At a glanceFriday, September 14, 2018

Collection Industry News At A Glance - September 14, 2018
Friday September 14, 2018
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Attorney General Becerra: DeVos Keeps Students in the Dark When It Comes to Predatory For-Profit Schools

SACRAMENTO — California Attorney General Xavier Becerra, in a multistate letter with 21 attorneys general, today denounced the U.S. Department of Education’s proposal to eliminate gainful employment regulations that protect students from scams by for-profit schools. The 2014 Gainful Employment Rule requires that educational programs at for-profit colleges produce graduates who earn enough to pay back the debt incurred from attending the program. The rule was created in response to evidence from Federal and State investigations that for-profit schools had engaged in aggressive, deceptive marketing and recruiting by misrepresenting the potential earnings a student could expect to receive after graduation. 

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N.Y. Sues Comptroller of Currency Over Fintech Charter Decision

(Bloomberg) -- New York sued the U.S. over a decision to allow financial technology companies to apply for special national banking charters, saying the move is "lawless" and "ill-conceived" and will destabilize financial markets that are more effectively regulated by the state.   Maria Vullo, superintendent of the state’s Department of Financial Services, filed the lawsuit against the Office of the Comptroller of the Currency in federal court in Manhattan on Friday, asking a judge to declare that the move exceeds the authority of the office and to block it from proceeding.

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AG Healey and Local Students Win Federal Court Ruling Against Education Secretary Devos for Axing Student Loan Protections

BOSTON — Massachusetts Attorney General Maura Healey and two Boston-area students won a victory in federal court against Education Secretary Betsy DeVos after challenging the U.S. Department of Education’s plan to scrap federal protections for students cheated by predatory, for-profit schools. The opinion called Secretary DeVos’ actions “unlawful,” “arbitrary and capricious” and “procedurally invalid,” and ordered an immediate hearing in Washington, D.C to determine remedies.

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Bureau of Consumer Financial Protection Files Suit Against Future Income Payments LLC, Scott Kohn, and Related Entities

WASHINGTON, D.C. — The Bureau of Consumer Financial Protection (BCFP) has filed a complaint against Future Income Payments, LLC (FIP), Scott Kohn, and the following related entities: FIP, LLC; BuySellAnnuity Inc.; Cash Flow Investment Partners LLC; Pension Advance LLC; Cash Flow Investment Partners East LLC; Cash Flow Investment Partners MidEast LLC; Lumpsum Pension Advance Atlantic LLC; Lumpsum Pension Advance Southeast LLC; Lumpsum Settlement West LLC; PAS California, LLC; PAS Great Lakes, LLC; PAS Northeast LLC; PAS Southwest LLC; Pension Advance Carolinas LLC; Pension Advance Midwest LLC; and Pension Loans South LLC.

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UK Payday Lenders Concerned About Rise in Claims

The once booming payday loan industry in the UK has taken a dramatic turn following the rise of compensation claims. The industry which was worth around £2 billion in 2013, has recently seen a huge overhaul following the introduction of stricter regulation by the FCA which has included a daily price cap of 0.8% and a limited default fee of £15.

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TransUnion Healthcare Announces Support of RIP Medical Debt to Help Consumers Avoid Bankruptcies

Medical debt is the number one cause of bankruptcy in the U.S. To help consumers faced with mounting medical bills avoid bankruptcy, TransUnion Healthcare announced today that it is supporting the efforts of RIP Medical Debt, a 501(c)(3) nonprofit located in metropolitan New York, but working nationally. RIP, founded in 2014, has a single mission to help relieve deserving Americans and veterans of medical expenses they are unable to pay.

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Mick Mulvaney worries about the ‘moral’ consequences of failing to pay back student loans

Mick Mulvaney, acting director of the Consumer Financial Protection Bureau, said Wednesday he's worried about the impact that rising student loan debt could have on the United States.  Mulvaney, also President Donald Trump's budget chief, told CNBC there appears to be a "disconnect" among many college students when it comes to the "making of a loan" and "repaying of a loan."

