At a glanceWednesday, September 02, 2020

Collection Industry News At A Glance - September 2, 2020
Wednesday September 2, 2020
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CA Bill 2524 Passed California State Senate And Sent To CA Governor To Be Enacted

On August 28, 2020 the California State Senate passed the heavily amended AB 2524.  “Check Sellers, Bill Payers and Proraters Law: out-of-state activities” Bill. On September 1, 2020, AB 2524 was sent to the California Governor for his signature and therefore the enactment of the Bill.  

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Children’s Online Learning Program ABCmouse to Pay $10 Million to Settle FTC Charges of Illegal Marketing and Billing Practices

Online children’s education company Age of Learning, Inc., which operates ABCmouse, will pay $10 million and change its negative option marketing and billing practices to settle Federal Trade Commission charges that it made misrepresentations about cancellations and failed to disclose important information to consumers, leading tens of thousands of people to be renewed and charged for memberships without proper consent.

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Thousands of small-business loans may have been fraudulent, U.S. House panel finds

WASHINGTON (Reuters) - Tens of thousands of loans worth billions of dollars may have been subject to fraud, waste and abuse in the $659 billion taxpayer-funded program aimed at helping small U.S. businesses survive the coronavirus pandemic, according to a report released by Democratic lawmakers on Tuesday.

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Credit card firms split on fate of consumers while U.S. cuts aid

A fissure is forming in the U.S. credit card industry: Are consumers about to go bankrupt or bounce back? On one side, risk management pioneer Capital One Financial is reining in credit lines to reduce its exposure. On the other, the nation’s largest card issuer, JPMorgan Chase, is rolling out a new card designed for travelers and diners — the ultimate countercyclical bet.

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CFPB California Style: New Name Is Just The Start For A Much More Powerful Regulator

California has become the latest state to create its own mini Consumer Financial Protection Bureau (CFPB). As part of the 2020-21 budget, Governor Gavin Newsom set in motion a reorganization and significant expansion of the authority of the California regulator, the Department of Business Oversight (DBO). This reorganization includes:

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CFPB Report: Effects of COVID-19 on Mortgage Loans, Other Debt

The Consumer Financial Protection Bureau (Bureau) this week issued a report examining the effects of the COVID-19 pandemic on consumer credit through June. The report focused on mortgage, student and auto loans, and credit card accounts since March.

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Colorado couple sees $200,000 in student debt discharged by judge

A new ruling by the U.S. Court of Appeals for the Tenth Circuit found that a Colorado couple’s private student loans could be discharged when a borrower files for personal bankruptcy, a legal concept dominating student debt for years." A new ruling by the U.S. Court of Appeals for the Tenth Circuit found that a Colorado couple’s private student loans could be discharged when a borrower files for personal bankruptcy,further upending a legal concept dominating student debt for years. The ruling rejected student loan giant Navient’s claims that $200,000 worth of private student loans owed by the Colorado-based McDaniel couple was non-dischargeable under bankruptcy law.

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CFPB continues to bring actions against mortgage companies targeting veterans with deceptive ads

The Consumer Financial Protection Bureau issued a consent order against two companies on Tuesday following recent investigations of mortgage companies that use deceptive mailers to advertise loans guaranteed by the United States Department of Veterans Affairs. Those investigations have resulted in actions against six companies this summer. The most recent cases were those against Service 1st Mortgage, Inc., and Hypotec Inc., which found the companies had sent consumers numerous mailers for VA-guaranteed mortgages that contained false, misleading, and inaccurate statements or that lacked required disclosures. In the case of Service 1st Mortgage, the misleading mailers were sent out for a period beginning in 2015, and for Hypotec, beginning in 2016.

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California Legislature passes landmark bill to license debt collectors

SACRAMENTO – With an eye toward shielding consumers from unscrupulous debt collectors preying on California families during the COVID-19 induced economic crisis, the state Legislature today approved a bill by Senator Bob Wieckowski (D-Fremont) to license debt collectors and debt buyers operating in California.  The bill, SB 908, now heads to Governor Newsom for his consideration.  It is supported by a large coalition of consumer organizations and legal service providers.

