At a glanceFriday, March 13, 2020

Collection Industry News At A Glance - March 13, 2020
Friday March 13, 2020
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Oklahoma Accused of Negligence in Massive Data Breach

(TNS) — A class-action lawsuit has been filed against the Oklahoma Department of Securities over a massive December 2018 data breach that allegedly caused the names, Social Security numbers and other personal information of more than 300,000 people to be published to the internet. The department caused the data breach by negligently misconfiguring a new firewall that it was installing with the aid of a consultant, the lawsuit alleges.

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NAFCU brief details economic outlook amid coronavirus

NAFCU Chief Economist and Vice President of Research Curt Long has developed a new brief to help credit unions understand the current economic situation – and potential implications – in the wake of the coronavirus, as well as how credit unions could individually be impacted.

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Had Enough? Californians Turn Down Higher Taxes, Debt

LOS ANGELES (AP) — Everyone knows that living in California comes with a price: Its residents pay some of the nation’s highest taxes on the money they earn, the gas they pump and the clothes they wear. But for the moment, at least, it appears voters have had enough. The defeat Tuesday of the largest borrowing proposal in the history of California schools — $15 billion for repairs — has opened the question of whether Californian voters put a temporary halt to the growth of government debt because of the unsettled political scene, or because they are on the cusp of a tax revolt akin to one in the 1970s that brought landmark changes to property taxes.

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NAFCU to FCC: Reject recommended fee structure for reassigned numbers database

In  a letter sent yesterday to the Federal Communications Commission (FCC), NAFCU Senior Regulatory Counsel Elizabeth LaBerge reiterated the association's support for a reassigned numbers database to aid in the elimination of illegal robocalls, but cautioned against certain recommendations that could increase credit unions' costs.

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Attorney General Frosh Announces Settlement Ending the State’s Challenge to T-Mobile/Sprint Merger

BALTIMORE, MD (March 11, 2020) - Maryland Attorney General Brian E. Frosh today  announced that Maryland and 11 other litigating states reached a settlement with T-Mobile,  resolving the states’ challenge to the merger with Sprint.

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This made personal loans the fastest-growing debt category

Unsecured personal loans continue to hold the place as the fastest-growing form of consumer lending in the U.S., with the total balance expected to reach $180 billion in 2020, according to TransUnion. That’s a 150% increase in just five years, from $72 billion in 2015. What is the reason for this surge in popularity? How did the personal loan, previously considered a last resort for escaping debt, become mainstream in a time span of just a few years?

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Open Banking Expands Into SMB Lending, Smaller Banks

Open banking and bank-FinTech collaboration can be an effective way for financial institutions (FIs) to launch new digital products. But the latest initiatives reveal a growing interest in transforming internal processes, particularly among smaller banks looking to upgrade their core infrastructure and elevate small business lending operations. Below, PYMNTS rounds up the latest tie-ups and data sharing efforts as institutions explore how open banking models might accelerate their modernization efforts.

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Virus could deal blow to leveraged loans. What’s that mean for banks?

WASHINGTON — A rollercoaster stock market. A quickly planned White House meeting with bank CEOs. Uncertainty about the next shoe to drop. With the coronavirus outbreak spurring increasing worries about the economic fallout, there are shades of 2008 in 2020. Which segment of the financial sector could be hardest hit, if any, is still a matter of debate. But some industry watchers say a worsening crisis could unmask the historically high levels of risky corporate debt, including leveraged loans, with a spillover effect for banks.

