At a glanceFriday, May 15, 2020

Collection Industry News At A Glance - May 15, 2020
Friday May 15, 2020
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MN Commerce Department Issues Guidance

"The Commissioner recognizes that because of the concern surrounding the COVID-19 outbreak, and in light of the Governor’s Executive Orders, individual collectors should be working from home temporarily to protect themselves and others, even though their home location is not currently licensed as a branch office.  As such, the Department will not take action against any licensee who allows their individual registered collectors to temporarily work from home as a precautionary measure and pursuant to Governor Walz’s Executive Orders. "  The Department provides four points of criteria for licensees to follow.  Important read!

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Eviction proceedings and debt collections can resume this month, Texas Supreme Court orders

Evictions and debt collection proceedings can resume in Texas next week, the Texas Supreme Court has ordered, after the court temporarily put both on hold during the coronavirus pandemic.

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U.S. Outlook: Cybersecurity Legal Implications For Businesses Amid New Coronavirus Outbreak

Among the myriad challenges faced by businesses arising out of the global COVID-19 pandemic is the amplification of cybersecurity vulnerabilities and resulting increased risk of data breach and malware incidents. Throughout the world, employees are working from home via remote access technology and on personal devices, giving rise to unprecedented and likely unanticipated cybersecurity risks. Compounding this effect, malicious actors are out in force, preying upon the system and human insecurities created by the current COVID-19 climate.

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7-Year No-Interest Loans: What It Takes To Sell Cars In A Pandemic

Unemployment is mounting. The economy keeps falling deeper into a recession — or worse. The coronavirus continues to spread. But car sales surprisingly are climbing. Auto sales tanked in March — to 80% below their expected levels. And they remain well below normal. But while much of the economy continues its free fall, car sales have been on the rise for six straight weeks, according to data from J.D. Power, a marketing data and analytics company.

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Consumer Financial Protection Bureau Settles with Monster Loans, Thomas Chou, Sean Cowell, and Related Companies

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today filed a proposed stipulated final judgment to resolve its allegations in its lawsuit against California mortgage lender Chou Team Realty, LLC, which does business as Monster Loans (Monster Loans), and several individuals and related companies, including Thomas Chou and Sean Cowell. The Bureau alleged that Chou and Cowell were among the leaders of a scheme to use Monster Loans’ account with a major credit bureau to unlawfully obtain consumer reports for their associated student loan debt-relief companies, which in turn used the consumer reports to deceptively market their services nationwide and then charged consumers illegal fees.

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Firms that took a PPP loan under $2 million are about to get a break

Business owners who borrowed less than $2 million from the Paycheck Protection Program can breathe a little easier: They likely won’t face an audit from federal authorities. The PPP — a forgivable loan program that allows small businesses to cover up to eight weeks of payroll costs, mortgage interest and other expenses — was refilled to the tune of $310 billion on April 27 to help employers keep workers on board.

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Jones calls for investigation into repeal of federal payday lending rule

Wednesday, U.S. Senator Doug Jones (D-Alabama) sent a letter calling for Federal Reserve Board Inspector General Mark Bialek to open an investigation into the Consumer Financial Protection Bureau’s (CFPB) repeal of the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule (Payday Rule).

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North Carolina Senate General Assembly Has Proposed, Though Not Yet Introduced, The “Modernize Debt Settlement Prohibition” Bill

We have been alerted that the North Carolina Senate General Assembly has begun debating a proposed bill to amend Article 56 of Chapter 14 of the North Carolina General Statutes to be recodified as Article 9 of Chapter 75 of the General Statutes. The proposed bill is currently still considered a draft and has not been officially introduced, given a bill number, or sponsored by a North Carolina Assemblyperson.

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Going virtual with your financial consultations during the Coronavirus emergency

As financial coaches, counselors, and educators, you provide vital services to Americans facing uncertainty as the coronavirus pandemic unfolds. You can continue this vital effort by adapting to working with those you serve remotely.

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U.S. Treasury, small-business agency grant leeway to smaller PPP loan borrowers

WASHINGTON (Reuters) - The U.S. Treasury and Small Business Administration clarified Wednesday that businesses that seek less than $2 million in emergency relief under the Paycheck Protection Program (PPP) will be considered qualified unless proven otherwise.

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Consumer Financial Protection Bureau Outlines Responsibilities of Financial Firms During Pandemic

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today released a statement and FAQs outlining the responsibility of certain financial firms during the pandemic. In the statement, the Bureau outlines the billing error responsibilities of credit card issuers and other open-end non-home secured creditors during the COVID-19 pandemic.

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FTC Files Complaint Alleging Telemarketers and Debt Collectors Worked Together To Bilk Organizations for Subscriptions and Books They Never Ordered

The Federal Trade Commission sued the operators of a Pennsylvania-based telemarketing scheme, alleging that they charged organizations such as businesses, schools, fire and police departments, and non-profits for books and newsletter subscriptions they never ordered.   The FTC’s complaint also names the defendants behind a New York-based debt collection operation, alleging that they illegally threatened the organizations if they failed to pay for the unordered merchandise.