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

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) issued a consent order against Hypotec, Inc., a mortgage broker based in Miami, Florida that is licensed in eight states. Hypotec offers and provides mortgage loans guaranteed by the United States Department of Veterans Affairs (VA). Hypotec advertises its VA-guaranteed loans to United States military servicemembers and veterans through direct-mail advertisements.

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AG Healey Sues Major Subprime Auto Lender for Unfair and Deceptive Practices in Its Subprime Auto Loan Business in Massachusetts

BOSTON — A lawsuit has been filed against national auto lender Credit Acceptance Corporation (CAC) for allegedly making unfair and deceptive auto loans to thousands of Massachusetts consumers, providing investors with false or misleading information regarding auto securities they offered, and engaging in unfair debt collection practices, Attorney General Maura Healey announced today.

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CFPB News: Bureau Places Itself Under the Microscope

In a potentially critical new development, the Consumer Financial Protection Bureau (CFPB or Bureau) will now impose what it characterizes as independent “peer review” on certain of its more important internal research. Will this provide an important check against partisan analyses or generate more of the same? We tell you all you need to know in this update.

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CFPB: About 6% of Mortgage Borrowers Receiving Coronavirus Relief

Around 6% of outstanding first-lien mortgages in June 2020 were reporting zero payment due based on credit bureau data, up from essentially none in February—thus indicating some kind of coronavirus-related payment relief, the Consumer Financial Protection Bureau said in a report today. As would be expected, mortgage assistance was more likely to be reported in areas correlated with health and economic effects of COVID-19, including areas with greater shares of virus cases, greater shares of minority populations and higher levels of unemployment shock.

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Consumer Financial Protection Bureau Settles with Remittance Transfer Providers for Remittance Transfer Rule Violations

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) entered into settlements with Trans-Fast Remittance LLC and Sigue Corporation and its subsidiaries, SGS Corporation and GroupEx Corporation. Trans-Fast, which until recently was a remittance transfer provider, is based in New York, New York and licensed in over 30 states.

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Student borrower protection bill on verge of passage in California

The California Senate passed a bill Friday that would impose tough new standards on banks and certain other companies that service education loans.   Supporters expect the legislation, which is known as the Student Borrower Bill of Rights, to be approved by the state Assembly and signed into law by Democratic Gov. Gavin Newsom.

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DeSantis extends eviction moratorium again, but since he changed its wording hundreds of cases have been filed

Since Gov. Ron DeSantis quietly changed the wording of Florida’s eviction moratorium, landlords in Orange County have filed hundreds of cases to remove tenants, outpacing the entirety of filings that streamed into the court from April to July when a stricter ban on evictions was in place.

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Main Street looks to Congress for new lifeline as pandemic impact lingers on

As stimulus talks remain deadlocked in Washington, the situation on Main Street is becoming increasingly dire. The window to apply for new Paycheck Protection Program loans has expired and many who have accessed loans have used the funding. As businesses operate with limited capacity due to Covid-19 restrictions, new data show many anticipate more aid will be needed or the sector’s decimation will continue. Recent data from the National Federation of Independent Business finds that one in five businesses say they will have to shut down if economic conditions don’t improve within the next six months.

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Capital One cuts credit limits as millions struggle with income cliff

Capital One is cutting the credit limits on some credit cards, with some consumers reporting on social media that their credit limits have been cut in half by the card issuer. The company said it’s making the decision based on the customer’s account activity in the last year. Capital One, the third-largest card issuer, is trimming consumers’ credit lines just weeks after the extra $600 in weekly unemployment benefits expired, a benefit that more than 27 million out-of-work adults had relied upon. That income cliff “will depress consumer confidence and spending and weigh on the broader economic recovery,” even as consumer spending remains 5% below pre-pandemic levels, according to Oxford Economics. 

