At a glanceWednesday, July 29, 2020

Collection Industry News At A Glance - July 29, 2020
Wednesday July 29, 2020
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Attorney General Becerra Challenges Rule by Comptroller of the Currency Green-lighting Predatory Lending Schemes

SACRAMENTO – California Attorney General Xavier Becerra, alongside Illinois Attorney General Kwame Raoul and New York Attorney General Letitia James, filed a lawsuit challenging the federal Office of the Comptroller of the Currency’s (OCC) recently announced final rule that exempts buyers of high-interest loans from state interest-rate caps. The OCC rule takes aim at state laws that protect consumers from predatory lenders. Under existing federal law, federally regulated banks are exempt from state interest-rate caps.

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Maryland Attorney General Brian Frosh Calls For Extension Of Executive Orders Preventing Evictions

BALTIMORE (WJZ) — Maryland Attorney General Brian Frosh is asking Gov. Larry Hogan to extend several executive orders to help keep people in their homes amid the coronavirus  pandemic.  Among the protection orders they want to expand further are eviction, debt collection and utilities.

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Both Democrats, GOP are now on board for a second wave of PPP loans
On Monday, Senate Republicans announced their plan for another wave of the Paycheck Protection Program as a part of the HEALS Act. They want the "hardest hit small employers” to be able to get a second loan. Sen. Ben Cardin (D-MD) said he’s largely on board with how the Republicans laid out their proposal during a Yahoo Finance interview on Tuesday. Cardin noted that "there's a lot of similarities" between his Democratic plan and the Republican plan. Read More
Colorado Updates State Debt Collection Law

Effective July 1, 2020, an update to the website for the Colorado Attorney General’s informational page about the Colorado Fair Debt Collection Practices Act (CFDCPA) must be included in the first written notice sent to consumers about a debt.

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The Bureau is taking action to build a more inclusive financial system

In the midst of our country’s national conversation on how to put a stop to racial inequality and achieve fair treatment across our society, the agency I run—the Consumer Financial Protection Bureau—is playing a lead role in this conversation as it relates to fair treatment and equitable access to credit. As important as conversations are, actions matter more. Under my leadership, the CFPB is taking steps to help create real and sustainable changes in our financial system so that African Americans and other minorities have equal opportunities to build wealth and close the economic divide.

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COVID-19 has disrupted cybersecurity, too – here’s how businesses can decrease their risk

COVID-19 is changing everything. Along with social distancing, obsessive sanitisation, broken supply chains, fragmented workforces and the rise of video meetings, the pandemic is driving acute systemic changes in consumer and business behavior. These changes are causing an outbreak of new and unanticipated business moments. The resolve to transform is palpable.

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The Fed is extending its lending programs until the end of the year

The Federal Reserve said Tuesday it is extending its menu of lending programs to businesses, governments and individuals to the end of 2020. Originally set to expire Sept. 30, the myriad facilities, stretching from credit to small businesses up to the purchase of junk bonds now will stretch to Dec. 31. The Fed began rolling out the initiatives as market functioning broke down in March. A lack of liquidity stemming from fears over the coronavirus crisis froze markets and pushed the Fed into various credit facilities, a number of which had their origins during the financial crisis.

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TECH LOCK Fulfills Growing Demand for Comprehensive Managed Cybersecurity with Integrated Compliance

TECH LOCK Inc., a RevSpring Company, today announced its TECH LOCK Secure™ Managed Cybersecurity and Integrated Compliance Services, fulfilling a growing demand for customers struggling with the challenges of keeping pace with modern security threats. TECH LOCK Secure™ is comprised of a comprehensive suite of Managed Security and Compliance Services, including Endpoint Detection and Response, Network/Firewall, Log/SIEM and Vulnerability Management. The service is supported by a U.S. based 24x7x365 Security Operations Center (SOC) providing quick response to security events through the TECH LOCK Secure™ service portal, powered by a cloud-based machine learning engine enabling security event orchestration, detection and response.

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Google Teams With CFPB on New Mortgage Search Feature

Google has added a new feature to its mobile search functions designed to help aspiring homebuyers and current homeowners secure more in-depth information on the mortgage process. The search engine giant, which first ventured into the mortgage realm in 2015 via the creation of an online mortgage calculator feature, has teamed with the Consumer Financial Protection Bureau on this search feature.

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Attorney General’s COVID-19 Access to Justice Task Force Requests Governor Hogan Extend Executive Orders to Protect Marylanders from Threat of Eviction and Debt Collection

BALTIMORE, MD (July 28, 2020) - On behalf of the Attorney General’s COVID-19 Access to Justice Task Force, Maryland Attorney General Brian E. Frosh today sent a letter to Governor Larry Hogan requesting the Governor extend and expand his Executive Orders on eviction, debt  collection,  and utilities. The Task Force requested the extension to provide Marylanders much needed protection as a result of COVID-19. Extension of the Executive Orders is critical because the conditions underlying Marylanders’ inability to pay rent and consumer debt remain largely unchanged.

