While not as large as the U.S. both in number of people and number of credit card owners, the U.K. remains a very lucrative market for issuing banks and card networks, as well as a host of alternative financial service providers catering to younger, underserved consumers.
In 2017 there were just over 32.3 million adult credit card owners possessing a total of roughly 60 million cards or about two different cards per owner, according to theUK Cards Association(now rebranded UK Finance). Given that theOffice for National Statisticsreported that there were approximately 52.4 million adults 18 and over in the country in 2018, this gives the U.K. a credit card penetration rate of about 62%,
TCPA – Are You Willing To Bet The Company? Highlighted at CRS2020
David Kaminski and Manny Newburger take on the important topic of TCPA in 2020. Find out more about what should be done, and what can be done in this highlighted session at Collection and Recovery Solutions 2020 (CRS2020)
CRS2020 will be held May 6th - 8th at the Four Seasons in Las Vegas. This is a limited space, invitation-only event for senior level creditors in Collection and Recovery. For additional details, see
If you're interested in receiving an invitation, contact crs@resourcemanagement.com.
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Democrats on House Financial Services Committee Forward Letter to GAO Inquiring About Alternative Data and Access to Credit
Democrat members of the House Financial Services Committee have sent a letter to the Government Accountability Office (GAO) inquiring about the usage of alternative data by lenders and credit agencies. Congresswoman Maxine Waters (D-CA), Chairwoman of the Committee, Congressman Al Green (D-TX), Chair of the Subcommittee on Oversight and Investigations, Congressman Bill Foster (D-IL), Chair of the Task Force on Artificial Intelligence, Congressman Stephen Lynch (D-MA), Chair of the Task Force on Financial Technology, and Congressman Josh Gottheimer (D-NJ), each signed the letter.
Federal Reserve Giving Direct Access to Repo Lending?
What is a “repo”? This is a term for the practice of overnight lending between financial institutions that typically put up "safe" collateral such as treasury bonds and other “safe” securities and then repay the following day. This practice allows banks to settle their accounts for things like mortgage loans by borrowing cash against the securities they own. Typically, the overnight rate will be one of the lowest rates and only available to those with the highest levels of creditworthiness. Late last year, however, illiquidity in the overnight markets saw the interest rates climbing as high as 10%. The reason that the rates can climb to such a degree is because of a scarcity of cash available to the banks.
Have you had this experience? You hear about a remarkable innovation, but before you can finish the phrase “That’s amaz . . . .” you’ve already jumped ahead to the questions and concerns it raises. That’s how many people are responding to voice cloning – emerging technologies that let users make near-perfect reproductions of a person’s voice. It’s also the subject of You Don’t Say: An FTC Workshop on Voice Cloning Technologies, scheduled for January 28, 2020. You’ll want to check out the just-announced agenda.
Colorado bankers group tells regulator credit union not ‘authorized’ to buy bank
The Colorado Bankers Association asked the state banking board in a letter this week to stop Elevation Credit Union’s plan to buy the assets of Cache Bank & Trust because credit unions can’t be "authorized purchasers" of banks, according to language in several Colorado statutes.
CFPB Taskforce Will Conduct Much Needed Review Of Consumer Financial Laws
The Consumer Financial Protection Bureau has announced the members of a new task force that will undertake a complete review of U.S. consumer financial laws. Among them, the four members have decades of public service and consumer protection experience, and they include some of the country’s leading consumer credit economists.
Windows 10 Has a Security Flaw So Severe the NSA Disclosed It
Microsoft released a patch for Windows 10 and Server 2016 today after the National Security Agency found and disclosed a serious vulnerability. It's a rare but not unprecedented tip-off, one that underscores the flaw's severity—and maybe hints at new priorities for the NSA. Thebugis in Windows' mechanism for confirming the legitimacy of software or establishing secure web connections. If the verification check itself isn't trustworthy, attackers can exploit that fact to remotely distribute malware or intercept sensitive data.
What California Privacy Laws mean for other states
After months of lobbying, hand-wringing, anddebate, the California Consumer Privacy Act (CCPA) finally went into effect Jan. 1. It grants California residents powerful new privacy protections, some of which could be extended to consumers across the country. However, it will take months for all the regulations to kick in and even longer to see how effectively the law reins in the worst privacy infringements.
