At a glanceWednesday, July 01, 2020

Collection Industry News At A Glance - July 1, 2020
Wednesday July 1, 2020
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Freddie Mac extends multifamily loan forbearance relief to landlords

Freddie Mac is expanding the mortgage relief options it offers multifamily property owners, but there are strings attached. The agency, which is under government conservatorship, today announced that landlords with federally-backed mortgages can further extend the repayment period. Putting off those payments does come with a price.

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Popular coronavirus relief loan program for small business expires with billions untapped

Nearly $135 billion provided by Congress to help small businesses struggling to survive the COVID-19 pandemic was left on the table Tuesday as the Paycheck Protection Program stopped accepting new applications.

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California Senate passes bill to license debt collectors

SACRAMENTO – With more Californians living paycheck-to-paycheck and taking on more debt to cover their bills, the California State Senate today approved with bipartisan support SB 908 by Senator Bob Wieckowski (D-Fremont) to require the licensing of debt collectors and debt buyers in California. The bill is supported by a number of California’s top consumer organizations.

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United States Supreme Court Provides Little Guidance to Remedy an Unconstitutional CFPB

The Consumer Financial Protection Bureau (CFPB or Bureau) has been a federal agency like no other. Born out of the last financial crisis, the Dodd-Frank Act envisioned the CFPB to be an independent agency, free of “political influence.” Congress thus authorized the CFPB to be led by a single director – rather than a board of multiple members - who would possess significant rulemaking and enforcement over 19 consumer protection statutes as well as unfair, deceptive, and abusive acts and practices. Its single director structure – only removable for “inefficiency, neglect of duty or malfeasance” – as well as its funding outside the appropriation process – provoked strong opinions from industry and advocates alike.  

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Chicago Ticketing Enforcement, Debt Collection Returning to Normal

The city of Chicago's ticketing enforcement and debt collection practices will begin returning to normal Wednesday with the start of the new month, officials say. Ticketing of certain vehicle violations was temporarily suspended in March but will resume for street sweeping beginning Wednesday.

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Attorney General Becerra Reminds Consumers of Data Privacy Rights Under the California Consumer Privacy Act

SACRAMENTO – California Attorney General Xavier Becerra today issued an alert reminding consumers of their data privacy rights under the California Consumer Privacy Act (CCPA). The CCPA, which went into effect this year, provides consumers with access to and control over their personal information. The Attorney General plans to begin enforcement of the CCPA starting July 1, 2020. Businesses subject to CCPA were required to begin complying with the law on January 1, 2020. Proposed final regulations under the CCPA were submitted to the California Office of Administrative Law on June 1, 2020 and are currently pending approval.

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Senate passes extension of Paycheck Protection Program

The Senate has passed an extension of the popular Paycheck Protection Program for small businesses, which was set to close down Tuesday night with $130 billion in funding left over. The extension to Aug. 8 was offered by Sen. Ben Cardin, D-Md., and cleared the chamber by unanimous consent. The House has yet to take up the bill but could pass it as soon as Tuesday night.

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Phillips & Cohen Announces Vulnerable Customer Expansion Plans

Wilmington, DE – June 2020 – Phillips & Cohen Associates, Ltd., the leading specialist recoveries management business servicing creditors in the US, Canada, UK, Ireland, Australia, New Zealand, Spain, Portugal and Germany has announced plans to expand into the servicing of potentially vulnerable consumers.

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FTC Data Shows Record Surge in Online Shopping Complaints During Pandemic

Newly released data show that since the beginning of the coronavirus pandemic, consumers have complained to the Federal Trade Commission in record numbers about problems related to online shopping.

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CFPB Announces Tech Sprints To Empower Consumers, Reduce Regulatory Burden

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today announced its first-ever Tech Sprints to reduce regulatory burden and improve consumer understanding of financial services. The Bureau’s Tech Sprints program will bring together regulators, technologists, software providers, consumer groups, and financial institutions to develop technological solutions to shared compliance challenges. The first Tech Sprint will kick off in October with another in March 2021.

