FTC Stops Student Loan Debt Relief Scheme that Allegedly Bilked Consumers out of Millions

The Federal Trade Commission obtained a temporary restraining order halting an operation that bilked consumers out of millions of dollars by pretending to be affiliated with the U.S. Department of Education and falsely promising student loan debt relief.   The FTC’s complaint against Arete Financial Group and several related companies alleged that the defendants used radio and television ads, as well as online ads and telemarketing calls in which they pretended to be affiliated with the Department of Education, to promise to enroll consumers in student loan forgiveness, consolidation, and repayment programs to reduce or eliminate their monthly payments and principal balances.

AG Healey Secures $4 Million from National Debt Buyer to Pay Back Consumers Harmed by Abusive Debt Collection Practices

BOSTON — One of the largest debt collection companies in the country has agreed to a $4 million settlement that will be used to pay back thousands of consumers who were subject to the company’s deceptive and unfair debt collection practices.    The assurance of discontinuance filed in Suffolk Superior Court alleges that Portfolio Recovery Associates LLC (Portfolio) – a Virginia-based company that purchases defaulted loans, credit card accounts, car loans and other debts from creditors at a deep discount –  aggressively collected the full value of those debts from consumers using a network of in-house collectors that pursued consumers with repeated letters and phone calls, and used law firms to take financially destitute consumers to court. As a result of the AG’s settlement, the company has agreed to stop collecting certain debts and significantly change its business practices.

Efforts to eliminate robocalls focus of NAFCU, FCC meeting

NAFCU met with FCC Commissioner Michael O'Rielly Tuesday to discuss ongoing efforts to eliminate illegal robocalls and to implement the new caller identification framework known as SHAKEN/STIR. NAFCU has actively worked with the FCC on efforts to modernize the Telephone Consumer Protection Act (TCPA) for more than three years, and will continue to work to ensure credit unions can contact their members regarding important, time-sensitive information, without fear of frivolous litigation.

3rd Cir. Holds Failure to Turn Over Collateral Repossessed Prior to Bankruptcy Does Not Violate Automatic Stay

The U.S. Court of Appeals for the Third Circuit recently held, in a case of first impression in that circuit, that a secured creditor’s failure to turn over collateral repossessed prior to the filing of the bankruptcy petition does not violate the automatic stay.

Murphy Takes First Key Step Toward Establishing a ‘Public Bank’

Gov. Phil Murphy is planning to sign an executive order Wednesday that will create a 14-member “implementation board” to advance his goal of establishing a public bank in New Jersey. The basic premise of such an institution is to hold the millions of dollars in taxpayer deposits that are normally kept in commercial banks and leverage them instead to serve some sort of public purpose.

11 States Join Supreme Court Challenge to CFPB’s Core Structure

A coalition of 11 state attorneys general have joined a complaint challenging the core structure of the Consumer Financial Protection Bureau (CFPB), arguing that its leadership structure is unconstitutional. This is according to a brief filed with the United States Supreme Court which was obtained by RMD.

When third-party service providers are party to sensitive data

Entrepreneurs wear a lot of hats. In addition to marketing their products, they’re responsible for operational functions like inventory, ordering, and the protection of customer data. Rather than managing all that millinery, some businesses turn to third-party service providers to run things behind the scenes. But what steps are those companies taking to secure the confidential consumer information in their possession? That’s one issue raised by the FTC’s proposed settlement with Utah-based InfoTrax Systems.

Goldman Sachs will reevaluate Apple Card credit limits after bias allegations

Goldman Sachs denied allegations of gender bias and said on Monday that it will reevaluate credit limits for Apple Card users on a case-by-case basis for customers who received lower credit lines than expected.

ALS RESOLVION AND DEL MAR RECOVERY SOLUTIONS ANNOUNCE MERGER

November 11, 2019 – ALS Resolvion and Del Mar Recovery Solutions today announced the completion of a definitive merger agreement.  The combined company will operate under the name Resolvion and will create one of the largest and most efficient repossession management companies in the industry:

Despite strong economy, two-thirds of adults fear a recession could come next year, according to Invest In You survey

Whether a recession is on the horizon or not is anyone’s guess. However, according to the latest CNBC Invest in You survey, two-thirds of respondents think one is coming. Especially if they’re Democrats or younger people. With just one year out to the next presidential election, CNBC Invest in You and Survey Monkey polled 2,776 adults about the state of their finances, opinions about candidates and how they might affect the economy. The survey, with a margin of error of plus or minus 3 percentage points, was conducted Oct. 20 through Oct. 25.

Bank M&A in 2019: Pace up, premiums down

There were more bank M&A announcements through the first 10 months of this year compared with the same period in 2018, but excluding the largest merger agreement of the year — BB&T-SunTrust — deal values and multiples are shrinking. Banks announced 231 deals through Nov. 1, a 4% increase from a year earlier, according to data compiled by Compass Point, Keefe, Bruyette & Woods and S&P Global Market Intelligence. A flurry of activity in September and October contributed to the increase.

