Kraninger Sets Tone for Vigorous Enforcement Agenda in Decisions on Five Petitions to Modify or Set Aside CFPB CIDs
Consumer advocates have heavily criticized Director Kraninger and former Acting Director Mick Mulvaney for taking a much less aggressive attitude towards enforcement than former Director Cordray. While there are fewer lawsuits and consent orders under the Kraninger/Mulvaney leadership than under the Cordray leadership, the CFPB’s enforcement activities are still quite robust as exemplified by the five decisions and orders issued by Director Kraninger on April 25 in which she, with minor changes, strictly enforced five separate CFPB civil investigative demands (CIDs). These decisions and orders largely flew under the radar until Jeff Ehrlich, CFPB Deputy Enforcement Director, mentioned them on May 20 in Chicago when he spoke at the PLI 24th Annual Consumer Financial Services Institute, which I co-chaired.
PayThink CRM and analytics change the game for collection payments
Like relief pitchers, collection executives are tasked with “saving” a situation that has gone bad—customers who haven’t paid their debts. While the collection department’s intended function is to retrieve money from customers who are late on their payments, banks that fully leverage this department beyond its initial goal will ultimately find their team performs better than those that don’t. Collection departments can strengthen relationships with customers, offer insights into customer behavior and payments and provide insight into broader market conditions.
REGISTER EARLY FOR THE DEBT CONNECTION SYMPOSIUM AND EXPO 2019 AND GET A DISCOUNT RATE!
Debt Connection Symposium and Expo 2019 will be held on September 10-12, 2019 at the Red Rock Hotel in Las Vegas, NV. There is an early bird rate of $1,295 that will end on July 19, 2019, on July 20, 2019 the rate goes up to $1,395. Register today to get that early bird rate! Registration is open to Industry Professionals, both Operational and Marketing, from Creditors, Debt Sellers, Collection Agencies, Collection Attorneys, Debt Buyers, Scoring & Analytics Vendors, Skip/Locate Vendors, Collection/Recovery Software and Hardware Vendors. This conference represents a solid opportunity for substantive interaction between clients and vendors, and a comfortable setting to discuss new opportunities. Click here to register today https://debtconnectionsymposium.com/registration.html
This Week Marked Low-Key Launch of the GSEs’ Single MBS
The long-awaited single mortgage-backed security from the GSEs Fannie Mae and Freddie Mac launched on Monday. The official start date for the single security was announced in mid-March. The single security will be issued via the Common Securitization Platform (CSP), a technology and operational platform operated by Common Securitization Solutions, a joint venture of the GSEs formed in 2014. The CSP will perform many of the core back office operations for the single security, as well as most of the GSEs' current securitization functions for single-family mortgages. The launch was decidedly anti-climactic. Under a ruling from the Securities Industry and Financial Markets Association (SIFMA) the GSEs had already begun delivering forward June UMBS trades with trade dates on or after March 12, 2019 and settlement dates on or after June 3, 2019.
10 associations oppose current FCC robocall proposal
On Thursday, the Federal Communications Commission will consider a proposal the chairman calls bold action to help consumers block unwanted robocalls but is being questioned by 10 different industry associations, including the American Financial Services Association. FCC chairman Ajit Pai has circulated a declaratory ruling that, if adopted, would allow phone companies to block unwanted calls to their customers by default. In addition, companies could allow consumers to block calls not on their own contact list. The accompanying draft and further notice of proposed rulemaking would propose a safe harbor for providers that implement network-wide blocking of calls that fail caller authentication under the SHAKEN/STIR framework once it is implemented.
Mortgage Closing Scams: How to protect yourself and your closing funds
Closing on a new home can be one of your most memorable life moments. It’s the final and one of the most critical stages in the home-buying journey, but with the exchange of key paperwork and a sizable down payment, it can also be a stressful experience, especially for first-time homebuyers. The FBI has reported that scammers are increasingly taking advantage of homebuyers during the closing process. Through a sophisticated phishing scam, they attempt to divert your closing costs and down payment into a fraudulent account by confirming or suggesting last-minute changes to your wiring instructions. In fact, reports of these attempts have risen 1,100 percent between 2015 and 2017, and in 2017 alone, there was an estimated loss of nearly $1 billion in real estate transaction costs.