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CFPB to Offer Flexibility for Creditors Working to Resolve Billing Errors During Pandemic

The Consumer Financial Protection Bureau today said it would provide flexibility for creditors to resolve billing errors during the coronavirus pandemic. With many merchants forced to close due to local stay-at-home orders, the bureau acknowledged that these businesses may not be able to respond immediately to creditor inquiries to resolve billing disputes.

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Digital Fraudsters Increase Attacks Against Multiple Industries During Pandemic; Use COVID-19 Scams to Target Younger Generations

TransUnion (NYSE: TRU) today released its quarterly analysis of global online fraud trends, which found that the telecommunications, e-commerce and financial services industries have been increasingly impacted. From a consumer perspective, TransUnion found Millennials have been most targeted by fraudsters using COVID-19 scams.

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Forbearance becomes a ‘Scarlet Letter’ on credit reports

Mortgages in forbearance as a result of COVID-19 have to be reported as “current” on credit reports. That’s the law, as laid out in Section 4021 of the CARES Act passed by Congress at the end of March. It says servicers “shall report the credit obligation or account as current.” But, it turns out there’s a workaround that can make it difficult for people with mortgages in forbearance to get another home loan after the COVID-19 crisis is over – for as long as a year after the forbearance period ends. That can impact their ability to refinance or buy a home when times are better.

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Student loan borrowers discover significant drop in credit score following CARES Act protections

ATLANTA —The federal government paused student loan payments for millions of Americans to help them through this crisis. But Channel 2 Action News has learned that some loan service providers reported student loan borrowers to credit agencies because of this. That is causing some people’s credit scores to drop dramatically even though they didn’t do anything wrong.

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Broad coalition urges doing more to put end to robocalls

Nevada Attorney General Aaron Ford has joined 50 other attorneys general in calling on USTelecom to continue its collaboration with state attorneys general by reinforcing technological capabilities to improve enforcement against illegal robocalls. USTelecom is the leading organization representing telecommunications providers and its Industry Traceback Group.

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FTC To Probe What User Info Zoom Collects

The Federal Trade Commission may be looking into privacy concerns surrounding online video call software Zoom, Chairman Joseph Simons revealed. Zoom has seen massive increases in usage since the coronavirus pandemic began and people have needed ways to stay in touch socially or for work. But concerns have arisen about the way the company is using information from registered and unregistered users, which might be stored in the cloud, according to lawmakers who’d reported their concerns to Simons.

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Don’t Abandon Security During a Crisis

Working within dispersed teams is often part and parcel of a CISO’s job. In fact, before COVID-19, 7% of Americans were working remotely either part or full-time, according to the 2019 National Compensation Survey from the Bureau of Labor Statistics. But in the wake of social distancing, almost all organizations are operating 100% remotely.

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What the Pandemic Tells Us About the State of U.S. Cybersecurity

Widespread disruption to critical infrastructure. Fundamental shifts in the way we live our lives. Growing uncertainty about the stability of the U.S. economy. At the start of the year, if you asked national security professionals what they thought the most likely cause of a crisis fitting that description would be, many would have answered “cyber.” 

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CFPB orders Specialized Loan Servicing to pay $1.5 million for foreclosure issues

Specialized Loan Servicingwill pay more than $1.5 million as part of a settlement with the Consumer Financial Protection Bureau, which accused SLS of “taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure” and other actions. According to the CFPB, SLS violated both the Real Estate Settlement Procedures Act and the CFPB’s mortgage servicing rules by pursuing foreclosure on a number of borrowers despite the fact that they’d already requested other loss mitigation options, a process known as “dual tracking.”

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CARES Act Extends VA Home Loan Pre-Foreclosure Options

On March 27, the President signed the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, into law to help Americans economically impacted by the coronavirus (COVID-19) pandemic to help homeowners avoid home foreclosure. As the country rallies together to prevent further spread of the coronavirus, VA’s Loan Guaranty Service is working to assist Veterans. The service is specifically focused on ensuring our Veterans and their families facing temporary or more long-term difficulty paying their monthly mortgage understand their options.

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Everything you should know about mortgage forbearance

More than 3.4 million Americans are in mortgage forbearance plans, which allows them to pause payments for a month to as long as a year. As the coronavirus pandemic continues to jolt the economy, more people will face financial difficulty, including how to pay their monthly mortgage bill.

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CFPB, FHFA, & HUD Launch Joint Mortgage and Housing Assistance Website for Americans Impacted by COVID-19

WASHINGTON, D.C. – To ensure homeowners and renters have the most up to date and accurate housing assistance information during the COVID-19 national emergency, today the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD) launched the new mortgage and housing assistance website

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Consumer Financial Protection Bureau Settles with Specialized Loan Servicing, LLC

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) settled with Specialized Loan Servicing, LLC (SLS), a mortgage-loan servicer in Colorado. As of February 29, 2020, SLS serviced a portfolio of mortgage loans worth about $112.69 billion. The consent order requires SLS to pay $1.275 million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a $250,000 civil money penalty, which will be paid to the Bureau and deposited into the Bureau’s Civil Penalty Fund, and implement procedures to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) and its implementing regulation, Regulation X.

