At a glanceWednesday, October 17, 2018

Collection Industry News At A Glance - October 17, 2018
Wednesday October 17, 2018
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FTC is Making Consumer Complaint Data More Accessible

The Federal Trade Commission hears from millions of consumers each year about fraud, identity theft, and other problems, allowing us to warn other consumers about scams they should watch out for, while also providing the agency with an important source of information to support our enforcement actions.   Starting today, the FTC will be making this information more accessible by releasing its aggregated consumer complaint data on a quarterly basis in a new interactive online format. Up until now, the FTC has released aggregated consumer complaint data collected through our Consumer Sentinel Network on an annual basis.

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Home Equity Borrowing Poised to Soar

A surge in home equity borrowing may soon be on the horizon. A new TransUnion (NYSE: TRU) study found that several dynamics are creating a market ripe for home equity origination growth, but a better understanding of how consumers use these loans may impact their interest in securing one. The findings from the study were released today at the Mortgage Bankers Association Annual Convention & Expo.   A major reason for expected growth in home equity borrowing is the fact that household home equity, currently nearing $15 trillion, has surpassed its prior “housing bubble” peak in Q1 2006 by over $1 trillion. Home equity is the difference between a home’s fair market value and the outstanding balance of all liens on the property.

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Judge unblocks Obama rule on student debt relief after delays by DeVos

(CNN)An Obama-era rule designed to help students cheated by for-profit colleges get relief on their education debt finally took effect Tuesday after efforts by the Trump administration to block it.  A federal judge ordered immediate implementation of the rule, delayed last year by Education Secretary Betsy DeVos, while a challenge from the for-profit college industry proceeds.  The Department of Education said Friday that it will not seek a new delay. Attorneys general from 18 states and the District of Columbia successfully sued DeVos last year over her decision to block the rule, known as Borrower Defense to Repayment, from taking effect. The judge sided with the states last month, but implementation of the debt-relief rule was delayed pending Tuesday's decision in the separate lawsuit brought by an industry group.

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S&P/Experian Consumer Credit Default Indices Show Lowest Composite Default Rate Of Year In September 2018

NEW YORK, Oct. 16, 2018 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through September 2018 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate was five basis points lower than last month, at 0.82%. The bank card default rate dropped 38 basis points to 3.14%. The auto loan default rate decreased eight basis points to 0.89%. The first mortgage default rate was down two basis points, to 0.63%.

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America’s $1.5 trillion student-loan industry is a ‘failed social experiment’

Ask economists and policy makers to what extent we should be worried about 20 and 30-somethings’ historically high levels of student debt and you’ll get a broad spectrum of answers. After all, this group is also the most educated ever and higher education is becoming increasingly necessary to guarantee a decent standard of living in the U.S.  But ask many borrowers in this generation whether they worry about how the loans will affect their future and you’ll get a slew of bleak replies: It’s stopped them from getting their car fixed, switching jobs, buying a home and having children. Even a tax credit aimed at helping working low- and moderate-income Americans can be seized to repay defaulted student loans.

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Hoover places moratorium on new licenses for payday lenders, vape shops and others

Hoover is taking steps to limit vape shops, pawn shops, check cashing stores, and car title or payday loan businesses. The Hoover City Council passed a temporary moratorium on licenses for these businesses at its Oct. 15 meeting, reports the Hoover Sun. The moratorium is expected to remain in effect while the city rewrites a zoning ordinance or subdivision regulations for these businesses. The council is scheduled to vote Nov. 5 on regulations that would limit these businesses to C-2 commercial districts. If that measure passes, the moratorium may be rescinded.

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TCN Wins 2018 Contact Center Technology Award from CUSTOMER Magazine

Over the last year, TCN has enhanced its customer service technology by integrating new features, such as speech analytics and omnichannel offerings, to its robust cloud-based, contact center platform. With TCN Speech Analytics, contact centers can ensure quality customer service. With the ability to monitor and analyze 100 percent of customer calls – tracking keywords and phrases expressing content, dissatisfaction, potential litigation and empathy – customer support managers can now provide timely and appropriate service recovery, resulting in more positive customer outcomes. Additionally, contacting customers on their preferred communication channel continues to be a challenge for the industry. TCN equips contact centers with a range of omnichannel features, such as voicemail drop (VocalDirect), text messaging (AgentSMS) and email, to instantly connect customers with agents around the world.