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Fed boosts money it’s providing to banks in overnight repo lending to $175 billion

The Federal Reserve is again increasing the amount of money it’s providing to banks for overnight borrowing, raising the top level now to $175 billion. In an announcement Wednesday afternoon, the New York Fed said it would boost the top level it provides in overnight operations to at least $175 billion from the $150 billion level it had just set Monday. “Consistent with the FOMC directive to the Desk, these operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation,” the Fed’s statement read. “They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”

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Coronavirus scams to watch out for

Fraudsters of all stripes are taking advantage of the coronavirus scare, and some of their scams are a direct threat to banks and their customers. Granted, New York hardware stores charging $79.99 for a bottle of hand sanitizer get the spotlight. But there are also hackers in the shadows sending emails and creating websites designed to trick people into clicking on malicious links disguised as helpful resources. Consumers can end up with malware on their computers that steal online banking credentials or credit card numbers.

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GOP-controlled Senate rejects DeVos rule restricting aid for defrauded students

Senators on Capitol Hill voted on Wednesday to reject a student loan rule proposed by Education Secretary Betsy DeVos that would have changed how defrauded students sought relief.   The GOP-controlled Senate passed S.J.Res.56, which is a version of a bill that reverses DeVos’ new rule on how her department processes debt relief claims made by students who had been defrauded by mainly for-profit colleges that were deemed predatory.

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DCS2020 Great Debate Challenger Joann Needleman Announced

Joann Needleman of Clark Hill PLC challenges Mark Naiman, our reigning Great Debate champion at DCS2020's Great Debate - "Collections, Compliance and Effectiveness"! Happy to announce that Joann Needleman will take the debate stage at Debt Connection Symposium & Expo, September 15-17, 2020 at the Red Rock Hotel in Las Vegas. More debate challengers are soon to be announced.  Plan to join us!

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Senators question Kraninger on QM proposal, MLA authority

CFPB Director Kathy Kraninger, while testifying before the Senate Banking Committee Tuesday, provided updates on efforts related to amending the definition of a qualified mortgage (QM) and potential expiration of the government-sponsored enterprise (GSE) patch, as well as the bureau's authority under the Military Lending Act (MLA).

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CFPB sues Fifth Third Bank for opening fake accounts, like Wells Fargo

NEW YORK — The Consumer Financial Protection Bureau has filed a lawsuit against Fifth Third Bank, alleging the bank’s employees opened fake accounts for customers in order to meet aggressive sales targets. The federal regulator alleged Monday that the bank knew its employees were opening fake accounts since at least 2008 and up until 2016, the same year that Wells Fargo admitted its own employees had opened fake accounts to meet aggressive sales goals. Wells Fargo was forced to pay billions of dollars in fines and penalties for its bad behavior. 

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Consumer credit falls in January; NAFCU expects extended decline

"Lending standards for revolving lines of credit have been tightening, so January's pullback is no surprise," said NAFCU Chief Economist and Vice President of Research Curt Long following the release of data that revealed total consumer credit rose 3.4 percent in January (seasonally-adjusted, annualized) and is up 4.4 percent versus a year ago.   Non-revolving credit continued its growth streak and rose 5.8 percent, up 4.8 percent from a year ago. However, revolving credit dropped 3.4 percent.

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Jefferson Capital Acquires Canaccede Financial Group

TORONTO, March 10, 2020 (GLOBE NEWSWIRE) -- Jefferson Capital Systems, LLC (Jefferson Capital), a leading purchaser and servicer of consumer charged-off and bankruptcy receivables in the United States and United Kingdom, announced today that it has completed the strategic acquisition of Canaccede Financial Group (Canaccede), the largest buyer of charged-off consumer receivables and insolvencies in Canada.  J.C. Flowers & Co. (“J.C. Flowers”), a leading private investment firm specializing in the financial services industry, is the principal shareholder of Jefferson Capital. 

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CFPB “Evolutions in Consumer Debt Relief” Video Will Be Available

The CFPB's  "Evolutions in Debt Relief Convening"  has ended.  A video of the event will be available here:

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CFPB Proposes Consumer Protection Whistleblower Reward Program

To promote the Consumer Financial Protection Bureau’s mission of preventing consumer harm, the CFPB is working with Congress to advance legislation that would create a whistleblower reward program.  The draft legislation creating a CFPB whistleblower reward program is similar to the SEC whistleblower reward program.  Under the proposed program, a whistleblower who provides original information to the CFPB relating to a violation of Federal consumer financial law that results in an enforcement action yielding at least $1,000,000 in monetary sanctions would be eligible for an award of 10 to 30 percent of the collected monetary sanctions. 