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CFPB Announces Plan to Issue ANPR on Consumer-Authorized Access to Financial Data

Washington, D.C. - The Consumer Financial Protection Bureau (Bureau) today announced that it plans to issue an advance notice of proposed rulemaking (ANPR) later this year on consumer-authorized access to financial records. The announcement follows a symposium the Bureau held earlier this year on the topic, which included experts from consumer groups, fintechs, trade associations, financial institutions and data aggregators. The Bureau is releasing a summary report of the symposium proceedings.

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WRAPUP 1-U.S. new home sales shine in June; business activity picks up

WASHINGTON, July 24 (Reuters) - Sales of new U.S. single-family homes rose to a near 13-year high in June as the housing market outperforms the broader economy amid record low interest rates and migration from urban centers to lower-density areas because of the COVID-19 pandemic.

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In Final Court Summary, FTC Reports Volkswagen Repaid More Than $9.5 Billion To Car Buyers Who Were Deceived by “Clean Diesel” Ad Campaign

In a final summary filed in federal court today, the Federal Trade Commission reported that Volkswagen and Porsche repaid a total of more than $9.5 billion since 2016 to car buyers under the FTC’s orders stemming from the companies’ deceptive “clean diesel” advertising of VWs and Audis fitted with illegal emission defeat devices.

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CFPB to propose rules for how companies access customer data

The Consumer Financial Protection Bureau plans to propose clearer standards on how fintech firms access consumers' financial account information, the agency said Friday. The bureau said it will release an advance notice of proposed rulemaking later this year that could prompt further inquiry into whether market participants — including banks, fintechs and data aggregators — are acting in consumers' interest when it comes to accessing data.

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FTC Alleges California Purveyor of Background Reports Misled Consumers To Think its Reports on Individuals Might Contain Criminal and Other Records

The Department of Justice on behalf of the Federal Trade Commission sued a California-based purveyor of background reports, alleging that the company has deceived consumers with “teaser background reports” that often falsely claimed to include information about arrest, criminal, and sex offender records, and also engaged in misleading billing and marketing practices.

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PPP forgiveness plan leaves bankers wanting

Paycheck Protection Program lenders should circle Aug. 10 on their calendars. It’s the date the Small Business Administration expects to launch its long-awaited portal through which lenders will seek approval of their PPP-loan forgiveness decisions, according to a procedural notice issued by the agency Thursday.

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Consumer Financial Protection Bureau Settles with Mortgage Companies to Address Deceptive Loan Advertisements Sent to Servicemembers and Veterans

Washington, D.C. - Today, the Consumer Financial Protection Bureau (Bureau) issued consent orders against Sovereign Lending Group, Inc. (Sovereign) and Prime Choice Funding, Inc. (Prime Choice). Sovereign is a California corporation that is licensed as a mortgage broker or lender in about 44 states and the District of Columbia. Prime Choice is a California corporation that is licensed as a mortgage broker or lender in about 35 states and the District of Columbia. Both companies offer and provide mortgage loans guaranteed by the United States Department of Veterans Affairs (VA).

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Senate passes bill to prevent debt collectors from garnishing stimulus checks

The Senate on Thursday passed bipartisan legislation that would protect coronavirus relief payments from being garnished by banks and debt collectors.   The Senate passed the bill by unanimous consent. 

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Legislation would regulate use of license plate scanners, data collected

Proposed legislation would allow state and local law enforcement to use license plate scanners to determine ownership of vehicles and routes traveled, but puts limits on the use and storage of collected data. Sen. Arthur Orr, R-Decatur, pre-filed the bill for the legislative session that starts in February.   The bill comes as the Alabama Department of Transportation considers allowing law enforcement agencies access to ALDOT rights-of-way and structures to install license plate readers and other surveillance equipment.

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FBI Alert Warns of Increase in Disruptive DDoS Attacks

The FBI is warning of an increase in distributed denial-of-service attacks using amplification techniques that are targeting U.S. organizations. The bureau notes that it's seen an uptick in attack attempts since February.

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Scammers Who Used Robocalls to Target Cash-Strapped Consumers Banned from Selling Debt Relief Services and Telemarketing

The operators of a Florida-based company that allegedly defrauded financially-distressed and often older-adult consumers with deceptive robocalls claiming they could save them money by reducing the interest rates on their credit cards has settled Federal Trade Commission charges that their conduct was both deceptive and illegal.

