At a glanceWednesday, June 17, 2020

Collection Industry News At A Glance - June 17, 2020
Wednesday June 17, 2020
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Fintechs try old bank charters as ‘everything old is new again’

A federal plan designed to help booming financial technology innovators enter the traditional banking system won’t be sidelined for long by the COVID-19 pandemic, legal experts predict. Citing the pandemic, the Federal Deposit Insurance Corporation last month gave the public more time to comment on a proposal unveiled in March that would require parent companies of so-called industrial banks to serve as a source of financial strength as a condition for receiving deposit insurance coverage. Fintech companies are hoping to secure industrial bank charters to get their foot in the door of banking.

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CFPB Issues Statement on Temporary Supervisory and Enforcement Practices for Credit Card Electronic Disclosures in Response to COVID-19

In response to the ongoing impact the COVID-19 pandemic has had on the financial industry, on June 3, 2020, the Consumer Financial Protection Bureau (CFPB) issued a statement (CFPB Statement) announcing that it would provide temporary flexibility for credit card issuers in connection with certain written disclosure requirements.

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House introduces CRA on CRA

House Financial Services Chairwoman Maxine Waters (D-Calif.) and Rep. Gregory Meeks (D-N.Y.) have introduced a Congressional Review Act resolution to rescind the Community Reinvestment Act (CRA) rule promulgated by the Office of the Comptroller of the Currency (OCC).

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FDIC-Insured Institutions Reported Reduced Profitability but Strong Loan Growth and Stable Asset Quality in First Quarter 2020

For the 5,116 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC), aggregate net income totaled $18.5 billion in first quarter 2020, a decline of $42.2 billion (69.6 percent) from a year ago. The decline in net income is a reflection of deteriorating economic activity, which resulted in the increase in provision expenses and goodwill impairment charges. Financial results for first quarter 2020 are included in the FDIC's latest Quarterly Banking Profile released today.

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IN BRIEF: Consumer groups sue CFPB over taskforce composition, transparency

The Consumer Financial Protection Bureau deliberately excluded consumer viewpoints when it formed the Federal Consumer Financial Law Taskforce, according to a lawsuit filed Tuesday in federal court in Boston by the National Consumer Advocates Association, the U.S. Public Interest Research Group and Suffolk University Law Professor Kathleen Engel, a would-be taskforce member.

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Marketer Used Deceptive COVID-19 Stimulus Mailers To Lure Consumers to Used Car Sales, FTC Alleges

The Federal Trade Commission is taking legal action to halt a scheme that allegedly deceived consumers with mailers supposedly directing them how to obtain federal COVID-19 stimulus benefits, which instead lured them to a used car sale.

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FTC Announces that PrivacyCon 2020 Will be Held Virtually

The Federal Trade Commission announced that the fifth annual PrivacyCon event, scheduled for July 21, 2020, will now take place online due to the ongoing COVID-19 pandemic. PrivacyCon 2020 will bring together a diverse group of stakeholders, including researchers, academics, industry representatives, consumer advocates, and government officials, to discuss the latest research and trends related to consumer privacy and data security.

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Attorney General James and Governor Cuomo Again Renew Suspension of State Debt Collection as Coronavirus Continues to Impact New Yorkers’ Wallets

NEW YORK – New York Attorney General Letitia James and New York Governor Andrew M. Cuomo today announced that the state has, for the third time, renewed an order to halt the collection of medical and student debt owed to the State of New York that has been specifically referred to the Office of the Attorney General (OAG) for collection for an additional 30-day period. In response to continuing financial impairments resulting from the spread of the coronavirus disease 2019 (COVID-19), the OAG will again renew the orders tomorrow, Wednesday, June 17, 2020 through Thursday, July 16, 2020.

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Attorney General Becerra Joins Multistate Letter to Google and Apple Expressing Concerns Regarding Proliferation of Unofficial Contact Tracing Apps

SACRAMENTO – California Attorney General Xavier Becerra today joined a multistate letter to Google LLC and Apple Inc., expressing privacy concerns regarding the proliferation of contact tracing apps on their platforms. The attorneys general expressed concern that these apps, which are intended to track the spread of COVID-19, do not sufficiently protect consumers’ personal information.