Mobile banking finds its ‘half’ life

Two facets of mobile payment adoption have reached an inflection point, according to separate studies released in successive weeks. Consumers have used their smartphones for 61% of all online transactions so far in 2019, according to a report released this week by iovation, a subsidiary of credit reporting agency TransUnion. That figure surpassed 50% for the first time last year, and is up from 28% in 2014, the report indicated.

Faced With Federal Lawsuit, Education Secretary DeVos Erases Student Loans for 1,500

Facing a federal lawsuit and mounting criticism, Education Secretary Betsy DeVos on Friday said she will forgive loans for more than 1,500 borrowers who attended a pair of for-profit colleges that shut down last year.

PayThink FedNow will have a hard time stopping fraud

The way in which we process payments here in the U.S. market has undergone significant change over the years. That said, the Automated Clearinghouse (ACH) process itself has remained fairly static, at least up until now. That’s all set to change, with the Federal Reserve’s recent announcement of its FedNow service.

PayThink Congress needs to hurry up on data protection

As big data, artificial intelligence and machine learning increasingly shape everyday lives, Congress will have some important policy choices to make, weighing how to sustain economic growth while balancing individual rights and corporate responsibility.   Suffusing this debate is the uncomfortable reality that, for all practical purposes, the world’s understanding of oneself will be more so based on a digital alter ego: a virtual persona, created and defined by data-driven analytics.

THESE ARE THE FINTECH TRENDS TO WATCH, ACCORDING TO 13 EXPERTS

From cryptocurrency to AI technology, it’s an exciting time to be in the fintech space. Like last night’s football game, the latest fintech trends not only make good water cooler chatter, but they also dictate how companies across dozens of industries do business. Not to mention, they could change how consumers like you and me do everything from manage our paycheck to pay back student loans.

Student Loan System Presents Repayment Challenges

As of March 2019, 43 million Americans held student loans provided through federal government programs, the largest segment of the education loan market. But this system is under pressure as more borrowers struggle to repay, a problem compounded by the complexity of the repayment process. The U.S. Department of Education reports that about 20 percent of borrowers are in default—typically defined as having gone at least 270 days without a payment—millions more are behind on their payments, and more than a million loans go into default each year.¹

Veterans: Make cybersecurity your business

As Veterans Day reminds us, no one knows better than members of the military why it’s critical to maintain a vigilant defense. The more than 2.5 million veterans who own small businesses can apply that principle at their companies, too. Hackers are looking to exploit weaknesses in data perimeters, and business owners can’t afford to lose time, money, and customer goodwill to a compromised network. Knowing some cybersecurity basics and putting them in practice will help you protect sensitive employee and consumer information and reduce the risk of a cyber attack. That’s why the FTC developed resources – with the National Institute of Standards and Technology, the Small Business Administration, and the Department of Homeland Security – to help your business stay secure online.

CFPB’s Kraninger Catching Flak – and Hitting Her Targets

An anonymous World War II bomber pilot may be the source of the saying, “If you’re not catching flak, you’re not hitting your target.” But today, the saying often means if a person in a high-profile job is not attracting criticism, that person is not making much of a difference.   If there’s one government official this saying applies to in a positive way, it is Kathy Kraninger. Appointed by President Trump and confirmed last December as director of the Consumer Financial Protection Bureau, Kraninger has caught much flak from statist progressives as she has hit her targets by rolling back excessive regulation.

CECL Has Been Delayed for Most Lenders

EXCERPT: The CECL standard has now been delayed for all but SEC reporting banks according to a new FASB vote, which will have a major impact on mid-sized and large banks but will be delayed until 2023 for others.

A Ban On High-Cost Loans May Be Coming

A few years ago, money was very tight for Chasity Wohlford. The Houston resident, who was working a low-wage job, needed to fly to Colorado for a family emergency. She says a friend told her, "Oh, just go to this payday lender. It's super easy." But Wohlford ended up over her head in debt after taking out that loan. The U.S. military realized some years ago that a lot of service members were getting into serious trouble with payday and other loans with annual interest rates of 300% or higher. In 2006, President George W. Bush signed into law a measure that caps interest rates to protect active duty troops. Now, some members of Congress want to expand those safeguards to cover all Americans.

Equifax Enters Into Credit Bureau-Exclusive Relationship With Envestnet⼁Yodlee To Further Extend Alternative Data Leadership

ATLANTA and REDWOOD CITY, Calif., Nov. 7, 2019 /PRNewswire/ -- Equifax Inc. (NYSE: EFX) and Envestnet | Yodlee (NYSE: ENV) today announced a credit bureau-exclusive partnership that enables individuals to share real-time bank account information like balances, deposits and withdrawals to create a more robust personal financial picture. This relationship is an extension of Equifax leadership in alternative data, building on core data assets, recent acquisitions and the utility data partnership announced with Urjanet in September. Access to consumer-permissioned banking information from Envestnet | Yodlee further expands Equifax alternative data assets and empowers people to enhance their credit data as they establish themselves as strong candidates for loans and other services.

