At a glanceFriday, May 22, 2020

Collection Industry News At A Glance - May 22, 2020
Friday May 22, 2020
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CFPB Takes Action to Help Struggling Homeowners Seeking Mitigation Efforts; Consumers Seeking Small-Dollar Loans

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it issued two No-Action Letter (NAL) Templates under its innovation policies. Regulatory uncertainty can hinder the development of innovative products and services with the potential to benefit consumers. To encourage innovation, last year the Bureau introduced an improved NAL Policy that includes, among other things, a more streamlined review process focusing on the consumer benefits and risks of the applicant’s product or service. 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.

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Connecticut: No Action Position Regarding Temporarily Working from Home Due to COVID-19

On March 9, 2020, the Banking Commissioner issued a no action position to address branch licensing issues in light of temporary mitigation actions licensees needed to take to continue business in light of COVID-19. On April 16, 2020, the Commissioner issued a revised memorandum extending the no action position through May 31, 2020. This revised memorandum reiterates the original no action position and extends the no action position through June 30, 2020.

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Mnuchin sees ‘strong likelihood’ of needing another COVID-19 relief bill

Treasury Secretary Steven Mnuchin on Thursday said there is a "strong likelihood" that another coronavirus relief bill will be needed as more states start to reopen and the economy struggles to stabilize.

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Consumer Financial Protection Bureau Issues Consumer Complaint Bulletin

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a report analyzing the complaints received during the COVID-19 pandemic. The bulletin shows that mortgage and credit card complaints top the list of complaints the Bureau has received that mention coronavirus or related terms. In April and May, the Bureau received historically higher complaints, however, complaints mentioning COVID-related terms amounted to a total of 4,500 complaints during those two months.

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Student loan borrowers face ‘increased stress, anxiety, and depression’ amid coronavirus shock, survey finds

A new survey illustrates the confusion, stress, and anxiety student loan borrowers are experiencing amid the coronavirus pandemic.   The survey, shared exclusively with Yahoo Finance, analyzed responses from around 39,000 respondents from all 50 states. Advocacy organization Student Debt Crisis and social-impact startup Savi conducted the survey between May 8 and May 19, 2020.

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NCUA approves NAFCU-sought changes to PCA requirements

The NCUA Board during its meeting yesterday unanimously approved an interim final rule on prompt corrective action (PCA) to provide temporary regulatory capital relief to federally-insured credit unions (FICUs). Earlier this year, NAFCU urged the agency provide capital relief during the pandemic, including changes to PCA requirements.

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Ontario Systems Accelerates Consumer Payment Engagement Strategy With SwervePay® Acquisition

MUNCIE, Ind.--(BUSINESS WIRE)--Ontario Systems, a leading provider of enterprise software that automates complex workflows and accelerates revenue recovery for clients in the healthcare, government, and accounts receivable management (ARM) markets, announced the acquisition of SwervePay®, an innovative payment facilitator in the ARM and healthcare industries. The acquisition of SwervePay offers Ontario Systems customers a simplified consumer payment engagement platform that helps drive revenue, reduce operational costs, and improve compliance.

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Mortgage delinquencies surge by 1.6M in April, the biggest monthly jump ever

Delinquencies among borrowers for past-due mortgages are soaring, a sign that Americans are struggling to pay their bills amid a wave of layoffs and lost income from the coronavirus pandemic.  Mortgage delinquencies surged by 1.6 million in April, the largest single-month jump in history, according to a report from Black Knight, a mortgage technology and data provider. The data includes both homeowners past due on mortgage payments who aren’t in forbearance, along with those in forbearance plans and who didn’t make a mortgage payment in April.

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Active Duty Servicemembers are More likely to Report Identity Theft than Other Adults, New FTC Data Shows

Active duty servicemembers are 76 percent more likely than other adults to report that an identity thief misused existing accounts, such as a bank account or credit card, according to the Federal Trade Commission’s latest Consumer Protection Data Spotlight.

