At a glanceWednesday, November 14, 2018

Collection Industry News At A Glance - November 14, 2018
Wednesday November 14, 2018
Mid Week Newsletter:
Subscribe for Free - More Information - Advertising


OCC Enforcement Action Policies and Procedures Manuals

The Office of the Comptroller of the Currency (OCC) issued today its Policies and Procedures Manual (PPM) for enforcement actions against institution-affiliated parties (IAP) of national banks, federal savings associations, and federal branches and agencies of foreign banks (collectively, banks). This PPM generally sets forth the OCC’s existing policies and procedures for taking enforcement actions against a current or former IAP in response to violations of laws, regulations, final agency orders, conditions imposed in writing, or written agreements; unsafe or unsound practices; or breaches of fiduciary duty. The OCC also updated today its policies and procedures regarding bank enforcement actions and related matters and civil money penalties, primarily to ensure consistency with its policies and procedure

Read More
What Are We Learning about Artificial Intelligence in Financial Services?

Although it is still early days, it is already evident that the application of artificial intelligence (AI) in financial services is potentially quite important and merits our attention. Through our Fintech working group, we are working across the Federal Reserve System to take a deliberate approach to understanding the potential implications of AI for financial services, particularly as they relate to our responsibilities. In light of the potential importance of AI, we are seeking to learn from industry, banks, consumer advocates, researchers, and others, including through today's conference. I am pleased to take part in this timely discussion of how technology is changing the financial landscape.1

Read More
Ohio Payday Lending Overhaul Examined As A National Model

Ohio’s overhaul of its payday lending laws will be fully implemented in April. At a conference in Washington Monday, it was applauded as a national model that ensures the short-term loans will continue to be offered without gouging consumers.    During the discussion organized by the Pew Charitable Trusts, advocates for the overhaul said they battled more than three-dozen lobbyists for the payday lending industry who wanted to maintain the status quo, including interest rates and fees that averaged nearly 600 percent.

Read More
From a Deference Dimension: Breaking Down the Supreme Court’s Grant of Certiorari to Consider Whether the Hobbs Act Requires District Courts to Follow the FCC’s TCPA Rulings

As reported earlier today, the Supreme Court granted the Petition for Certiorari in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., No. 17-1705, 2018 WL 3127423 (U.S. Nov. 13, 2018) to consider the following legal question: "Whether the Hobbs Act required the district court in this case to accept the FCC’s legal interpretation of the Telephone Consumer Protection Act." Based on how the Court framed the question, it looks like it’s headed to decide issues that will have a significant impact on the legal framework under which lower courts apply administrative decisions by the FCC.  But the case will undoubtedly have far broader implications since the Hobbs Act reaches more than just administrative rulings by the FCC.  Could it even pave the way for the Supreme Court to revisit Chevron Deference?  We explore this, and more, below.

Read More
We should be regulating AI, but no-one really knows how

A conundrum which has existed throughout the life of the technology and telco industry around the perfect balance between innovation and regulation. rom a technologists perspective, the question is a simple one to answer; don’t pin us back with red-tape, allow us to explore new ideas with complete and utter freedom. However, with technology becoming increasingly invasive, most sensible people would suggest there is a need to build a rulebook.  One of the main issues with regulation is the strength and depth. Striking the right balance between freedom and guidelines is an incredibly difficult task. Where the lines should be drawn is an answer which will vary dependent on who you speak to, as will the flexibility of these lines. And then of course you have the pace of change. Technology is constantly years ahead of regulation, so is it even a reasonable objective to attempt to achieve.

Read More
Betsy DeVos sued again over delays in student debt relief

WASHINGTON - Secretary of Education Betsy DeVos was hit with another lawsuit Tuesday claiming she failed to cancel student debt owed by people whose for-profit colleges have been shut down. The new lawsuit comes a month after a federal judge ruled that the regulation should immediately go into effect, after more than a year of what he called "arbitrary and capricious" delays by DeVos. The new complaint was filed by the Housing and Economic Rights Advocates, a California-based legal service nonprofit group. It claims that the Department of Education is continuing to collect on loans that it should be discharging under an Obama-era rule.