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One in six businesses unprepared for a data breach

A significant portion of organisations are ill-prepared for the event of a cyber attack, and four in ten have gone through such an event in the last 12 months.
This is according to a new report by BSI's Cybersecurity and Information Resiliance division.  The report states that a vast majority of organisations are worried about security (73 per cent) and that they are looking for solutions. However, one in six have no plan in place. A third conduct no type of cyber security testing. Almost two-thirds (59 per cent) are engaged in some form of end-user security awareness programs.

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CFPB to spell out ‘abusive’ practices by financial-service companies

WASHINGTON — A federal regulator plans to explain what it considers to be “abusive” practices by companies selling financial services, a move aimed at giving a clearer idea of what behavior would get companies into trouble under relatively new government enforcement powers.  Mick Mulvaney, the Consumer Financial Protection Bureau’s acting director, said Monday the bureau is working on a regulation defining how it views unfair, deceptive or abusive acts or practices, known as Udaap. Most of the CFPB’s enforcement actions involve such claims and the 2010 Dodd-Frank financial law, which created the CFPB and gave it broad enforcement powers.

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FTC tackles antitrust in labor markets

It’s Day 2 in the latest set of Federal Trade Commission hearings on consumer protections and antitrust, with government officials, scholars and industry insiders today set to discuss possible anticompetitive behavior in labor markets. On deck to testify are Renata Hesse, a former Justice Department antitrust chief, and Tim Wu, the Columbia University Law school professor who coined the term “net neutrality,” among others. The session comes on the heels of a spirited round of panels on Monday in which several well-known industry figures called for antitrust officials to step up their enforcement efforts in the event of regulatory failure.

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Revitalized program combines continuous monitoring of data with years of skip tracing expertise to get clients first to the finish line.   VeriFacts Inc. (VFI) has announced the debut of Stride, a systematic verification program designed to consolidate efforts, keeping costs down while providing new information as it becomes available.  This program has streamlined the locate process, focusing efforts and labor to maximize return without breaking the bank. 

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Antitrust on tap for FTC

ANTITRUST ON TAP FOR FTC The Federal Trade Commission this week kicks off its third set of competition hearings, focusing today on the potential for problematic behavior on multi-sided platforms — companies that bring buyers and sellers together, like Amazon or Airbnb. Democratic FTC Commissioner Rohit Chopra will give opening remarks at George Mason University in Arlington before panelists discuss the characteristics of the companies and how the agency should evaluate conduct like predatory pricing and actions to undermine rivals who depend on their infrastructure.

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Big banks reveal challenges in consumer credit, mortgages

The largest U.S. banks hinted at declining quality in credit card lending and tight competition in the mortgage space, showing that consumer credit is becoming a harder business to compete in.   In third-quarter earnings, JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC) all posted higher income on interest-bearing assets despite pressures from the Fed’s rate hikes. The big banks relied on larger loan books to collect more revenue on higher interest rates.

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LIVONIA, Mich. (Oct 16, 2018) – Learn how data cleansing and analytics can help your organization maximize opportunities and improve overall effectiveness. RevSpring experts will share best practices for data cleansing and analytics during a webinar on October 24 at 2 p.m. EDT.
Poor data quality on average costs $15 million annually, according to a Gartner 2017 study. Clean data is the start to creating meaningful connections with consumers. Consumer data changes often, requiring ongoing data cleansing and analytics, and using data cleansing tools regularly ensures consumers are receiving the right message at the right time.