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Mortgage lenders are getting stricter, but you still don’t need a perfect 850 credit score

Just 1.6% of the U.S. population with a credit score has a perfect 850, but some experts say you only really need a 760 to qualify for the best rates on credit cards, auto loans and mortgages. However, one representative from the mortgage lending field argues that you can still get a mortgage with a fair or average score as long as you’re gainfully employed.

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FTC: Credit reports are now free every week

If you’re feeling anxious about your financial health during these uncertain times, you’re not alone. That’s why the three national credit reporting agencies are giving people weekly access to monitor their credit report for free.  This is some helpful news because staying on top of your credit report is one important tool to help manage your financial data. Your credit report has information about your credit history and payment history — information that lenders, creditors, and other businesses use when giving you loans or credit.

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Collections Face A New Reality

In the classic movie "The Wizard of Oz," Dorothy steps out of her house after experiencing a tremendous storm and says, "Toto, I've got a feeling we're not in Kansas anymore."  The same revelation applies to the collection industry, which has been weathering severe social and economic conditions.  As your collection organization emerges from the other side of this storm, you will be stepping into a dramatically altered collection environment.  Welcome to our new reality.  This changed environment represents a significant shift in how you engage in collections going forward and will require organizations to react, adapt, and engage quicker.  

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Attorney General Becerra Calls on Auto Manufacturers to Ensure Consumers Timely Vehicle Lease Returns During the COVID-19 Pandemic

SACRAMENTO – California Attorney General Xavier Becerra today, leading a coalition of 12 attorneys general, sent a letter to 10 major auto manufacturers addressing troubling reports that dealerships are engaging in predatory and harmful practices in connection with the return of leased vehicles amidst the COVID-19 pandemic. Today, the coalition calls on auto manufacturers to ensure that their financing arms and affiliated dealerships have proper controls in place to timely accept the returns of leased vehicles during the pandemic.

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In Letter to Fed and Treasury, Waters Presses for Emergency Lending Programs Not to Support Predatory Lenders

Today, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Committee on Financial Services, sent a letter to Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, and Steven Mnuchin, Secretary of the U.S. Department of the Treasury, following up on conversations to ensure that the Federal Reserve and Treasury programs and facilities to respond to the COVID-19 crisis do not support predatory lenders.

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California Bill Would Require Mortgage, Auto and PACE Forbearances and Restrict Payday Lending COVID-19 Update May 13, 2020

Through an amendment to Assembly Bill 2501, California Assembly Banking and Finance Chair Monique Limon has introduced sweeping forbearance legislation that would impact single-family and multifamily mortgages, auto-secured financing, Property Assessed Clean Energy (PACE) financing, and payday loans. Named the COVID-19 Homeowner, Tenant, and Consumer Relief Law of 2020, the bill provides for mandatory long-term forbearances; prohibitions on foreclosures, evictions and repossessions; and mandatory payment plans and fee restrictions on payday loans. The bill would take immediate effect and continue in force until 180 days after the Governor declares that the emergency related to COVID-19 has ended.

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Over 4 million Americans are now skipping their mortgage payments

Fewer Americans are calling their mortgage servicers to ask for relief from mortgage payments, but the housing industry isn’t out of the woods yet.  More than 4.1 million homeowners are in forbearance plans now, according to the latest data from the Mortgage Bankers Association.

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FTC warns of coronavirus contact-tracing text scams

The Federal Trade Commission on Tuesday warned the public about scammers taking advantage of contact tracing to steal your information. Contact tracers are generally hired by a state's department of public health. If a tracer contacts you, they won't ask for personal information. If the person contacting you is asking for money or sensitive information like your Social Security number, bank account or credit card number, it's a scam. 

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Coronavirus hammers U.S. homebuilding; permits tumble

WASHINGTON (Reuters) - U.S. homebuilding dropped by the most on record in April and permits for future construction tumbled, underlining fears that the coronavirus crisis would lead to the deepest economic contraction in the second quarter since the Great Depression.

