At a glanceFriday, November 09, 2018

Collection Industry News At A Glance - November 9, 2018
Friday November 9, 2018
This Week's Newsletter:
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Federal Reserve Supervision and Regulation Report

The report summarizes banking conditions and the Federal Reserve’s supervisory and regulatory activities, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision.

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Resource Management Services, Inc. is pleased to announce the newest Peer Group to formalize and meet at Collection and Recovery Solutions 2019 – the Collection and Recovery FinTech Collections Lender Peer Group.  Collection and Recovery Solutions 2019 conference will be held at the Four Seasons Hotel, Las Vegas May 8 – 10, 2019.

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Court stays bureau’s payday rule effective date

This week, a federal court in Texas granted a stay of the Bureau of Consumer Financial Protection's (previously the CFPB) payday lending rule compliance date, which had been set to take effect August 2019. In September, the Community Financial Services Association of America (CFSA) filed a motion for preliminary injunction to prevent the bureau from enforcing the rule.

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Alternatives expected to sprout up now that Colorado payday lenders are capped

Colorado voters, by the widest positive margin of any state ballot measure this year, agreed to cap the costs on payday loans at 36 percent a year, a rate some lenders argue is too low to stay in business but which backers argued was necessary.  “This lending product is so predatory,” said Corrine Fowler, who ran the successful campaign behind Proposition 111. “Financially, people are not better off when taking the loans. It’s just immoral, unjust and wrong.”

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Bureau of Consumer Financial Protection and Federal Housing Finance Agency Release National Survey of Mortgage Originations Dataset for Public Use

WASHINGTON, D.C. — The Bureau of Consumer Financial Protection (BCFP) and the Federal Housing Finance Agency (FHFA) today released for public use a new loan-level dataset collected through the National Survey of Mortgage Originations (NSMO) that provides insights into borrowers’ experiences in getting a residential mortgage.

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Federal Reserve Consumer Credit – G.19

"Consumer credit increased at a seasonally adjusted annual rate of 5-1/4 percent during the third quarter. Revolving credit increased at an annual rate of 2 percent, while nonrevolving credit increased at an annual rate of 6-1/2 percent. In September, consumer credit increased at an annual rate of 3-1/4 percent."

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IC System Receives CFO of the Year Award

Minneapolis/St. Paul Business Journal announced its list of honorees on September 21, 2018. Mr. Heinbigner was awarded as part of the large private company CFO category alongside two other recipients. More than 20 honorees in all were selected from companies ranging from small businesses to government institutions to nonprofits. The award started in 2007 to highlight exceptional financial leaders.

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MoneyGram International Inc. Agrees to Extend Deferred Prosecution Agreement, Forfeits $125 Million in Settlement with Justice Department and Federal Trade Commission

MoneyGram International Inc. (MoneyGram), a global money services business headquartered in Dallas, Texas, has agreed to extend its deferred prosecution agreement and forfeit $125 million due to significant weaknesses in MoneyGram’s anti-fraud and anti-money laundering (AML) program resulting in MoneyGram’s breach of its 2012 deferred prosecution agreement (DPA).  In addition to the monetary payment and extension of the deferred prosecution agreement, the company must enhance its anti-fraud and AML compliance programs.   Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David J. Freed of the Middle District of Pennsylvania, Federal Trade Commission (FTC) Chairman Joseph Simons and Postal Inspector-in-Charge Daniel B. Brubaker of the U.S. Postal Inspection Service (USPIS) Philadelphia Division made the announcement.

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A teacher defaulted on $55,000 in student debt—loan rehabilitation offered hope, but now he owes $130,000

In 2014, Scott Nailor, a high school English teacher from Scarborough, Maine, went more than 270 days without making a payment on his student loans and so ended up in default. Nailor couldn't keep up with his loan payments while balancing other kinds of debt and providing for his family so, in addition to defaulting, he and his wife filed for bankruptcy.   Nailor had struggled to keep up with his debt since 2000, when he graduated from college owing $35,000. When he stopped making payments over a decade later, his balance had swelled to $55,000, thanks to continually accruing interest.

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First Party Creditors Should Carefully Consider the Upcoming Debt Collection Rules

On October 17, 2018, the Bureau of Consumer Financial Protection (BCFP), formerly known as the CFPB, announced that it plans to issue a Notice of Proposed Rulemaking (NPRM) for the Fair Debt Collection Practices Act (FDCPA) by March 2019. The NPRM will likely have a dramatic impact on collection practices for debt collectors. But, what about first party creditors? Did the Supreme Court’s decision in Henson v. Santander Consumer USA, Inc. obviate the necessity for first party creditors to comply with the BCFP’s debt collection rules?

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Valencia College Announces Banking Partnership with CFE Credit Union

Valencia College officials have named CFE Federal Credit Union the college’s preferred banking partner.   As part of the five-year agreement, CFE will provide banking services to students, faculty and staff throughout the college, and will also present financial literacy seminars on topics such as budgeting, identity theft prevention and car and home ownership.