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As per new study on Residential Mortgage Service Market : Economic Performance Evaluation, Business Competition & CAGR

This report studies the global Residential Mortgage Service market size, industry status and forecast, competition landscape and growth opportunity. The report has been processed on the basis of a comprehensive analysis with inputs from industry experts. The report presents the market scenario and its potential growth prospects during the forecast period. In addition, the report consists of the list of the leading players operating in the market.

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Data breaches compromised 4.5 bln records in Q1/Q2, 2018

Gemalto released the latest findings of the Breach Level Index, a global database of public data breaches, revealing 945 data breaches led to 4.5 billion data records being compromised worldwide in the first half of 2018. Compared to the same period in 2017, the number of lost, stolen or compromised records increased by a staggering 133 per cent, though the total number of breaches slightly decreased over the same period, signaling an increase in the severity of each incident.

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Federal Judge Rules in Favor of Digital Recognition Network (DRN)

FORT WORTH, TexasOct. 12, 2018 /PRNewswire/ -- Digital Recognition Network (DRN), an AI and data analytics company that provides vehicle location data and analytics to auto lenders, insurance carriers and other commercial verticals, today announced that on October 5, 2018, a U.S. District Court Judge in the Northern District of Texas ruled on three key findings: that DRN's one-year, non-competition contract provision is valid and enforceable; that Bay Cities Recovery, Inc. D/B/A DigitalDog Auto Recovery breached its contract with DRN; and that Location Services, LLC tortiously interfered with the contract by participating with DigitalDog Auto Recovery to breach its agreement with DRN.

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35 state attorney generals tell FCC to pull the plug on robocalls

A bipartisan group of 35 state attorneys general are tearing their hair out over robocallers. They’re telling the Federal Communications Commission (FCC) to implement technology that will identify illegally spoofed calls and authenticate legitimate ones, the sooner the better. In a letter sent to the FCC on Tuesday, the AGs submitted comments in response to a public notice issued by the Consumer and Governmental Affairs Bureau seeking to refresh the record on how the FCC can further empower service providers to block illegal calls.

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Mulvaney calls for unity at consumer bureau amid racial controversy

The acting director of the Consumer Financial Protection Bureau (CFPB) issued a call for unity to agency employees Thursday amid a backlash over racially charged writings by a top official he appointed.   Acting CFPB Director Mick Mulvaney urged agency staffers to treat each other with “professionalism, respect and civility,” in an internal Thursday email obtained by The Hill, asking the consumer watchdog agency to come together around its mission. 

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Pentagon, others baffled by CFPB plan to cease military lending exams

The Consumer Financial Protection Bureau's decision to stop examining financial firms for compliance with the Military Lending Act has sparked pushback not only from lawmakers and consumer advocates but also from the Defense Department and every major group representing military service members.  Acting CFPB Director Mick Mulvaney's claim that the Dodd-Frank Act does not give the bureau statutory authority to enforce the Military Lending Act is a major reversal from the Obama administration. As reported by several news outlets, Mulvaney has argued further legislation is needed to provide that authority.

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Flexing their muscles, debt collectors see opportunity to make more robocalls

Debt collectors want federal regulators to dial down recent anti-robocall rules that, they say, wrongly end up lumping them with spammers and scammers.
Ever since new regulations took effect last year, too many valid debt collection calls have been mislabeled as “spam,” “scam” or been blocked altogether. At least, that’s what members of the credit and collection industry are telling the Federal Communications Commission.

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RevSpring and Apex Revenue Technologies Complete Strategic Combination

LIVONIA, Mich. (October 11, 2018) – RevSpring, a leading provider of consumer communications, billing, and payments solutions, announced today that it has completed the strategic combination of RevSpring and Apex Revenue Technologies. The combination makes RevSpring a premier healthcare provider of patient revenue cycle engagement, billing, and payments solutions generating over one billion consumer financial communications and $4 billion in consumer payments volume annually. RevSpring will also continue to maintain its focus on the financial services industry, including the critical accounts receivable management (ARM) market.