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Targeting U.S. banks, Qbot trojan evolves with new evasion techniques

By malware standards, the banking trojan Qbot is long in the tooth, but it still has some bite, according to researchers who say it has added some detection and research evasion techniques to its arsenal.

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Britain tells banks to prepare for pandemic debt pile

LONDON (Reuters) - British banks need to accelerate preparations for dealing with businesses unable to repay money they borrowed to cope with the coronavirus pandemic, the national financial sector regulator said on Tuesday. Over 900,000 businesses have taken out state-backed loans worth around 38 billion pounds ($48 billion) under schemes introduced to help companies deal with the impact of lockdowns, banking industry body UK Finance said on Tuesday.

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BOSTON -- Representing the National Association of Consumer Advocates (NACA), U.S. Public Interest Research Group (PIRG) and consumer law expert Professor Kathleen Engel, Democracy Forward sued the Consumer Financial Protection Bureau (CFPB) and Director Kathy Kraninger Tuesday for unlawfully creating and operating the Taskforce on Federal Consumer Financial Law in violation of the Federal Advisory Committee Act (FACA). The Taskforce is stacked with industry-aligned members, excludes consumer advocates, does not serve a public interest, and has conducted its work behind closed doors — all in violation of federal law. This suit seeks to put a halt to the Taskforce’s unlawful operation and stop the CFPB from relying on its work.

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Jacksonville, FL – In late 2015, NLP Logix Lead Data Scientist, Matt Berseth, entered the company into the Camelyon16 Grand Challenge. The Camelyon16 was a challenge for the medical and computer science communities to come together to train a computer to identify breast cancer tumors, at a level at or above the highest trained pathologists in the world.  In April 2016, the top five winners were announced, with the combination team of Harvard Medical School and MIT taking first place, and NLP Logix placing fifth, but as the number one commercial entrant.  Little did NLP Logix know that their top performing algorithm to identify breast cancer tumors would ultimately be used for another purpose.

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Fed launches long-awaited Main Street lending program, seeks to reach nonprofits

NEW YORK (Reuters) - The Federal Reserve on Monday launched its Main Street Lending Program, the most complex program undertaken yet by the U.S. central bank to help keep the backbone of the economy from buckling under the strains of the coronavirus pandemic.

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Federal disaster loan program applications no longer limited to agricultural businesses

The Small Business Administration is reopening its Economic Injury Disaster Loan and EIDL advance grant portal to a broader array of eligible small businesses and nonprofits affected by the coronavirus pandemic, beginning Monday. The portal had been accepting applications only from agricultural businesses for the last month, as demand was high, and those businesses had not been EIDL eligible in the past.

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U.S. Federal Reserve resumes normal bank exams

WASHINGTON, June 15 (Reuters) - The U.S. Federal Reserve announced Monday it was resuming its normal bank examination activities, after easing back at the outset of the coronavirus pandemic.

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The Global Debt Settlement Market is expansion of debt as well as a reduction in savings is the major growth factor of global Debt Settlement market. Debt Settlement is tied to the growth in lending. Debt settlement is an approach to debt reduction in which the debtor and creditor agree on a reduced balance that will be regarded as payment in full. Debt settlement also adjusts a higher interest-rate debt to a lower-interest-rate debt. Debt settlement helps lower the principal balances that a person owes. These factors help augment market growth.

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How student debt became a $1.6 trillion crisis

Some 44 million Americans collectively hold over $1.6 trillion in student debt. And these numbers are growing. At the same time, advancements in technology, especially automation, are making it harder to earn a living wage without some type of advanced degree. Today, college graduates earn 80% more than those with just a high school diploma, on average. 

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New Mexico suspends consumer debt collection during pandemic

SANTA FE, N.M. (AP) — The New Mexico Supreme Court is temporarily suspending consumer debt collection — such as garnishing wages or seizing assets — in response to the coronavirus pandemic and related economic downturn.

