At a glanceWednesday, November 28, 2018

Collection Industry News At A Glance - November 28, 2018
Wednesday November 28, 2018
Mid Week Newsletter:
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To Defer or Not to Defer: Supreme Court Set to Hear Case That Could Decide Deference Standard in TCPA Cases

On November 13, 2018, the U.S. Supreme Court granted certiorari in the junk fax action, Carlton & Harris Chiropractic, Inc. v. PDR Network, LLC, 883 F.3d 459 (4th Cir. 2018), which arose under the Junk Fax Prevention Act of the Telephone Consumer Protection Act (“TCPA”). Though the facts of the case centered on the definition of the term “unsolicited advertisement” under the 2006 FCC Rule, the high court’s eventual decision may not be just about fax liability. The Court is set to address wide-ranging issues concerning the interplay between the FCC’s interpretive authority under the Hobbs Act and the Supreme Court’s Chevron deference doctrine, which means the outcome of the Court’s holding may have far-reaching implications for pending and future litigation under the TCPA.

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CFPB official who quit in anger opens new student loan watchdog

Seth Frotman oversaw the $1.5 trillion student loan market for the Trump administration. In August, he quit in a very public way, protesting in a widely circulated resignation letter what he called the White House's open hostility toward the nation's millions of student loan borrowers. Now he's starting his own watchdog group to do what the government won't, and he's poaching former colleagues to do it. Having spent seven years with Consumer Financial Protection Bureau, three of them as student loan ombudsman, Frotman said he drove policy reform that returned $750 million to wronged student borrowers.

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United States: TCPA Law – FCC Eliminates Opt-Out Notice Requirement For Solicited Faxes

On November 14, 2018, the Federal Communications Commission ("FCC") issued an order ("2018 Order") formally eliminating the requirement that opt-out notices must be included on faxes sent with the recipients' prior consent pursuant to the Telephone Consumer Protection Act ("TCPA"). The FCC's new TCPA law guidance appears to be in direct response to the decision from the D.C. Circuit Court of Appeals in Bais Yaakov of Spring Valley, et al. v. FCC, which held that the FCC lacked the power to issue a ruling purporting to dictate the content of solicited—as opposed to unsolicited—faxes. On that basis, the D.C. Circuit struck down certain portions of the FCC's 2006 Junk Fax Rule as invalid.

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Online Lender Settles With FTC Over Refinancing Misrepresentations

Issuing a warning to other lenders, the Federal Trade Commission (FTC) reached a deal with an online lender over charges the company violated the FTC Act by making false statements about student loan refinancing. The California-based company misrepresented how much money student loan borrowers have saved or will save by refinancing, the agency alleged.

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Federal Trade Commission Oversight

Federal Trade Commission Chair Joseph Simons and other commissioners testified on the agency’s budget and priorities. Senators asked questions on a variety of consumer protection topics, including robocalls, regulation of social media companies, and online privacy concerns for children and teens. Afterward, the subcommittee’s chair and ranking member spoke with reporters.

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The BCFP’s “Disclosure Sandbox” is Shovel Ready – Who Will be the First!

I find it interesting that the Bureau of Consumer Financial Protection (BCFP) which was formerly known the Consumer Financial Protection Bureau (CFPB) is offering up a “Disclosure Sandbox” to assist in developing disclosures that consumers find understandable. Yet, on April 1, 2019, the prepaid industry will be required to disclose fees using a specific format and methodology; similar to the Schumer Box for credit cards.

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CUNA engaged w/ Kraninger vote, hearings this week

CUNA is engaged with several hearings in Congress this week, as well as a Senate confirmation vote on the director of the Bureau of Consumer Financial Protection. CUNA wrote to Senate leadership Monday in advance of its expected vote on Kathy Kraninger to lead the bureau. Senate Majority Leader Mitch McConnell (R-Ky.) filed cloture Nov. 15 on the nomination, setting up a full Senate vote once the chamber votes to end debate.

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Compliance: Fed, BCFP propose changes to Reg. CC

The Federal Reserve and Bureau of Consumer Financial Protection jointly issued a proposal last week that would make changes to Regulation CC, which implements the Expedited Funds Availability (EFA) Act. The proposal also provides an additional opportunity for public comment on certain amendments to Regulation CC that the Board proposed in 2011.
Specifically, the agencies are proposing to adjust the amount of funds depository institutions must make available to their customers/members for inflation. These amendments would apply in circumstances ranging from next business day withdrawal of certain check deposits to setting the threshold amount for determining whether an account has been repeatedly withdrawn.

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Major US Postal Service data breach exposes 60m users

It was a busy week in the world of infosec with a major breach at the US Postal Service exposing data of 60m users.  In the build-up to the retail extravaganza that is Black Friday and Cyber Monday, the world’s biggest retailer at first denied it was hit by a major data breach, despite customers receiving emails stating as such. The email, sent to a large number of Amazon account holders, claimed that the issue was fixed and that it was not the result of any customer’s actions. However, the e-commerce giant eventually admitted to TechCrunch it was on the receiving end of a breach, and that the names and email addresses of those exposed were obtained by hackers.

