At a glanceFriday, April 12, 2019

Collection Industry News At A Glance - April 12, 2019
Friday April 12, 2019
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Still Time To Register for the Collection and Recovery Solutions 2019 Conference – May 8-9 in Las Vegas

It's Not Just Another Conference

Senior-level creditors involved in collection, recovery operations, compliance, risk, and strategy are invited to attend this exclusive meeting. Registrations will be accepted on a first-come, first-served basis. Space is limited, but still available for originating creditors.  Contact for info.   Entirely creditor-focused, with exciting presentations by leading creditors. Round table sessions for in-depth peer networking and best practices discussions are just part of an exciting agenda.  For more information please visit:

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Shadow banking is a $52 trillion industry posing a big risk to the financial system

Nonbank lending, an industry that played a central role in the financial crisis, has been expanding rapidly and is still posing risks should credit conditions deteriorate.   Often called "shadow banking" — a term the industry does not embrace — these institutions helped fuel the crisis by providing lending to underqualified borrowers and by financing some of the exotic investment instruments that collapsed when subprime mortgages fell apart.

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2020 Democrats want to overhaul a student-loan forgiveness program for public servants

If a Democrat wins the White House in 2020, a revamp of the beleaguered student-loan forgiveness for public servants could be on the table. Many of the leading candidates are backing a plan that would expand the loan and repayment types eligible for the Public Service Loan Forgiveness program (PSLF) and allow borrowers to have part of their loan balance forgiven after five years, instead of waiting for 10 years to qualify for a full loan discharge.

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Payday loan reform advocates will try again on ’30-days-to-pay’ bill

Payday lending reform advocates will make another attempt to try to rein in the triple-digit interest rates lenders can charge customers. A bipartisan group of legislators said they would put forward legislation that would extend the period to pay off the short-term loans to 30 days, which could cut the annual percentage rate on the products from 456 percent to about 200 percent. Sen. Arthur Orr, R-Decatur, who has carried similar legislation for the past several years, said at a press conference Thursday morning that the bill was not looking to drive the industry out of the state.

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Bill may help millions qualify for popular Public Service Loan Forgiveness Program

A dozen Democratic senators introduced a bill on Thursday to overhaul the popular but challenged Public Service Loan Forgiveness Program.   The legislation, the What You Can Do for Your Country Act,would dramatically expand the pool of student loan borrowers who are eligible to have their debt canceled.

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New York State Budget Includes Increase to OCA Statewide Criminal History Record Search Fee

On April 1, 2019, the New York Legislature approved the State Fiscal Year (SFY) 2019-2020 budget that includes a $30 increase to the fee charged by the Office of Court Administration (OCA) for the statewide Criminal History Record Search (CHRS) that raises the cost for the New York OCA search from $65 up to $95.   The purpose of the increased fee for an OCA statewide criminal history record search from $65 to $95 – which will take effect when the budget is signed by New York Governor Andrew M. Cuomo – is to use the entirety of the additional $30 of the fee to fund indigent defense programs in New York state.

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Here’s what Jamie Dimon and other bank CEOs said are the biggest risks to the economy right now

The leaders of the biggest U.S. banks have a message for Congress: take a closer look at the ballooning markets for student and corporate loans.  Rep. Jim Himes, D-Conn., asked a panel of seven CEOs, brought together Wednesday for a House Financial Services Committee hearing what they thought were the products or markets that could threaten the U.S. financial system. 

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Military personnel caught in crossfire over lending law

The first major standoff between Democratic lawmakers and the Trump-appointed director of the Consumer Financial Protection Bureau is threatening to put military servicemembers at risk. CFPB Director Kathy Kraninger and her congressional critics are clashing over a law meant to protect military personnel from predatory lenders, who can charge interest rates of as much as 400 percent. Kraninger says the bureau lacks the power to monitor violations of the statute — even though the CFPB did just that during the Obama administration — while Democrats insist that it can.

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PayThink Generation Z’s taste for digital payments makes open banking vital

Generation Z, whose older members are already entering the workforce, is using digital technology more than any other age group — including millennials. Gen Z’s preferred digital technologies include P2P and B2C digital payments, as opposed to more traditional payment methods. And further, one-third of the Gen Z consumers polled in the survey have never even used a paper check. This group sends and receives money digitally, uses digital apps to manage their budgets and financial accounts, and rarely steps foot inside a brick-and-mortar branch.

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New York passes sweeping legislation impacting student loan servicers

On April 1, 2019, New York enacted Article 14-A, governing servicers of student loans owed by New York residents, in connection with New York’s fiscal year 2020 budget. Though sweeping legislation has been anticipated for some time, awareness of the extensive provisions of the new legislation are critical for student loan servicers nationwide.

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‘All options’ on the table for cracking down on Wells Fargo – CFPB

Wells Fargo may be headed for yet more regulatory trouble, with the Consumer Financial Protection Bureau telling Congress that “all options” are “on the table” for enforcing a consent order against the bank. The scandal-plagued bank is operating under consent orders that require it to remediate customers harmed by its wrongdoing and institute reforms. Recently, Sen. Elizabeth Warren (D-Mass.) and Sen. Sherrod Brown (D-Ohio) sent inquiries to several regulators asking about Wells Fargo’s progress in satisfying the orders.

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Marco Villarreal of Hyundai Capital America joins our distinguished panel of speakers as a roundtable presenter on Vendor Oversight at Collection and Recovery Solutions 2019.   Collection and Recovery Solutions is an invitation-only event, held annually for senior-level collection and recovery professionals.