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Court Stays CFPB Payday Loan Rule Compliance Date

Yesterday, the court reversed course in the lawsuit filed by two industry trade groups challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule). On its own initiative, the Texas federal district court granted a stay of the Payday Rule’s August 19, 2019 compliance date and continued in force its stay of the lawsuit. Unfortunately, the court did not specify a termination date for the stay of the compliance date, as the trade groups and CFPB originally requested. Instead, the compliance date is stayed “pending further order of the court.”

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Encore Capital Group Announces Third Quarter 2018 Financial Results

SAN DIEGONov. 07, 2018 (GLOBE NEWSWIRE) -- Capital Group, Inc.(NASDAQ: ECPG), an international specialty finance company providing debt recovery solutions for consumers across a broad range of assets, today reported consolidated financial results for the third quarter ended September 30, 2018.

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Advance pay service may reduce use of payday loans

NEW YORK (AP) — Americans take out roughly $50 billion in payday loans a year, each racking up hundreds of dollars in fees and interest. But a small and growing service that allows its users to take an advance on their paycheck might be giving the payday loan industry a run for its money.   San Francisco-based financial technology company Even made headlines late last year when Walmart, the nation’s largest private employer, announced it would start offering Even’s service as part of its employee benefits package. Along with providing tools that allow employees to track their spending and save money, Even features Instapay, which allows users to advance some of their next paycheck up to 13 days before payday. Because the Even user is tapping into his or her already accumulated hours, Even doesn’t charge the employee interest on the advance.

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Federal Reserve Board to publish inaugural Supervision and Regulation Report on November 9

The Federal Reserve Board on November 9 at 12:00 p.m. EST will publish its inaugural Supervision and Regulation Report, which will summarize current banking system conditions and the Board's recent supervisory and regulatory actions. The report is being published in conjunction with appearances before Congress by Vice Chairman for Supervision Randal K. Quarles on November 14 and 15 and is intended to explain the Board's recent supervisory and regulatory actions.

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Colorado election: Proposition 111, capping interest on payday loans, passes

Colorado's payday lenders will face more limitations after passage of Proposition 111 on Tuesday. Proposition 111 caps the annual interest rate on payday loans at 36 percent and eliminates other finance charges and fees. The law takes effect Feb. 1. As of results posted late Tuesday, it had 77 percent approval from Colorado voters, according to the Secretary of State's Office. Currently, Colorado's payday lenders can legally charge more than 200 percent interest for all loans "targeted at customers who are often in dire straits."  Colorado and 15 other states, plus Washington, D.C., had ballot initiatives to cap rates at 36 percent or less.

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Agencies issue proposal to streamline regulatory reporting for qualifying small institutions

The three federal banking agencies today invited public comment on a proposal to reduce regulatory reporting burden on small institutions by expanding the number of regulated institutions eligible for streamlined reporting. The proposal would implement section 205 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

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The Evolution of Lending Through Fintech

The lending market is going through some major, rapid changes, and it’s more exciting than ever for consumers looking for attractive deals on their loans. At the same time, lenders themselves have an easier time managing the huge volume of customers they have to work with, along with all the data they generate on a regular basis. Old methods are being pushed out, while new ones are starting to take ground very quickly.

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Have the Rules for Third-party Debt Collectors Changed in Massachusetts?

It has been reported that, without announcement or warning, the regulations applicable to third-party debt collectors in Massachusetts may have changed.  While the state’s Division of Banks (DOB) and the state’s Attorney General (AG) have traditionally regulated, respectively, third-party debt collectors and first-party creditors, the AG is reported to have changed its website recently to include third-party debt collectors as entities that it regulates.

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Why Security Training Starts With Your People

One US report found annual financial losses dropped from $683,000 to $162,000 when new recruits were security trained while, closer to home, 88 percent of cyber attacks in the UK over the past two years have been attributed to human error according to the Information Commissioner’s Office (ICO). Consequently, security training should be seen as every bit as important as implementing technical security controls.

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Innovate Loan Servicing Selects CallMiner Speech Analytics to Improve Contact Center Efficiency and Collector Effectiveness

WALTHAM, MA – Nov 7, 2018 – CallMiner, the leading platform provider of award-winning speech and customer engagement analytics, announced today that Innovate Loan Servicing has implemented CallMiner Eureka as its speech analytics platform to drive efficiency within its contact center and improve its collector effectiveness.

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WASHINGTON, November 6, 2018—The Federal Communications Commission today sent letters to voice providers, calling on them to assist industry efforts to trace scam robocalls that originate on or pass through their networks. These letters, written by FCC Enforcement Bureau Chief Rosemary Harold and Chief Technology Officer Eric Burger, were sent to voice providers that are not participating in these “traceback” efforts, including those the FCC has encouraged to do more to guard against illegal traffic. These traceback efforts assist the FCC in identifying the source of illegal calls.