Premera Reaches Proposed $74M Settlement Over 2014 Breach of 11M
- Premera Blue Crossreacheda proposed $74 million settlement with the 11 million patients impacted by its 2014 breach, caused by a sophisticated cyberattack that lasted for nearly one year before it was discovered. InJanuary 2015,Premera officials discovered the breach that began nearly a year earlier in May 2014. Premera, Premera Blue Cross Blue Shield of Alaska, and the insurer’s affiliates, Vivacity and Connexion Insurance Solutions were impacted, as well as patients who sought treatment in Alaska or Washington during that time perio
Fintechs vs. Traditional Banks: Who Has the Bigger Advantage?
Financial industry analysts often ridicule traditional banking providers as luddites and technological laggards. But are they really doomed to play the role of victim in their war with digital-first challenger banks and other fintech startups? Once an exotic alternative reserved for early adopters and adventurous Millennials, a growing array of fintechs are maturing to provide a serious challenge to established banks and credit unions.
NAFCU met at the CFPB Monday to discuss issues related to the Telephone Consumer Protection Act (TCPA). The association hasstressed the need for clarityunder the law to ensure credit unions can contact their members without fear of breaking the law. NAFCU Director of Regulatory Affairs Ann Kossachev and Regulatory Affairs Counsel Mahlet Makonnen attended the meeting at the bureau, which also included a coalition of other trades.
TRADE GROUPS RAISE CONCERNS ABOUT FCC ROBOCALL RULES
The FCC is voting this week on rules intended to curb robocalls, but associations in several industries warn that the new regulations could squelch legitimate calls, too. The Federal Communications Commission’s effort to take a more aggressive stance on robocalls has met with resistance from organizations in the financial, healthcare, and debt collection industries that say proposed new rules that would curtail automated nuisance or “spoof” calls might also prevent legitimate calls from reaching consumers.
Matthew Stauffer Promoted to Chief Financial Officer at Account Control Technology Holdings, Inc.
Account Control Technology Holdings, Inc. (ACT Holdings), a national leader in debt recovery and business process outsourcing solutions, is proud to announce the promotion of Matthew Stauffer to Chief Financial Officer (CFO). Stauffer’s career spans more than 25 years of comprehensive business and financial services experience, including the last 20 years in financial leadership positions within Convergent’s (an ACT Holdings company) healthcare division. He will report to the company’s CEO, Mike Meyer.
CFPB Updates TRID Rule FAQs to Address Construction Loans
The CFPB recently updated the TILA/RESPA Integrated Disclosure (TRID) rule FAQs to address construction loans. The guidance falls well short of what the industry is seeking from the CFPB. Because of the lack of guidance from the CFPB on how to disclose construction loans under the TRID rule, the industry asked Congress to intervene. As previously reported, the Economic Growth, Regulatory Relief, and Consumer Protection Act includes a provision that it is the sense of Congress that the CFPB should endeavor to provide clearer, authoritative guidance on the applicability of the TRID rule to construction-to-permanent loans, and the conditions under which such loans can be properly originated.
Greg R. Lawson: Ohio should settle with debt settlement services
COLUMBUS — Ohio continues to perpetuate the disturbing trend of allowing industry licensing boards to protect special interests from market competition. From the state cosmetology requirements that make hairdressers train for 10 times as long as emergency medical technicians to the latest special interest effort attacking debt settlement services for the so-called “unauthorized practice of law,” anti-market protectionism always comes at the consumer’s expense.
ABA and other trade groups today urged the Federal Communications Commission to seek feedback before moving forward on its proposal to allow telephone companies to block unwanted calls. The FCC’s draft declaratory ruling—which is expected to be voted on during the agency’s June 6 meeting—would permit voice service providers to enroll customers automatically in a call-blocking program that is “based on any reasonable analytics designed to identify unwanted calls.” The ability for customers to opt out of the program would be required. If adopted, the ruling would be effective immediately.