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Santander agrees to $550 million U.S. settlement over subprime auto loans

WASHINGTON (Reuters) - Santander Consumer USA Holdings Inc said on Tuesday it had agreed to make changes to its underwriting practices as part of a $550 million settlement with 33 states and the District of Columbia over subprime auto loans. The states said Santander violated consumer protection laws by placing borrowers with subprime credit into auto loans it knew carried a high probability of default. Santander has agreed to pay $65 million for restitution for some customers and to waive deficiency balances on loans worth $478 million. It will also pay $7 million to the states to manage restitution claims.

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Attorney General Becerra Announces Over $550 Million Settlement Against Nation’s Largest Subprime Auto Financing Company for Deceptive Auto Loan Practices

SACRAMENTO – California Attorney General Xavier Becerra today, along with a coalition of 33 other attorneys general, announced a multistate settlement with Santander Consumer USA Inc. (Santander) that includes over $550 million in nationwide relief for consumers; California consumers will receive over $99 million of that amount. The settlement resolves allegations that Santander violated consumer protection laws by placing borrowers with subprime credit into auto loans it knew carried an unacceptably high probability of default. Santander has also agreed to injunctive terms that make important changes to its underwriting practices, which is especially important as the nation faces the economic fallout from the COVID-19 pandemic.

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CFPB to Provide Additional Extension of Comment Period for Supplemental Notice of Proposed Rulemaking on Time Barred Debt

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) announced today that it will provide an additional 60 days for the public to comment on its Supplemental Notice of Proposed Rulemaking (NPRM) on time-barred debt disclosures. The extension is intended to allow all interested parties with additional time to comment on the rulemaking as a result of the impact of the COVID-19 pandemic. The deadline was June 5, 2020; the comment period will now close on August 4, 2020.

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Mortgage regulator to loosen refinance restrictions for home loans in forbearance

The Federal Housing Finance Agency is making it easier to refinance your mortgage after being in forbearance. Fannie Mae FNMA, +5.35% and Freddie Mac FMCC, +4.96% have issued temporary guidance stipulating that borrowers will be eligible to refinance or buy a new home if they are in a forbearance agreement, but are also current on their mortgage, the FHFA said Tuesday. In other words, if a family has been granted the ability to skip mortgage payments, but continued to make them or reinstated their loan, they can get a new home loan.

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Media Advisory: CFPB Releases Video on Consumers Receiving Stimulus Payment on Prepaid Debit Card

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) released a video to inform consumers that they may receive their Economic Impact Payment (EIP) on a prepaid debit card starting this week. The payments, to provide relief as a result of the COVID-19 pandemic, are made possible by the CARES Act.

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Due to the economic impact of the COVID-19 health emergency, some Maryland-licensed collection agencies may decide to voluntarily cease business operations in the State. Whether such a decision results in disruptions to agency’s business operations that are temporary or permanent, the State Collection Agency Licensing Board (“the Board”) expects collection agencies to manage such disruptions in compliance with their respective business continuity plans and otherwise wind down operations in an orderly manner so as to protect consumers from unnecessary harm, especially when transferring consumer claims to other parties.

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Powell, Mnuchin to face Senate grilling on U.S. coronavirus response

WASHINGTON (Reuters) - The U.S. government’s handling of its massive economic response to the coronavirus pandemic will come under scrutiny on Tuesday as Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell testify before the Senate Banking Committee.

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5 ways the CFPB has eased industry’s coronavirus burden

The Consumer Financial Protection Bureau’s response to the coronavirus pandemic has included relaxing or eliminating rules so financial institutions can focus on aiding consumers. Continuing a regulatory relief focus for the agency that preceded the crisis, CFPB Director Kathy Kraninger said in March that the agency planned to deliver “temporary and targeted regulatory flexibility” to financial firms.