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Protecting against data breach: 6 tips for small business owners

Large companies aren’t the only businesses that have an obligation to protect their client’s security and privacy. Smaller businesses are increasingly encountering the effects of a data breach. The results range from compromise of client or customer data to third-party control over the entire business operation.  Protecting your data not only shields you from financial liability, but also from substantial reputational harm. Thankfully, you can take reasonable precautions to help protect the security and privacy of your business and your customers.

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Plaza Services Announces Jason Rheaume as New VP of Legal and Agency Management

Plaza Services, LLC is pleased to welcome Jason Rheaume as the company’s Vice President of Legal and Agency Management. Mr. Rheaume will be responsible for developing and managing Plaza Services’ attorney network as well as supporting both agency and overall inventory management.   Andrew Simpson, Chief Operating Officer, commented, “We are very excited to add Jason to our Plaza Services executive team. He is the ideal industry professional to give our company the solid foundation we need to expand into new products that have different servicing needs. His strong data analytics skills and deep knowledge of legal collection operations provide the perfect blend of expertise needed to build our legal network.”

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Rate Hikes Hint At Credit-Card Debt Trap

Now, it seems, interest rates have garnered some, well, interest. It has been barely a week since the Federal Reserve boosted interest rates by a quarter point. It’s the latest move in a series of rate hikes that have been well-telegraphed and well-choreographed. The Fed has been gradually increasing its fed funds rate over a period of a few years. The latest move took that rate, which is what is charged to banks as they lend to one another, to 2.25 percent.

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Attorney General Underwood Files Amicus Brief In Support Of Students Defrauded By Corinthian Colleges

NEW YORK – Today, New York Attorney General Barbara D. Underwood – part of a coalition of 8 Attorneys General – filed an amicus brief in support of students defrauded by Corinthian Colleges (Corinthian). The brief, filed in Calvillo Manriquez v. DeVos in the U.S. Court of Appeals for the Ninth Circuit, supports a district court’s order halting the U.S. Department of Education (Department) from its practice of giving only partial relief to defrauded students. The Department has been granting as little as 10 percent loan relief to students who attended the now-defunct, predatory, for-profit Corinthian. The Department has appealed the court’s decision.

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California Enacts New Laws Impacting Financial Institutions

Following a busy few months for the California legislature, financial institutions are now facing some new requirements.  Governor Jerry Brown signed several bills into law by the September 30 deadline, including amendments to the state’s debt collection law, the Student Loan Servicing Act, and the Military and Veterans Code as well as Senate Bill 1235, which imposes first-in-the-nation disclosure requirements for certain business purpose loans.

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Buffalo Man Sentenced For Running A Fraudulent Debt Collection Scheme

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shawn Sylvia, 35, of Buffalo, NY, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 62 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $283,851.53 in restitution to victims. 

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Grassley asks FTC to review hospitals’ contracts with health plans

Senate Judiciary Chair Charles Grassley (R-Iowa) on Wednesday asked the Federal Trade Commission to investigate major health systems' potentially anti-competitive contracts with insurers. The senator questioned whether these contracts are a driver of spiking healthcare costs.  Citing a September report from the Wall Street Journal, Grassley urged FTC Chair Joseph Simons to give the agency's perspective on whether secretive inter-industry ties are exacerbating rising healthcare costs. In 2016, healthcare accounted for nearly one-fifth of the U.S. gross domestic product, or about $3.3 trillion

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Local employer announces job fair on Oct. 16

MUNCIE, Ind., Oct. 10, 2018 (GLOBE NEWSWIRE) -- Navient, a leading asset management and business processing services company, today announced it plans to hire full-time collections specialists at its site in Muncie.   The hiring event is scheduled for Tuesday, Oct. 16 from 10 a.m. to 7 p.m. The event will be held at the company’s office in Muncie, located at 4501 North Superior Dr.   Candidates will interview on site and meet with management. Job seekers should apply online  at for the collector roles and bring their resumes to the event.

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Industry Events

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


Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

10440 Pioneer Blvd., Suite 2
Las Vegas , Nevada
September 10 - 12 , 2019

(562) 906-1101

More information about Resource Management Services, Inc.
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