Lawmakers advance bill to create position for student loan guidance
A bill that would create the position of Student Loan Ombudsman within the treasurer’s office, passed unanimously through the Senate Government Affairs Committee late Thursday. While the original version of AB383 would have required student loan servicers to be licensed by the Commissioner of Financial Institutions, Democratic Assemblyman Howard Watts introduced an amendment that gutted much of the bill. “We’re removing the licensing and regulation of the servicers and really focusing on creating this ombudsman position, an advocate and an assistant for student borrowers in our state,” Watts said during an Assembly Committee on Ways and Means meeting on Saturday.
Quest Diagnostics says personal data of almost 12 million customers has been breached
Blood testing group Quest Diagnostics announced Monday that the personal information of 11.9 million patients has been breached, including Social Security numbers, financial information and medical data. The company said in a statement that an “unauthorized user” gained access to the American Medical Collection Agency (AMCA) system, a billing collection service provider for Quest.
B2B PAYMENTS: Marketplace Lending At The Crux Of Changing SMB Finance Tides
The 2008 financial crisis gave rise to the alternative lending market as a result of a massive gap in available capital, especially for small businesses and startups. The market’s creation was a spark that ignited a slew of disruptive changes for the small business financial services space. Alternative finance, for instance, also filled the need for small business borrowers to obtain a faster, digital way to access capital. It encouraged banks to develop their own digital lending solutions and collaborate with their one-time rivals to step up the borrowing experience for SMBs. The knock-on impacts of small business lending innovation continue to reverberate in the industry, with regulators now exploring small business borrower rights and protections, cybersecurity firms addressing data risks and the small business borrowers with more financing options than ever before. Alternative lending may have been a last resort for SMBs at one time, but today, more and more business owners areturning to AltFin first.
Auto lending is old-fashioned. Here’s how credit unions are remaking it
Auto loans are a bread-and-butter offering across the credit union landscape, but amid new technologies, changing consumer preferences and increased disruption, plenty of CUs are finding ways to make this product more exciting. Throughout the month of May, Credit Union Journal has reported on recent trends and developments across the auto lending space. Those stories are collected here. Read on for more.
BRIAN WINN OF WINN LAW GROUP WILL BE JOINING THE SKIP STRATEGIES & SOLUTIONS SESSIONS AT THE DEBT CONNECTION SYMPOSIUM AND EXPO 2019
The Debt Connection Symposium & Expo will be held September 10 – 12 at the Red Rock Hotel in Las Vegas, NV. TheSkip Strategies & Solutions Sessions is on the schedule for Tuesday, September 10th, from 8:00 a.m. to 12:30 p.m. Brian Winn will be doing a session, “Dormant Judgment Collections –Post Judgment Asset Water Falls – Tricks and Traps”. So, you’ve got the judgment, and now are just waiting for money to roll in? A good strategy and the appropriate use of available tools and resources can make a difference in maximizing collections on dormant judgments. Learn Tricks and Traps involved with using an Asset Waterfall for dormant judgments. Hear ideas for measuring success and calculating the ROI of your investment. Hear concepts to make sure that you don’t get trapped by some easy-to-make, but very expensive mistakes.
Ringleader of Student Loan Debt Relief Scheme Liable for $11 Million in Settlement of FTC Charges
The ringleader of a California-based student loan debt relief scheme has agreed to settle the Federal Trade Commission’s charges that he bilked $11 million from consumers who were trying to reduce their student loan monthly payments or get loan forgiveness. Under the modified court order, recidivist scammer Tuan Duong admits he violated the 2016 order and is now banned from the telemarketing industry.
Fed’s top Wall Street regulator says interest rates not best tool to stop financial panics
The Federal Reserve’s chief overseer of Wall Street says central banks should still focus on low inflation and stable employment when setting interest rates instead of trying to use monetary policy to head off potential threats to the financial system. Randal Quarles, a Fed board member and vice chairman of supervision,said Thursday that monetary policy is not ideally suited to help prevent a deterioration in the financial system, like the one that struck the U.S. and global economies in 2008.
