The OCC Jumps into the Sandbox

On April 30, 2018, the Office of the Comptroller of the Currency (OCC) opened a 45-day public comment period on a proposed Innovation Pilot Program (the Program). The OCC, like the Consumer Financial Protection Bureau and the Securities and Exchange Commission (SEC), is opening its doors in an effort to partner with financial institutions in order to “foster constructive innovative ideas to improve the industry.” In a public statement, the OCC outlined the Program’s goals to (1) support innovation in the banking system; (2) foster communication between the OCC and entities regarding expectations and requirements; (3) further understand innovative activities and how to properly maintain them; and (4) promote the OCC's objectives. Ideally, these goals would be achieved by creating a transparent framework for entities to engage with the OCC to test potential innovative products on a small scale and short term period. The Program is open only to OCC-supervised financial institutions. However, third parties working with a financial institution may become eligible to participate in the Program.

Fintechs want to become nationwide lenders, but they just hit a major roadblock

New York’s banking regulators can proceed with their case to prevent fintech companies from acting like banks, a judge ruled Thursday. The regulators want to block the federal government from giving fintech companies national licenses that would allow them to pay consumers’ checks and lend them money. Online lending from the “fintech” sector is booming — prompting a legal duel between state and federal banking regulators on whose rules the budding industry must follow. Manhattan Federal Judge Victor Marrero ruled that the New York State Department of Financial Services could proceed with two of its three claims against the Office of Comptroller of the Currency (OCC), an independent bureau within the U.S. Department of the Treasury.

Nuance Voice Biometrics to Improve Customer Experience and Boost Security at Santander

BURLINGTON, Mass. and LONDON, May 02, 2019 (GLOBE NEWSWIRE) -- Nuance Communications, Inc. (NUAN) today announced Santander is making phone banking more seamless and secure through Voice ID, a system that leverages Nuance’s market-leading, fraud-preventing biometrics technology.

Boston Fed Weighs Up Regulatory Blockchain Nodes

The Boston Federal Reserve released a white paper on Wednesday that hopes to tackle some of the problems regulators will face if blockchain technology is widely adopted.   Noting, in kinder words, that the nascent technology was once thought of as being something particular to anarchist kooks, the regulator said that the growing adoption of blockchain means it has to deal with it.

CFPB Sues Credit Repair Firms Over Upfront Fees

The CFPB filed a complaint against PGX Holdings Inc. and subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC and CreditRepair.com Inc.; and against John C. Heath, Attorney at Law PLLC, who does business as Lexington Law. The lawsuit was filed in Utah and alleges “the defendants violated the Telemarketing Sales Rule (TSR) by requesting and receiving payment of prohibited upfront fees for their credit repair services.” The rule states that companies can only charge fees for telemarketed credit repair help after they’ve given customers documentation that shows the promised results have been achieved.

Consumer Financial Protection Bureau Files Suit Against Lexington Law, PGX Holdings, and Related Entities

The Consumer Financial Protection Bureau (Bureau) today filed a complaint against PGX Holdings Inc. and subsidiaries Progrexion Marketing Inc., Progrexion Teleservices Inc., eFolks LLC, and CreditRepair.com Inc.; and against John C. Heath, Attorney at Law PLLC, which does business as Lexington Law.

Consumer Financial Protection Bureau Proposes Changes to HMDA Rules

The Consumer Financial Protection Bureau (Bureau) today issued a Notice of Proposed Rulemaking (NPRM), which proposes to raise the coverage thresholds for collecting and reporting data about closed-end mortgage loans and open-end lines of credit under the Home Mortgage Disclosure Act (HMDA) rules. The NPRM would provide relief to smaller lenders from HMDA’s data reporting requirements, and would clarify partial exemptions from certain HMDA requirements that Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The Bureau today also issued an Advance Notice of Proposed Rulemaking (ANPR) seeking information on the costs and benefits of reporting certain data points under HMDA.

Coming Together of Traditional Lenders and Fintech Players, Creating Better Opportunities

The banking and the lending segment have been under the constant current of reformation and innovation, lately. Thanks to the technological revolution over the years, the fintech ecosystem in India has caught up fast with its global peers in terms of adoption and is expected to reach USD 2.4 billion by 2020. Fintech firms are undoubtedly having a moment.Given the significant interest in fintech globally, and its ongoing evolution - the word “fintech” is now officially in the Oxford dictionary. Fintech driven alternative lending is the second most funded and one of the fastest growing segments in the Indian fintech space. At last count, there were over 20 plus digital, alternative lending companies, each with their version of the truth, and probably another twenty in the stealth mode.

Bank short-term credit options explored

The Consumer Bankers Association (CBA) is touting the potential of financial institutions to aid Americans in need of emergency funds. “Millions of Americans live paycheck to paycheck, leaving consumers with less cushion for emergencies, strained credit scores, and fewer credit option,” CBA president and CEO Richard Hunt wrote in correspondence to House Financial Services Consumer Protection and Financial Institutions Subcommittee Chair Gregory Meeks (D-NY) and Ranking Member Blaine Luetkemeyer (R-MO). “The need for access to affordable, short-term liquidity products has become more important than ever. CBA is encouraged by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation’s recent actions related to DAP and the CFPB’s decision to revise the small dollar rule as these actions will help to foster a vibrant small-dollar loan market for consumers in need.”

Tell Us What You Know About the Consumer Financial Protection Bureau. We’re Investigating.

The Consumer Financial Protection Bureau was created by Congress in the aftermath of the financial crisis to police companies and protect people from unfair, deceptive or abusive practices. Since the start of the Trump administration, there has been a slowdown in enforcement actions and efforts to roll back regulations. It has also gone through three different leaders. “Trump, Inc.,” a joint investigation by ProPublica and WNYC, wants to understand whether the CFPB is still enforcing federal consumer financial laws and holding companies accountable.

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. 

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.

CUs continue to be responsible credit card lenders during growth

Despite credit union’s continued growth in the credit card market, credit unions remain responsible credit card providers, CUNA wrote to the Consumer Financial Protection Bureau Wednesday. The CFPB seeks input on several aspects of the consumer credit card market, the fourth such review as required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009.

STILL TIME TO REGISTER FOR THE COLLECTION AND RECOVERY SOLUTIONS IS MAY 8TH – 10TH AT THE FOUR SEASONS IN LAS VEGAS

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 8^th – 10^th 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 crs@resourcemanagement.com.  Or, for more information, see www.crs2019.com

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.

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.

ACTING DFS SUPERINTENDENT LACEWELL ANNOUNCES APPOINTMENT OF KATHERINE LEMIRE AS EXECUTIVE DEPUTY SUPERINTENDENT OF NEWLY CREATED CONSUMER PROTECTION & ENFORCEMENT DIVISION

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.

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.

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.

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.

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:

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.

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.

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.

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.”

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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