Read More
Want to be a Fintech startup? Here are 10 things to consider from Ron Suber

At this year’s NJ Tech Council FinTech Conference, held in September in Jersey City, Ron Suber, president emeritus and senior adviser at Prosper (San Francisco), a FinTech lending startup, spoke about the future of FinTech and the opportunities for startups getting into the area now. Here are some of the points he made:

Read More
Attorney General Becerra Recovers Nearly $8.8 Million Against Corrupt Operators of Sham Charity for Wounded Veterans

SAN DIEGO – California Attorney General Xavier Becerra announced today a jury verdict in favor of the State against individuals who fraudulently solicited charitable donations under the pretext of assisting wounded veterans and their families and instead illegally enriched themselves with the donated funds. In April 2017, Attorney General Becerra filed a lawsuit alleging that the operators committed fraud against California donors.  Following trial, the jury awarded nearly $8.8 million to the state against defendants Matthew G. Gregory and spouse Danella J. Gregory, their adult children Matthew J. Gregory and Gina D. Gregory, and their business Gregory Motorsports. 

Read More
Federal Reserve Supervision and Regulation Report – November 2018

The Board of Governors of the Federal Reserve System is pleased to present the inaugural Supervision and Regulation Report.1 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. While this inaugural report looks at trends going back to the financial crisis, future reports will focus primarily on developments in the period since the previous report. All financial and table data presented in this report are as of June 30, 2018, unless specified otherwise.

Read More
FTC Submits Comments to NTIA on Consumer Privacy

Staff of the Federal Trade Commission calls for a balanced approach that protects both consumer privacy and innovation in a comment submitted to the Department of Commerce’s National Telecommunications and Information Administration (NTIA) as part of that agency’s consumer privacy proceeding. In its comment to NTIA, staff notes the FTC’s extensive experience in protecting consumer privacy and fostering innovation. For decades, the Commission has brought hundreds of cases protecting the privacy and security of consumer information—both online and offline—held by large and small companies. In addition, the Commission also conducts consumer and business education and policy development to promote privacy and the security of consumer data. 

Read More
Fines and Lawsuits Are Adding to the Cost of Corporate Data Breaches

Hackers constantly probe computer networks worldwide for vulnerabilities, seeming to pull off a major cyberattack almost weekly. In the past three weeks alone, HSBC Bank of London reported that its U.S.-based accounts were illegally accessed; hackers compromised an Australian military shipbuilder's personnel files; and Hong Kong airline Cathay Pacific confirmed a breach that affected up to 9.4 million passengers. The intrusions by criminal and state-backed hacker groups are aimed at obtaining personal information such as names, phone numbers, addresses, national identification numbers, and credit card and banking information. The groups can either sell the data to others who exploit it for financial gain or use it to conduct more targeted attacks – presenting a national security as well as a corporate concern. Now, governments in Europe and North America are pushing companies harder to shore up their network defenses and are fining those that are lax.

Read More
Average Utah payday loan interest rate rises to nearly 528% annually — double what Mafia loan sharks charged in the 1960s

The already astronomical interest rates for payday loans in Utah are rising, to an average of 528 percent, with the highest rate topping a stunning 1,500 percent. Still, 1 of every 5 payday loan stores in the state closed in the past two years.   That’s according to new annual data compiled by the state about the industry — portrayed by critics as a “debt trap” that can easily hook and financially drain the poor, but defended by lenders as a needed service for people with poor credit and few other loan options

Read More
Primeritus Financial Services Announces new CEO, Mike Thomas

Primeritus Financial Services is pleased to announce the promotion of Mike Thomas to Chief Executive Officer, effective immediately.   Mike brings a wealth of experience to the CEO position and has a proven track record of leveraging technology to drive best practices to better serve both customers and vendors. Mike succeeds Scott Peters who joined Primeritus in 2015 and led the company during a period of rapid growth and success. Scott recruited Mike to Primeritus as the Company’s Chief Information Officer and Senior Vice President of Operations in 2015 where Mike was focused on developing the Company’s long-term technology and operational strategy.