Redwood Credit Union celebrates 70 years of service
Redwood Credit Union (RCU), Santa Rosa, Calif., is proud to announce its celebration of 70 years of service to members. Originally formed by seven County of Sonoma employees as an affordable means to make bridge loans to fellow employees between paychecks, the credit union has grown to offer full service personal and business banking, as well as financial services beyond banking such as financial planning, insurance, and even an auto sales center.
Digital Lending Platform Seen Hitting $17 Billion by 2025
Digital Lending Platform market is projected to surpass USD 17 billion by 2025. The market growth is attributed to the growing demand among financial institutions, such as banks and NBFCs, to reduce the risk of frauds and NPAs. The growing digitization and rapid cloud adoption across financial institutions are proliferating the market growth.(Source: Global Market Insights Inc.)
Big banks did big mortgage business in the fourth quarter
While the tallying up isn’t quite done yet, allindicationsare that 2019 will end up being a very good year for the mortgage business. Thanks tomortgage ratesthat were consistently a full percentage point below 2018’s rates for much of the year, last year saw a significant rise in mortgage originations. That was clearly seen at Wells Fargo, JPMorgan Chase, Bank of America, and Citigroup, which all saw their respective mortgage originations rise in each quarter of 2019.
Wells Fargo has lost a second mobile deposit patent lawsuit brought against it by USAA in a federal court in Marshall, Tex. The San Francisco-based bank was fined $102.8 million for improperly infringing on USAA's patents for mobile deposit. It is the second recent loss for Wells Fargo versus USAA. In November, Wells Fargo was fined $200 million for infringing on two other patents.
Zelle peer-to-peer (P2P) payments increased 76 percent year-over-year in the fourth quarter of 2019, Bank of America said on Wednesday (Jan. 15), marking the latest growth surge for that payment method. During the quarter, consumers made 95 million payments worth $23.8 billion using Zelle. In its Q4 financial release, Bank of America also gave updates on its mobile and digital efforts. The financial institution said 29 percent of all consumer sales were digital and 53 percent of all digital sales came via mobile. As it stands, Bank of America now has 38.3 million active digital banking users, along with 29.2 million active mobile banking users.
Big banks did big mortgage business in the fourth quarter
While the tallying up isn’t quite done yet, allindicationsare that 2019 will end up being a very good year for the mortgage business. Thanks tomortgage ratesthat were consistently a full percentage point below 2018’s rates for much of the year, last year saw a significant rise in mortgage originations. That was clearly seen at Wells Fargo, JPMorgan Chase,Bank of America, andCitigroup, which all saw their respective mortgage originations rise in each quarter of 2019.
We are accepting applications for our Advisory Committees
To ensure that the CFPB hears from a variety of external experts with diverse viewpoints, we established the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council. These advisory committees provide the Bureau with information about emerging trends and practices in the consumer financial marketplace. They also allow us to hear directly from small financial institutions.
Lawmakers talk CECL’s negative impacts, lack of understanding at hearing
Several lawmakers flagged the potential economic consequences of the current expected credit loss (CECL) standard and criticized the lack of understanding about its impact during a House Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets hearing Wednesday featuring Financial Accounting Standards Board (FASB) Chairman Russell Golden.
ROCK AND ROLL HALL OF FAME ANNOUNCES 2020 INDUCTEES AND DCS2020 ANNOUNCES ROCKIN’ ROLLIN’ BOWLIN’ EVENT
Get the band back together and have some fun at the “Rockin’ Rollin’ Cosmic Bowling” Competition and Extravaganza Tournament! There’s fun and games for one and all. Join us for a great networking event after a full day of meetings, session, showcases and Expo. On Wednesday, September 16th, a special bowling tournament and networking reception is being planned for attendees. Make plans to compete with your peers, or against your peers, with your clients, or challenge your clients!
Debt Connection Symposium and Expo 2020 will be held on September 15-17, 2020 at the Red Rock Hotel in Las Vegas, NV. For more information about Debt Connection Symposium and Expo 2020 please go to https://debtconnectionsymposium.com/
TCPA Litigation Update — Breaking: U.S. Supreme Court Agrees to Decide Whether TCPA Exception Is Unconstitutional
On January 10, 2020, the U.S. Supreme Court announced that it accepted certiorari of a petition to review the constitutionality of the Telephone Consumer Protection Act. As is customary, the Court did not explain its reasoning for agreeing to hear this case. While the scope of this highly anticipated decision will remain unclear for some time, it is possible that the Court may place the validity of the TCPA itself in question — in addition to the TCPA exception challenged in the petition.
