At a glanceWednesday, October 23, 2019

Collection Industry News At A Glance - October 23, 2019
Wednesday October 23, 2019
Mid Week Newsletter:
Subscribe for Free - More Information - Advertising


New York Court of Appeals May Settle Statute of Limitations Issues Related to Mortgage Foreclosures

For several years now, New York courts have grappled with the issue of what constitutes revocation of the acceleration of mortgage debt. Because the Appellate Division of New York has four Departments that preside over different counties within the state, the same set of facts has resulted in different outcomes. That may change, however, when the New York Court of Appeals reviews the Second Department’s decision in Freedom Mtge. Corp. v. Engel, 63 A.D.3d 631 (2d Dept. 2018).

Read More
Court rules against OCC in fintech charter challenge

The U.S. District Court for the Southern District of New York ruled against the Office of the Comptroller of the Currency (OCC) in a dispute over the legality of the regulator's fintech charter. The court determined that the OCC is prohibited by the National Bank Act from offering a specialized bank charter to a company that doesn't accept deposits.

Read More
FTC Report to Congress Details Fraud Reports from Older Consumers

A new report from the Federal Trade Commission shows that adults aged 60 and older are less likely to report losing money to fraud than younger adults, but the amount of money they report losing is on the rise.    
The report, Protecting Older Consumers 2018-2019: A Report of the Federal Trade Commission, outlines the FTC’s research, law enforcement, and education efforts aimed at protecting older consumers—a top priority for the agency.

Read More
CFPB to hold symposium on small biz data collection

The CFPB announced last week that it will host a symposium on Section 1071 of the Dodd-Frank Act, which requires the bureau to collect data on lending to small businesses. NAFCU has previously urged the bureau to exempt credit unions from rulemakings related to data collection and reporting on small business lending as the industry is subject to strict limits on member business lending and field of membership rules. Due to these restrictions, reported data may not achieve the statutory purpose.

Read More
OCC fintech charter suffers a blow in court ruling

Judge Victor Marrero, ruling in favor of the New York regulator, said the National Bank Act's "business of banking" clause "unambiguously requires that, absent a statutory provision to the contrary, only depository institutions are eligible to receive national bank charters from the OCC," according to American Banker. Marrero in May rejected the OCC’s motion to dismiss the lawsuit.

Read More
‘Absolute scam’: Complaints about credit monitoring plans flood CFPB

WASHINGTON — Before Alex Biviano was hired as a server by a popular restaurant chain, his prospective employer sought details about his credit. To provide the information, Biviano paid what he thought would be just a $1 fee to TransUnion to see his credit report. But the process ended up costing him a lot more, he says. Biviano alleges he was deceived into enrolling in TransUnion's $20-per-month credit monitoring plan. He is among over 100 consumers who recently have complained to the Consumer Financial Protection Bureau about being unwittingly enrolled in services offered by one of the three credit bureaus that they say they never wanted.

Read More
Where are US fintech’s next billion-dollar startups?

As fintech investments soar to new heights, investors are looking at the bottom and top levels of the services stack to find the next billion-dollar startups. That’s the word from seasoned investors like Andreessen Horowitz’s managing director, Angela Strange, who has invested in a number of successful financial services technology companies. For Strange and Chris Britt, co-founder and chief executive of financial services startup Chime Bank, the best opportunities are in customer-facing financial services and specific infrastructure opportunities that can support those businesses.

Read More
Utah’s payday lenders hit hard times — 25% of stores close in 3 years

Times are suddenly tough for Utah’s payday loan industry — which makes money on the tough times of others by charging astronomical interest rates to cash-strapped people with poor credit and few other options. A new state report shows, for example:

Read More
NWCUA auction raises nearly $872K for Credit Unions for Kids

Miracles happen when credit unions collaborate to raise money for Children’s Miracle Network (CMN) hospitals. So does magic.   There was no shortage of either when the Northwest Credit Union Association (NWCUA) hosted the Credit Unions for Kids Masquerade Auction during MAXX Convention in Spokane Oct. 16. The event raised nearly $872,000 for the eight CMN hospitals that treat patients in Idaho, Oregon, and Washington.