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We are happy to announce that DRN will exhibit at the Collection and Recovery Solutions Conference, May 6-8 in Las Vegas, NV at the Four Seasons Hotel Las Vegas.  Be sure to visit them in booth 5 in the Expo Hall.

Digital Recognition Network, DRN, fuels revenue, growth, and streamlined work processes for the top names in auto lending and insurance. 

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Three Defendants in Student Debt Relief Scheme Banned from Selling Debt Relief and Telemarketing

Three defendants in a student loan debt relief scheme have been banned from telemarketing and selling debt relief, and ordered to pay millions in resolution of Federal Trade Commission allegations that they deceived consumers by promising to reduce or eliminate consumers’ student loan debt.  The U.S. District Court for the Central District of California found that Brian Colombana, Impetus Enterprise, Inc., and Fig Tree & Co., LLC deceptively marketed student loan debt relief services to consumers and tricked them into paying illegal upfront fees by promising to reduce or eliminate their student loan debt, and then failed to deliver the promised debt relief.

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U.S. banking regulators urge banks to help borrowers struggling due to coronavirus

WASHINGTON, March 9 (Reuters) - U.S. banking regulators said in a joint statement on Monday they would not penalize banks that help borrowers struggling to repay loans due to the coronavirus outbreak, and vowed to provide “appropriate regulatory assistance” to affected institutions. The statement from the Federal Reserve and others urged banks to work constructively with customers in affected areas, and urged institutions to continue to meet their financial needs. Prudent efforts to provide loan relief would not be criticized by bank examiners, they said. (Reporting by Pete Schroeder; Editing by Leslie Adler and Tom Brown)

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First Round of Refunds Totaling $153 Million Sent to Consumers As a Result of Multi-Agency Case Against Western Union

Approximately $153 million is being mailed to 109,000 consumers in the first distribution of refunds resulting from the law enforcement actions brought against Western Union by the Federal Trade Commission (FTC), the U.S. Department of Justice (DOJ), and the U.S. Postal Inspection Service. The affected consumers are receiving compensation for 100 percent of their losses. 

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Senate OKs bill targeting predatory medical debt collectors

BOISE, Idaho (AP) — Legislation in Idaho to create transparency in medical bills sent to people and to rein in predatory medical debt collectors headed to the governor's desk on Monday.  The Senate voted 32-1 to approve the measure backers call consumer protection legislation.

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Consumer Financial Protection Bureau Files Suit Against Fifth Third Bank, National Association for Allegedly Opening Unauthorized Accounts and Enrolling Consumers in Unauthorized Products and Services

WASHINGTON, D.C. —The Consumer Financial Protection Bureau (Bureau) today filed a lawsuit in federal district court in the Northern District of Illinois against Fifth Third Bank, National Association (Fifth Third). The Bureau alleges that for several years Fifth Third, without consumers’ knowledge or consent: opened deposit and credit-card accounts in consumers’ names; transferred funds from consumers’ existing accounts to new, improperly opened accounts; enrolled consumers in unauthorized online-banking services; and activated unauthorized lines of credit on consumers’ accounts. The Bureau alleges that Fifth Third violated the Consumer Financial Protection Act’s prohibition against unfair and abusive acts or practices as well as the Truth in Lending Act and the Truth in Savings Act and their implementing regulations.

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New York Governor Declares Coronavirus State of Emergency, Triggering New Restrictions on Telemarketing

On Saturday, March 7, New York governor Andrew Cuomo declared a state of emergency due to the spread of the coronavirus in the state. The primary purpose of this declaration is provide local governments quicker access to funding and resources to combat the spread of the virus. A somewhat unusual but significant side effect is that it triggers restrictions on sales calls thanks to the state’s new telemarketing bill.

