At a glanceWednesday, February 06, 2019

Collection Industry News At A Glance - February 6, 2019
Wednesday February 6, 2019
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Consumer Financial Protection Bureau Releases Notices of Proposed Rulemaking on Payday Lending

Washington, D.C. — The Consumer Financial Protection Bureau today is proposing to rescind certain provisions of its 2017 final rule governing “Payday, Vehicle Title, and Certain High-Cost Installment Loans.” Specifically, the Bureau is proposing to rescind the rule’s requirements that lenders make certain underwriting determinations before issuing payday, single-payment vehicle title, and longer-term balloon payment loans. The Bureau is preliminarily finding that rescinding this requirement would increase consumer access to credit.

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Federal Reserve Board finalizes set of changes that will increase the transparency of its stress testing program for nation’s largest and most complex banks

The Federal Reserve Board on Tuesday finalized a set of changes that will increase the transparency of its stress testing program for the nation's largest and most complex banks. The changes are intended to improve public understanding of the program while maintaining its ability to independently test large banks' resilience.

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Ill. League, CUs talk CFPB rules, reg. burden with Director Kraninger

Illinois credit unions and the Illinois Credit Union League had the opportunity to meet with Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger in Chicago on Monday, the latest meeting between credit unions and the new director.

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Consumer Financial Protection Bureau Settles with Cash Tyme

Washington, D.C. — The Consumer Financial Protection Bureau (Bureau) today announced a settlement with Cash Tyme, a payday retail lender with outlets in Alabama, Florida, Indiana, Kentucky, Louisiana, Mississippi, and Tennessee. Cash Tyme is the operating name for CMM, LLC, and its wholly owned subsidiaries in those states.

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Fed survey: Banks report weakened demand for loans

“The Fed’s fourth-quarter SLOOS indicates that current and anticipated lending conditions among banks are deteriorating," said NAFCU Chief Economist and Vice President of Research Curt Long. “Loan demand is weakening across a broad range of loan types, and lending officers expect loan performance to decline this year even as standards tighten. It is notable that the survey was conducted during the government shutdown, when a number of other economic sentiment indices plummeted. But it is certainly another troubling sign on the horizon and warrants the patience that the FOMC has recently begun preaching.”

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SCOTUS to Decide If Courts Must Defer to the FCC’s Interpretation of “Unsolicited Advertisements” under the TCPA

On November 13, 2018, the Supreme Court agreed to consider the amount of deference a federal court is required to give the Federal Communications Commission in determining what constitutes an unsolicited advertisement within the meaning of the Telephone Consumer Protection Act (TCPA). PDR Network v. Carlton & Harris, No. 17-1705. The case is scheduled for oral argument on March 25, 2019.

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PayPal Credit Reaches $50B In TPV

PayPal Credit said Monday that it has reached $50 billion in total payment volume.   The company said that of that tally, PayPal Credit total payment volume in the United States alone was roughly $10 billion in 2018, and logged more than $2 billion across November and December 2018.   Regionally speaking, the company said Monday that use of the credit products has been global in scope, with “significant” traction across Germany and the United Kingdom.

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First Brief Filed in the Supreme Court’s TCPA Appeal: Our In-Depth Analysis

Recall that a couple months ago, the Supreme Court granted the Petition for Certiorari in PDR Network, LLC v. Carlton & Harris Chiropractic, Inc., a TCPA junk fax class action proceeding, setting the stage for what could be the beginning of the end of judicial deference to federal executive branch agency interpretation of federal regulations.  The process of potentially overhauling the deference courts give federal regulatory agencies has been on a slow boil since even before the passing of the late Justice Antonin Scalia, but began picking up steam with the appointment of Justice Neil Gorsuch in April 2017...

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GSE reform, CFPB underwriting rule are on collision course

As Congress and the Trump administration chart a future for the government-sponsored enterprises, they face a fast-approaching deadline when a huge chunk of Fannie Mae and Freddie Mac's loans could be in violation of federal underwriting requirements. The White House and Senate Banking Committee are pursuing parallel tracks to end the GSEs' federal conservatorships. Any resulting plan must deal with whether GSE-backed mortgages are still exempt from the Consumer Financial Protection Bureau's Qualified Mortgage rule.