Read More
Supreme Court agrees to hear challenge to consumer agency

The Supreme Court on Friday agreed to hear a legal challenge to the structure of the Consumer Financial Protection Bureau (CFPB) in a major victory for critics of the powerful financial regulator.   The court on Friday announced it would take up the lawsuit Seila Law vs. CFPB. The case involves a law firm, Seila Law, that refused to comply with a CFPB request for documents. The firm challenged the agency's structure as unconstitutional, arguing that the bureau’s director enjoys an illegal amount of independence from the president’s executive branch authority

Read More
Robocalls nearly 75% of complaints for Do Not Call Registry violations

Robocalls made up nearly three-quarters of complaints from consumers about violations of the National Do Not Call Registry over the past year, the Federal Trade Commission announced Thursday. Calls from impostors jumped from the third-most complained-about topic in 2018 to No. 1 this year. The FTC on Thursday released its 2019 Do Not Call Registry Data Book, a listing of the most common complaints across the U.S. and in individual states from consumers who say they received calls despite being on the registry.

Read More
Bank lending slowed in third quarter, heightening recession fears

In another sign the U.S. economy may be headed for a recession, lending by the country's biggest banks slowed in the third quarter, according to financial information disclosed to investors this week. At JPMorgan Chase, the nation's largest bank by assets, loans outstanding sank $12 billion between July and September, compared to the prior quarter. That was a drop of a little over 1%. Lending had risen $644 million in the second quarter. 

Read More
Dimon says Libra ‘will never happen’

WASHINGTON — JPMorgan Chase CEO Jamie Dimon has added his name to the growing list of industry leaders and policymakers casting doubt on Facebook’s proposal to launch its own cryptocurrency. At a conference Friday, Dimon, who also heads the influential Business Roundtable, said he doesn’t think Facebook’s proposed Libra cryptocurrency will ever launch.

Read More
Retail Sales Slump Raises Questions About Consumer Spending

One of the laws of physics, loosely phrased, is that an object in motion stays in motion, on its path, until outside forces act to change that path.   The outside forces may be coming to bear on the engine that’s led the economy on an upward path — the U.S. consumer.   As reported Wednesday (Oct. 16), data from the U.S. Commerce Department showed retail sales in the country were down 30 basis points last month. The news was less than stellar on two fronts, namely that 1) economists had expected gains — to the tune of positive 30 basis points — and 2) the data represented the first drop in seven months.

Read More
Kraninger provides insights into innovation, rulemakings

CFPB Director Kathy Kraninger testified before the Senate Banking Committee Thursday and provided lawmakers with insights into the bureau's ongoing efforts related to consumer protection and education, innovation, and more.   Kraninger was providing the bureau's semi-annual report to Congress this week; she testified before the House Financial Services Committee Wednesday. Ahead of both hearings, NAFCU Vice President of Legislative Affairs shared with lawmakers NAFCU's support of CFPB efforts to target bad actors and encouraged more regulatory relief for credit unions.

Read More
Goldman CEO on how he’s turning the Wall Street powerhouse into a giant digital bank for consumers

Goldman Sachs CEO David Solomon said Thursday that the company is just starting to build out its consumer-facing digital banking offerings. “We’re building for the long term. I feel good about the progress that we’re making,” the Goldman chief said in an interview with CNBC’s Wilfred Frost. “I think we’re in the early stages of building a digital platform for consumers that gives them more information, more tools are their disposal.”

Read More
Senators Press CFPB To Dig Into Problems With Public Service Student Loan Program

Four U.S. senators told the head of the nation's top consumer protection agency Thursday that they want her to launch examinations into serious problems with a program designed to offer loan forgiveness to public service workers. An NPR story this week revealed that the Consumer Financial Protection Bureau attempted such examinations but was thwarted by the Trump administration's Department of Education.

Read More
Bill seeks to lower the cost of higher education

The House Committee on Education and Labor has introduced a measure designed to overhaul the higher education system by lowering the cost of college for students and families.   Lawmakers said the College Affordability Act would improve the quality of higher education through stronger accountability while expanding opportunities by providing students the support and flexibility needed for success.

Read More
Three New California Laws Will Impact Consumer Credit

Three new laws signed by California Gov. Gavin Newsom in recent days will impact consumer credit in the state by capping interest rates on payday and other consumer installment loans, giving automatic exemptions for bank account levies and removing exemptions for attorneys and mortgage loans from the Rosenthal Act.

