At a glanceFriday, July 19, 2019

Collection Industry News At A Glance - July 19, 2019
Friday July 19, 2019
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CFPB Report: One In Four Consumers Have Debt In Collections

The Consumer Financial Protection Bureau said in a report that a bit more than one in four —  to be specific, 28 percent — of consumers have had at least one debt in collections. The report, released Thursday (July 18), examined collections tradelines — information about a consumer account sent to a credit reporting company, generally on a regular basis — from 2004 to 2018.  The data spanned debt buyer tradelines, representing debt bought from creditors that has been charged off by creditors and non-buyer tradelines, which attempt to collect on behalf of the original creditor. The percentage of consumers sampled with third party collections never went below 27 percent or above 34 percent. Peak levels — and levels of 33 percent and above — occurred after the financial crisis into 2013.

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Bank of America CEO on the importance of digital banking: ‘The numbers are just rolling’

Digital banking is a key strategy to appeal to millennial consumers, Bank of America CEO Brian Moynihan told CNBC on Thursday. He estimates the bank serves 16 million millennial customers, ranging between the ages of 25 and 41, who have about $200 billion worth of deposits, investments and loans with the bank. “They have, you know, $60-70 billion of checking deposit ... and then Gen Z adds another chunk on top of that,” Moynihan said in a one-on-one with “Mad Money’s” Jim Cramer. “As a millennial-only bank, it would be one of the biggest banks in the country.”

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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 today, 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

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CCPA Creates Possible Dilemmas for Companies Sending Text Messages. Is Your Business Ready?

Don’t wait to implement your California Consumer Privacy Act (CCPA) compliance as it could require changes to your operations. CCPA can apply to businesses even if they do not have offices or employees in California. It can also reach activities conducted outside of California.  With the impending implementation of the CCPA, brands and platforms that use text messages to contact consumers (could be customers, employees, others) must be sure their texting programs comply with the CCPA.

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Kathleen L. Kraninger’s Speech at the Exchequer Club

Thank you for that introduction, and thanks for having me. I’m delighted to be here to spend time with such a distinguished group of experts and leaders in financial and economic policy.   As you heard from the introduction, I’ve been in public service now going on 20 years working in both the Congress and the Executive Branch. I’m honored to be able to carry this forward at the Consumer Financial Protection Bureau. And, I can tell you, I hit the ground running. 

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Consumer Financial Protection Bureau Releases Report on Third-Party Debt Collections

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) released a report today that found that more than one-in-four consumers with a credit report have at least one debt in collection by third-party debt collectors.   Today’s report, which covers 2004 to 2018, is drawn from the Bureau’s Consumer Credit Panel (CCP), a nationally representative sample of approximately 5 million de-identified credit records maintained by one of the three nationwide credit reporting companies. Close to 900 third-party debt collectors furnished collection tradelines in the CCP. A tradeline is information about a consumer account that is sent, generally on a regular basis, to a credit reporting company. Tradelines contain data such as account balance, payment history, and status of the account.

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If cracks are forming in the US economy, banks didn’t get the memo

New York (CNN Business)If a recession is brewing in the United States economy, it will come as a surprise to the nation's largest banks.   Big banks are hauling in fat profits, driven not by the ebbs and flows of fickle financial markets, but by strength in the real economy. Specifically, they're cashing in on steady growth in spending and borrowing from American households — the main driver of the US economy.

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House panel advances anti-robocall bill

A House panel on Wednesday voted to advance legislation aimed at protecting U.S. consumers from the billions of illegal robocalls made every year.   The Stopping Bad Robocalls Act had accrued 152 co-sponsors and passed the House Energy and Commerce Committee, 49-0.

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These are the biggest complaints about debt collectors

A strong federal law, the Fair Debt Collection Practices Act, protects consumers against certain unfair collection practices. It applies only to outside, or third-party debt collectors (not creditors collecting their own debts) and only for personal (not business) debts. State laws may provide additional protection. In its 2018 annual report to Congress about debt collection complaints, the Consumer Financial Protection Bureau described collection complaints received by the Federal Trade Commission. In 2018, the FTC received 84,500 complaints about debt collectors — down from 88,000 in 2017. A complaint does not mean a law has been broken, and some complaints may be the result of overseas debt collection scammers who harass consumers.