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FTC to speed up its journey to the cloud

The cloud is not a new place for the Federal Trade Commission.  But over the next few years, the FTC is going to get much more familiar with the “as-a-service” model.  Raghav Vajjhala, the chief information officer of the FTC, said the agency will use a new multiple award contract with four vendors as the launching point for the agency’s IT modernization efforts.

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Voluntary Private Education Loan Rehabilitation Programs

The FDIC and the Board of Governors of the Federal Reserve System jointly are providing an advisory on Voluntary Private Education Loan Rehabilitation Programs to make financial institutions aware of an amendment to section 623 of the Fair Credit Reporting Act (FCRA). This amendment is contained in section 602 of the Economic, Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA). It gives consumers the opportunity to rehabilitate a private education loan with a previously reported default under certain conditions. Financial institutions that choose to establish a private education loan rehabilitation program under Section 602 of the EGRRCPA (Section 602 Program) that satisfies the statutory requirements, including written approval of the terms and conditions from their federal regulatory agency, are entitled to a safe harbor from potential claims under the FCRA related to removal of the reported default.

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The shutdown has ended, yet some small businesses still struggle to move on

The partial government shutdown has come to an end. Yet for small-business owners who are waiting on loans, the clock is still ticking. The government closure shuttered some agencies, including the Small Business Administration, for 35 days. Now that the SBA has finally reopened, it faces a backlog of loans to process. The Consumer Bankers Association pegged the tally of outstanding loans at about 300 for each day of the shutdown, or about $2 billion in lending, according to a letter it sentto President Donald Trump and Congressional leaders Jan. 22. The partial shutdown began on Dec. 22.

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CFPB, Payday Lenders Settle

The Consumer Financial Protection Bureau, the government watchdog agency, settled with a handful of payday lenders over alleged violations of the Consumer Financial Protection Act. Marketwatch, citing the CFPB, reported it settled with payday lenders and officials of the companies located in Canada and Malta. According to the report, the CFPB contended the companies told consumers they had to repay loans in states where the loans were running afoul of licensing and usury rules. 

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Don’t Collect Biometric Data Without Providing Notice

An Illinois court ruling underscores the importance of providing notice of biometric data collection and use. Violate the law and your company could be sued. One small word can have a huge impact, as evidenced by a recent Illinois Supreme Court ruling. In Rosenbach v. Six Flags Entertainment Corp., the word is “aggrieved,” the interpretation of which now means that any private entity collecting biometric information from individuals in Illinois that has not provided adequate notice can be sued, even if the plaintiff can’t prove harm.

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Consumer Financial Protection Bureau Settles with NDG Financial Corp.

Washington, D.C. — The Consumer Financial Protection Bureau (Bureau) today filed a proposed settlement with NDG Financial Corp., E-Care Contact Centers, Ltd., Blizzard Interactive Corp., New World Consolidated Lending Corp., New World Lenders Corp., Payroll Loans First Lenders Corp., New World RRSP Lenders Corp., Northway Financial Corp., Ltd., and Northway Broker, Ltd. Also named are corporate officials Kimberly DeThomas, Jeremy Sabourin, and William Wrixon.  The entities and individuals are payday lenders and corporate officials based in Canada and Malta.

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With New Limits On Interest, Colorado’s Payday Lenders Could Soon Close

On Friday, Colorado will severely restrict how much interest payday loan businesses can charge consumers — which could force all of them to close.  Voters made the change last November when they approved Proposition 111 by an overwhelming margin.   Colorado and 34 other states allow people to take payday loans. They’re often sold as a quick and easy way to get money for things like rent, or to pay bills, or to pay for other emergency expenses. Often, the very high interest rates trap people in a cycle of repayment. Colorado law changed in 2010 to restrict how lenders could operate, but high interest rates remained.

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Cybercriminals Have Your Business In Their Crosshairs And Your Employees Are In Cahoots With Them

"Hello friend! I have some bad news for you. Your files have been encrypted!” Thus begins the ransomware email that could spell utter doom for your business. Think it can’t happen to you? You may want to think again. Cybercrime is big business. It’s projected to cost the world $6 trillion by 2021. Moreover, cybercriminals have found a sweet spot—small businesses. According to the 2018 Verizon Data Breach Investigations Report, 58% of cyber attack victims were small businesses (organizations with fewer than 250 employees).