Read More
Why Marketing Teams Are a Cyber-Target

When we think of cyberattack victims, we generally think of large banks, electrical grids, military contractors and government departments. Marketing teams might not see themselves as targets, but together, with other professional services companies, such as law and accounting firms, they represent the soft underbelly of the economy.  Most marketing agencies are relatively unprotected from attacks yet hold highly sensitive client information. For example, they often have privileged access to pre-public market-moving information, such as product announcements and earnings releases for their clients. Intruders can use this information to great financial gain.

Read More
[PODCAST] Consumers Lack Awareness of How Much Personally Identifiable Information is Exposed

Recently First Data produced a cybersecurity study that took a look at personally identifiable information. Can you give us a brief overview of this study or survey and what was its main focus?Happy to. The study explores the attitudes and actions of today’s consumers as how they secure their personal identifiable information, we’ll call it PII. It identifies trends that can give financial institutions, retailers, service providers, and individuals themselves an extra edge on how t battle that goes on for their personal data. One of the things that is pretty revealing is that the results show the consumers really lack an awareness of how much of their PII data is on the dark web despite how little trust they have in businesses’ ability to keep their data safe. It’s bit contradictory if you will.

Read More
Advance pay service may reduce use of payday loans

NEW YORK — 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.

Read More
American Consumer Credit Counseling Explains the Debt Settlement Process

Debt settlement is the process of settling debt with a creditor for less than what is owed. During this process, consumers stop paying their creditors and pay the debt settlement company instead while their accounts become delinquent. As time passes, the company tries to negotiate a debt settlement offer with the creditors in hopes of settling for a lower amount than the consumer owes. National nonprofit American Consumer Credit Counseling explains the pros and cons of debt settlement and how it differs from debt management.  "Although debt settlement can work, the risk doesn't always pay off," said Steve Trumble, President, and CEO of American Consumer Credit Counseling.

Read More
Which Pennsylvania counties have the highest (and lowest) credit card debt?

About 41 percent of all households carry some credit card debt. Among those that do -- excluding those that pay their balances in full every month -- the average debt is $9,333, according to ValuePenguin, a site that disseminates credit card information. There's a lot of variation around the nation. The highest debts are being carried by households in the Northeast or on the West Coast, the site found. How does Pennsylvania fare?

Read More
State-chartered credit unions see third-quarter growth

State-chartered credit unions in Wisconsin saw growth in both net income and total lending during the third quarter.  The state’s Department of Financial Institutions reported this week that compared with the third quarter of 2017, Wisconsin’s 126 credit unions saw double-digit increases in both measures.   In the nine months that ended Sept. 30, net income totaled $313.8 million, which represents a 16 percent increase from the same time last year.   Total loans also grew about 10.5 percent, or $29.6 billion. The delinquent loan ratio was .66 percent, a slight decline from .67 percent last year, according to DFI.

Read More
Coming Up Short: Court Denies Summary Judgment on ATDS use in TCPA Class Action Due to Evidentiary Shortcomings

A magistrate judge in the Southern District of Florida has recommended that the Defendant’s motion for summary judgment based upon ATDS use be denied. Fortunately, this isn’t a Marks effect case. In fact, the legal definition of an ATDS isn’t even touched. Instead, the Court’s ruling was based largely on evidentiary shortcomings in the declaration proffered by the Defendant on the issue of ATDS use. In Camayd v. United Auto Credit Corp., No. 17-24538-CV-SCOLA/TORRES, 2018 U.S. Dist. LEXIS 191412 (S.D. Fla. Nov. 7, 2018), the Defendant moved for summary judgment on the basis that the calls at issue were made with the “LiveVox human-initiated service and outbound dialing system.”

Read More
Payday lender’s emails tell a different story on Choke Point

Payday lenders have long blamed bias at federal agencies for banks’ decisions to terminate their accounts, but executives at one of the nation’s largest high-cost lenders acknowledged a more complicated reality in newly released emails.  While Advance America, a payday loan chain that operates in 28 states, was accusing regulatory officials of strong-arming banks to cut ties with payday lenders, top executives at the Spartanburg, S.C.-based company were citing bankers’ concerns about anti-money-laundering compliance.  The emails were released by the banking regulators in court filings that rebut the payday lenders’ allegations of misconduct.

