare in 2010, are not nearly as prevalent as reform proponents such as Sen. Elizabeth Warren have claimed, researchers say. Findings of an exhaustive report published in the American Economic Review this year have sparked a lively debate as the Trump administration rolls back key portions of the health care law. Matthew Notowidigdo, an associate professor of economics at Northwestern University, and fellow researchers looked at the rate of first-time health emergencies and resulting debt levels for patients. The result: About 4 percent of insured patients and 6 percent of uninsured patients ended up filing for bankruptcy.

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Mick Mulvaney elevates former House aide to deputy role at CFPB

A former aide to the top congressional critic of the Consumer Financial Protection Bureau will now serve as the No. 2 official at the agency. Acting CFPB Director Mick Mulvaney announced Monday afternoon that he had selected as deputy director Brian Johnson, an aide who had joined him at the agency after working for House Financial Services Committee Chairman Jeb Hensarling, R-Texas. Johnson will replace Leandra English, the Obama holdover who had pressed a legal claim that she, and not Mulvaney, should be the acting director of the agency. English announced Fridaythat she would drop the suit and leave the agency.

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Halfway through 2018, bankruptcy filings down 3 percent

ALEXANDRIA, Va. - At the year’s halfway point, bankruptcy filings are down year-over-year, according to figures distributed by the American Bankruptcy Institute. Data provided by Epiq Systems showed total bankruptcy filings during the first six months of the year decreased 3 percent to 388,199 cases, down from the 399,522 total filings during the same period in 2017. Total consumer filings also decreased slightly, decreasing 3 percent to 369,122 during the first six months of this year from the 379,464 total consumer filings during the same period a year ago.

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AG Paxton Leads 14-State Brief Challenging Constitutionality of the Consumer Financial Protection Bureau

Leading a coalition of 14 states, Attorney General Ken Paxton today filed a friend-of-the-court brief with the U.S. Court of Appeals for the 5th Circuit, challenging the constitutionality of the Consumer Financial Protection Bureau (CFPB).

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Square Will Reapply for Banking License with the FDIC After Last Week’s Withdrawa

Payment processor Square has withdrawn its application to become a deposit-taking bank, a move similar to online lender Social Finance or SoFi, which withdrew its application last fall. However, unlike SoFI, Square plans to refile its application, attributing Thursday’s withdrawal to mere procedural issues. It plans to reapply with the FDIC, but did not reveal a timeline.

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Bureau of Consumer Financial Protection Announces Acting Deputy Director

WASHINGTON, D.C. — Today, Bureau of Consumer Financial Protection (Bureau) Acting Director Mulvaney today announced he has selected Brian Johnson, who currently serves as Principal Policy Director at the Bureau, to assume the responsibilities of Acting Deputy Director.

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Trump Administration Backs Off Reshuffling of Student Debt Collection

An Education Department plan to begin cutting large debt collection firms out of the student loan system is on hold after Congress warned against move. The Department of Education planned this month to begin reshaping the role of private debt collection firms in handling student loans by pulling defaulted borrower accounts from a handful of large private contractors. Lawmakers who control the department’s budget had other ideas. After a recent Senate spending package warned the department against dropping the debt collectors, the plan is on hold. And it’s not clear how those companies will figure into the Trump administration’s proposed overhaul of student loan servicing

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FirstPoint Collection Resources acquires Alabama-based debt collection company

Greensboro-based FirstPoint Collection Resources, a division of credit-services and receivables management company FirstPoint, announced late Friday that it has acquired Tuscaloosa, Ala.-based Credit Bureau Systems. Credit Bureau Systems has 40 years of experience in debt collection and call center services. According to the announcement, the acquisition of Credit Bureau Systems will result in consolidated operations and new jobs in Greensboro. Company officials were not immediately available to comment further on those details or terms of the acquisition.

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BCFP Issues Advisory on HMDA Exceptions

The Bureau of Consumer Financial Protection(BCFP) has issued guidelines on partial exceptions for small banks and credit unions under the Home Mortgage Disclosure Act (HMDA) rules of the amended Dodd-Frank Act, that is now also known as the Economic Growth, Regulatory Relief, and Consumer Protection Act. According to the BCFP guidance, small banks and credit unions get a partial exemption from HMDA reporting procedures if the institution originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years. These institutions are also eligible for a partial exemption if they originated fewer than 500 open-end lines of credit in each of the two preceding calendar years.

