At a glanceWednesday, March 13, 2019

Collection Industry News At A Glance - March 13, 2019
Wednesday March 13, 2019
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Resource Management Services, Inc. is pleased to announce new roundtable sessions at the Collection and Recovery Solutions 2019 conference at the Four Seasons Hotel, Las Vegas May 8 – 10, 2019.  In addition to the quality speakers in our main conference sessions, the Creditor’s Roundtables on Friday morning give the attendee an opportunity to choose three different roundtable sessions to join. This allows the attendee to discuss and explore issues of importance from a variety of collection and recovery topics with the discussions led by an industry peer with knowledge specific to the topic. Creditor roundtables will be on Friday, May 10 from 10:00 a.m. to 11:40 a.m.  Here are some of the topics that will be discussed this year.

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AG Pax­ton Urges 5th Cir­cuit to Rule That the Con­sumer Finan­cial Pro­tec­tion Bureau’s Struc­ture is Unconstitutional

Attorney General Ken Paxton expressed his hope that the U.S. Court of Appeals for the 5th Circuit will strike down the structure of the federal Consumer Financial Protection Bureau (CFPB) as unconstitutional after hearing arguments today in the case. Last July, he filed a friend-of-the-court briefwith the 5th Circuit as the leader of a 14-state coalition challenging the CFPB’s constitutionality.

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CoreLogic Reports U.S. Overall Delinquency and Foreclosure Rates Lowest for December Since at Least 2000

CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows that, nationally, 4.1 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December 2018, representing a 1.2 percentage point decline in the overall delinquency rate compared with December 2017, when it was 5.3 percent.

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Berger calls on Congress to better regulate fintech in op-ed

In an op-ed published in American Banker, NAFCU President and CEO Dan Berger called on lawmakers to ensure fintech firms are subject to the same data security and consumer protection standards as credit unions.

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Alaska USA Federal Credit Union employees donate $70,000 to United Way

Anchorage, Alaska – In celebration of their 70th anniversary, Alaska USA Federal Credit Union has donated $70,000 to the United Way.    The credit union partnered with United Way to solicit donations from employees through several fundraising events. 

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IBM Cuts Credit Unions Deal For Blockchain Services In $1.7 Trillion Industry

IBM and Denver-based credit union service organization CULedger, have struck a collaboration deal by which new blockchain-based services will be pioneered to help credit unions provide their members with greater efficiencies and an enhanced user experience. CULedger focuses on delivering “innovative applications” to credit unions via its cross-border global distributed ledger platform.

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Consumer Financial Protection Bureau Announces 18th Edition of Supervisory Highlights

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) today released its 18th edition of Supervisory Highlights. The report covers Bureau supervision activities generally completed between June 2018 and November 2018, and includes examination findings in the areas of automobile loan servicing, deposits, mortgage servicing, and remittances.

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Bill expanding payday lending sees opposition in Indiana House

INDIANAPOLIS (WTHR) - A payday lending bill is getting a lot of opposition at the Indiana Statehouse. The State Senate already passed the bill that would expand payday lending interest rates to as high as 192 percent and eliminate the 72 percent cap currently in place. Several civic groups and representatives of military agencies spoke out against the bill Monday, including Steven Bramer. Bramer is a Purple Heart recipient from Hammond who admitted he's now caught up in the vicious cycle of trying to pay back a payday loan.

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CFPB does not seek lifting of stay of compliance date for payday loan rule’s payment provisions in new status report filed in trade groups’ lawsuit

The CFPB and the two industry trade groups that filed a lawsuit in a Texas federal district court challenging the CFPB’s final payday/auto title/high-rate installment loan rule (Payday Rule) filed a new status report with the court on March 8 to follow up on their March 1 status report.

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Remarks by Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation at the Institute of International Bankers Annual Washington Conference; Washington, D.C.

Thank you for the invitation to speak here this afternoon. The list of topics and speakers at today's event is rather impressive, and I welcome the opportunity to engage and share my views.  To say that the financial system is interconnected on a global scale would be an understatement. The largest U.S. banks operate in well over a hundred countries, while many foreign banks operate in the United States, often through regulated, FDIC-insured depository institutions. These foreign banking organizations provide financial services across a range of business lines and products in the U.S., from consumer lending to small business lending to financing infrastructure projects. While this extensive cross-border activity presents certain challenges, especially when it comes to potential resolutions, it also provides meaningful benefits to U.S. consumers and businesses and to the broader U.S. economy. Our regulatory framework should be responsive to this reality.

