CRS2019 ANNOUNCES NEW ROUNDTABLE, MODERATED BY BEV EVANCIC OF RESOURCE MANAGEMENT SERVICES, INC.

A roundtable you won’t want to miss at CRS2019! Bev Evancic shares her concepts on monitoring for optimal collection performance. During this roundtable, Bev discusses approaches for monitoring collection performance, effectiveness and customer experience through account reviews, call monitoring and onsite visits. With 33 years of expertise, both managing all facets of collection operations, and as a consultant/auditor, Bev has a wealth of knowledge to share. Her concepts on monitoring for optimal performance may encourage you to look at the collection world just a little bit differently – plan to join her! This type of monitoring is not just a QA or Compliance function, but a management exercise as well. 

CFPB gathering feedback on remittance rule

The CFPB has issued a request for information (RFI) on its remittance rule – a positive sign for the industry as the bureau considers possible changes to the rule. NAFCU has long expressed concerns about the rule's highly burdensome compliance costs and urged the bureau to exempt credit unions from the rule.

"NAFCU has long argued that credit unions should be exempt from all CFPB rulemakings, including its remittance rule," said NAFCU President and CEO Dan Berger. "The remittance rule imposes overbearing compliance costs, which have effectively prevented many credit unions from providing assistance to consumers in need.

Industry input prompts CFPB to revise policies involving CIDs

Perhaps reinforcing an outline shared during the director’s public appearance just a few days earlier, the Consumer Financial Protection Bureau this week announced changes to policies regarding civil investigative demands (CIDs). The regulator said the actions are designed to ensure CIDs provide more information about the potentially wrongful conduct under investigation.   
Consistent with the updated policy, the bureau explained in a news release that CIDs will offer more information about the potentially applicable provisions of law that may have been violated. Officials indicated CIDs will also typically specify the business activities subject to the bureau’s authority.

Regions Bank Partners with IBM’s to Help with AI

Regions Bank, a bank with over 1.5 million clients, has partnered with IBM in order to improve customer service and assist bankers in other tasks related to artificial intelligence. Some data suggest that it only takes two bad experiences with customers for 62% of banking consumers to switch services. Banks continue to realize that compliance and fraud prevention are crucial focuses in terms of technology, but customer service is probably the most important day to day function for a bank particularly when it comes to online banking experience.

House eyes vote on reversing Mulvaney efforts to rein in consumer bureau

The House may vote within weeks on a bill to reverse the Trump administration's efforts to rein in the Consumer Financial Protection Bureau (CFPB) and prevent future directors from doing the same. House Majority Leader Steny Hoyer (D-Md.) wrote in a Thursday letter to Democratic lawmakers that the lower chamber may take up the Consumers First Act next month amid a slew of other legislative priorities. Introduced by Rep. Maxine Waters (D-Calif.), chairwoman of the House Financial Services Committee, the bill would undo several measures taken to reel back the CFPB’s oversight and regulation under former acting Director Mick Mulvaney.

Robocall Loophole Defeated at Fourth Circuit

RICHMOND, Va. (CN) – The fight against robocalls got a boost Wednesday when the Fourth Circuit struck down a loophole carved out for the collection of federally backed loans. In a 25-page opinion, the Richmond, Virginia-based appeals court invalidated an exemption allowing certain debt-collection robocalls in a federal law designed to otherwise protect people’s privacy on cellphones. At issue was an amended section of the 1991 Telephone Consumer Protection Act, which first created a federal ban on calls to cellphones by a robocall system using automated voices. While other exemptions existed, like for federal emergency systems, language was added in 2015 that allowed such calls if they were in service of collecting debts owed to or guaranteed by the federal government. Several political action committees and pollsters, including the American Association of Political Consultants, filed suit against the Federal Communications Commission over the debt-collection exemption in North Carolina federal court in 2016.

CFPB Issues Request for Information on Remittance Rule

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) issued a Request for Information (RFI) on its Remittance Rule. The RFI includes a consideration of issues discussed in the Bureau’s assessment of the Rule, which examined if the Rule had been effective in achieving its goals.    The Remittance Rule imposes requirements on companies which send international money transfers, or remittance transfers, on behalf of consumers. Among its requirements, the Rule mandates that providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.   

Washington Legislature Passes 30-day Data Breach Notification Law

April 24, 2019 - The Washington legislature unanimously passed new legislation that effectively truncates the time organizations in the state must begin notifying victims of a data breach to just 30 days. For healthcare organizations, the breach notification timeframe has been effectively cut in half, as HIPAA gives providers 60 days to report a breach from time of discovery. Further, the Washington Attorney General must also be notified within 30 days and without reasonable delay.