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Data Center Company Settles FTC Privacy Shield Case

An operator of secure data centers has settled Federal Trade Commission allegations that it misled consumers about its participation in the EU-U.S. Privacy Shield framework and failed to adhere to the program’s requirements before and after allowing its certification to lapse.

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PPP loans are ending. Here’s where small businesses can turn now

The Paycheck Protection Program is ending, meaning ailing small businesses will need to look elsewhere for funding. But where to turn? While there are other options that may be of help to entrepreneurs during the coronavirus-induced downturn, they are limited and may not carry favorable terms for borrowers, according to experts.

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California Senate Passes Bill To License Debt Collectors

With more Californians living paycheck-to-paycheck and taking on more debt to cover their bills, the California State Senate today approved SB 908 by Senator Bob Wieckowski (D-Fremont) to require the licensing of debt collectors and debt buyers in California. The bill is supported by a number of California's top consumer organizations.

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The more cybersecurity tools an enterprise deploys, the less effective their defense is

The enterprise is slowly improving its response to cybersecurity incidents, but in the same breath, it is still investing in too many tools that can actually reduce the effectiveness of defense. On Tuesday, IBM released the results of a global survey, conducted by the Ponemon Institute and featuring responses from over 3,400 security and IT staff worldwide. The research suggests that while investment and planning are on the uptake, effectiveness is not on the same incline, with response efforts hindered by complexity caused by fragmented toolsets.

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Supreme Court gives president more control over Consumer Financial Protection Bureau

The Supreme Court on Monday dealt a blow to the Consumer Financial Protection Bureau as conceived by President Barack Obama and Sen. Elizabeth Warren, making it easier for the agency’s leader to be removed for any reason.

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In the wake of the 2008 financial crisis, Congress established the Consumer Financial Protection Bureau (CFPB), an independent regulatory agency tasked with ensuring that consumer debt products are safe  and transparent. See Dodd-Frank Wall Street Reform and Consumer     Protection Act Dodd-Frank), 124 Stat. 1376. Congress transferred the     administration of 18 existing federal statutes to the CFPB, including      the Fair Credit Reporting Act, the Fair Debt Collection Practices Act,  and the Truth in Lending Act; and Congress enacted a new prohibition on unfair and deceptive practices in the consumer-finance sector. 12 U. S. C. §5536(a)(1)(B). In doing so, Congress gave the CFPB extensive rulemaking, enforcement, and adjudicatory powers, including the authority to conduct investigations, issue subpoenas and civil investigative demands, initiate administrative adjudications, prosecute civil actions in federal court, and issue binding decisions in administrative proceedings. The CFPB may seek restitution, disgorgement, injunctive relief, and significant civil penalties for violations of the 19 federal statutes under its purview. So far, the agency has obtained over $11 billion in relief for more than 25 million consumers.

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Supreme Court rules structure of CFPB is unconstitutional

Washington — The Supreme Court ruled Monday the structure of the Consumer Financial Protection Bureau (CFPB), a consumer watchdog that was the brainchild of Democratic Senator Elizabeth Warren, is unconstitutional.

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Survey: Lending cash to loved ones ends badly for nearly half of Americans

Despite good intentions, lending money to friends and family can often lead to some uncomfortable situations. According to Bankrate’s latest survey of 2490 U.S. adults, 60 percent of Americans have helped out a friend or family member by lending cash with the expectation of being paid back, while 17 percent have lent their credit card and 21 percent have co-signed for a financial product like a loan or rental. But more than a third (35 percent) who participated in at least one of these activities were negatively impacted, resulting in lost money, a damaged credit score or harmed relationship.

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Crypto Lending: The Ultimate Killer App?

Crypto lending, one of the fastest-growing industries in the blockchain ecosystem, has made it possible to earn yields and borrow capital using digital assets. According to a report by research company Credmark, the volume of crypto-backed loans increased seven-fold in 2019, ultimately reaching $8 billion. Experts speculate that crypto lending will attract more investors into the crypto market by increasing its liquidity.