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Trio of New York Bills Would Extinguish Debt, Require Licensing and Impose Additional Requirements in Collection Litigation

A trio of bills currently pending in the New York State Senate would extinguish debt, require licensing and impose additional requirements in collection litigation.   New York Senate Bill 691 and Senate Bill 2239 would completely extinguish the right to collect debt arising from a consumer credit transaction upon expiration of the statute of limitations.

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Consumers bankers call on CFPB, Education Department to improve student loan disclosures

The Consumer Bankers Association (CBA) is asking the Consumer Financial Protection Bureau (CFPB) and the Department of Education to improve federal student loan disclosures. CBA president and CEO Richard Hunt said federal student loan disclosures do not currently offer a clear, personalized overview of key loan terms specific to each borrower. These specific disclosures are common for all private consumer loans, including bank-offered student loans.

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Could personal loans from fintech firms give credit cards a run for their money?

Startups have spent the past decade trying to reinvent everything from taxis (so far so good) to squeezing juice out of fruit and vegetables (facepalm). Lately, entrepreneurs have been giving consumer debt a digital makeover. Fintech upstarts have turbocharged personal loans, now the fastest growing category of consumer debt, according to Experian. This type of lending was once mainly used by riskier borrowers without access to credit cards or home-equity loans. Now, whizzy smartphone apps, using a wider range of of data inputs, can extend loans to people who might not qualify based on traditional credit scores alone.

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CU issues raised during House panel hearing with Kraninger

A number of issues important to credit unions were raised during Thursday's House Financial Services Committee hearing with CFPB Director Kathy Kraninger, including reforms to the bureau, its consumer complaint database and the Military Lending Act (MLA). NAFCU attended the hearing.

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Dems Vow To Reverse CFPB Actions Under Mulvaney

The Consumer Financial Protection Bureau came under fire from the House Financial Services Committee, which is now controlled by Democrats, during a hearing Thursday (March 8). According to a report in the Associated Press, during the hearing Committee Chair Rep. Maxine Waters argued the Trump-appointed leadership is trying to undermine the agency’s mission. According to the Associated Press, Waters said the Trump Administration has “undertaken a sustained effort to destroy the agency.” She said she’s committed to reversing the damage caused by interim head Mick Mulvaney, who is now the acting chief of staff for Trump. Kathy Kraninger succeeded Mulvaney in December. Mulvaney was a critic of the CFPB before he was made director. When he was in charge, he called for many of the rules and regulations put in place by the CFPB to be scaled back.

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BlockFi’s CEO on Why the Lending Company is Launching a Deposit Account

BlockFi, the provider of crypto asset-backed loans, has launched what is effectively a high-yield savings account. The BlockFi Interest Account allows retail, corporate, and institutional investors to deposit their bitcoin and ether into an account with 6 percent compound interest paid at the beginning of every month in bitcoin or ether. A beta version of the account launched in January and currently has more than $10 million in customer deposits, according to BlockFi CEO Zac Prince in an exclusive interview with Cheddar Tuesday. “One of the things we’re most excited to hear from some of those beta users was ... that it actually motivated them to buy more bitcoin or more ether because they were really excited about this functionality,” said Prince. “The second thing, which came from a user on Reddit, was that we were making it fun to HODL again.”

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Who Needs a Bank? Why Direct Lending Is Surging

What’s direct lending? Old-fashioned bank lending -- without the bank. As tougher regulations reshaped the post-financial crisis landscape, traditional banks have cut back on business lending. That’s created a raft of opportunities: For a growing group of asset managers who are making the loans; for borrowers, including not only mid-sized companies but some big enough to tap the syndicated debt markets if they wanted; and for investors looking for an answer to low-yield woes. For regulators, the question is whether the market can sustain such growth without making a mess.

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Move To Pull Consumer Protection Rule Heightens Debate Over Payday Lending

During a recent lunch hour in Springfield, Va., a medical assistant named Angela walked into a branch of Advance America at a strip mall and asked for a loan. She'd borrow $300 and promise to pay it back within 30 days, with an additional $73 in interest and fees. This loan would help cover a family trip to New York, said Angela, who asked NPR not to use her last name for privacy reasons. She says she prefers payday loans because she doesn't trust herself with credit cards and she would rather not approach her family for help.