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Options to consolidate credit card debt may be disappearing

CHICAGO (WLS) — Have you considered a balance transfer credit to consolidate debt during the COVID-19 pandemic? You may have noticed there are fewer options to get those cards. reported that 10 banks have either removed, or changed language, around “balance transfer offers.” But if they are available, it might be worth it so you can save on interest rates. Some balance transfers can offer as low as 0% interest rate.

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US Fed may add nonprofits to pending Main Street Lending Program

The US Federal Reserve may include nonprofits in its pending Main Street Lending Program for small and mid-sized businesses, Chairman Jerome Powell said, in the wake of a new study showing the “devastating impacts” of the pandemic on these organizations.

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DC sues online lender over ‘predatory’ loan scheme—but experts say these are increasingly common

The attorney general for the District of Columbia is suing online lender Elevate to protect residents from “predatory, high-cost loans.” The lawsuit, filed Friday, June 5, by Attorney General Karl Racine, is the latest salvo in an ongoing battle between consumer advocates and lenders around short-term, unsecured loans that opponents argue can be overly expensive and risky. 

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AKRON, OH. – (June 15, 2020) Debt Sales Partners announced today that its website which initially launched over twenty years ago has been completely updated and is now live at “Twenty-years ago our proprietary software drove the first 100% Internet based sale and it was groundbreaking for our industry. Technology has certainly evolved since then and we wanted to make sure we continued to stay ahead of the curve with our updated platform”, said Debt Sales Partners President and founder, Michael Zoldan.

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You could face a tax bill if your debt is forgiven—here’s what you need to know

Roughly one in three Americans have delinquent debt according to recent data from The Urban Institute. At 16%, medical debt makes up the highest percentage of debt delinquency, but consumers also default on student loans, auto loans and credit card debt. If someone’s debt is so large that making payments becomes unmanageable (or if paying off the balances would take an unthinkable number of years), consumers may be able to find relief through debt settlement.

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PPP loan forgiveness requirements loosened as some fight for more small business help

DENVER, Colo. -- President Trump recently approved changes to the Paycheck Protection Program to give small business owners more opportunities to qualify for loan forgiveness. Some owners say even with the changes, it’s still a long process to get their PPP loan forgiven.

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Senate passes Wieckowski bill to protect Scholarshare 529 college savings from creditors

SACRAMENTO – With strong bipartisan support, today the California State Senate approved a bill by Senator Bob Wieckowski (D-Fremont) to protect Golden State Scholarshare 529 college savings plans from being seized by creditors in bankruptcy cases.

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30% of Americans Missed June Housing Payments

Many renters and homeowners alike are missing payments, according to a survey conducted by Apartment List. The June rate is 30%, down slightly from 31% in May but up from 24% in April. Of those who have yet to make their June housing payment, one-third made a partial payment and two-thirds made no payment at all.

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Transparency concerns plague small business lending program over disclosing information about coronavirus relief loans

(CNN)The once troubled emergency small business lending program has stabilized, turning into a cornerstone of the government's economic response to the coronavirus crisis and credited with having a significant impact on a positive May unemployment report that stunned economists.

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Update from CFPB taskforce on federal consumer financial law

WASHINGTON, D.C. - Earlier this week, the chair of the taskforce on federal consumer financial law created at the beginning of the year by the Consumer Financial Protection Bureau offered an update on the group’s progress on examining the existing legal and regulatory environment facing consumers and financial services providers.

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Overdraft Fees Fall on Customers Hit Hardest by Virus

Bank customers who have benefited from more lenient overdraft and other fees during the coronavirus pandemic may find themselves in a deeper financial hole when the charges eventually return.

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Student loan glitch affected up to 5 million credit scores

Nearly 5 million student loan borrowers were harmed by an unusual mistake that was triggered after new rules offered debt relief during the COVID-19 crisis, according to consumer watchdogs.

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Attorney General Becerra Highlights Consumer Rights and Resources in Response to Recent Business Bankruptcies During the COVID-19

SACRAMENTO – Attorney General Xavier Becerra today provided important information and resources regarding business bankruptcies and consumer rights amidst the COVID-19 pandemic. Families, businesses and communities throughout the country are facing unprecedented financial strain as a result of the public health emergency. The economic impact of the pandemic has caused many companies – such as J.C. Penny, J. Crew, Dean & Deluca, Gold’s Gym, Hertz, and California-based businesses such as those that operate the family entertainment center “Boomers!” and the popular children’s camp “Camp Galileo” – to file for bankruptcy. The economic climate continues to be challenging for businesses, and consumers should know their rights during these trying times.