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CFPB Advisory Offers Steps for Financial Institutions to Protect Seniors

The Consumer Financial Protection Bureau (CFPB) has issued an update to a 2016 advisory to financial institutions, which included a series of best practices designed to assist those institutions in protecting seniors who hold certain accounts with them. In this update of the previous advisory, the CFPB encourages banks and credit unions to report to the most appropriate local, state or federal authorities whenever they suspect that an American senior is that target of elder financial exploitation (EFE). “The updated advisory focuses on reporting suspected financial abuse,” the CFPB says in its announcement of the advisory update. “It builds on the Bureau’s earlier recommendations and its recent research on Suspicious Activity Reports (SARs) on EFE.”

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Consumer Financial Protection Bureau Recommends Financial Institutions Report Suspected Financial Exploitation of Older Adults

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued an updated advisory to financial institutions urging them to report to the appropriate local, state and federal authorities whenever they suspect that an older adult is the target or victim of financial exploitation. The Bureau also recommended that financial institutions file Suspicious Activity Reports (SARs) with the federal government when they suspect elder financial exploitation (EFE). Today’s updated advisory builds on the Bureau’s earlier recommendations and its recent research on elder financial abuse. It contains voluntary best practices to help financial institutions prevent and respond to EFE.

FinCEN: Business email scams stole $300M a month in 2018

The Financial Crimes Enforcement Network (FinCEN) highlighted new efforts to combat business email compromise (BEC) scams – one of the most prevalent types of cyberfraud – at a FinCEN Exchange forum Tuesday. Suspicious activity reports (SARs) indicate that BEC scams led to more than $300 million stolen a month in 2018, more than three times what was reported in 2016.

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RMAI Releases New Infographic Demonstrating High Compliance Level of RMAI Certified Businesses.

July 16, 2019 (Sacramento, CA): Today, Receivables Management Association International (RMAI) announced the release of a new infographic demonstrating the low number of complaints filed against Receivables Management Certification Program (RMCP) certified businesses. When looking at the number of accounts RMAI certified businesses collect on, only a small percentage of those accounts receive complaints on the Consumer Financial Protection Bureau’s (CFPB) Consumer Response Portal. It was found that 1 out of 5,000 accounts in collections receive complaints.

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Illinois’ Attorney General Wants to Know About Data Breaches

Possibly adding to the list of states that have updated their privacy and breach notification laws this year, the Illinois legislature passed Senate Bill 1624 which would update the state’s current breach notification law to require most “data collectors,” which includes entities that, for any purpose, handle, collect, disseminate, or otherwise deal with nonpublic personal information, to notify the State’s Attorney General of certain data breaches. The state’s current statute already requires notification of a data breach to the Attorney Generals’ office, but only in the event of data breach affecting state agencies, and only if those breaches affect more than 250 Illinois residents.

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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

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OIG report looks at CFPB internal sharing of complaint data

The Office of Inspector General for the CFPB (and the Fed) recently issued a report on its evaluation of the Office of Consumer Response’s sharing of complaint data within the CFPB. As background, the report describes the tools available to Bureau users of complaint data (complaint-sharing tools) to search such data, identify issues, and summarize data, and also describes Consumer Response’s process for approving access to these tools. Based on its analysis of 2017 data, the OIG found that Supervision, Enforcement, and Fair Lending (SEFL) accounted for the largest portion of complaint-sharing tool users and tool activity, consisting of searches and requests for internal complaint reports.

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House Democrats draft bill to keep big tech out of financial services

As Congress gears up to question Facebook about its cryptocurrency project, House Democratic lawmakers are working on a bill that could ban it.   The draft legislation aims to keep big tech companies out of the financial services industry. The discussion draft is a starting point for potential legislation and lawmakers will likely make changes as they continue examining the issue.

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Report: 2/3 of credit cards carry revolving balance

A new report from the CFPB revealed that two-thirds of actively used credit card accounts don't pay off the full balance at the end of the billing cycle. Those accounts that carry a revolving balance do so continuously for 10 months on average; 15 percent revolve continuously for two years or more.