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US consumer spending rose a moderate 1.9% in July

WASHINGTON (AP) — U.S. consumers increased their spending by 1.9% last month, a dose of support for an economy struggling to emerge from the grip of a pandemic that has held back a recovery and kept roughly 27 million people jobless. The July gain marked the third straight monthly increase in consumer spending, the primary driver of the U.S. economy, but represented a slowdown from the previous two months. Friday’s report from the Commerce Department also showed that income rose 0.4% in July after two months of declines.

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Improvement in coronavirus mortgage bailout stalls, as more borrowers struggle to make payments

After improving markedly in July, the number of borrowers struggling to make their monthly mortgage payments has essentially flatlined and now threatens to move higher. As of Aug. 25, 3.9 million homeowners were in mortgage forbearance programs, according to Black Knight, a mortgage technology and analytics firm. This represents 7.4% of all active mortgages and is unchanged from the week before. The numbers have not improved in the past two weeks.

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Over 3.6 Billion Robocalls in July Mark 9% Monthly Increase, Says YouMail Robocall Index

IRVINE, Calif., Aug. 6, 2020 /PRNewswire/ -- Americans received just over 3.6 billion robocalls in July, an approximately 9% increase from June. In July, robocalls averaged just over 117.1 million calls per day, or roughly 1,356 calls per second. The good news is that the July robocall volume is still 36% below the all-time monthly peak of 5.7 billion calls in October 2019. The bad news is that we are now 27% above the April trough of roughly 2.8 billion robocalls.

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Western PA gas company warns customers of scam

National Fuel Gas Distribution Corporation (National Fuel) is warning customers of a recent collections scam.  Scammers, posing as National Fuel representatives, are contacting customers and stating that the customer has 45 minutes to pay their bill or service will be disconnected.  Customers are reminded that National Fuel DOES NOT disconnect gas service without following its proper collections procedures, including multiple attempts to contact customers via the mail, phone, or in the field. National Fuel DOES NOT force phone payments as the only payment option and DOES NOT request bill payment by prepaid debit card, gift card or wire transfer.

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Capital One Cuts Card Limits Amid U.S. Impasse on Jobless Aid

(Bloomberg) -- Capital One Financial Corp. is cutting borrowing limits on credit cards, reining in its exposure as the U.S. reduces support for millions of unemployed Americans.

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National media highlights NAFCU’s efforts to strengthen CUs amid pandemic

In an exclusive interview with,
NAFCU Vice President of Media Relations and Communications Jacqueline Ramsay discussed the association's relentless commitment to strengthening the credit union industry amid the coronavirus pandemic by providing extreme member service. 

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No interest, no payments required on federal student loans until 2021

It’s official: if you have federally held student loans, you don’t have to make any payments until January. Following a memorandum from President Donald Trump, the Department of Education says it will automatically extend the suspension of student loan payments for everyone with federally held student loans through the end of the year, and keep the interest rate at 0%. While payments are paused, those working toward Public Service Loan Forgiveness or loan rehabilitation will also continue to get credit as if they were making payments, and collection efforts will remain suspended for borrowers who are in default.

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2020 Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages)

This month, the Consumer Financial Protection Bureau published its Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages) Final Rule in the Federal Register. The CFPB is required to calculate the dollar amounts for several provisions in Regulation Z each year.1 These include provisions in the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

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CFPB Issues New HMDA Analysis of 2019 Data

The Consumer Financial Protection Bureau (CFPB) this week issued a new Home Mortgage Disclosure Act (HMDA) analysis of the 2019 HMDA Data. This data article is the second in a series and follows the first article  published in June.