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Americans paid off $40.3 billion in credit card debt during the first quarter of 2018

Consumer credit card debt is a bellwether for the overall economy’s health. With that in mind, it may seem to be very good news to hear that Americans repaid $40.3 billion in credit card debt during the first three months of 2018 — the second-highest payoff ever — but considering that the year started with consumers owing more than $1 trillion in credit card debt for first time ever, the news is somewhat less cheery.

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Square quietly withdraws bank application

WASHINGTON — The payments processor Square confirmed Thursday that it has withdrawn its application to open a depository bank, although it plans to refile with a top regulator at a later date. The fintech startup first submitted its application to the Federal Deposit Insurance Corp. to create an industrial loan company last September. But Square no longer appears on a public list of pending new bank applications maintained by the agency.

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Fed: Letting inflation run too hot could lead to ‘a significant economic downturn’

The Federal Reserve released the minutes for its June meeting on Thursday. Some members expressed “concern that a prolonged period in which the economy operated beyond potential could give rise to heightened inflationary pressures or to financial imbalances that could lead eventually to a significant economic downturn.” Fed business contacts “expressed concern about the possible adverse effects of tariffs and other proposed trade restrictions, both domestically and abroad, on future investment activity.”

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TCPA’s Definition of Autodialer Restricted to Equipment’s Current Functions, Second Circuit Holds

In a significant opinion issued last week, the U.S. Court of Appeals for the Second Circuit held that the term "capacity," in the Telephone Consumer Protection Act's (TCPA) definition of "automatic telephone dialing system" (ATDS), is restricted to a device's current functions, absent any potential modifications to the device's hardware or software.

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ATLANTA, GA – FLOCK Specialty Finance has partnered with Kennesaw State University to create a new research lab that will analyze and interpret traditional and alternative consumer borrowing data to improve customer experience in consumer credit financing and enhance risk modeling in the buying and selling of debt portfolios.

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Maintaining Compliance In A Market Of Bank-FinTech Tie-Ups

With competition heating up from the FinTech firms themselves, banks seek efficient, affordable ways to improve their services without having to entirely scrap decades of legacy infrastructure already in place. Partnerships end up a win-win: Banks remain competitive with leading-edge services while FinTech companies score market reach and the solid reputations of their bank partners. The inner workings of such a relationship are complex, not only as banks ensure that their FinTech partners’ solutions can integrate seamlessly into existing operations and infrastructure, but as banks face increasing regulatory pressures around data security.

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Automotive Financing Market Is Set to Grow at a Remarkable Pace in the Coming Year

New York, NY -- (SBWIRE) -- 07/05/2018 -- The automotive financing market has already matured in the industrialized nations, but there are untapped opportunities in the developing countries, where the market has extremely low penetration, Vision gain has identified automotive financing as one of the largest markets for automotive companies and financing companies to exploit. Financing typically includes loans and leasing activities through various sources of finance such as banks, CLFCs, credit unions, and independent financial and leasing companies. Automotive financing has become more competitive with an increase in the number of car showrooms and used-car outlets. Buyers have easy access to pre-approved credit from direct lenders.

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Russian search engine alerts Google to possible data problem

MOSCOW — Google said Thursday that its document writing tool Google Documents was secure even as Russian internet users discovered scores of files that appeared to be intended for private use. The Russian internet company Yandex said in a statement that some users contacted the company Wednesday to say that its public search engine was yielding what looked like personal Google Documents files, suggesting there may have been a data breach.

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Tennessee License Suspension For Unpaid Debts Ruled Unconstitutionally Unfair to Indigent

A federal judge in the Middle District of Tennessee has ruled that Tennessee’s practice of suspending a driving license to compel the collection of delinquent court debts is unconstitutionally unfair to poor people. She has ordered Tennessee to stop and to start restoring the licenses of people who simply could not pay, but an appeal is likely.

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Non-banks are the future of banking

AustralianBroker - The future of banking is in the hands of non-banks, says specialist lender Liberty. Non-banks, by nature, are “active, nimble, innovative and relevant”, allowing them to lead the competition, rather than be threatened by big banks. Non-banks provide a variety of solutions such as home loans, car loans, personal loans and business loans, as well as custom lending for those that need it. But as the financial world welcomes more and more technology, and increased regulation drives up costs, it leaves many to wonder how non-banks will respond to these changes.