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Funding Circle to expand small business lending platform into Canada

Funding Circle, the small business lending platform, will enter the Canadian market during the second half of 2019, opening new offices there, according to a company release. The U.K.-based platform named Tom Eilon, who has led U.K. commercial strategy, as managing director of the Canada unit. The company currently operates in the U.K., U.S., Netherlands and Germany.

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Orange County Auto Lender Reaches $80,000 Settlement with Prosecutors Over Allegations of Illegally Repossessing Soldiers’ Cars

Federal prosecutors reached a proposed $80,000 settlement Wednesday with a city of Orange-based auto lender accused of illegally repossessing the cars of two U.S. Army soldiers just after they reported for active duty, authorities said.

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Nationwide, BlueVine partner on small business lending

Nationwide and BlueVine will partner to provide customers of the insurance giant direct access to the small business Opens a New Window. lender’s online platform, the first in what is likely to be a series of initiatives between the two firms. It's the latest example of how Silicon Valley startups Opens a New Window. are transforming the banking sector Opens a New Window. . Under the new deal announced on Thursday, Nationwide customers are able to apply for capital from BlueVine directly on the insurer’s website.

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Democrats hammer CFPB head for being soft on lenders

House Democrats sharply criticized on Thursday the head of America’s consumer finance watchdog for decisions Republicans say are entirely under her purview. In the first Consumer Financial Protection Bureau oversight hearing, Financial Services Democrats repeatedly hammered Director Kathy Kraninger and GOP lawmakers for supporting recent changes at the agency. “Congressional Republicans have done everything they can to stymie the bureau’s work, and the Trump administration has undertaken a sustained effort to destroy the agency,” Committee Chairwoman Maxine Waters of California said. “I’m deeply concerned about the damage they have done.”

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Volcker 2.0 is said to face do-over after Wall Street complaints

U.S. regulators are poised to scrap their proposal for revising Volcker Rule restrictions on banks' trading in favor of a newer version as they respond to a misstep that drew fire from Wall Street lobbyists, according to people familiar with the effort. The Federal Reserve and other financial regulators are working on changes to their Volcker 2.0 plan that will likely require the agencies to re-propose the rule, said two people who requested anonymity because the process isn't yet public. No final decision has been made to abandon the earlier proposal, the people said.

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FTC shuts down another government grant scam

The government grant scam is one of the oldest schemes criminals use to separate unsuspecting consumers from their money. The Federal Trade Commission (FTC) tells us it’s still going strong. The FTC reports that a federal court in Arizona has issued an order banning a company called Premium Grants from advertising, marketing, and selling any service that purports to help consumers receive a grant. The court also imposed a $3 million judgment, which had to be suspended because the company doesn’t appear to have that much in assets. Instead, the court has ordered the company to surrender nearly all of its assets, worth approximately $200,000.

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Verizon warns enterprises about internal security threats

Cybersecurity threats from an enterprise’s own employees and partners can be as devastating as threats from external actors. And according to data gathered by Verizon’s cybersecurity team as part of its 2018 Data Breach Investigations Report, 20% of cybersecurity incidents and 15% of data breaches originated from people within a breached organization. The top reasons for these cyberthreats were financial gain (47.8%), pure fun (23.4%), and espionage (14.4%). Verizon used some of the same data and caseload analysis from its 2018 Verizon Data Breach Investigations Report to create its new Verizon Insider Threat Report. The carrier identified five categories of inside threat actors.

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Financial Stability Oversight Council Proposes Changes To Nonbank Designations Guidance

The Financial Stability Oversight Council (Council) today voted unanimously to issue for public comment proposed interpretive guidance regarding nonbank financial company designations. The proposed guidance would implement an activities-based approach to identifying and addressing potential risks to financial stability. It would also enhance the analytical rigor and transparency of the Council’s process for designating nonbank financial companies.

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Tom Nusspickel and Doug St. Peters are sure to inform and entertain at Collection and Recovery Solutions 2019, with their panel discussion regarding the management of agency networks.  Expect to hear tidbits such as best practices to ensure success, RFI scorecards, system interface concepts, licenses, oversight, compliance matrixes as well as what agencies do wrong.   CRS2019 is an invitation-only event for senior level collection and recovery professionals. For more information, or an invitation, please contact us at

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Industry Events

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

NACTT 54th Annual Seminar Registration Open


JW Marriott Indianapolis 10 S. West Street Indianapolis, IN 46204
Indianapolis , IN
July 16 - 19 , 2019

800-445-8629 | 803-765-0860

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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