Fintech charters, CRA and data sharing: McWilliams, Otting weigh in

WASHINGTON — Federal regulators gathered Wednesday to discuss the fintech chartering process and some of the biggest challenges deterring the emerging industry from entering the banking space.   Federal Deposit Insurance Corp. Chairman Jelena McWilliams and Comptroller of the Currency Joseph Otting agreed, separately, at a fintech event hosted by the FDIC, that fintechs are having a harder time than expected proving capital and profitability in their business plans when seeking a charter.  
They also agreed that the agencies are moving forward jointly on reforming the Community Reinvestment Act, but hedged on when a proposal could be released. 

Joshua Gindin, Esquire, joins Commonwealth Financial Systems, Inc. as General Counsel.

Scranton, PA – Commonwealth Financial Systems, Inc. (CFSI), a first and third party collection firm serving the healthcare, financial services, student loan, and telecommunications sectors is pleased to announce that Mr. Gindin has joined CFSI as General Counsel, bringing years of experience in the debt collection industry.  Mr. Gindin will oversee all legal and compliance matters.  Mr. Gindin previously served as EVP and General Counsel for NCO Group, Inc., parent of NCO Financial Systems, Inc., overseeing its domestic and international legal affairs.  Most recently he has been engaged in the private practice of law, providing legal and consulting services across the industry as well as general business and real estate services.

44% of data breaches are at the hands of vendors

Although data breaches are rare, almost half – 44 percent – are caused by third-party vendors, according to an esentire survey.  Of the data breaches that happened from a vendor, only 15 percent of firms affected reported that the vendor informed them when a breach happened.  The survey was sent out to 600 information technology and security decision-makers, asking about their top concerns around supply chain and policies or procedures used to mitigate identified vendor risks.  Sixty percent of respondents said their organizations have formalized third-party policies, and most firms (90 percent) review these policies annually. While most (81 percent) find the policies effective, breaches still happen.

Who Holds America’s Credit Card Debt: Breaking It Down By Age And Income

According to Federal Reserve data, America's outstanding revolving debt — mostly credit card debt — stood at $1.055 trillion at the end of 2018. Who holds most of that debt? ValuePenguin's report on average credit card debt in America shows that households with the lowest net worth (zero or negative) have the highest average debt ($10,307). However, with respect to age and income levels, ValuePenguin data suggests that you're more likely to hold the most debt if you are from 45 to 54 years old and have an income greater than $160,000. Isn't that contradictory? It seems that way at first glance, but there's a difference between net worth and income. Households with higher incomes carry higher balances because they're more likely to be able to pay them off whenever they choose. Households with no net worth are more likely to carry high balances because they have to.

BBVA Compass to subtly change its name

BBVA Compass, the fourth-largest bank in Houston, is rebranding and will just be called BBVA in the coming months. The change is part of a global initiative by the Spanish bank, which with a presence in more than 30 countries, will drop local names in Argentina (BBVA Francés), Mexico (BBVA Bancomer), Peru (BBVA Continental) and the United States (BBVA Compass). Garanti, the group's franchise in Turkey, will change its name to Garanti BBVA.

1 in 4 Workers Are Aware Of Security Guidelines – but Ignore Them

An alarming percentage of workers are consciously avoiding IT guidelines for security, according to a new report from Symphony Communication Services. The report, released this morning, is based on a survey of 1,569 respondents from the US and UK who use collaboration tools at work. It found that 24% of those surveyed are aware of IT security guidelines yet are not following them. Another 27% knowingly connect to an unsecure network. And 25% share confidential information through collaboration platforms, including Skype, Slack, and Microsoft Teams.  While the numbers may at first appear alarming, there's another way to look at them, says Frank Dickson, a research vice president at IDC who covers security.

AG FERGUSON BILL STRENGTHENING DATA BREACH LAWS PASSES LEGISLATURE

New law requires consumer notification if a hacker obtains private data such as passport numbers, usernames and passwords
OLYMPIA — Today, with a unanimous, bipartisan vote, state legislators passed a bill requested by Attorney General Ferguson that strengthens data breach notification laws.  The bill expands consumer data breach notification requirements to include more types of consumer information. It also reduces the deadline to notify consumers to 30 days from 45 days. Rep. Shelley Kloba, D-Kirkland, sponsored the bill, which passed the House in a unanimous, bipartisan vote on March 1.  “My office has seen the number of Washingtonians impacted by data breaches increase year after year,” Ferguson said. “Data breaches are a serious threat to our privacy, and this law will arm consumers with information to protect their sensitive data.”