Read More
CFPB’s Debt Collection, Payday Lending Rules Come Under Fire In Congressional Hearing

Payday lending practices again came under fire Wednesday (Oct. 16) from members of the U.S. Congress, as Kathy Kraninger, director of the Consumer Finance Protection Bureau (CFPB), faced lawmakers during their semi-annual review of the agency. The hearing, before the U.S. House Committee on Financial Services, came a few days after U.S. Rep. Ayanna Pressley of Massachusetts introduced new legislation that would require the CFPB to regulate the debt collection industry. During the Wednesday hearing, U.S. Rep. Maxine Waters of California blasted the agency and Kraninger over debt collection, along with payday lending rules.

Read More
Fed Beige Book reports ‘slight’ growth in some regions

The outlook: The U.S. economy seem to be slowing a bit, and only expanded at “a slight to modest pace” since early September, according to the latest Federal Reserve Beige Book. The report, basically a summary of anecdotes collected by the central bank from its business contacts across the country, suggested the economy was slightly weaker than in the summer. Business activity varied across the country, with Midwest and Great Plains report more downbeat than the southern and western regions. The early impact of the strike at General Motors GM, -0.70%  was seen as limited.

Read More
Written Testimony of Kathleen L. Kraninger, Director, Consumer Financial Protection Bureau, Before the Senate Committee on Banking, Housing, and Urban Affairs

Chairman Crapo, Ranking Member Brown, and distinguished Members of the Committee thank you for the opportunity to present the Consumer Financial Protection Bureau’s most recent Semi-Annual Report to Congress.    The Bureau presents these Semi-Annual Reports to Congress and the American people in fulfillment of its statutory responsibility and commitment to accountability and transparency.  The Bureau’s Spring 2019 (October 1, 2018, to March 31, 2019) Semi-Annual Report meets this mandate. My testimony is intended to highlight the contents of this Semi-Annual Report (Report).

Read More
FTC Releases FY 2019 National Do Not Call Registry Data Book

The Federal Trade Commission today issued the National Do Not Call Registry Data Book for Fiscal Year 2019. The FTC’s National Do Not Call (DNC) Registry lets consumers choose not to receive most legal telemarketing calls. The data show that the number of active registrations on the DNC Registry increased over the past year, while the total number of consumer complaints decreased for the second year in a row.

Read More
CFPB Private Education Loan Ombudsman Issues 2019 Annual Report

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) Private Education Loan Ombudsman issued today the 2019 Annual Report showing that from September 1, 2017 through August 31, 2019 the Bureau handled approximately 20,600 complaints related to private or federal student loans. Of these, there were approximately 6,700 private student loan complaints and 13,900 federal student loan complaints. The report also provides policymakers with a series of recommendations.

Read More
Ponzi Scheme Promoter Sentenced to 22 Years in Federal Prison for $396 Million Scheme—The Largest Ever Charged in Maryland

 Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Kevin B. Merrill, age 54, of Towson, Maryland, to 22 years in federal prison, followed by three years of supervised release, for conspiracy and wire fraud arising from a $396 million investment fraud scheme that operated from 2013 through September 2018, with an additional $260 million in attempted investments at the time of Merrill’s arrest.  Judge Bennett also ordered Merrill to pay restitution in the full amount of the victims’ losses, which will be determined later, but which is at least $189,166,116.  Judge Bennett will also enter an order of forfeiture, with the exact amount of forfeiture still to be determined.

Read More
RMAI Certified Members Applaud National Cybersecurity Awareness Month

October 16, 2019 (Sacramento, CA): Held every October, National Cybersecurity Awareness Month (NCSAM) is a collaborative effort between government and industry to raise awareness about the importance of cybersecurity and ensure all Americans have the resources they need to be safer and more secure online. This year’s overarching message – Own IT. Secure IT. Protect IT. – will focus on key areas, including citizen privacy, consumer devices, and ecommerce security.

Read More




Vest Solutions Asset Recovery

(760) 905-6635

   Debt Buyer 

Jabez llc

(409) 962-0088

Second chance approvals

(844) 927-6523


Industry Events

2019 CFPB Research Conference


December 12 - 13 , 2019
RMAi Annual Conference

February 04 - 06 , 2020

Questions about registration or sponsorship? Contact Sylvia Done at or 916-482-2462

Collection and Recovery Solutions 2020

Collection & Recovery Solutions - produced by Resource Management Services, Inc.

10440 Pioneer Blvd #2
Santa Fe Springs , CA
May 06 - 08 , 2020


Debt Connection Symposium & Expo 2020

Resource Management Services, Inc.

Red Rock Casino Resort & Spa
11011 W Charleston Blvd
Las Vegas, NV 89135

September 15 - 17 , 2020


More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
More information about RMN Networking
Advertise With us!