At a glanceFriday, March 22, 2019

Collection Industry News At A Glance - March 22, 2019
Friday March 22, 2019
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Opinion analysis: An extremely narrow Fair Debt Collection Practices Act ruling

On Wednesday, the Supreme Court unanimously affirmed the U.S. Court of Appeals for the 10th Circuit in Obduskey v. McCarthy & Holthus LLP, holding that parties who enforce security interests are not debt collectors within the meaning of the Fair Debt Collection Practices Act provided that they do no more than the bare minimum required by state law to enforce the security interest. Justice Stephen Breyer’s opinion for the court is short and primarily focused on the text of the statute. After the argument, in which the justices sounded skeptical about the petitioner’s reading of the text, this outcome is hardly surprising. Indeed, the most notable thing about this case is probably Justice Sonia Sotomayor’s concurrence.

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Resource Management Services, Inc. is pleased to announce Marian Sangalang, Vice President of The Bureaus, Inc. and currently President of RMA International, will moderate a roundtable, “Best Practices in Debt Sales at the Collection and Recovery Solutions 2019 conference at the Four Seasons Hotel, Las Vegas May 8 – 10, 2019.

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California Consumer Loans Exempt from Usury May Be Deemed “Unconscionable”

In a little-noticed development with significant ramifications, the California Supreme Court ruled in De La Torre v. CashCall Inc., S. Cal. 5th 966 (2018), that the interest rate on consumer loans of $2,500 or more may render the loans  "unconscionable” under the California Financial Code—even though the loan is not usurious under California law. The financial product that is subject to the  litigation is an unsecured $2,600 loan, payable over a 42-month term, with an  annual percentage rate of up to 135%, which is typically made to subprime borrowers.

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Nevada joins coalition against abusive payday lending

Nevada Attorney General Aaron Ford is pressuring the Consumer Finance Protection Bureau to enforce a rule that would protect borrowers from abusive lending. In 2017, the CFPB announced a new rule that would protect borrowers and ensure they would have the ability to repay loans, while also prohibiting lenders from using abusive tactics for repayment, the Attorney General’s office said in a statement. The rule went into effect in 2018 and was meant to protect borrowers and stop lenders from using abusive tactics to get people to repay their loans, but compliance was delayed until Aug. 19 of this year. The protection bureau has proposed to delay compliance until Nov. 19 — three years after the regulation was finalized — and is now looking into another rule that would rescind this ruling entirely, according to a statement from the Nevada attorney general’s office.

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Why Cybersecurity Planning Should be an Integral part of the Marketing Function

Imagine yourself a member of a marketing department in any organization. You spend most hours of your days every week for the past years; designing, building and launching marketing campaigns and developing customer relationships. As well as developing your organization’s brand awareness, your main goals include attracting new customers as well as retain existing ones. After tremendous efforts and dedication, you succeed in attracting new customers and having them trust in exchanging value with your organization. Then, your organization becomes the victim of a cyber-attack and a data breach takes place, and unpleasantly the breach results in the exposure of your customers’ data.

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Consumer bureau chief reverses efforts to sideline advisory panels

The director of the Consumer Financial Protection Bureau (CFPB) will reverse some of her predecessors’ efforts to reduce the size and stature of four advisory boards, the agency announced Thursday.   CFPB Director Kathy Kraninger will instead lengthen the terms of members on four committees from industry and consumer advocates that advise the bureau and also have the panels meet more frequently.

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CFPB Announces Enhancements to Advisory Committees and Opening of Member Applications

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) announced enhancements to its advisory committee charters. The enhancements are a result of CFPB Director Kathleen L. Kraninger’s engagement with current and former advisory committee members during her three-month listening tour. “I’ve seen firsthand how the Bureau benefits from the valuable input provided by committee members. I have also seen how the joint committee meeting is resulting in members sharpening their ideas by engaging in a thorough dialogue,” said Director Kraninger. “These enhancements demonstrate my commitment to ensuring that the Bureau’s advisory committees are helping to improve our work on behalf of consumers.”

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U.S. Supreme Court Holds FDCPA Has Extremely Limited Applicability to Persons Engaging in Nonjudicial Foreclosure Proceedings

The U.S. Supreme Court handed down its much-anticipated opinion in Obduskey v. McCarthy & Holthus LLP on March 20, ruling the federal Fair Debt Collection Practices Act does not cover persons engaged in “non-judicial foreclosures” except with respect to a single provision contained in the FDCPA. Colorado, like many western states, has a procedure that allows a lender to foreclose property without the need to file a lawsuit. Here, as you may recall, a Colorado borrower defaulted on his home loan and the mortgage servicer hired a law firm to pursue a non-judicial foreclosure. The borrower informed the law firm he was disputing the debt and the law firm, without responding to the dispute, proceeded with the non-judicial foreclosure.