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Director Kraninger Remarks During Financial Literacy and Education Commission Public Meeting

Good morning. Despite these difficult times, I’m pleased to be with you all today to kick off my first meeting as vice-chair of the Financial Literacy and Education Commission.  There is no doubt that COVID-19 has had a devastating impact on our country, our economy, and our individual lives. It has also affected the financial well-being of many consumers. I want to focus my remarks today on how the Bureau is taking action to protect consumers, in cooperation with other FLEC and government partners.

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Peer to Peer (P2P) Lending Market to Reach $558.9 Billion by 2027: At 29.7% CAGR

Portland, May 11, 2020 (GLOBE NEWSWIRE) -- According to the report published by Allied Market Research, the global peer to peer (P2P) lending market generated $67.9 billion in 2019, and is estimated to reach $558.9 billion by 2027, registering a CAGR of 29.7% from 2020 to 2027. The report offers an extensive analysis of changing market dynamics, key winning strategies, business performance, major segments, and competitive scenario.

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Consumer Expectations Deteriorate Sharply for the Second Consecutive Month

NEW YORK — The Federal Reserve Bank of New York's Center for Microeconomic Data released the April 2020 Survey of Consumer Expectations, which shows considerable deteriorations in households' expectations about most economic outcomes. The perceived probability of losing one's job reached a new series' high for the second consecutive month.

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Fair lending remains CFPB priority in pandemic

Potential discrimination in mortgage lending, including the unlawful practice of redlining, was a key focus of investigation for the Consumer Financial Protection Bureau (CFPB) in 2019. The bureau said it plans to continue to vigorously enforce fair lending laws throughout the pandemic, including the Equal Credit Opportunity Act and the Home Mortgage Disclosure Act, according to the agency’s eighth annual fair lending report.

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Financial groups urge next relief bill to tweak past measures

Banking and credit union representatives are urging lawmakers to create a special relief fund for the smallest businesses, loosen restrictions on the use of Paycheck Protection Program money and all but eliminate the paperwork involved in what is expected to be forgiveness of the loan in the future.

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Legislation to clarify PPP tax deductions introduced in Senate

A bipartisan group of senators Wednesday introduced legislation – the Small Business Expense Protection Act – that would clarify small businesses can deduct eligible expenses that were paid for by forgivable paycheck protection program (PPP) loans from their taxes.

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Consumer Financial Protection Bureau Issues Final Remittance Rule

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued today a final rule covering remittances transfers. The Remittance Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. Among its requirements, the Rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.

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Amid Ongoing COVID-19 Pandemic, Governor Cuomo Announces Moratorium on COVID-Related Evictions Will Be Extended Until August 20th

State is Banning Late Payments or Fees for missed Rent Payments During Eviction Moratorium and Allowing Renters Facing Financial Hardship to Use Security Deposit as Payment.

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Bipartisan Coalition of Attorneys General Send USTelecom Letter Outlining Plan to Strengthen Illegal Robocall Enforcement

Rutledge announced the effort to expand illegal robocall response by calling on USTelecom – the leading organization representing telecommunications providers – and its Industry Traceback Group (ITG) to continue its collaboration with a bipartisan coalition of 52 attorneys general by bolstering technological capabilities to improve enforcement against illegal robocallers. The coalition’s letter urged the association to further develop robocall traceback and other tools suited for law enforcement needs.

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Gov. Wolf, Attorney General Shapiro Announce Protections from Foreclosures and Evictions Through July 10

Governor Tom Wolf was joined by Attorney General Josh Shapiro today to announce that he signed an executive order that protects Pennsylvanians from foreclosures or evictions through July 10. The action builds on a Pennsylvania Supreme Court order which closed court eviction proceedings until May 11 and ensures no renter or homeowner will be removed from their home for 60 more days.

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FTC Halts Online Subscription Scheme that Deceived People with “Free Trial” Offers

The operators of an online subscription scheme agreed to settle a Federal Trade Commission complaint alleging that the defendants duped consumers out of more than $74.5 million by luring them with supposedly “free trial” offers for cosmetics and dietary supplements, then enrolling them in subscriptions and billing them without their consent.

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Industry Events

Digital Banking 2020

American Banker

Austin Convention Center 500 East Cesar Chavez Street
Austin , TX
June 08 - 10 , 2020

(212) 803-8456

NACTT 55th Annual Seminar 2020

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

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


LendIt Fintech USA

Save 15% with our Discount Code: DC15%

Javits Center, New York
New York
September 30 - October 01 , 2020

LendIt Fintech Europe 2020

LendIt Fintech Europe

Hilton London Angel Islington 53 Upper Street
London , N1 0UY, UK
October 19 - 20 , 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
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More information about Resource Management Services, Inc.
More information about Debt Connection Symposium
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