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Increased Complexity Is Dragging on Big Data

For all the progress that companies are making on their big data projects, there’s one big hurdle holding them back: complexity. Because of the high level of technical complexity that big data tech entails and the lack of data science skills, companies are not achieving everything the’d like to with big data.  Big data’s complexity problem surfaced in several ways. For starters, while seven out of 10 survey-takers report they want to enable self-service access to data analytics environments eventually, fewer than one in 10 actually have enabled self-service at this point in time, according to the survey.

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Bureau of Consumer Financial Protection Issues Updated FCRA Model Disclosures

WASHINGTON, D.C. — The Bureau of Consumer Financial Protection (Bureau) today issued an interim final rule updating two model disclosures to reflect changes made to the Fair Credit Reporting Act (FCRA) by recent legislation.    In May 2018, Congress passed the Economic Growth, Regulatory Relief, and consumer Protection Act, which requires nationwide consumer reporting agencies to provide “national security freezes” free of charge to consumers. The “national security freeze” restricts prospective lenders from obtaining access to a consumer’s credit report, which makes it harder for identity thieves to open accounts in the consumer’s name.

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AB 1526, Kalra. Debt collection.
The Rosenthal Fair Debt Collection Practices Act regulates the practice
of debt collection and the conduct of debt collectors, as defined. The act
prohibits specified conduct by a debt collector in connection with the
collection or attempted collection of a consumer debt. The act provides for
enforcement by means of civil penalties and damages, as specified.
This bill would prohibit a debt collector from sending a written
communication to a debtor attempting to collect a time-barred debt without
providing specified written notices stating that the debtor may not be sued
for the debt, but that the debt, depending on its age, may be reported as
unpaid to credit reporting agencies, as specified.

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Cyber security threats against small businesses on the rise in 2018

In a world before social media, one with less people on the planet than electronic devices connected to the internet, shoplifters and annoying computer viruses posed the biggest threats to small businesses.  But in the world today where connected devices outnumber people new data from the National Cyber Security Alliance suggests that almost 50 percent of small businesses have experienced a cyber attack, more than 70 percent of attacks target small businesses and as much as 60 percent of hacked small and medium-sized businesses go out of business after six months.

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Navient named a 2019 Military Friendly Employer

WILMINGTON, Del., Sept. 12, 2018 (GLOBE NEWSWIRE) -- Navient announced today it has been awarded gold status as a Military Friendly Employer for 2019. Presented by VIQTORY, publisher of G.I. Jobs magazine, it is the fifth consecutive year Navient has received the Military Friendly Employer designation.   “At Navient, we value the service our military employees provide to their country and to our customers,” said Mike Maier, senior vice president and U.S. Navy veteran. “We’re honored to be recognized for our commitment to providing military veterans an opportunity to build meaningful careers with our company.”

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Agencies Issue Statement Reaffirming the Role of Supervisory Guidance

WASHINGTON, D.C. — Five federal agencies today issued a joint statement explaining the role of supervisory guidance for regulated institutions.  The statement from the agencies—the Federal Reserve Board, the Bureau of Consumer Financial Protection, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency—confirms that supervisory guidance does not have the force and effect of law, and the agencies do not take enforcement actions based on supervisory guidance.  The joint statement explains that supervisory guidance can outline the agencies’ supervisory expectations or priorities and articulate the agencies’ general views regarding appropriate practices for a given subject area.

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RevSpring and Apex Announce Strategic Combination

LIVONIA, Mich. and St. Paul, Minn. (Sept 11, 2018) – RevSpring and Apex Revenue Technologies announced today that they have entered into a definitive agreement to combine in a strategic transaction.  The combined company, which will continue to conduct business as RevSpring, will be the leading provider of intelligent multi-channel consumer and patient engagement solutions, electronic and printed communications, and billing and payments solutions. On behalf of their customers, the combined companies generate over one billion consumer financial communications and $4 billion in consumer payment volume annually.  The transaction is being led by GTCR, a leading private equity firm based in Chicago which is currently the majority shareholder of RevSpring.  Closing is expected to be in the fourth quarter of 2018 after the receipt of regulatory approvals.  Following closing, GTCR will be the majority shareholder with substantial ownership held by management of the combined companies.   