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CFPB Proposal on Debt Collection Expected This Spring

The Consumer Financial Protection Bureau is expected to issue a notice of proposed rulemaking this spring to address a number of issues related to debt collection, including communication practices and consumer disclosures, according to its annual report to Congress on the Fair Debt Collection Practices Act released today. The report—which summarizes efforts by the CFPB and the Federal Trade Commission to enforce the FDCPA and educate consumers about debt collection—noted that the bureau fielded more than 81,000 complaints from consumers about first- and third-party debt collectors in 2018, and engaged in six public enforcement actions arising from alleged FDCPA violations.

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Consumer Financial Protection Bureau Releases Report on 2018 Administration of the Fair Debt Collection Practices Act

Washington, D.C. — The Consumer Financial Protection Bureau (Bureau) released the annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA). The report highlights the continued efforts by the Bureau and the Federal Trade Commission (FTC) to stop unlawful debt collection practices, including vigorous law enforcement, education and public outreach, and policy initiatives. The two agencies reauthorized their memorandum of understanding on Feb. 25, 2019 that provides for coordination in enforcement, sharing of supervisory information and consumer complaints, and collaboration on consumer education. The Bureau and the FTC continue to work closely to coordinate efforts to protect consumers.  

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FTC and CFPB Report on 2018 Activities to Combat Illegal Debt Collection Practices

The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (Bureau or CFPB) reported on their 2018 activities to combat illegal debt collection practices. The annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA) highlights both agencies’ efforts to stop unlawful debt collection practices, including robust law enforcement, education and public outreach, and policy initiatives.

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Everything you need to know about router security to avoid getting hacked by cybercriminals

The bad news: most people don’t give a second thought to their routers. This lack of know-how puts a lot of households in a dangerous position. The United States Computer Emergency Readiness Team (US-CERT) has issued an alert about Russian state-supported hackers carrying out attacks against a large number of home routers in the U.S. Some routers are inherently flawed and can never be fixed. To help beef up your router’s security, here are five tactics for protecting your home network, devices and files from hackers.

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NAMB Pens Letter to CFPB on LO Compensation Regulations

The National Association of Mortgage Brokers (NAMB) has requested that the Consumer Financial Protection Bureau make immediate changes to Loan Originator compensation regulations. In a recent letter sent to CFPB Director Kathy Kraninger, NAMB President Richard Bettencourt addressed two specific initiatives: Permit voluntary reductions by Loan Officers to their compensation in response to competition, and to allow reductions to compensation when the Originator makes an error.

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Banks seek Congress’ help to block fintech path to ‘industrial’ charters

A bank industry group is lobbying Congress to block financial technology firms, such as online lender Social Finance Inc. and payment processor Square Inc., from obtaining an obscure form of a state bank charter that would let them operate nationally with little federal supervision. The Independent Community Bankers of America last week distributed a policy paper around Washington calling for an immediate moratorium on providing federal deposit insurance to industrial loan companies, or ILCs, which are chartered by only a few states — most notably Utah.

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If you haven’t reserved your room at the Four Seasons Hotel Las Vegas, you should do it now. The room block ends April 15 and rooms are going fast for the Collection and Recovery Solutions 2019 conference on May 8-10, 2019.  The conference group room rate is $289.00. Reservations can be made online at or call: (877) 632-5000 and use reservations code: CRS2019.  Based on first come, first served. The hotel block is for registered CRS2019 attendees only.

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Michigan attorney general joins coalition to protect consumers from payday lender abuse

LANSING, Mich. (WXyZ) — Michigan Attorney General Dana Nessel Wednesday joined a multi-state coalition to protect consumers from payday lender abuse. Nessel urged the Federal Consumer Protection Financial Bureau to take immediate action to address the ways short-term payday and title lending model leads to abuses in payday lending. “My office has a responsibility to act when Michiganders are at risk of deceitful and abusive business practices,” Nessel said. “By delaying these protections, more consumers risk becoming victims of predatory and misleading tactics by payday lenders, and that’s more than enough reason for Michigan to step in and speak out.”