Attorney General Frosh Leads 20-State Coalition Urging U.S. House Committees to Protect Student Veterans from Exploitation by ForProfit Schools

BALTIMORE, MD (April 24, 2019) – Maryland Attorney General Brian E. Frosh, along with 19 other state attorneys general, today submitted a statement for consideration during a joint field hearing of the U.S. House Education and Labor and Veterans Affairs  Committees scheduled for this afternoon at 1:30 p.m. EST (10:30 a.m. PST) in El Cajon, California.

GE’s Subprime Loan Business Files Chapter 11

General Electric has put its defunct subprime mortgage business into bankruptcy to help resolve remaining legal liabilities over defective loans.   

WMC Mortgage has already settled 13 lawsuits in which investors alleged it misrepresented the quality of the mortgages it sold, agreeing to pay a total of $870 million in compensation.

CFPB makes NAFCU-sought changes to CIDs

The CFPB yesterday announced changes, many of which take into account NAFCU suggestions, to policies regarding Civil Investigative Demands (CIDs). The proposed changes – which better align with requirements set forth under the Dodd-Frank Act – ensure that CIDs provide more information about the potentially wrongful conduct under investigation.

Supreme Court to Weigh Debt Collection Penalties Post-Bankruptcy

The Supreme Court will hear arguments April 24 on whether creditors’ good faith attempts to collect on post-bankruptcy debt can be subject to court penalties for their actions, a case that has triggered debtors’ concern about collection limits in the U.S.

KELLI EDMONDS, OF SANTANDER CONSUMER USA, TO FACILITATE THE AUTO FINANCE PEER GROUP AT COLLECTION AND RECOVERY SOLUTIONS 2019

Announcing Kelli Edmonds, of Santander Consumer USA, as facilitator of the Auto Finance Peer Group at Collection and Recovery Solutions 2019 to be held May 8th – 10th at the Four Seasons in Las Vegas.  The Auto Finance Peer Group will meet on Thursday afternoon from 3:30 p.m. to 5:00 p.m. It is a session of auto finance collection and recovery peers. 

How a Debt Collection Agency Can Preserve Customer Relationships

Traditional debt collection only focuses on the actual process of recovering money. It has nothing to do with customer relationships. But in the modern business era, customer relation is valuable to grow a business and gain a foothold in the industry. This has made hiring a debt collection agency imperative to maintain customer goodwill and ensure them that the company believes in harmony, and not blackmail.

NAFCU’s Morris comments on fintech’s bank charter application

Fintech company Robinhood is applying for a national bank charter with the Office of the Comptroller of the Currency (OCC) months after it falsely marketed a checking and savings service that wasn't insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation.

Convoke Expands Advantages of Legal Data Groups

ARLINGTON, Va., April 24, 2019 /PRNewswire/ -- Convoke, a leader in SaaS solutions for the debt collection market, today announced the most recent software update to its debt collections compliance and management hub.  Each year, Convoke develops and releases several updates to its platform to support its clients' evolving needs.  This release includes updates to Data Groups, complaints, debt settlement functionality, as well as audio file support.

TCPA clarity needed for CUs to communicate with members

Regulations governing how businesses can interact with consumers are not keeping up with technology, leaving both consumers and businesses at risk, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices Thursday. Credit unions are among the businesses that risk legal action when contacting members due to the Telephone Consumer Protection Act (TCPA). The TCPA was enacted in 1991 to protect American households from sales calls. Specifically, CUNA is concerned that a 2015 Omnibus Declaratory Ruling on TCPA creates uncertainty about how credit unions can communicate with members while remaining in compliance with the act.

CFPB Updates Policy For Civil Investigative Demands

The Consumer Financial Protection Bureau (CFPB) has announced changes to policies on Civil Investigative Demands (CIDs), which are investigational subpoenas issued by the CFPB. The Consumer Financial Protection Act of 2010 authorizes the CFPB to issue CIDs when looking into potential violations of the law. As a result of the policy changes, CIDs will now provide more information about the laws that might have been violated, as well as specify the activities subject to the CFPB’s authority. When the extent of the CFPB’s authority is one of the main reasons for the investigation, staff will be able to include that issue in the CID for further transparency.

Senator Elizabeth Warren called for massive student debt relief. Here’s the average student loan debt in every state.

Having announced her bid for candidacy in the 2020 presidential election, Massachusetts Senator Elizabeth Warren has begun rolling out her platform. In a Medium blog post on Monday, Senator Warren proposed a plan to cancel as much as $50,000 in student-loan debt for 42 million Americans.  With American millennials owing more than $1 trillion in debt in 2018, largely from student loans, the proposal could find a lot of support countrywide.