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New CFPB Guide for Intermediaries to Assist Non-Filers to Access their Economic Impact Payments

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) released a guide to assist intermediaries in serving individuals to access their Economic Impact Payments (EIPs). The guide, Helping Consumers Claim the Economic Impact Payment: A guide for intermediary organizations provides step-by-step instructions for frontline staff 

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Consumer Financial Protection Bureau Issues Analysis of HMDA Data Points

WASHINGTON, D.C. – Today the Consumer Financial Protection Bureau (Bureau) issued a new Home Mortgage Disclosure Act (HMDA) analysis of the 2019 HMDA Data. This data article is the second in a series and follows the first article
published in June of this year.

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

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) issued a consent order against, Inc. (PHLoans), a California corporation that is licensed as a mortgage broker or lender in about 11 states. Until at least April 2019, PHLoans was known as Pacific Home Loans, Inc. PHLoans offers and provides mortgage loans guaranteed by the United States Department of Veterans Affairs (VA). PHLoans’s principal means of advertising VA-guaranteed loans is through direct-mail advertisements sent primarily to United States military servicemembers and veterans.

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FTC Announces that its September Data Portability Workshop will be Held Online

The Federal Trade Commission announced that the September 22, 2020, workshop examining the potential benefits and challenges to consumers and competition raised by data portability will be held online.   The online workshop will bring together consumer advocates, industry representatives, economists, regulators, and other stakeholders for a wide-ranging public discussion on data portability, which is the ability for consumers to move data—such as emails, contacts, calendars, financial information, health information, favorites, friends, or content posted on social media—from one service to another or to themselves.

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CFPB continues crackdown on VA lenders

The Consumer Financial Protection Bureau’s ongoing sweep of VA lenders has netted another business that allegedly deceived veterans. The CFPB has issued a consent order against PHLoans, a California-based mortgage broker licensed in 11 states. Until at least April 2019, PHLoans was known as Pacific Home Loans. The company provides VA mortgages, and its principal means of advertising is through direct mail, sent primarily to service members and veterans, the CFPB said.

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GOP set to propose smaller coronavirus stimulus bill

The GOP is mulling a roughly $500 billion proposal that addresses only areas of bipartisan support: expanded unemployment insurance, a new authorization of small business loans, and money for schools and Covid-19 testing, treatment and vaccines. The plan would not include another direct payment to Americans.

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Lending Tree: 64% of homebuyers are willing to go over budget for their dream home

A new survey by Lending Tree released Wednesday found that 64% of homebuyers are willing to go over budget to find their perfect house, compared to 25% who said they would not. The sentiment was most prevalent in millennials, with more than 3 out of 4 (76%) respondents ages 24 to 39 saying they’d stretch their budget to buy their dream home. It was also high in men, with 74% agreeing.

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Community Banks Fared Better Than Large Ones During Second Quarter, FDIC Data Shows

In the banking industry, the smallest guys are finishing first. Overall, banks watched their net profits plummet 70 percent in the second quarter compared to the year-ago period, according to the Federal Deposit Insurance Corp.’s quarterly banking profile. But it’s a different story for community banks, which saw a small 3.2 percent increase from the same quarter last year.

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Industry Events

Oversight Options for Third Party Auditors – Virtual Class 10/20/20

Learn Oversight Tips of Key Risk Areas: Financial, Operational, Contractual and Compliance

A solid, practical and insightful oversight program can not only reduce risk, but maximize results. Learn skills and techniques to audit your third party vendors for compliance with regulations, to validate consumer protection and to verify that your contract requirements and expectations are being met.

October 20, 2020

562-906-1101 or email us at

NCUCA 6th Annual Conference

Bellagio, Las Vegas

October 28 - 30 , 2020

LendIt Fintech USA – Virtual

Save 15% with our Discount Code: DC15%

Making sense of this new world with LendIt Fintech, where fintech leaders gather to connect and reimagine the future of finance. All LendIt Fintech events in 2020 will be virtual.

September 30 - October 01 , 2020

LendIt Fintech Europe 2020 – Virtual

Be Sure To Use for Your 15% Discount: DC15%

Making sense of this new world with LendIt Fintech, where fintech leaders gather to connect and reimagine the future of finance. All LendIt Fintech events in 2020 will be virtual.

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