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A dozen years after the 2008 recession, a different kind of debt threatens the world economy

The coronavirus is threatening the global economy and financial markets. But so is another, less obvious peril — the mountain of risky debt issued by companies and bought by investors during the recent economic expansion. Paying back this debt is going to be tough for businesses that have issued it if their earnings fall because of the coronavirus. Delinquencies, defaults and investment losses are likely, analysts say, possibly subjecting the economy to what economists call a negative feedback loop.

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WASHINGTON, March 6, 2020—Federal Communications Commission Chairman Ajit Pai today proposed a major step forward to further the FCC’s efforts to protect consumers against spoofed robocalls: new rules requiring implementation of caller ID authentication using socalled “STIR/SHAKEN”  technological standards. STIR/SHAKEN  enables phone companies to verify the accuracy of caller ID information that is transmitted with a call. Industry-wide implementation would reduce the effectiveness of illegal spoofing, allow law enforcement to identify bad actors more easily, and help phone companies  identify calls with illegally spoofed caller ID information before those calls reach their subscribers. The FCC will vote on these  new rules during its Open Meeting on March 31.

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Credit Repair Company Settles FTC Charges It Deceived Consumers By Telling Them “Piggybacking” on Others’ Credit Could Boost Scores

A Colorado-based credit repair company and its owner have agreed to settle Federal Trade Commission charges they mislead consumers with promises to “drastically and immediately” improve credit scores and increase access to lower rates on mortgages.

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Automated Collection Services, Inc.

(925) 872-0331

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Financial Recovery Services, Inc (FRS)

(952) 831-4800

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FMS, Inc.

(918) 581-5418

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(440) 260-1804

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Ryan LLC

(972) 934-0022

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   Contact Solutions / Dialers 


(678) 373-4093

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   Mail Processing 

CompuMail, Inc.

(888) 689-7001

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   Payment Processor 


(248) 567-7300

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   Repo Service 

Consolidated Asset Recovery Systems, Inc.

(919) 518-2277

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   Scoring / Scrubbing / Analytics 

DCM Services

(877) 326-8786

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(855) 281-3915

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   Skip Tracing 


(800) 884-4747

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(916) 730-3335

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Noble Systems

(888) 866-2538

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Solutions By Text

(800) 979-1212

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Industry Events

NCUCA – National Credit Union Collection Alliance 2020

NCUCA National Credit Union Collections Alliance

Bellagio Las Vegas
3600 S Las Vegas Blvd , Las Vegas, NV 89109
April 15 - 17 , 2020

Collection and Recovery Solutions 2020

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

Four Seasons Hotel Las Vegas
3960 Las Vegas Blvd South , Las Vegas, NV 89119, US
May 06 - 08 , 2020


LendIt Fintech USA

Save 15% with our Discount Code: DC15%

Javits Center, New York
New York
May 13 - 14 , 2020

NACTT 55th Annual Seminar

National Association of Chapter 13 Trustees (NACTT)

Marriott Marquis San Diego Marina 333 West Harbor Drive San Diego, CA 92101
San Diego , CA
July 08 - 11 , 2020

800-445-8629 | 803-765-0860

National Association of Chapter 13 Trustees 2020

National Association of Chapter 13 Trustees (NACTT)

Marriott Marquis San Diego Marina
333 W Harbor Dr. , San Diego, CA 92101
July 08 - 11 , 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


Auto Finance Summit 2020

Royal Media

Wynn Las Vegas
3131 S Las Vegas Blvd , Las Vegas, NV 89109
October 20 - 22 , 2020

More information about Debt Connection Symposium
More information about Oversight Without Travel - Call Monitoring
More information about Bump Collection Courses
More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
More information about RMN Networking
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