At a glanceWednesday, May 01, 2019

Collection Industry News At A Glance - May 1, 2019
Wednesday May 1, 2019
Mid Week Newsletter:
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Fintech Based Debt Collection Startups Help In Increasing Recovery Rate

This might be the first time ever when you are hearing about the term Fin tech debt collection startups. These forms of startup companies are actually transforming the entire dated industry, which was actually relying on the archaic methods of the practice over here. There are some of the industrial based disruptors, which have seen some of the dramatically increased form of recovery rates while just trying to offer one of the most pleasant experiences for not only the debtor but even for the creditors, at the same time.

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So much to discuss at CRS2019 this year.  It’s next week, but there is still time to get you registered!  Hear from John McNamara from the CFPB in the sessions on Thursday morning, and enjoy the ongoing discussions with peers in our Cyber Cafe Lounge.  And enjoy a latte while you’re there!  We have twenty laptops for you to check the web, download any new information, or see the latest news, etc.  Or, just enjoy the screensavers of our sponsors and their product offerings! 

Collection and Recovery Solutions is May 8th – 10th at the Four Seasons in Las Vegas.  It is an invitation-only event for senior level collection and recovery professionals.  For invitation information, write us at  Or, for more information, see

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Consumer Financial Protection Bureau Settles with Conduent Education Services

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced a settlement with Conduent Education Services, LLC (CES), a student loan servicing company that formerly operated under the name of ACS Education Services. CES is in the process of winding down its business. 

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Lawmakers: Need to distinguish legitimate calls from robocalls

As Congress considers ways to combat the scourge of robocalls, a hearing held by a House Energy and Commerce subcommittee Tuesday noted the need to distinguish legitimate calls, like those made by credit unions to their members, from illegal robocalls.

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New York announces agency to fill CFPB ‘void’

The state of New York has fulfilled a promise it made more than a year ago, launching its own version of the Consumer Financial Protection Bureau to counteract what New York officials say is the national CFPB’s abdication of its duties to consumers. Acting New York Department of Financial Services (DFS) Superintendent Linda A. Lacewell announced Tuesday that Katherine A. Lemire had been appointed as executive deputy superintendent of the DFS’ new Consumer Protection and Financial Enforcement Division. The new division combines the previously separate Enforcement and Financial Frauds and Consumer Protection divisions.

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Acting Department of Financial Services (DFS) Superintendent Linda A. Lacewell today announced that Katherine A. Lemire has been appointed as Executive Deputy Superintendent of the Department’s newly created Consumer Protection and Financial Enforcement Division. The new division combines the previously separate Enforcement and Financial Frauds and Consumer Protection divisions.

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CFPB to hold Town Hall in Philadelphia

The CFPB has announced that it will hold a Town Hall to take place in Philadelphia, Pennsylvania beginning at Noon on May 8, 2019. The event will feature remarks from Director Kraninger as well as comments from community groups, industry representatives, and members of the public. Although the CFPB did not indicate the purpose of the Town Hall, I strongly believe that the CFPB will use the occasion to issue its Notice of Proposed Rulemaking (the “NPRM”) regarding third-party debt collection. This makes sense in light of Director Kraninger’s recent announcement at the Bipartisan Policy Institute that the NPRM will be released “in the coming weeks.” We will be closely covering the Town Hall and the issuance of the NPRM.

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PenFed Credit Union Partners with Salesforce as Strategic Technology Platform for Best-In-Class Digital Banking

Salesforce (NYSE: CRM), the global leader in CRM, and PenFed Credit Union, the second largest federal credit union in the United States, today announced that PenFed is launching an omnichannel digital banking platform powered by Salesforce Financial Services Cloud and Community Cloud to enable a new, best-in-class member experience.   Along with its current use of Salesforce Service Cloud and the Salesforce Lightning Platform, PenFed is further improving its connected digital banking experience for modern consumers.

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TCN Launches New Natural Language Compliance Tool for Its Comprehensive Cloud Contact Center Platform

TCN, Inc., a leading provider of cloud contact center technology for enterprises, contact centers, BPOs and collection agencies worldwide, announced today the launch of Natural Language Compliance, a new addition to TCN’s existing, robust Compliance Suite. TCN’s new intuitive natural language tool enables contact centers and compliance officers to create and add customizable rules that fit the compliance needs of any ongoing campaign. Natural Language Compliance is designed to help users automate compliance and minimize risk as state and federal rules and regulations continue to change over time.

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Mystery data breach reportedly exposes 80 million names, addresses, and income info in U.S.