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FTC and SBA Warn Operator of and Lead Generator Lendio to Stop Potentially Misleading Coronavirus Relief Loan Marketing

The Federal Trade Commission and Small Business Administration (SBA) sent warning letters to two companies that may be misleading small businesses seeking SBA loans as a result of the coronavirus pandemic.   The letters are being sent to ITMedia Solutions, LLC (IT Media) and Lendio, Inc. (Lendio), whose marketing could lead consumers to believe they are affiliated with the SBA, or that consumers can apply on their site for loans through the Paycheck Protection Program (PPP) or other programs authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

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SMBs Could Get More Flexibility To Use PPP Loans

The rules surrounding small business loans from the Paycheck Protection Program (PPP) are being overhauled as demand cools and small and medium-sized business (SMBs) owners voice complaints that the money is hard to get. “When we conceived the program, we thought businesses would be able to get up and running after eight weeks, but we know now that’s not the case,” Sen. Ben Cardin (D-Maryland) said in a statement, according to a Wall Street Journal (WSJ) report on Sunday (May 17).

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Cyber Security Expert Predicts Remote Working Will Worst Cyber Attack In History This Year

In a new column in Forbes, he predicts that the attack will come sometime in the next six months. In his report, McBride gives some tips on best practices to keep your network safe, but most of the damage will be done to government and corporate networks, not personal computers. Still, it is always good to practice proper cybersecurity with all of your home and work devices. 

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SBA releases coronavirus PPP loan forgiveness application

The Small Business Administration and Treasury Department on Friday released the application for business owners to fill out in order to have their Paycheck Protection Program loans forgiven.
The borrower is expected to complete the application and submit it to their lender, who will ultimately be responsible for assessing forgiveness. The process can be completed electronically.

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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.
Eviction hearings can be held as soon as May 19, with orders authorizing evictions allowed starting May 26. That does not apply to certain tenants who are protected through the federal Coronavirus Aid, Relief and Economic Security Act, including renters in homes covered by federally backed mortgages.

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Student loan borrowers are paying a ‘secret price’ on other loans, study details

Carrying student loan debt can affect how much a consumer pays in interest for other financial products, such as mortgages and credit cards, according to a new report.  The report from the Student Borrower Protection Center (SBPC) found that “even borrowers who can afford their monthly student loan payment are paying an additional secret price on other credit products.”

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FTC Obtains Final Order against Do Not Call Violator, Banning Him From Nearly All Outbound Telemarketing

At the Federal Trade Commission’s request, a federal court has approved a final order against Jasjit “Jay” Gotra, the founder and CEO of Alliance Security Inc. (Alliance), which the agency charged in 2018 with causing more than one million calls to numbers on the National Do Not Call (DNC) Registry. The complaint also alleged that Alliance performed illegal credit inquiries on unsuspecting potential customers.

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Exclusive: U.S. Justice Dept. subpoenas Wall Street banks for small business loans info – sources

WASHINGTON (Reuters) - The U.S. Justice Department has sent grand jury subpoenas to big banks seeking records as part of a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses hurt by the novel coronavirus, two people with knowledge of the matter told Reuters.

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The most recent report on AFCC Debt Settlement Market issued by DecisionDatabases, numerous aspects of the current market scenario has been taken into consideration and a concise analysis has been put together to bring you with a study that has pre and post COVID analysis. It is essential to address the current outbreak of COVID-19 in the current market scenario. The complete shutdown in many parts of the globe has directly or indirectly has been impacted included supply chain operations, new product development, and other activities. Our team of an analyst is watching continuously the market movement and offers real-time analysis regarding growth, decline, and opportunities which help you to make a fruitful decision for your businesses.

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Portfolios For Sale

$3,633,805.23 Sub Prime
DSP Holdings, Inc., dba Debt Sales Partners

(330) 573-8448

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Industry Events

Digital Banking 2020 – Postponed to December 7 – 9

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


Receivables Management Association International

The Lodge at Spruce Peak
July 28 - 30, 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


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 – Virtual

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 Resource Management Services, Inc.
More information about Debt Connection Symposium
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