Visa makes a big bet on fintech with $5.3 billion Plaid acquisition
Visa said on Monday that it would acquire privately held Plaid, a leading financial technology provider, in a deal valued at $5.3 billion. Plaid's platform helps consumers securely connect their financial accounts to the apps they use, while "helping them manage their financial lives," Visa said in apress release.
Robocalls hit 58.5 billion in 2019, up 22%. Residents in some states get 2 or more daily
Therobocallskept coming in 2019. Americans were hit with 58.5 billion robocalls last year, an increase of 22% from the 47.8 billion received in 2018, according to YouMail, a company that provides a service to block such messages. “We’ve now had well over 100 billion robocalls in the past two years,” said YouMail CEO Alex Quilici in a statement accompanying the report. “It’s no wonder that an anti-robocall bill passed Congress overwhelmingly and was signed by the President on December 31, 2019.”
Payday loans, overdraft fees, low-interest credit: New York is trying to overcome barriers to bank accounts
About a quarter of New Yorkers don’t have a bank account or barely use one. Banking is essential for people to fully participate in the economy – to save money, build credit and get ahead. With a new proposal, the state is trying to expand access to banking for people who don’t earn very much money.
Can California’s mini-CFPB pick up slack left by federal agency?
An effort by California to create a powerful state consumer protection bureau could have a significant impact on banks, debt collectors and other financial firms as Gov. Gavin Newsom seeks to fight against the Trump administration's regulatory rollback. The new agency, modeled on the federal Consumer Financial Protection Bureau, is being pushed by former CFPB Director Richard Cordray and several other former agency officials. If approved by California's legislature, it would create a new office of innovation within the agency and subject more financial firms to state oversight.
SAFCO enters military lending following SNAAC acquistion
Fort Lauderdale, FL, (January 13, 2020) – SAFCO, LLC (Southern Auto Finance Company, LLC) is proud to announce its entry into the Military Finance market. The new venture is a result of SAFCO’s recent purchase of front-end origination assets from SNAAC (Security National Automotive Acceptance Company) consisting of various forms of intellectual properties. The purchase provides SAFCO with the expertise they require to effectively and efficiently process military applications, utilizing their unique and expertly developed technologies.
Consumer reviews: The FCRA upshot of fighting ire with fire
California-based mortgage broker Mortgage Solutions FCS also does business under the name Mount Diablo Lending. And according to the FTC, the company gave consumers a devil of a time if they posted negative reviews on Yelp. Is your business pondering how to address unfavorable consumer comments? Heaven knows you should avoid Mount Diablo’s approach, which, according to the complaint, violated Regulation P, the Fair Credit Reporting Act, and the FTC Act.
Put 2019 in the record books — for cybercrime, that is. According to Risk Based Security, a global leader in vulnerability intelligence, breach data and risk ratings, 2019 was on track to be “the worst year on record” for cybercrime. We’ve seen this to be true in the near constant headlines of ransomware, viruses, trojans and phishing incidents wreaking havoc on businesses of all sizes. These attacks are not only increasing in frequency, but in revenue impact and sophistication.
New York (CNN Business)The world's already huge debt load smashed the record for the highest debt-to-GDP ratio before 2019 was even over. In fact, it broke that record in the first nine months of last year. Global debt, which comprises borrowings from households, governments and companies, grew by $9 trillion to nearly $253 trillion during that period, according to the Institute of International Finance.
3 strategies to help credit unions compete in 2020
An increasingly competitive and rapidly changing financial services marketplace is putting pressure on traditional lenders to evolve in order to preserve and grow their business, and credit unions are no exception. The competition is getting fierce out there: You have online banks advertising lower cost, higher-yield savings and checking accounts, mobile apps for making payments and transferring funds, a glut of alternative lenders and even major wireless carriers now offering banking services.
Despite assurances by the Consumer Financial Protection Bureau that it is serious about cracking down on fair-lending violations, the dearth of CFPB enforcement actions regarding redlining and other discriminatory practices in two years worries consumer and civil rights advocates. Under Director Kathy Kraninger, the CFPB has filed barely any fair-lending enforcement orders, in sharp contrast to the Obama administration. In the past year, the agency issued onlyone actionrelated to fair lending, fining Freedom Mortgage $1.75 million for alleged violations of the Home Mortgage Disclosure Act.