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Fintech Uses Machine Learning for Smarter Debt Collection

A San Francisco-based startup that uses algorithmic machine learning to study consumer behavior is trying to flip a decades-old model that banks and other creditors use for collecting debts.  Machine learning can help banks and other financial services companies preserve their relationships with customers in delinquency rather than sending them to collections and saying goodbye, Ohad Samet, CEO of TrueAccord Corp., said in an interview with Bloomberg Law.

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Defendant Who Took Part in Business Coaching Scheme Agrees to Settle FTC Charges

One of the defendants involved in a multimillion-dollar business-coaching scheme has agreed to settle Federal Trade Commission charges that he helped deceive consumers with false claims that they could earn “six figures” within 90 days.  The defendant in the case, Sean Brown, allegedly helped operate the coaching scheme, which did business under the name Digital Altitude. The final order bans Brown from selling business coaching programs and investment opportunities.

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U.S. Bank Launches Simple Loan To Compete With Payday Lenders

U.S. Bank is entering the small-dollar lending arena. Going forward, U.S. Bank depositors will be able to tap into an online, digital lending product aimed at offering a small cash infusion to solve near-term problems. Called Simple Loan, the new product puts the nation’s largest regional bank in direct competition with payday, title and other short-term lenders.

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Santander Will Settle With the CFPB on Vehicle Loan Claims

Santander Consumer USA Holdings Inc., an affiliate of European lender Banco Santander SA, will settle claims alleged by a U.S. consumer watchdog group that borrowers weren’t fully informed about some of their costs. In particular, the lack of information was about insurance policies and auto loans.

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FTC Announces Second Session of Hearings on Competition and Consumer Protection in the 21st Century September 21 at the FTC

The Federal Trade Commission will hold the second session of its 21st Century Hearings initiative with a full-day event on September 21 at the FTC’s Constitution Center facilities in Washington, D.C. The event will be webcast live. Commissioner Rebecca Slaughter will make opening remarks. Nobel laureate Joseph Stiglitz will deliver an opening address on the state of competition in the United States, and former FTC Chairman William E. Kovacic will deliver remarks on the evolution of U.S. antitrust law. The morning session will feature two moderated panel discussions on the state of U.S. antitrust law. The afternoon session will feature a moderated panel discussion on monopsony power. Commissioner Maureen K. Ohlhausen will offer closing remarks.

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U.S. Bank Launches Simple Loan to Meet Customers’ Short-Term Cash Needs

MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank has launched a new small-dollar loan product called Simple Loan, designed to help customers deal with unexpected or short-term cash needs with a transparent, easy-to-understand installment loan. According to a Federal Reserve study released in May 2018, about 40 percent of U.S. adults said they would not be able to cover a $400 unexpected expense or would cover it by selling something or borrowing money. Among those not able to pay the expense in full using cash or savings, 29 percent would have no other means to be able to pay for the expense.

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Bureau of Consumer Financial Protection Announces New Advisory Committee Members

WASHINGTON, D.C. — Today the Bureau of Consumer Financial Protection (Bureau) announced the appointment of new experts from outside the federal government to the Consumer Advisory Board, Community Bank Advisory Council, and Credit Union Advisory Council. The three advisory committees provide advice to Bureau leadership on a broad range of consumer financial issues and emerging market trends.

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   Debt Buyer 

Capstone management

(410) 776-9408

   Investment Firm 

Start Fresh Ventures LLC

(716) 901-5411

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Industry Events

Auto Finance Summit 2018

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October 24 - 26 , 2018

(212) 564-8972 Option 4

LendIt Fintech Europe 2018

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November 19 - 20 , 2018

(646) 930-6366

Collection & Recovery Solutions 2019

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