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Wells Fargo signals substantial layoffs ahead

CHARLOTTE, N.C. — Wells Fargo’s cost-cutting efforts will include layoffs, most likely by the end of the year, Chief Financial Officer John Shrewsberry told investors at a Morgan Stanley conference on Wednesday.

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Kaulkin Ginsberg Company Releases an Important Report Detailing the State of the Accounts Receivable Management Industry in Q1 2020

Despite starting Q1 2020 on strong footing, the U.S. economy has almost certainly plunged into recession due to the coronavirus pandemic, also known as COVID-19. Even as states begin to reopen, consumer demand is frozen and supply chains are disrupted. Businesses in every industry, including accounts receivable management (ARM), continue to face significant obstructions to normal operations. There is no doubt that what was the longest economic expansion ever recorded has ended.

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There’s about $130 billion left in the PPP pot. Why small businesses are slow to claim cash

The economy is uncertain for small businesses, yet many of them are still taking their time securing emergency funding through the Paycheck Protection Program. The federal government rolled out the so-called PPP in April as coronavirus and ensuing stay-at-home orders took their toll on small businesses.

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FTC Makes More State-Level Data Available About COVID-19 Related Complaints from Consumers

The Federal Trade Commission is making more state-level information available to the public about the complaints it receives from consumers related to COVID-19, with reports about online shopping problems topping the list of complaints in most states.

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FTC Reaches Settlement with Kohl’s over Allegations it Failed to Provide Victims with Information Related to Identity Theft

Kohl’s Department Stores, Inc. has agreed to pay a civil penalty of $220,000 to settle Federal Trade Commission allegations that the Wisconsin-based retailer violated the Fair Credit Reporting Act (FCRA) by refusing to provide complete records of transactions to consumers whose personal information was used by identity thieves.

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CFPB complaint volume sets another record in May

I'm still reading the CFPB's mail. As of today, consumer complaints to the CFPB set a third straight monthly record in May, with 35,093 complaints reported so far. See chart below. Complaints about credit reporting lead by far, followed by debt collection, credit card and mortgage complaints. It's clear from these data that job and income losses during the pandemic are hitting families hard. 

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FBI warns hackers are targeting mobile banking apps

The FBI on Wednesday warned that malicious cyber actors were targeting mobile banking apps in an attempt to steal money as more Americans have moved to online banking during the coronavirus pandemic. In a public service announcement, the FBI noted it expects to see hackers “exploit” mobile banking platforms, which have seen a 50 percent surge in use since the beginning of the pandemic.

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U.S. banks prepare branches for gradual post-coronavirus re-opening

NEW YORK (Reuters) - U.S. banks have been stocking up on masks and other supplies and setting up acrylic barriers to prevent spreading the novel coronavirus as they ready their branches for the country’s gradual reopening, executives and suppliers told Reuters.

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California State Assembly Advances AG-Sponsored Legislation to Strengthen the False Claims Act and Protect California Taxpayers from Fraud

SACRAMENTO – The California State Assembly today approved AB 2570, legislation authored by Assemblymember Mark Stone and sponsored by California Attorney General Xavier Becerra, that will strengthen the California False Claims Act (CFCA). The legislation increases the ability of the Attorney General and other prosecuting authorities to investigate fraudulent claims and recover public funds lost due to fraud or misrepresentation — which ultimately helps protect California taxpayers.

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CFPB Releases Tool to Help Communities Prevent and Respond to Elder Fraud

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today released an online resource to help communities form networks to increase their capacity to prevent and respond to elder financial abuse. The Elder Fraud Prevention and Response Networks Development Guide (Networks Development Guide) offers planning tools, templates, and exercises to help communities create a collaborative network to fight elder fraud or refresh or expand an existing network.

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Industry Events

NACTT 55th Annual Seminar 2020 – Virtual

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
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More information about Debt Connection Symposium
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