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FTC Wins Key Ruling Allowing Agency to Continue Efforts to Hold Operator of Deceptive Computer Financing Scheme Accountable

At the Federal Trade Commission’s request, a federal court has found BlueHippo Funding LLC, BlueHippo Capital LLC and Joseph Rensin in contempt for operating a deceptive computer financing scheme in violation of a federal court order that the defendants agreed to in 2008. The court also entered judgment against Rensin, BlueHippo’s CEO, for $13.4 million, the harm consumers suffered as a result of the scheme.

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CBA backs student loan transparency bill

The Consumer Bankers Association (CBA) has forwarded correspondence to a pair of lawmakers in support of the Transparency in Student Lending Act.   Sen. Mike Enzi (R-Wyo.) and Rep. John Curtis (R-Utah) said the legislation would require the disclosure on the total cost of federal student loans in the form of an annual percentage rate (APR). Clear disclosure would help borrowers compare federal and private student loans on equal terms.

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10-Year Challenge Could Be A Data Collection Scam

In the past few weeks, a new viral trend has provoked a serious conversation on privacy and online data collection — for those who aren’t already familiar, the 10-Year Challenge asks participants to post comparison photos of themselves in 2009 and today, with the intent of showing how much they’ve changed in the past decade. Unfortunately, some are speculating that the playful trend may have a darker purpose — namely, some are suspicious of the convenience of a broad data set including side-by-side comparisons of individuals on Facebook and Instagram, which the former owns. Such a data set is ideal for training facial recognition algorithms to better comprehend and predict changing human facial structure and features as people age. Not to mention, in training a software program, having a set time lapse is ideal for accuracy — for example, two side-by-side photographs of the same person 10 years apart.

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Data breaches down, consumer exposure up in 2018

U.S. data breaches were down 23 percent in 2018 after hitting a record high in 2017; however, the amount of consumer personally identifiable information (PII) was up 126 percent, according to the Identity Theft Resource Center (ITRC). NAFCU – a leading advocate for national data security standards – continues to push for the adoption of data and cybersecurity standards for all entities that hold consumers' information.

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Zcash Out To Prove Privacy Is Key To Crypto Adoption With GDPR-Avoiding Use Cases

When cryptocurrencies started hitting the mainstream, regulators soon felt themselves being drawn into to pass their judgment. Decentralisation was a sticky point, but not as much as its anonymity. Regulators and governments were suspicious of how quasi-anonymous digital payments would be used with money laundering and terrorist funding two major red flags. As time has gone on, and cryptocurrencies have accepted the need to be regulated, so has the narrative changed from the regulators. Fiat-to-cryptocurrency exchanges have been seen as centralised entities that are subject to financial rules and regulations; exchanges are being seen as money services and have to adhere to anti-money laundering rules, as well as Know Your Customer (KYC). However, other regulations have also come to the fore, some which fly directly in the face of public blockchains that store data freely and for all to see. The General Data Protection Regulation (GDPR) in the European Union is one such regulation which is aimed at data protection but contradicts blockchain’s transparent nature. It demands that user’s data be put in their control and consent.

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Fed Adopts ‘Patient’ Rate Stance With Balance-Sheet Flexibility

hile and will be flexible in reducing its bond holdings, a sweeping pivot from its bias toward tighter monetary policy just last month. U.S. stocks rallied, Treasury yields fell and the dollar sank as investors digested the new message from the central bank, which marked a broader shift toward sustaining the expansion -- rather than preventing any overheating -- and follows months of criticism from President Donald Trump for raising rates too much. The Federal Open Market Committee “will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate,” the central bank said in a statement Wednesday following a two-day meeting in Washington, opening the door for the next move to also be a cut. In a separate special statement, the Fed said it’s “prepared to adjust any of the details for completing balance sheet normalization in light of economic and financial developments.”

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OLYMPIA — Attorney General Bob Ferguson today released an updated Student Loan Survival Guide, which provides tips and resources for those impacted by student loans, including high school students thinking about taking out student loans, former college students making repayments and parents who cosigned loans.

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Industry Events

Receivables Management Association 22nd Annual Conference

Receivables Management Association International (RMAI) 22nd Annual Conference Aria Resort & Casino 3730 Las Vegas Blvd. Las Vegas, NV 89518 February 5-7 2019 916-482-2760

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

LendIt Fintech USA 2019

LendIt Fintech

San Francisco , CA
April 08 - 09 , 2019


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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