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FDIC issues proposed real estate purchase guidelines

The Federal Deposit Insurance Corporation (FDIC) has issued a proposed residential real estate guideline raising the threshold for transactions requiring an appraisal to $400,000. Officials said the proposal stems from concerns raised about the time and cost associated with completing residential real estate transactions. The FDIC believes raising the threshold from the current level of $250,000 could provide burden from the appraisal requirements, without posing a threat to the safety and soundness of financial institutions.

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Credit Card Companies Are Suffering: How Fintech Companies Are Helping Them

The days of getting a credit card to prove your financial independence are far gone. The number of people getting credit cards has dropped as these cards can be associated with unmanageable debt. Most people without credit cards might have declined to get one as they know that they spending habits are not healthy. Those people that lack self-control can find themselves in debt quite quickly with it taking years to pay certain credit cards off. Fintech or financial technology has done a great job of helping out the credit card sector in a variety of ways. The following are just a few of the many ways that Fintech companies are helping the credit card industry.

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FCC to take up NAFCU-sought reassigned numbers database Dec. 12

During its Dec. 12 meeting, the Federal Communications Commission (FCC) will vote to issue a rulemaking to create a single, comprehensive reassigned numbers database to aid in the elimination of illegal robocalls. NAFCU has voiced its support for the creation of a reassigned numbers database since last year.

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Winter 2018 BCFP Advisory Committee conference call

Join us for BCFP Advisory Committee meeting via conference call about artificial intelligence in consumer financial services and consumer access to financial records.   The meeting will feature remarks from Bureau staff and discussion with committee members.

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The FCC has a new plan to combat unwanted robocalls and spammy texts

The U.S. government said Tuesday that it plans to take aim at the scourge of unwelcome phone calls and spam text messages plaguing millions of consumers - but one of its proposals drew sharp rebukes, with critics concerned that it could enable telecom giants to censor legitimate communications. The first measure, announced by the Federal Communications Commission, aims to create a national database containing information about phone numbers that have recently been disconnected and reassigned to someone else. The effort aims to help businesses, such as banks and pharmacies, avoid dialing the wrong customers repeatedly.

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A Letter from Navient CEO Jack Remondi to Navient Shareholders

WILMINGTON, Del., Nov. 20, 2018 (GLOBE NEWSWIRE) -- Navient (Nasdaq:NAVI) released the following letter from Jack Remondi, President and CEO, to company shareholders:   Today’s article by the Associated Press continues the practice of ignoring facts to make false, sensational and harmful accusations that discourage borrowers from working with their servicers. Despite being in possession of the Federal Student Aid (FSA) review and our account-by-account response, the article repeated a series of false accusations that are not found in any section of the review. 

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Agencies Announce Dollar Thresholds in Regulations Z and M for Exempt Consumer Credit and Lease Transactions

WASHINGTON, D.C.  The Federal Reserve Board and the Bureau of Consumer Financial Protection (Bureau) today announced the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) that will apply for determining exempt consumer credit and lease transactions in 2019. These thresholds are set pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amendments to the Truth in Lending Act and the Consumer Leasing Act that require adjusting these thresholds annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

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Controlled Chaos? FCC Withdraws Overruled Portion of Solicited Fax Rule One Day After Supreme Court Accepts Review of Different Portion of Same Rule

As we reported on Tuesday, the U.S. Supreme Court has just granted cert to determine whether or not the FCC’s definition of  “unsolicited advertisement” in its 2006 Junk Fax Ruling is binding on district courts pursuant to the Hobbs Act. The outcome of that determination will have a huge impact on TCPAland–imagine if the Court finds that FCC rulings are not, and never were, binding????– and may also alter the court/agency power paradigm forever if the Court also takes up the related question of  Chevron deference.

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Portfolios For Sale

$23,808,075 Credit Cards
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(800) 917-7183

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Industry Events

Winter 2018 BCFP Advisory Committee conference call


Conference call @ 01:00 PM EST

December 06 - 06 , 2018

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

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 – December 2018

Federal Trade Commission

Washington , DC
December 11 - 12 , 2018


Receivables Management Association 22nd Annual Conference

February 05 - 07 , 2019

(916) 482-2760

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

ACA International Spring Forum & Expo 2019

ACA International

The M Resort
12300 S Las Vegas Blvd,
Henderson, NV 89044

March 13 - 15 , 2019

800- 269-1607

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

ACA International 2019 Annual Convention & Expo

ACA International

Event Location TBA

July 17 - 16 , 2019


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

National Creditors Bar Association 2019 Fall Conference

National Creditors Bar Association

Marriott Marquis
Washington, Washington, DC

October 16 - 19 , 2019


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More information about Debt Connection Symposium
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