CFPB Financial Well-being Research Conference November 13, 2019

Join us on this one-day conference that will bring together researchers, practitioners, and policymakers to discuss the latest research on financial well-being using the Bureau’s Financial Well-being Scale.  

FTC Charges Nevada Company with Falsely Claiming Participation in the EU-U.S. Privacy Shield

The Federal Trade Commission sued a Nevada data storage services company over allegations that it misled consumers about its participation in the EU-U.S. Privacy Shield framework and failed to adhere to the program’s requirements before allowing its certification to lapse.   The EU-U.S. Privacy Shield framework establishes a process to allow companies to transfer consumer data from European Union countries to the United States in compliance with EU law. The Department of Commerce administers the framework, while the FTC enforces the promises companies make when joining the program.

Kraninger Signals Caution on Controversial Small Business Lending Policy

Consumer Financial Protection Bureau Director Kathy Kraninger has signaled a cautious approach in her plan to implement a controversial piece of Dodd-Frank, which requires the agency to collect data on minority- and women-owned small business lending. The CFPB has, so far, delayed Section 1071 of the Dodd-Frank Act, frustrating consumer advocates who say the data is critical to studying unequal access to funds. A symposium on the topic hosted by the CFPB on Wednesday is a sign that the bureau intends to move forward on the issue. 

SEQUIUM ASSET SOLUTIONS APPOINTS MANNY PLASENCIA AS VICE PRESIDENT OF OPERATIONS

November 6th, 2019, Marietta, GA- Manny Plasencia has joined Sequium Asset Solutions, LLC as the Vice President of Operations for the Financial Services vertical.  Manny has more than 20 years of industry experience in operations and a proven track record of superior metric-driven performance in various Financial Services, Customer Experience and BPO verticals.  He is an expert in building advanced strategies, and an outstanding team leader who excels in Collections, Customer Service/Engagement, and providing an excellent consumer experience.

Research Reveals $4.9 Billion Total Annual U.S. Economic Impact and 28,000 American Jobs from Debt Settlement Industry – With Potential for an Additional $1.4 Billion Economic Impact and $422 Million in Consumer Savings

WASHINGTON--(BUSINESS WIRE)--The American Fair Credit Council (AFCC), the national trade association representing the debt settlement industry, today released the findings from a first-of-its-kind analysis describing the industry’s national economic impact. The study, conducted by John Dunham & Associates, found that debt settlement services contributed a total economic impact of $4.9 billion to the U.S. economy in 2018.

Google’s Newest Ad Policy Restricts Debt Services Ads & Bans Credit Repair Ads

Advertising for financial services is tough. The industry has some of the most expensive keywords on Google Ads (hitting nearly $50 per click). Even more, it has higher CPCs and CPAs than almost any other industry on Google. Even beyond these costs, financers are becoming increasingly familiar with new regulations and policies in their industry from all sides—and Google is no stranger to this, either. Last week, Google announced an update to these restrictions. Starting in November, that it will no longer serve ads for credit repair services. At the same time, advertisers who wish to serve ads for debt settlement or debt management services will need to be certified by Google, as well as the governing bodies of where they look to serve ads.

CFPB symposium addresses small biz lending concerns

Concerns about regulatory burdens added to both small businesses and the financial institutions that lend to them were discussed Wednesday at the CFPB symposium focused on Section 1071 of the Dodd-Frank Act, which requires the bureau to collect data related to small business lending. Bureau Director Kathy Kraninger acknowledged these concerns while emphasizing the need to better understand small business lending.

Director Kraninger’s Speech at CFPB Symposium on Section 1071 of the Dodd-Frank Act

Good morning. I am excited to welcome everyone to today’s symposium on Section 1071 of the Dodd-Frank Act. I would like to thank all of our panelists for participating today and our moderators, Grady and Elena. Through our symposia series we have convened experts in a variety of different fields to tackle legal and policy issues facing the Bureau.   Today, we are focused on Section 1071, which requires financial institutions to collect, report, and make public certain information concerning credit applications made by women-owned, minority-owned, and small businesses. 

$ ,900,059.89 Other

Bayview Solutions LLC

(866) 546-9088

ConServe

(866) 761-0700

Judgment Acquisitions Unlimited

(508) 857-4410

PaymentVision

(800) 345-7243

Williams & Fudge, Inc.

(800) 849-9791

Windham Professionals

(877) 682-4843

Interactions

(866) 637-9049

TCN

(866) 745-1900

NPC Inc.

(814) 239-8787

PayNearMe

(650) 930-1020

Convoke, Inc.

(877) 887-7922

FTC and CFPB to Host December Workshop on Accuracy in Consumer Reporting

FTC and CFPB

2019 CFPB Research Conference

CFPB

RMAi Annual Conference

AFCC Spring Conference – 2020

Collection and Recovery Solutions 2020

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

Debt Connection Symposium & Expo 2020

Resource Management Services, Inc.