CFPB Announces Policy Change Regarding Bureau Civil Investigative Demands

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) announced changes to policies regarding Civil Investigative Demands (CIDs) to ensure they provide more information about the potentially wrongful conduct under investigation.   Consistent with the updated policy, CIDs will provide more information about the potentially applicable provisions of law that may have been violated. CIDs will also typically specify the business activities subject to the Bureau’s authority. In investigations where determining the extent of the Bureau’s authority over the relevant activity is one of the significant purposes of the investigation, staff may specifically include that issue in the CID in the interests of further transparency.  

SEC Updates Data Privacy and Cybersecurity Guidance for Registered Firms

On April 16, 2019, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) issued a risk alert, “Investment Adviser and Broker-Dealer Compliance Issues Relating to Regulation S-P – Privacy Notices and Safeguard Policies,” highlighting its data privacy and cybersecurity observations from recent examinations of registered firms.[1]Regulation S-P. By way of background, Regulation S-P is the SEC’s data privacy regulation that implemented the privacy provisions of the Gramm-Leach-Bliley Act. In particular, this regulation protects the nonpublic personal information of customers,[2] including personally identifiable financial information and consumer lists or descriptions derived from nonpublic information. To protect this information, Regulation S-P requires firms to do two main things.

City Council Considers Rules on Payday Loans

SPRINGFIELD, Mo. New payday loan regulations could be on the way in Springfield. The city council is weighing two measures that would require more transparency regarding the interest rates that people pay. A grassroots group rallied outside city hall in favor of proposed changes for payday lenders. "We have tried for several years to address the exorbitant rates that predatory loans are charging people the really high-interest rates and that hasn't made any progress in the Missouri legislature," said Emily Bowen-Marler, a minister a Brentwood Christian Church, who also works with Faith Voices, "so some communities in Missouri are trying to address it by having these permitting fees, because it will discourage predatory lenders from setting up shop in Springfield."

Fearing Patchwork Privacy Laws, Tech Industry Calls for Federal Regulation

Still reeling from a recent series of devastating consumer data breaches, an unlikely consortium of tech companies is pushing for a uniform federal privacy law to address the growing “techlash” and preempt potentially more onerous regulations or a patchwork of state-by-state rules.  As some states and foreign governments try to implement new limits on what information tech companies can collect and share, once regulation-wary executives are asking for an overarching law — one that they can help write.  “There is a strong willingness to work with the government to determine what is doable and what is feasible,” Kristina Bergman, the founder and CEO of the data privacy firm Integris Software, told Cheddar.

CBA supports Education Department’s student aid recommendations

“For many families and students, a higher education will be one of the most costly investments they make. Colleges and universities have an obligation to set students up for success and the Department of Education should be commended for its recommendations to help ensure students know the true cost of their education. Every student should know how much money they are borrowing and how they will be responsible for repaying. For far too long, it seems some institutions of higher education have tried to mask these key factors by combining grants and scholarships with loans, work-study programs, and parent loans,” CBA President and CEO Richard Hunt said.

FTC Announces Agenda for May Forum on Small Business Financing

The Federal Trade Commission has released the agenda for its May 8 event, Strictly Business: An FTC Forum on Small Business Financing. The forum will explore trends and consumer protection issues in the small business financing marketplace, including the recent proliferation of online loans and alternative financing products.   Commissioner Rohit Chopra will give opening remarks at the forum, followed by three panel discussions. The first panel will provide an overview of the small business financing marketplace. The second panel will examine merchant cash advances. The last panel will explore consumer protection risks, applicable laws, and efforts to better protect consumers. Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, will deliver closing remarks.

Silicon Valley Company Settles Fraud Charge for Misstating Returns to Investors

Washington D.C., April 19, 2019 —

T-Mobile gets into banking, offering 4% interest and no fees on its free checking account

T-Mobile is jumping into the banking business with a splash.   The wireless carrier on Thursday introduced a mobile checking account that offers an interest rate thousands of times higher than the national average.   Called T-Mobile Money, the new service has no minimum balance requirements and no monthly, overdraft, transfer or late-payment fees. It also offers a potential 4% interest rate on balances up to $3,000 – compared with the industry average of 0.06%. After that, the rate is 1%.

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May 2019 Open Commission Meeting

Federal Communications Commission

Collection & Recovery Solutions 2019

Resource Management Services, Inc.

National Creditors Bar Association 2019 Spring Conference

National Creditors Bar Association

PrivacyCon 2019

Federal Trade Commission

NACTT 54th Annual Seminar Registration Open

NACTT

ACA International 2019 Annual Convention & Expo

ACA International

Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

National Creditors Bar Association 2019 Fall Conference

National Creditors Bar Association