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Former Wells Fargo CEO: ‘This is the time’ for bank acquisitions

The depressed valuations for banks and other financial firms mean “this is the time” for acquisitions and mergers in the industry, a former CEO of Wells Fargo said Monday.   “Anytime you have high regulations in any industry, you get concentration, and banks are cheap,” Richard Kovacevich said on CNBC’s “Closing Bell. ” “So if you’re going to acquire, this is the time to acquire financial institutions.”

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CFPB should conduct ‘regular, robust’ reviews of regs

CUNA supports the Consumer Financial Protection Bureau (CFPB) conducting regular, robust reviews of its regulations with an eye toward reducing burden, it wrote to the CFPB Monday in response to the agency’s review plan as required by the Regulatory Flexibility Act. The act requires agencies to conduct a review of a rule ten years after final action, focusing on the rule’s economic impact on small entities. According to the CFPB’s plan, it intends to initiate its review approximately one year before the 10-year deadline, and although not required by statute, the CFPB will also solicit feedback from stakeholders via public comment on the rule under review.

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BankThink State regulators are critical to fintech oversight

Fintech regulation is getting a lot of scrutiny lately, especially as large, well-known entities want to enter the emerging industry. Just a couple of weeks ago, I testified before a House Financial Services Committee task force as chair of the Conference of State Bank Supervisors (CSBS) committee to discuss the role of state regulators in fintech oversight. While Congress and others may know how we supervise the 79% of the nation’s banks which are state-chartered, there have been a lot of questions about how we license and enforce compliance for fintech companies. That is because the current intersection between financial services and technology has accelerated change in the industry.

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FCC commissioner blasts carriers for failure to fight robocalls

Carriers have been slow to address the growing robocall problem, but the Federal Communications Commission may be about to force their hand. In a letter to fourteen US carriers, FCC Commissioner Geoffrey Starks today called out the confusing and often ineffective options available to consumers for fighting automated spam calls, and threatened regulatory action if the carriers do not improve. “Despite historically clamoring for new tools, it does not appear that all providers have acted with haste to deploy opt-out robocall blocking services,” Starks told the carriers. “The Commission spoke clearly: we expect opt-out call blocking services to be offered to consumers for free. Reviewing the substance of these responses, by and large, carriers’ plans for these services are far from clear.”

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Petitions for payday loan cap, minimum wage hike, tobacco tax meet deadline to get on ballot

This article first appeared in the St. Louis Beacon, May 6, 2012 - Activists involved in two initiative-petition drives – to cap payday loan rates and to increase Missouri’s minimum wage – submitted more than 350,000 signatures to the secretary of state’s office shortly before Sunday’s 5 p.m. deadline. The two groups were “Missourians for Responsible Lending” and “Give Missourians a Raise,” which had similar coalitions of community groups, religious leaders and some unions. Each proposal needs certified signatures from 91,818 to 99,600 registered voters to get on the November ballot. The signatures must include a required minimum from at least six of the state’s nine congressional districts, with the exact overall number needed depending on which six were chosen.

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Opportunity for organizations that serve economically vulnerable populations to receive support

For the past five years, the Bureau’s Office of Community Affairs has supported organizations committed to helping people manage their money and work toward their goals using a suite of financial empowerment tools called Your Money, Your Goals. If your organization serves economically vulnerable populations and you are interested in gaining more intensive support, such as training and technical assistance for your consumer financial empowerment efforts, you can apply for the Your Money, Your Goals 2020 cohort.

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DCS2019 Session: Where Technology Meets Collections

No, it’s not all about an Alien species.  DCS2019 highlights some of the best educational sessions available.  On Thursday, September 12th, hear from technology and operational experts on topics such as: Understanding the role of AI and machine learning in your organization, Key elements in implementing AI in the collection process, key risks with technology, leveraging new technologies, innovations in identity intelligence, optimizing right party contacts and decreasing operational costs!  Joining our panel to start are: Dan Fox, SmartAction, Abhishek Goel, Dasceq, Matthew Wolk, Neustar, Gregory Allen, Pairity and more to be announced!  Mark your calendars and don’t miss this special session at Debt Connection Symposium & Expo, to be held September 10th – 12th at the Red Rock in Las Vegas.  Still time to register at the Early Bird Pricing, check it out at


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TSI (Transworld Systems Inc.)

(917) 838-7681


Industry Events

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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