Complying with changing state-level privacy laws will be a business priority in 2020. Because the United States does not have a uniform Federal privacy law, a patchwork of state rules based on where customers live poses new challenges to companies in the New Year. Here are seven (7) data breach updates in 2020 you should know:
Wells Fargo ordered to pay $102.8M in mobile deposit patent case
Wells Fargo is being ordered to pay $102.8 million in damages after a federal jury in Texas on Friday found the bank infringed on two United Services Automobile Association patents that allow customers to deposit checks using mobile devices.
VoApps DirectDrop Voicemail is set to exhibiting at the Collection and Recovery Solutions 2020.
VoApps, Inc. will be exhibiting at the Collection and Recovery Solutions 2020. Be sure to stop by and say hi to Neal Jagoda and company at booth 16.
VoApps DirectDrop Voicemail delivers a voice message directly to the consumer’s voicemail box without calling the phone. Immediately increase right party contacts, dollars collected, and liquidation rates. Agencies using VoApps deliver thousands of voicemails in a matter of minutes. This creates availability for collection agents to field the influx of inbound phone calls responding to DirectDrop Voicemails. New clients can be up and running in less than two business days!
Consumer Financial Protection Bureau Issues No-Action Letter to Facilitate Housing Counseling Services for Prospective Home Buyers
WASHINGTON, D.C.– The Consumer Financial Protection Bureau (Bureau) granted a no-action letter (NAL) to Bank of America, N.A. regarding the bank’s funding arrangements with housing counseling agencies (HCAs) certified by the U.S. Department of Housing and Urban Development (HUD). NALs provide increased regulatory certainty through a statement that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances. The Bureau issued a revised NAL Policy in September 2019, which improved on the Bureau’s 2016 NAL Policy by having, among other things, a more streamlined review process focusing on the consumer benefits and risks of the product or service in question.
Can California’s mini-CFPB pick up slack left by federal agency?
An effort by California to create a powerful state consumer protection bureau could have a significant impact on banks, debt collectors and other financial firms as Gov. Gavin Newsom seeks to fight against the Trump administration's regulatory rollback. The new agency, modeled on the federal Consumer Financial Protection Bureau, is being pushed by former CFPB Director Richard Cordray and several other former agency officials. If approved by California's legislature, it would create a new office of innovation within the agency and subject more financial firms to state oversight.
AG James And Superintendent Lacewell To Force Mortgage Company To Return Foreclosed Homes To 58 New York Families
NEW YORK – New York Attorney General Letitia James and New York Superintendent of Financial Services Linda Lacewell today announced an agreement, subject to court approval, with South Carolina-based real estate company Vision Property Management, LLC, its CEO Alex Szkaradek, and a number of affiliated companies for more than $3.75 million in consumer restitution for engaging in and operating an illegal, deceptive, and unlicensed mortgage-lending business that targeted — among others — the disabled, the elderly, single parents, and others living on fixed incomes.
Power in this new, digital world is not only a question simply of who controls the flows of data and information. However, there is an interesting multiplier effect that plays a large role currently in which services are used by which companies (AWS, Google, etc.,) – the organisations who control the most data will have the most powerful processors to make use of it, providing more value and attracting more customers and their data.
Join others in the “Millennial Peer Group – Collections & Recovery” at CRS2020
Millennial Peer Group - Collections & Recovery meets at CRS2020 May 6th from 3:30 pm to 4:30 pm This organized peer network, is an elite network of young professionals in the industry focused on issues of relevance to Millennials. Whether you meet the age requirements of a Millennial, or think like a Millennial, or just have an interest in Millennials – this group can be for you. Moderated by Matt Justice of Professional Bureau of Collections of Maryland, this break out session provides an opportunity for millennials to discuss issues of importance to millennials!
A "CollectoRMSeries" course by Resource Management Services, Inc.
March 12th BUMP Collections! course to be taught in Dallas, Texas. A June course is expected to be announced for Southern California. An October course is expected to be announced for Atlanta.
Call us if you're interested in those courses, and we'll provide info as it is confirmed.