Read More
Report: ID thieves are exploiting USPS mail-scanning service, Secret Service warns

The U.S. Postal Service’s Informed Delivery service is cool. The free service sends users an email every morning with photos of the mail they can expect in the day’s delivery. It’s a convenient option for anyone anxiously awaiting the arrival of their Orphan Annie Secret Society decoder pin (or just too lazy to trudge to the mailbox every day). More than 6 million people have signed up for Informed Delivery, but they may rethink the decision after a recent warning from the U.S. Secret Service.

Read More

OLYMPIA — In honor of Veterans Day on Sunday, Attorney General Bob Ferguson announced today new resources aimed at helping military service members and veterans deal with legal issues.   The pair of new resources will make it easier for military service members and veterans to connect to legal information and assistance.   For current military service members, the Attorney General’s Office has launched a new program — the Military Engagement & Directed Advocacy by Lawyers or MEDAL Program — to connect them with legal advice and representation. In addition, Ferguson has updated the Attorney General’s Military & Veteran Legal Resource Guide, which is aimed at helping both military personnel and veterans find the legal resources they need.

Read More
Helping to prevent scams targeted at veterans

If you’re working with older adults, many of whom might be veterans, you might be looking for ways to educate them about the dangers of frauds and scams. We are offering a new placemat on scams targeting the Aid and Attendance benefit, part of a series of fraud and scam prevention placemats.
Veterans, or surviving spouses who are eligible for a veteran’s pension, may be eligible for the Aid and Attendance benefit. This benefit may be granted if the individual needs help with activities of daily living, is bedridden, is a patient in a nursing home, or has certain vision limitations. For those who qualify, the Aid and Attendance benefit is added to his or her VA pension.

Read More

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.

Read More
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.

Read More
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.”

Read More
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.

Read More
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."

Read More
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.

Read More
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.

Read More
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.

Read More
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?

Read More
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.

Read More
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.”

Read More
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.

Read More
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.

Read More



   Debt Buyer 

Big Valley Investment Group

(516) 640-9234


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

Webinar: Fighting Consumer Fraud and Identity Theft in Ohio

Federal Trade Commission

Webinar - 1:00 p.m.

November 28 - 28 , 2018

800- 700-7784. Access Code: 455945

Webinar: Fighting Consumer Fraud and Identity Theft in Oregon

Federal Trade Commission

Webinar - 10:00 a.m. PST

November 29 - 29 , 2018

800-700-7784. Access Code: 455946

FTC Hearing on Competition and Consumer Protection in the 21st Century – December 2018

Federal Trade Commission

Washington , DC
December 11 - 12 , 2018


Consumer Protection Economics Symposium

Federal Trade Commission

CONSTITUTION CENTER 400 7th St SW Washington, DC

December 07 - 07 , 2018


Counterclaims – Prevention & Risk Management Strategies for Creditors

American Lawyers Quarterly8

Webinar 1:00 p.m. Eastern

December 06 - 06 , 2018

800 843 4000

FTC Hearing on Competition and Consumer Protection in the 21st Century – February 2019

Federal Trade Commission

Washington , DC
February 12 - 13 , 2019

(202) 326-2222

NCUCA – National Credit Union Collection Alliance

NCUCA - National Credit Union Collection Alliance

April 15 - 17 , 2019

Collection & Recovery Solutions 2019

Resource Management Services, Inc.

Four Seasons Hotel
3960 Las Vegas Blvd South
Las Vegas , NV
May 08 - 10 , 2019


National Creditors Bar Association 2019 Spring Conference

National Creditors Bar Association

Hilton Minneapolis
1001 S. Marquette Avenue
Minneapolis, MN 55403

May 15 - 18 , 2019


PrivacyCon 2019

Federal Trade Commission

400 7th St., SW
Washington , DC
June 27 - 27 , 2019

(202) 326-2222

Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd
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
Advertise With us!