Wall Street’s sheriff opens investigation of First American data breach
New York’s top financial watchdog, sometimes called “the sheriff of Wall Street,” has turned its attention to First American’s security breach that exposed millions of records to anyone with a web browser. The New York State Department of Financial Services sent a letter to First American on Tuesday asking for information about the security failure, including what steps are being taken to fix it and how many people in New York State were affected, according to The New York Times. First American blocked access to the application on Friday after cybersecurity expert Brian Krebs revealed the breach that exposed more than 885 million documents, many related to real estate transactions going back to 2003.
FTC Announces Agenda for the 14th and Final Session of Hearings on Competition and Consumer Protection in the 21st Century
The Federal Trade Commission announced theagenda for the 14th session of itsHearings Initiative. This session, at Creighton University in Omaha, Nebraska on June 12, 2019, will conclude the FTC’sHearings on Competition and Consumer Protection in the 21st Century. The morning session will include a series of roundtable discussions with State Attorneys General on consumer protection and antitrust enforcement and policy issues. Attorneys General Jeff Landry (Louisiana), Doug Peterson (Nebraska), Jason Ravnsborg (South Dakota), and Herbert Slatery III (Tennessee), and senior staff from the Attorney General Offices of Arizona, the District of Columbia, Iowa, Mississippi, New Jersey, Pennsylvania, Texas, Utah, Virginia, and Washington, will participate. Comments relating to the discussion with theState Attorneys Generalare due no later than 11:59pm on June 30, 2019 and should be submittedhere.
CUNA to FCC: Blocking Automatic Calls Threatens Credit Unions’ Ability to Contact Members
The Federal Communications Commission (FCC) will soon vote on a draft declaratory ruling that would give phone service providers the authority to block legal automatic calls. Credit Union National Association (CUNA) represents nearly 5,500 federal and state credit unions whose members need communication on a host of fronts. Messages are routinely provided to credit union members that contain critical alerts on governance, financial education, and legally-required informational calls. CUNA voiced significant concerns with the FCC’s order on the grounds that it is inconsistent with the requirements of the Telephone Consumer Protection Act (TCPA) and that it increases harm to callers with an established business relationship and those that have a consensual agreement from the consumer for telephone contact.
New report explores when consumers apply for credit cards as their credit scores change
Today the Consumer Financial Protection Bureau (Bureau) released the latest quarterly consumer credit trends report which explores the relationship between fluctuations in consumers’ credit scores and the timing of consumers’ applications for credit. The ability of consumers to access various types of credit can be affected by their credit scores, as many lenders require a minimum credit score before credit will be extended. Given the critical role that credit scores play in determining access to credit, there has been a push in recent years to make credit scores more available to consumers and to educate them on how their scores are used and calculated.
GAO report on private student loan rehabilitation programs calls on CFPB to provide clarification
A new report issued by the Government Accountability Office titled, “Private Student Loans: Clarification from CFPB Could Help Ensure More Consistent opportunities and Treatment for Borrowers,” calls on the CFPB to provide clarification to nonbank private student loan lenders regarding private student loan rehabilitation programs. The Economic Growth, Regulatory Relief, and Consumer Protection Act (Economic Growth Act) passed by Congress last year amended Section 623 of the Fair Credit Reporting Act to allow a “financial institution” to honor a consumer’s request to have a reported default regarding a private education loan removed from the consumer’s credit report without the information being considered inaccurate when the consumer successfully meets the terms of a private student loan rehabilitation program offered by the financial institution. The amendment also provides that if a financial institution is supervised by a federal banking agency, it must obtain the agency’s approval of the loan rehabilitation program.
California inches closer to unprecedented ‘Student Borrower Bill Of Rights’
Future student loan borrowers in the Golden State may be getting their own bill of rights. On Tuesday, the California assembly passed the “Student Borrower Bill of Rights,” or AB376, aimed at creating the first detailed set of rules protecting those holding student debt in the U.S. The legislation passed with an initial vote of 59 to 15 and now awaits passage through Senate committees and eventually a floor vote. Mike Pierce, Policy Director and Managing Counsel at the Student Borrower Protection Center (SBPC), which co-sponsored the bill with others, told Yahoo Finance that "the full Senate must pass the bill no later than September [13]" to make it to California Governor Gavin Newsom's desk for his final signature before the end of the year.
