At a glanceFriday, September 11, 2020

Collection Industry News At A Glance - September 11, 2020
Friday September 11, 2020
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One in 10 U.S. Adults Say They Have Been Victims of Identity Theft Since the COVID-19 Pandemic Began

More than eight in 10 U.S. adults (83%) are concerned about having their identity stolen and the level of distress of this crime occurring has increased for nearly one-third (32%) of Americans since the COVID-19 pandemic began.   More alarmingly, since the onset of the pandemic, 10% of U.S. adults report being a victim of identity theft. The findings are part of a  new survey conducted by the public sector business of TransUnion (NYSE: TRU) released today during the FedID 2020 virtual conference.

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More Americans are taking on new debt for boats, motorcycles, and RVs

For Americans who have remained gainfully employed during the pandemic, more are taking advantage of low interest rates to borrow money to finance big-ticket luxury items.

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Nancy Hughes and Bob Picone, two highly respected industry executives, are proud to announce the establishment of Connect1 Consultants. Nancy currently owns and operates Sync Now, LLC while Bob is the owner of RJP Consultants. The formation of Connect1 Consultants allows both companies to continue the high level of services our clients expect under one umbrella.

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Mortgage lending sets a 20-year record with $1.1T in Q2

U.S. lenders issued a staggering $1.1 trillion in home loans between April and June, marking the biggest quarter in at least two decades, according to mortgage data firm Black Knight. The record quarter highlights the growing disparity between homeowners who are primed to take advantage of perfect conditions, and those who are simply desperate to not lose their homes.

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CFPB to Hold First Tech Sprint

The Consumer Financial Protection Bureau (the “CFPB”) recently announced that it will hold its first Tech Sprint to reduce regulatory burden and improve consumer understanding of financial services.  The CFPB describes its Tech Sprints as a model that:

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U.S. charges 57 with fraud involving pandemic paycheck aid, Justice Department says

WASHINGTON (Reuters) - Federal law enforcement authorities have charged 57 people with stealing $175 million from an aid program meant to help small businesses weather pandemic lockdowns, officials said on Thursday, adding that they are eyeing hundreds more suspected cases of fraud.

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OCC chief, N.Y. regulator dig in on fintech chartering, preemption

WASHINGTON — Acting Comptroller of the Currency Brian Brooks and New York State Department of Financial Services Superintendent Linda Lacewell traded barbs Wednesday in the perpetual struggle between federal and state regulators over the dual banking system.

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On Paycheck Protection Program, streamlined forgiveness is key

The nation’s small businesses, and the millions of men and women who work at them, are the foundations of communities across the country and our nation’s economy. As a result of COVID-19, millions of small business owners have been forced to shutter operations with little to no revenue coming in.

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JPMorgan found evidence employees and customers misused PPP funds and other stimulus programs

JPMorgan has found evidence that some employees and clients misused loans from the federal Paycheck Protection Program (PPP), according to a memo bank leadership sent employees on Tuesday. In the memo obtained by The Hill, the bank didn’t detail specific instances but said it had found customer wrongdoing involving the PPP, which was created through the March coronavirus relief bill to provide loans to struggling small businesses that could be entirely forgiven if used to pay employees and keep business afloat. 

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Governor Newsom Signs Bills to Support Small Businesses Grappling with Impact of COVID-19 Pandemic, Bolster Economic Recovery

SACRAMENTO — Today at Solomon’s Delicatessen, a small business in Sacramento, Governor Gavin Newsom alongside Senator Anna Caballero signed three bills into law to support small businesses grappling with the impact of the COVID-19 pandemic and another to jumpstart state construction projects.

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SAN DIEGO, Sept. 09, 2020 (GLOBE NEWSWIRE) -- Earlier today, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Encore Capital Group, Inc. (NASDAQ: ECPG) and its U.S.-based subsidiaries Midland Funding, LLC, Midland Credit Management, Inc. and Asset Acceptance Capital Corp. The suit alleges that the defendants failed to implement certain practices required under a consent order entered with the CFPB in September 2015.

“Encore is built on a foundation of treating our consumers fairly and respectfully,” said Greg Call, the Company’s Executive Vice President, General Counsel, and Chief Administrative Officer. “Our efforts in 2015 to implement the CFPB’s new requirements under the consent order were quite thorough and effective, but for a very small percentage of transactions our execution was not immediately perfect. We have long since refined our processes, making the necessary changes to improve our operations, and provided appropriate relief for impacted accounts over three years ago.”

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Consumer Financial Protection Bureau Announces Podcast Series on Paying for Higher Education

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today released the first episodes of a two-part podcast series for students, parents, and practitioners on managing finances before, during, and after college. The podcast series, Financial inTuition, will include interviews with experts in financial aid, student loans, financial coaching, and planning. The podcasts also will highlight the Bureau’s bevy of resources and tools to help young adult consumers make sound financial decisions.

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CFPB using PSAs to boost redress reach

The Consumer Financial Protection Bureau (CFPB) released a series of public service announcements targeting consumers who were harmed by Siringoringo Law Firm, Stephen Lyster Siringoringo, Clausen & Cobb Management Company, Inc., and Joshua Cobb.

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Consumer Financial Protection Bureau Sues Debt Collectors and Debt Buyers Encore Capital Group, Midland Funding, Midland Credit Management, and Asset Acceptance Capital Corp.