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Attorney General Phil Weiser signs letter opposing CFPB efforts to delay Payday Lending consumer protections

Mar. 19, 2019 (DENVER, Colo.) – Today Attorney General Phil Weiser joined a coalition of 25 attorneys general urging the Consumer Financial Protection Bureau (CFPB) to take immediate action to protect consumers from abuses in payday lending, vehicle title lending, and other exploitative practices.  “We must protect borrowers in Colorado and the rest of the country from unfair, predatory payday lending practices. The CFPB is proposing to delay the ability-to-repay provision without an adequate justification. It is critical that the CFPB protect American consumers by holding payday lenders accountable and protecting vulnerable borrowers from spiraling costs and inevitable default,” Weiser said.

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Office of the Comptroller of the Currency Fines Citibank, N.A. $25 Million for Violating the Fair Housing Act

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $25 million civil money penalty against Citibank, N.A., for violations of the Fair Housing Act.   The OCC found that the bank had certain control weaknesses related to its Relationship Loan Pricing (RLP) program designed to provide eligible mortgage loan customers either a credit to closing costs or an interest rate reduction. As a result of these control weaknesses, some bank borrowers did not receive the RLP benefit for which they were eligible and were adversely affected on the basis of their race, color, national origin, or sex. Based on these findings, the OCC has determined that the bank violated the Fair Housing Act, 42 U.S.C. § 3601—19, and its implementing regulation, 24 C.F.R. Part 100.

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Report Finds CEO Pay Rises After Data Breach

A new research report from Warwick Business School at the University of Warwick has found evidence that corporate cyberattacks lead to higher profits for chief executive (CEOs) officers at those firms. Reports in Business News Daily on Friday (March 15), co-authored by Assistant Professors of Finance Dr. Daniele Bianchi and Dr. Onur Tosun, found that data breaches at large organizations may cause financial losses at those companies, but they eventually lead to greater investments in their CEOs. The report examined instances of data breaches at 41 public U.S. firms between 2004 and 2016, focusing on high-profile cyberattacks that caused a drop in share value.

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NJ is trying to give residents more control over their information amid data breaches

The headlines are constant: Millions of accounts hacked. Health and financial data stolen. Personal information shared widely with advertisers and technology companies. New Jersey is not immune. More than 4 million New Jersey accounts were affected by security breaches in 2017, according to the most recent state estimates, and a Pew survey published that year found that a majority of Americans have personally experienced some sort of data theft or fraud. Welcome to the new normal.

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TCPA FCC Petitions Tracker March 2019

Kelley Drye’s Communications Practice Group presents this tracker of active Telephone Consumer Protection Act (“TCPA”) petitions before the Federal Communications Commission (“FCC”).  With the recent increase in litigation regarding alleged violations of the TCPA, many issues relating to the interpretation of the statute have been presented to the FCC by impacted parties.  These petitions can be primary jurisdiction referrals or be presented directly by a litigant in a TCPA action.  The FCC currently has a number of petitions pending related to TCPA interpretation.  The tracker below briefly summarizes each petition and the issues presented in them.

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RICHMOND (March 19, 2019) As part of his ongoing efforts to protect Virginians from predatory lending, Attorney General Mark R. Herring today urged the CFPB to take immediate action to protect consumers from abuses in payday lending, vehicle title lending, and other types of high-cost exploitative consumer lending. In 2017, approximately 96,000 Virginians took out more than 309,000 payday loans totaling nearly $123 million with an average APR of 254%. More than 122,000 Virginians took out approximately $155 million in car title loans in 2017, and nearly 12,000 Virginians had their cars repossessed and sold for inability to repay a car title loan. Attorney General Herring is part of a coalition of 25 states who sent a letter to the CFPB.

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RevSpring Announces New Chief Executive Officer

March 18, 2019 – RevSpring, a leading provider of consumer communications, billing, and payment solutions, announced today that healthcare industry veteran Scott MacKenzie has joined RevSpring as Chief Executive Officer and a member of RevSpring’s Board of Directors. Scott brings more than 25 years of experience in healthcare and information technology, with a successful track record of leading companies to accelerate growth, transform industries and create customer value.

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Fintech is behind the boom in personal loans and banks should take note

The market for consumer loans in the US is booming. According to data from TransUnion, last year, the total amount of consumer loans outstanding hit a record $138bn, a 17% jump from the year prior. TransUnion says the “main driver” of this rapid growth is lending by upstart fintechs, which accounted for over a third (38%) of all personal loans issued, a huge leap from just five years ago when they accounted for 5%. That fintechs have captured so much of the consumer loan market isn’t surprising. Following the Great Recession, many of the established financial institutions that had previously been the first place many consumers turned when they needed a loan, such as big banks, cut back on consumer lending.