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Swiss Crypto Startups are Promised Full Access to Banking Services

Switzerland wants to become a “Crypto Nation,” but there is a problem: blockchain startups are mostly cut-off from traditional banking services as Swiss banks refuse to operate accounts for them, citing strict anti-money laundering rules and other procedures related to managing clients. However, the situation may change for the better as Swiss policymakers promise that this fast-growing industry will have full access to banking services in the coming month. The Swiss Finance Ministry is working Swiss Bankers Association (SBA) to remove this major obstacle to the growth of the industry, the Financial Times reports.

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New research report on student loan repayment and broader household borrowing

Student loans make up an increasing share of the debt held by borrowers around the country, particularly for younger borrowers. Our previous research has shown that borrowers vary greatly in their ability to pay off their loans, how quickly they can do so, and the potential hurdles they face. Today, we released a new Data Point report providing a closer look at borrowers’ use of credit as they approach and make their final student loan payments, and in the months that follow.

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FTC Wins $5.2 Million Judgment against Defendants Who Tricked Consumers with Ads for Non-existent Rental Properties and ‘Free’ Credit Reports

A federal judge has ordered Credit Bureau Center, LLC and its owner, Michael Brown, to pay more than $5.2 million to return to consumers, to resolve FTC charges that they deceived people with fake rental property ads and deceptive promises of “free” credit reports, and then tricked them into enrolling into a costly monthly credit monitoring service.

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Bureau of Consumer Financial Protection Issues Statement on the Implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act Amendments to the Home Mortgage Disclosure Act

WASHINGTON, D.C. — Today the Bureau of Consumer Financial Protection (Bureau) issued the following statement: On May 24, 2018, the President signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Act), a section of which amends the Home Mortgage Disclosure Act (HMDA). [1] The Act provides partial exemptions for some insured depository institutions and insured credit unions from certain HMDA requirements. [2] The partial exemptions are generally available to insured depository institutions and insured credit unions:

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Synchrony closes on 10-figure deal with PayPal

Consumer financial-services firm Synchrony Financial announced Tuesday it had closed on the approximately $7 billion acquisition of online payments giant PayPal’s consumer credit portfolio. With the deal, Synchrony and PayPal have extended their 14-year co-branded credit card program agreement. Stamford-based Synchrony will serve as the exclusive U.S issuer of PayPal Credit’s online consumer-financing program through 2028, advancing the company’s goal of becoming a major digital-payments player.

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Digital debt collector AsiaCollect raises US$4.5m in funding

SINGAPORE - AsiaCollect, an AI-driven, digital debt collection startup that provides integrated credit management services (CMS) in South-east Asia, has raised about US$4.5 million (S$6.14 million) in funding, it said on Thursday (July 5). The investment round was led by global technology investor SIG Asia Investments, with co-investor Dymon Asia Ventures, the venture capital arm of Singapore-based alternative investment manager, Dymon Asia Capital. AsiaCollect aids bank and non-bank lenders recover their non-performing loans (NPLs) by reaching out to customers through automated SMSes, interactive voice recordings and predictive dialling systems.

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Industry Events

ACA International Convention & Expo 2018

ACA International

Omni Nashville Hotel 250 5th Ave S
Nashville , TN
July 23 - 25 , 2018

(952) 926-6547

RMA’s Executive Summit

Receivables Management Association International (RMA)

Cliff House Maine 591 Shore Rd
Cape Neddick , ME
July 31 - August 02 , 2018

(916) 482-2462

Debt Connection Symposium & Expo 2018

Produced by Resource Management Services, Inc.

JW Marriott
Austin , TX
September 05 - 07 , 2018


Auto Finance Summit 2018

Auto Finance News

Wynn Las Vegas 3131 S Las Vegas Blvd
Las Vegas , NV
October 24 - 26 , 2018

(212) 564-8972 Option 4

LendIt Fintech Europe 2018

LendIt Conference LLC.

Business Design Centre 52 Upper Street
Ilsington London , England
November 19 - 20 , 2018

(646) 930-6366

Collection & Recovery Solutions 2019

Resource Management Services, Inc.

10440 Pioneer Bl;vd. #2
Santa Fe Springs , CA
May 08 - 10 , 2019