Data breaches are almost always tied to a site, service, or subscription, which gives you some control over your fate: You can change your password, monitor any suspicious activity, or delete your account. But a new reported breach has seemingly exposed the personal information of some 80 million U.S. households—and no one seems to know who’s to blame. There’s a lot we don’t know yet, but there’s enough evidence to suggest that the breach is incredibly widespread. It was unearthed by security researchers Ran Locar and Noam Rotem of vpnMentor, who only know that the unencrypted data is hosted by a Microsoft cloud server and appears to be limited to people over the age of 40. In dissecting the data, the researchers found that it “seems to itemize households rather than individuals,” and includes:

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New payday lending law to save consumers $75M

COLUMBUS — Ohio’s new payday lending law took effect Saturday, ending more than a decade of high-cost loans and quick credit for roughly 1 million Ohioans who find themselves in a financial pinch each year. The new law is expected to save Ohioans $75 million annually in fees and interest, according to consumer advocates.

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Ending Debt Traps in the Payday and Small Dollar Credit Industry

The Subcommittee on Consumer Protection and Financial Institutions will hold a hearing entitled,  “Ending Debt Traps in the Payday and Small Dollar Credit Industry,” on April 30, 2019, at 2:00 p.m. in Room 2128 Rayburn House Office Building. This single-panel hearing will have the following witnesses:  
• Diane Standaert, Executive Vice President and Director of State Policy, Center for Responsible Lending
• Todd Ortique McDonald, Vice President and Board Director, Liberty Bank & Trust Company, representing the National Bankers Association
• Christopher Lewis Peterson, John J. Flynn Endowed Professor of Law, University of Utah, S.J.
Quinney College of Law, and Director of Financial Services and Senior Fellow, Consumer Federation of America
• Garry Lacy Reeder II, Vice President, Policy and Innovation, Center for Financial Service sInnovation
• Robert Sherrill, CEO, Imperial Cleaning Systems

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CFPUA looking for a debt collection agency to handle about $1.5 million annually

NEW HANOVER COUNTY — The Cape Fear Public Utility Authority and the City of Wilmington are requesting proposals for a commercial debt collection agency to handle overdue accounts on water, sewage, stormwater, and solid waste services.According to the request for proposals (RFP), CFPUA is looking for a debt collection service to handle an estimated $1.42 million in annual debt (the average amount the authority has sent to collection in recent years). This does not include an additional annual average of $705,000 in debt from residential customers that CFPUA sends to NC Debt Setoff, a state program that garnishes state tax refunds and state lottery winnings and remits funds to agencies like CFPUA.

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OCC Proposes Changes to OREO Regulations

The OCC is issuing a proposal to update its regulations on other real estate owned, or OREO—the first such update to the rules in two decades. The proposal would seek to streamline and clarify OREO rules for national banks, while updating and harmonizing the framework for OREO activities at federal savings associations. Specifically, the proposal addresses the holding period for OREO, the methods by which institutions may dispose of OREO, applicable appraisal requirements and permissible OREO expenditures and notification requirements. In addition, the agency is proposing to remove outdated capital rules for national banks and federal savings associations, which include provisions related to OREO. Comments are due by June 23.

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Community bankers urge CFPB to identify consequences before issuing rules

The Independent Community Bankers of America (ICBA) are calling on the Consumer Financial Protection Bureau (CFPB) to identify potential benefits and burdens before rules are put forth. In a letter to CFPB Director Kathleen Kraninger, ICBA officials reiterated their concerns with the negative impact of Section 1071 of the Dodd-Frank Act, which they contend would “commoditize small-business loans and disrupt lending.”

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Fourth Circuit Expands Liability by Striking Federal Debt Exemption—But Not Entire TCPA—on First Amendment Grounds

Just as political campaign season begins to heat up, the Fourth Circuit has delivered what must be an unsatisfying victory to a group of political consultants, pollsters, and organizations that had challenged the constitutionality of the TCPA on First Amendment grounds. Am. Ass’n of Political Consultants, Inc. v. FCC, No. 18-1588 (4th Cir. Apr. 24, 2019). Although the challenge had been brought by political groups, the Fourth Circuit’s decision has wide-ranging implications for organizations that collect federal debts. Indeed, the Fourth Circuit may have handed an unexpected gift to the plaintiffs’ bar.  

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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. 

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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.

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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.

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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.

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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.

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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.

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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.   

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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.

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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. 

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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.

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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.

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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.

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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.

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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.

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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.”

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Industry Events

May 2019 Open Commission Meeting

Federal Communications Commission

Federal Communications Commission 445 12th Street SW
Washington, DC , DC
May 09 - 09 , 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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