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U.S. lenders, businesses brace for disclosure on small business pandemic aid

WASHINGTON (Reuters) - Americans will soon get a first full look at which businesses received $515 billion of taxpayer funds when the government, after initial resistance by President Donald Trump’s administration, releases borrower data for one of its highest- profile pandemic aid efforts.

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Three of New York City’s New Language Access Rules for Debt Collection Can Apply to Creditors

On June 27, the City of New York’s new rules aimed at language access in debt collection become effective. I am often asked whether they apply to creditors as well. It appears that particular provisions of the new rules do cover creditors collecting their own debt.

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Washington state AG Bob Ferguson sues Renton-based debt collector over misleading letters

Washington state Attorney General Bob Ferguson filed a consumer-protection lawsuit against a Renton-based collection agency that he says tried to scare people into thinking they could be sued over old debt.   Letters sent to debtors by Convergent Outsourcing created the impression that Convergent could, and would, sue to collect, when it could not, according to the suit filed this week in King County Superior Court.

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Conforming data collection to cybersecurity industry regulations

“There are only two types of companies: those that have been hacked, and those that will be.” When former FBI Director Robert Mueller spoke those words in 2012, he sounded hyperbolic. Almost a decade later, it seems prophetic.

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Watchdog calls for fraud crackdown at small business lending program

Congress’ watchdog arm called on the Trump administration on Thursday to step up efforts to police the government’s massive small business rescue program after finding a significant risk of fraud and resistance to oversight at the agency running the bailout.

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Stop Seizing Paychecks, Senators Write to Capital One and Other Debt Collectors

The nation’s largest debt collectors should suspend seizing wages “immediately,” two prominent senators demanded in letters sent Wednesday.

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AG James Sues to Stop Trump Administration’s Illegal Elimination of Safeguards for College Students

NEW YORK – New York Attorney General Letitia James, as part of a coalition of 19 attorneys general from around the nation, today filed a lawsuit to stop the U.S. Department of Education and Education Secretary Betsy DeVos from repealing the “Gainful Employment” rule. The Gainful Employment rule provides critical protections for students considering enrolling in for-profit colleges and vocational schools and helps ensure these for-profit colleges and vocational schools “prepare students for gainful employment in a recognized occupation” following graduation.

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Education Department Revives Website That It Said Made Applying for Loan Forgiveness Too Easy

THE TRUMP administration is set to revive a website that the Education Department's Federal Student Aid office designed to help students who have been defrauded by their colleges apply for loan forgiveness – a decision made less than 24 hours after a whistleblower complaint surfaced, accusing a high-ranking department official of initially rejecting it on grounds that the tool made the process too easy.

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Over $100B in PPP loans left unclaimed in U.S. relief aid

Back in April, when the Small Business Administration was approving about $25 billion in coronavirus loans a day, lawmakers and companies were concerned that $669 billion in relief would run dry, leaving countless mom-and-pop businesses hanging. Yet the Paycheck Protection Program had more than $100 billion in funding left as of last Saturday, with only days remaining until the SBA stops taking new applications on June 30.

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Upstart’s AI Lending Platform Expands to Auto Loans

SAN MATEO, Calif.June 24, 2020 /PRNewswire/ -- Upstart, a leading artificial intelligence (AI) lending platform, today announced support for auto loans as part of its consumer lending platform. With Upstart's new service, banks can offer refinance and purchase finance loans with a seamless digital experience, higher approvals, and potentially lower loss rates, all enabled by AI.  "Personal loans were the right first step for AI lending - now, we're expanding to auto", Dave Girouar, co-founder and CEO of Upstart.  "The days of randomly priced auto loans with confusing and laborious processes both for consumers and banks are nearing their end."  Upstart's new service eliminates the need for consumers to track down and enter their VIN or license plate number.  Banks no longer need to manage detailed paperwork including title transfer, lien placement, or payoff of the borrower's existing loan (in the case of refinance).

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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 – Virtual

Save 15% with our Discount Code: DC15%

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

LendIt Fintech Europe 2020 – Virtual

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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