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Attorney General Becerra Announces Arrests and Charges in International Investment Fraud Scheme, Secures Freeze of Financial Assets and Real Property

SACRAMENTO – California Attorney Xavier Becerra today announced arrests and filing of charges against Christopher Mancuso, John Black, and Joseph Tufo for allegedly operating a multimillion-dollar investment fraud scheme that targeted more than 70 victims around the world. The defendants allegedly lured victims in by promising incredible returns on their investments at little to no risk, but would then keep the money and split it amongst themselves. As part of today’s action, the California Department of Justice also secured orders freezing the defendants’ assets, including bank accounts, cryptocurrency, and real property.

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Imagined.Cloud welcomes Rick Regan

Jacksonville, FL – Rick Regan, Co-Founder, joins to head North American sales. Rick’s experience providing enterprise solutions in the ARM and BPO industries strengthens executive team. With over twenty years of proven client engagement, Mr. Regan brings the knowledge and understanding necessary to build lasting relationships within the industry.

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Bank of America will pay $300K to settle DOJ mortgage lending discrimination claim

Bank of America and the U.S. Department of Justice reached a settlement over allegations the bank denied mortgages and home equity loans to adults with disabilities who were under legal guardianship. The bank’s alleged actions relating to mortgages ran from 2010 to 2016, and violated the Fair Housing Act, according to the Justice Department. The government also said the bank’s practice regarding home equity loans lasted until 2017.

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Consumer Financial Protection Bureau Announces Settlement with Foreclosure Relief Services Company and Its Owner

WASHINGTON, D.C. – On July 20, 2020, the United States District Court for the Central District of California entered a stipulated final judgment resolving the Consumer Financial Protection Bureau’s (Bureau) allegations against Certified Forensic Loan Auditors, LLC (CFLA) and Andrew Lehman (Lehman). CFLA is a foreclosure relief services company headquartered near Houston, Texas, and Lehman is CFLA’s president and CEO. 

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Cardholders Saw Credit Limits Shrink, Card Accounts Closed Involuntarily in Past 60 Days

CHARLOTTE, N.C.July 22, 2020 /PRNewswire/ -- About 70 million people – more than one-third of credit cardholders – said they involuntarily had a credit limit reduced or a credit card account closed altogether in a 60-day period stretching from mid-May to mid-July, according to a new survey from CompareCards. 

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Remitter USA Inc. appoints David Nathanson as its Executive Vice President and head of Sales

Remitter USA Inc, ARM industry’s leader in AI powered digital communication solutions that helps lenders and BPOs optimize customer engagement and maximize revenue, announced today that David Nathanson is the newest member of its executive team. David brings over 20 years’ experience successfully building and leading high performing teams in the banking, financial services, BPO, data, and software spaces.  He joins Remitter as Executive Vice President and Head of Sales after spending the past ten years in a variety of senior leadership roles at Experian.

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U.S. banks given regulatory green light to safekeep cryptocurrencies

WASHINGTON (Reuters) - A leading U.S. banking regulator said on Wednesday that national banks may provide custody services for cryptocurrencies.The Office of the Comptroller of the Currency said in a new letter that providing custody and safekeeping services for cryptocurrencies, including holding “keys” needed to access cryptocurrency holdings, is a modern version of traditional banking activities and should be allowed.

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Feds Eye Payments Processors, Phony Websites Over Fraud

The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) are cracking down on scams known as credit card laundering or transaction laundering, according to The Wall Street Journal (WSJ).  Such fraud occurs when individuals and companies have websites making them look like legitimate businesses, such as for selling flowers, but are out to trick financial firms, the report stated.

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CFPB Consumer Complaints Up 50 Pct During Pandemic

The Consumer Financial Protection Bureau (CFPB) has recorded record-high numbers of complaints every month since the pandemic hit in mid-March, according to a press release from the U.S. PIRG Education Fund. However, according to an analysis from the PIRG Fund released Friday (July 17), the CFPB has shirked its duty somewhat during the pandemic by weakening protections against predatory payday lenders. “The CFPB was off to a good start after the last economic crisis,” said Mike Litt, U.S. PIRG Education Fund’s consumer campaign director, according to the release. “But it’s looked the other way during the current one.”

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Existing home sales surge nearly 21% in June – the highest monthly gain on record

Sales of existing homes jumped nearly 21% in June compared with May, according to the National Association of Realtors. It was the largest monthly gain since the Realtors began tracking the data in 1968 and came after sharp declines over the previous three months due to the coronavirus pandemic. Sales were still 11.3% lower annually.  

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Industry Events

NCUCA 6th Annual Conference

October 28 - 30 , 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