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against Encore Capital Group, Inc. and its subsidiaries, Midland Funding, LLC; Midland Credit Management, Inc.; and Asset Acceptance Capital Corp. The companies, which are headquartered in San Diego, California, together comprise the largest debt collector and debt buyer in the United States, with annual revenue exceeding $1 billion and annual net income exceeding $75 million. Encore and its subsidiaries are currently subject to a 2015 consent order with the Bureau based on the Bureau’s previous findings that they violated the Consumer Financial Protection Act (CFPA), Fair Debt Collection Practices Act (FDCPA), and Fair Credit Reporting Act. The Bureau alleges that Encore and its subsidiaries have violated the terms of this consent order and again violated the FDCPA and CFPA. The Bureau’s complaint seeks injunctions against them, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and civil money penalties.

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Consumer and business lending during COVID-19

Banks in several countries are offering deferred payments on credit cards, loans and mortgages for consumers and businesses facing hardship due to COVID-19. UK Finance reported that financial providers granted 1.6 million payment holidays as of 24 April 2020. COVID-19 has increased the financial industry’s focus on digital offerings and increased demand from consumers to use them. With bank branches shut and long waiting times for phone support, even previously nervous digital users have turned to these channels.

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Gov. Wolf Calls for Legislative Action to Help Homeowners and Renters Avoid an Eviction Cliff

With rent and mortgage debt mounting for hundreds of thousands of Pennsylvanians, Governor Tom Wolf is calling on the General Assembly to fix a state relief program to prevent many families from becoming homeless and enact a moratorium on evictions and foreclosures until the end of the year. The governor was joined today by legislators and housing advocates at a press conference in Lancaster County.

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Sherrod Brown faults the CFPB and banks for not letting borrowers know about mortgage relief during coronavirus pandemic

WASHINGTON, D.C. - U.S. Sen. Sherrod Brown of Ohio is criticizing the Consumer Financial Protection Bureau (CFPB) for failing to ensure that borrowers know that they’re legally entitled to temporary relief from mortgage payments during the coronavirus pandemic.

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Consumer Financial Protection Bureau and New York Attorney General Take Action Against Debt-Collection Operation and Its Owners and Managers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau), in partnership with the New York Attorney General (NYAG), today filed suit against a network of five different companies based outside of Buffalo, New York, two of their owners, and two of their managers, for their participation in a debt-collection operation using illegal methods to collect debts. The company defendants are: JPL Recovery Solutions, LLC; Regency One Capital LLC; ROC Asset Solutions LLC, which does business as API Recovery Solutions; Check Security Associates LLC, which does business as Warner Location Services and Orchard Payment Processing Systems; and Keystone Recovery Group.

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Judge says Kansas City payday lender should pay $132 million to duped borrowers

A judge has recommended that a Kansas City payday lender pay $132.5 million in restitution to borrowers duped by their loan agreements.   An administrative law judge also said that Integrity Advance and its chief executive James Carnes, a Johnson County businessman, should have to pay $7.5 million and $5 million in civil penalties, respectively

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How AI will automate cybersecurity in the post-COVID world

By now, it is obvious to everyone that widespread remote working is accelerating the trend of digitization in society that has been happening for decades. What takes longer for most people to identify are the derivative trends. One such trend is that increased reliance on online applications means that cybercrime is becoming even more lucrative. For many years now, online theft has vastly outstripped physical bank robberies. Willie Sutton said he robbed banks “because that’s where the money is.” If he applied that maxim even 10 years ago, he would definitely have become a cybercriminal, targeting the websites of banks, federal agencies, airlines, and retailers. 

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AP Explains: US debt will soon exceed size of entire economy

WASHINGTON (AP) — The U.S. government’s war against the coronavirus is imposing the heaviest strain on the Treasury since America’s drive to defeat Nazi Germany and imperial Japan three-quarters of a century ago. The Congressional Budget Office has warned that the government this year will run the largest budget deficit, as a share of the economy, since 1945, when World War II ended. Next year, the federal debt — the sum of the year-after-year gush of annual deficits — is forecast to exceed the size of the entire American economy for the first time since 1946. Within a few years, it’s on track to set a new high.

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Restrictions keep lenders, borrowers from Main Street Lending Program

NEW YORK (LPC) - Restrictions within the US government’s coronavirus aid Main Street Lending Program (MSLP) are staving off borrowers and lenders alike even as new lending activity begins to pick up in the middle market.

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California’s ‘Mini-CFPB’ Law May Extend to Small Business Loans

Tucked into California’s new law to expand its financial watchdog’s enforcement powers over consumer financial products is a provision that could extend to online small business lenders. The bill, headed to Gov. Gavin Newsom (D) for his signature after legislative approval Monday, would transform the Department of Business Oversight and expand its ability to charge companies engaged in certain categories of misconduct, called unfair, deceptive, or abusive acts or practices (UDAAP). It’s modeled after the Consumer Financial Protection Bureau’s UDAAP enforcement authority.

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PPP lenders nearing $10B asset mark fear regulatory nightmare

WASHINGTON — Community banks are urging Congress and regulators to exclude Paycheck Protection Program loans from their total asset amounts out of increasing concern that participation in the government's pandemic relief effort will trigger new burdensome regulations. Participation in the coronavirus loan program for small businesses has helped push numerous institutions' asset totals beyond $10 billion. Crossing that key threshold brings supervision by the Consumer Financial Protection Bureau, pricing limits on debit interchange fees and required compliance with the Volcker Rule ban on proprietary trading, among other things.

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Industry Events

LendIt Fintech USA – Virtual – September 30 – October 1

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

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 - 20 , 2020

562-906-1101 or email us at

LendIt Fintech Europe 2020 – Virtual – October 19 – 20

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 – October 20 – 22

Royal Media

Wynn Las Vegas
3131 S Las Vegas Blvd , Las Vegas, NV 89109
October 20 - 22 , 2020

NCUCA 6th Annual Conference – October 28 – 30th

Bellagio, Las Vegas

October 28 - 30 , 2020