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How to prevent spear phishing attacks: 8 tips for your business

Spear phishing attacks continue to increase in popularity among cybercriminals, and businesses must take steps to protect against them or risk seeing sensitive information stolen, according to a Tuesday report from Barracuda. These highly personalized email attacks involve a hacker researching their target and creating a message often designed to impersonate a trusted colleague or business to steal sensitive information, which is then used to commit crimes like fraud and identity theft, the report noted

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A Clear Path Forward for the CFPB

Since its formation in 2011, the Consumer Financial Protection Bureau (CFPB) has been widely ambitious, reportedly issuing 50 rules within its first five years, making it the “fastest rulemaking body in the federal government,” according to research from the American Action Forum. With the bureau appearing at a juncture set to “critically examine” its practices following the release of 12 requests for information (RFIs) last year, the Mortgage Bankers Association (MBA) released last week its own proposed “roadmap” forward for the bureau.

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WebRecon Stats for Feb 2019: Keep on keeping on

February 2019 showed the new year is, so far, continuing the trends from 2018. FCRA, CFPB complaints are up. TCPA, FDCPA complaints are down. BBB reporting lags too far behind the other categories to make any sense in the grid, but year over year complaints against creditors and debt collectors are growing very aggressively. In other news, putative class actions were pretty typical last month with 21.5% of FDCPA, 30.3% of TCPA and 6.5% of FCRA lawsuits filed that way.About 32% of all plaintiffs who filed suit last month had filed at least once before.

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What does the FTC’s new task force mean to data aggregators?

Should antitrust regulations govern how big tech companies collect large amounts of consumer data? That’s a question that’s been getting increased attention recently, with growing pressure from state regulators and legislators for antitrust action against big tech companies. While the U.S. still has a long debate ahead on this issue, European regulators have already been investigating, and in some cases fining, large tech companies for their data practices. Part of the debate in the U.S. centers on whether the control of big data is an antitrust issue, a consumer protection issue, or both. But there are indications that the FTC, the U.S. Department of Justice’s Antitrust Division, and state regulators will not sit idly while the debate continues.

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Payday lending industry gains upper hand in Statehouse fight

After years of fighting to lower the interest rates credit agencies can charge on subprime loans, consumer protection advocates thought they finally had a win lined up this legislative session. A bill that would have capped two-week “payday” loans of up to $605 at an annual percentage rate of 36 percent—compared with the 391 percent APR that can be charged now—passed an Indiana Senate committee and headed to the Senate floor for a vote in February. But supporters of the legislation—including Erin Macey, senior policy analyst for the Indiana Institute for Working Families, and Kathleen Lara, policy director for Prosperity Indiana—weren’t celebrating that day.

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New study highlights just how bad Americans are with credit cards

A new study details how Americans manage credit cards and how stressful credit debt can be. Commissioned by Clever Real Estate and conducted by online polling software Pollfish, the report looked at 1,000 survey responses of Americans who owned at least one credit card. “The most shocking find to me was how many Americans carry credit card balances month to month,” Tommy O'Shaughnessy, an analyst at Clever Real Estate Analyst and the author of the report, told Yahoo Finance. Nearly half of the respondents (47%) carried some amount of credit card debt month to month, according to the survey, with 72% of borrowers carrying more than $1,000.

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JPMorgan Chase is investing $350 million to get workers ready for the future

New York (CNN Business)JPMorgan Chase CEO Jamie Dimon talks a lot about the need to train workers for the jobs of the future. Now the bank says it will spend $350 million over the next five years to make it happen.   The company, which previously made a $250 million five-year commitment to job training in 2013, said Monday it will invest in a variety of initiatives, including a development program for community college presidents and new research.

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Florida is still U.S. scam capital, but now millennials are the prey

When it comes to scams, Florida is still No. 1, with millennials — not seniors — in the crosshairs, according to the latest fraud report from the Federal Trade Commission. With nearly 3 million consumer complaints made to the agency in 2018, the Sunshine State ranked No. 1 for fraud and No. 4 for identity theft, according to the latest FTC Data Book, which compiles statistics from complaints made directly to the agency. Of 1.4 million frauds reported to the agency, more than 210,000 consumers in Florida made complaints with losses of more than $84 million. That’s up from $54.7 million in 2017. Georgia and Nevada rounded out the top three states reporting fraud per 100,000 in population.

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Industry Events

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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