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Massachusetts Amends Data Breach Notification Law

Massachusetts Governor Charlie Baker has signed legislation amending the state’s data breach notification law, and the amendments will take effect on April 11, 2019. The new requirements relate to the timing and content of individual and regulator notifications, as well as credit monitoring services offered to affected residents. The key amendments include the following provisions.

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Pressure Mounts On CFPB Over Public Service Loan Forgiveness Program

Launched in 2008 as a provision of the College Cost Reduction and Access Act (CCRAA), the Public Service Loan Forgiveness program’s objectives were pretty straightforward. The idea was to create a mechanism by which those who worked full-time in public service and made a good-faith effort at paying off their loans could discharge those loans after a certain fixed period. Supporters of the PSLF argued that that education is increasingly an expensive burden — and the historically low pay associated with public service work could keep interested but indebted students away from work that needs doing. Creating a financial incentive could help push more of those students into public service work.

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Thoughts on the Future of Financial Services Regulation in the U.S.

Thank you, Todd, for the kind introduction. And thank you to the staff of the Law and Economics Center for the invitation to speak today. I am honored to participate in an event organized by an institution recognized as having a rich and consequential intellectual tradition. I am also grateful to Chris Mufarrige for his invaluable assistance in helping prepare my remarks today.   Before I get started, my legal minders ask that I say the following: “While I am here today as a representative of the CFPB, my remarks do not constitute legal interpretation, guidance, or advice of the CFPB, and any personal opinions or views expressed are my own and may not represent the official views or position of the CFPB.”

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AG Healey Secures $2 Million from National Mortgage Servicer Over Unfair and Unaffordable Loan Modifications

BOSTON — A national mortgage servicing company will pay $2 million and undertake affordable loan modifications for affected Massachusetts homeowners, Attorney General Maura Healey announced today. The settlement resolves allegations that Caliber Homes Loans Inc. (Caliber) failed to help borrowers avoid foreclosure and instead gave homeowners unaffordable loan modifications with ballooning monthly payments they could not afford.

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Mass Attorney General Secures $5.5 Million From Auto Loan Settlement

BOSTON A finance company operating in Massachusetts, Exeter Finance LLC, will pay more than $5.5 million for its role in allegedly financing unfair, subprime auto loans for Massachusetts car buyers, Massachusetts Attorney General Maura Healey announced today, April 8. “This company’s loans put Massachusetts car buyers in economic danger,” Healey said. “Today’s settlement with Exeter provides millions of dollars in relief and repairs damaged credit. Our office will continue to investigate the subprime lenders, financiers, and securitizers, and protect consumers.” This assurance of discontinuance, filed in Suffolk Superior Court, includes $4.675 million that will be available to provide relief to harmed borrowers and an $825,000 payment to the state. Exeter will also waive deficiencies on certain subprime loans and will ask the major credit bureaus to wipe all trade lines for involved subprime loans on consumers’ credit reports.

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Financial Well-Being of Veterans

In late 2016, the Bureau administered the financial well-being scale in a nationwide survey of adults in the United States. The Bureau’s review of the veterans in the survey found that veterans reported higher levels of financial well-being than the average U.S. adult.  An analysis of the veteran survey responses found evidence that financial skills (e.g. making a budget, not overspending, etc.) is positively associated with financial behavior, which is also positively associated with financial situation and higher levels of financial well-being.  This analysis suggests that, for veterans, there is a pathway from financial skill to financial well-being.

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New Law Requires Collection Agencies to Inform Surviving Family Members They Are Not Legally Obligated to Repay Debt of Deceased Debtors

Governor Andrew M. Cuomo today announced a new law limiting debt collections against deceased debtors and their families is now in effect. If an individual dies with an outstanding debt, collection agencies seeking to collect on the debt from next-of-kin or surviving family members must affirmatively inform them that they are not legally obligated to repay the debt. Specifically, no principal creditors and/or debt collection agencies can make any representation that a person is required to pay the debt of a family member in a way that contravenes with established fair debt collection practices.

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To target ‘bad actors,’ CT demands data on student lenders from DeVos

Washington – Connecticut Attorney General William Tong has joined 20 colleagues from other states demanding the U.S. Department of Education once again provide information the states say they need to weed out  ‘bad actors’ among lenders.

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Megabank execs head to the Hill — What to know in the week ahead

This week comes with a handful of events with market-moving potential. Tuesday, Federal Reserve Vice Chairman Rich Clarida will be speaking at the Federal Reserve Bank of Minneapolis Spring 2019 Institute Conference. He will be talking about the Fed’s monetary policy path. “Vice Chair Clarida has represented the more dovish side of the FOMC over the past several months, and he should continue to sound very cautious on the global outlook and stress patience given muted inflation. He may suggest allowing a significant overshoot before hiking again. If asked, he is likely to concede there are rate cut scenarios, but not that likely in his view,” TD Securities wrote in a note on Friday.

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We aren’t prepared for the next wave of cybersecurity risks

The traditional way regulators motivate the financial industry is by seeking consensus among the constituents on best practices, but that is too backward looking. The cyber risk threats of today pale in comparison to the cyber risks to come. Immediate investment is needed even though the payoff is perhaps a decade or more into the future. The collective action problem that always rears its head in the competitive financial industry must stand aside to protect our national treasure — our global financial system — from cyber attacks. Our government must lead the way.

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Payday lending and school funding among top issues awaiting action in General Assembly

INDIANAPOLIS (Statehouse File) — As the Indiana legislature approaches the end of the 2019 session, bills covering everything from student safety, school funding and payday lending have yet to be resolved.

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Industry Events

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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