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The cost of a data breach

According to Ponemon’s 2018 Cost of Data Breach Study, the average cost of a data breach is $3.86 million (around £2.95 million), with an average cost of $148 (around £113) per lost or stolen record. But what factors contribute to this cost? As well as having to pay hefty fines for suffering a breach, there are costs associated with reputational damage, customer loss and fall in stock price, not to mention the resources needed to recover from the incident and return to ‘business as usual’. By looking at some of the best-known data breaches, we can observe the effects they can have and how much they really can cost.

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TCN Earns The Salt Lake Tribune’s 2018 Utah Top Workplaces Award

St. George, Utah, – November 6, 2018 – TCN, Inc.,a leading provider of cloud contact center technology for enterprises, contact centers, BPOs and collection agencies worldwide, announced today that The Salt Lake Tribune has awarded TCN the 2018 Top Workplaces honor. The award recognizes leading organizations in Utah that value, empower and inspire its employees in high-performance cultures.

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Newly Unsealed Documents Show Top FDIC Officials Running Operation Choke Point

Last week brought new revelations regarding Operation Choke Point, the Obama administration’s effort to freeze politically disfavored businesses out of the financial system. Rep. Blaine Luetkemeyer (R-Mo.), who helped lead a multi-year effort to shut the program down, highlighted some of theses newest findings and pointed out that stopping Operation Choke Point is not a partisan issue.

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U.S. Supreme Court ends fight over Obama-era net neutrality rules

WASHINGTON (Reuters) - The U.S. Supreme Court on Monday refused a request by the Trump administration and the telecommunications industry to wipe away a lower court decision that had upheld Obama-era net neutrality rules aimed at ensuring a free and open internet, though the justices' action does not undo the 2017 repeal of the policy

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“Overbiffing” is the latest outrage in debt collection

Overstating a debtor's balance — also called "overbiffing" — is the latest outrage in unfair debt collection. In a recent case, regulators allege a New York debt collector may have tricked thousands of consumers into paying far more than they actually owed by fraudulently inflating consumer balances and using profane, abusive and illegal tactics to collect the fabricated bills. The term is called "overbiffing" because the scammers overstate a person's "balance in full," which is sometimes shortened to BIF.

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Credit Union to Pay for Seizing Vehicles of Service Members

POUGHKEEPSIE, New York -- The U.S. Department of Justice and the Hudson Valley Federal Credit Union announced a $95,000 settlement Friday, after an investigation into claims that the company violated federal law by repossessing service members' vehicles while they were on active duty.

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Arizona Attorney General Adds Two Fintech Lenders to Sandbox (1)

Two fintech lending startups will be able to test out their products in Arizona without having to get licensed. Attorney General Mark Brnovich announced the addition of Grain Technology, Inc. and Sweetbridge NFP to the state’s fintech regulatory sandbox, which eases regulatory requirements for entrepreneurs to test innovative products. Grain Technology, based in New York, will test a savings and credit product on Arizona consumers who need small lines of credit while receiving overdraft protection for bank accounts.

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A human-centric approach to better cybersecurity

A recent risk report from the United States’ Office of Management and Budget (OMB) delivered some sobering cybersecurity news to federal agencies. According to the OMB, a majority of agencies with cybersecurity programs in place are at significant risk of attack. As noted in the report, “Agencies cannot detect when large amounts of information leave their networks.”  That is a startling observation, but perhaps it should not be entirely surprising, especially in Southeast Asia. In recent years, the region has pushed the pedal on digital growth and innovation, leading to a more connected and tech-enabled workforce.

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Data center automation: 2 acronyms you should know

Data centers remain the brain and nerve center of today's enterprises. The fact that many companies are migrating to the cloud doesn't change that fact--it just changes the geography.   But what is changing is that today's data centers need to be more software-based and better automated in order to take advantage of business needs for agility, scalability, and digital transformation.

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Consumer Sentinel Network Data Book 2017: Inside the Numbers

This year, the Sentinel Data Book refers to consumer reports rather than “complaints.” Often, people make these reports after they have experienced something problematic in the marketplace, avoided a loss, and decided to alert others.   Sentinel sorts consumer reports into 30 top categories. Appendices B1–B3 describe the categories, providing details, and three year figures. To reflect marketplace changes, new categories or subcategories are created or deleted over time. In 2017, a new subcategory for reports about online payment systems was added to the Internet Services category.

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CFPB policy on military lending supervision ‘unacceptable,’ says consumer group

The Consumer Financial Protection Bureau has the statutory authority to ensure compliance with the Military Lending Act (MLA), according to an analysis by the Consumer Federation of America (CFA).  The analysis follows an announcement by the CFPB of plans to end supervisory examinations for violations of the MLA.

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   Credit Counseling 

National Foundation for Credit Counseling (NFCC)

(202) 677-4300

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   Debt Buyer 

Big Valley Investment Group

(516) 640-9234

   Debt Settlement 

Americor Financial

(866) 333-8484

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Industry Events

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


NCUCA – National Credit Union Collection Alliance

NCUCA - National Credit Union Collection Alliance

April 15 - 17 , 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.
More information about Debt Connection Symposium
More information about RMN Networking
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