At a glanceWednesday, September 23, 2020

Collection Industry News At A Glance - September 23, 2020
Wednesday September 23, 2020
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Phin Solutions, LLC Celebrates 20 Years of Service

Ramsey, Minn – Phin Solutions is celebrating their 20th anniversary in 2020. Phin Solutions is a national information services company specializing in compliance monitoring services. Phin Solutions offers software and services to help organizations identify and manage consumer life stage events and events that impact their credit accounts and accounts standing. By using their Vigilant-CMS(SM) software and services platform, Phin provides clients a secure environment while delivering complete and timely bankruptcy and deceased information, litigious debtor identification, active duty military certification, as well as filing bankruptcy proof of claims.

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Student loan relief extension: What does it mean for you?

Many borrowers with federal student loans are facing serious financial struggles during the coronavirus pandemic. Fortunately, there was recently a student loan relief extension. President Trump signed an executive order that suspends payments of federal student loans through the end of the year. This executive order extended the moratorium on student loan payments signed into law by Congress earlier this year and offers much-needed additional relief for those struggling with loan repayment.

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LendingClub Studies Reveal Customers Prioritize Personal Loan Payments Over Credit Cards, Helping Them Progress Towards Financial Health

SAN FRANCISCO, Sept. 22, 2020 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), America's largest online lending marketplace connecting borrowers and investors, today released findings from two recent studies on member financial health and payment behavior before and during the novel coronavirus (COVID-19). Conducted in January and June 2020, the studies sought to understand member behavior before and during the coronavirus-driven recession and how they make decisions regarding prioritization of bills and expenses in relation to their long-term financial goals.


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CFPB releases Section 1071 SBREFA outline

The CFPB  has taken a significant step towards issuing regulations to implement Section 1071 of the Dodd-Frank Act by releasing an outline of the proposals it is considering in preparation for convening a small business review panel (Panel).  Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.  Such data includes the race, sex, and ethnicity of the principal owners of the business. 

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New Whitepaper Released: Three out of Five Collection Systems are Outmoded

Most traditional collection software platforms in use today are based on old underlying technology and outdated designs. They were never built to support the latest needs of today’s collection organizations. Even collection software systems deployed in the past five years may already be outmoded. Much like a well-maintained car that has a new appearance but an old, inefficient, gas-guzzling engine under the hood, some collection software platforms may appear modern but are powered by old, inefficient code. Both can still get you from point A to point B, but the journey is likely not a very smooth and efficient ride. Outdated software is fraught with too many manual activities, elongated processing times, limited insight, higher operational costs, and increased compliance risk.

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No stimulus, no problem for U.S. consumers so far: Morning Brief

A temporary bump from Labor Day spending, a slowdown in the labor market, a lack of fresh stimulus, and a rough patch in financial markets were all viewed as negatives by Wall Street economists when assessing the overall state of the U.S. economy five months into this recovery.

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NYDFS brings first action to enforce state’s debt collection regulation

The New York Department of Financial Services (DFS) announced on September 16 that it has filed a Statement of Charges against debt collector Forster & Garbus LLP (Forster) for alleged violations of the state’s Debt Collection Regulation, Part 1 of Title 23 of the New York Codes, Rules, and Regulations, promulgated in 2015.  The alleged violations involve Forster’s collection of student loans. The DFS states in its press release that the charges are the first brought by the DFS alleging violations of the Debt Collection Regulation.

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CEO optimism improves in Q3, but remains well below historical average: survey

Confidence among U.S. CEOs improved in the third quarter, after nine straight quarters of decline, according to Business Roundtable’s quarterly business sentiment survey. Still, optimism among the nation’s chief executives remains well below the historical average, as the COVID-19 pandemic continues to take its toll.

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Existing home sales jump to 14-year high, as prices set another record

After a record-setting July, the housing market still shows no sign of cooling off. Sales of existing homes rose 2.4% to a seasonally adjusted annualized rate of 6 million units, according to the National Association of Realtors. Sales were 10.5% higher compared with August 2019. This is the highest sales pace since December 2006, before the Great Recession.

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PenFed Credit Union and PenFed Foundation Donate $40,000 to Fully Furnish 35 Apartments in Nebraska Veterans Housing Facility

TYSONS, Va., Sept. 21, 2020 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, and PenFed Foundation, a national 501(c)3 founded by PenFed Credit Union, today announced the donation of $40,000 to fully furnish 35 apartments in the newly-renovated addition to the Victory Apartments complex in Omaha, Neb.

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Consumer Financial Protection Bureau Settles with Auto Lender for Unfair Loss Damage Waiver Practices

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) settled with Lobel Financial Corporation, an auto-loan servicer based in Anaheim, California. The Bureau found that Lobel engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act (CFPA). When a borrower has insufficient insurance, rather than force-placing collateral-protection insurance, Lobel places the LDW product, which is not itself insurance, on borrower accounts and charges a monthly premium of approximately $70 for the LDW coverage.

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Globex Telecom and Associates Will Pay $2.1 Million, Settling FTC’s First Consumer Protection Case Against a VoIP Service Provider

Globex Telecom, Inc. and an affiliated company will pay a total of $1.9 million to settle Federal Trade Commission and State of Ohio charges that they facilitated a scheme that peddled bogus credit card interest rate relief, illegally charging consumers millions of dollars. The settlement marks the end of the FTC’s first consumer protection case against a Voice over Internet Protocol (VoIP) service provider.

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Government aid, stock gains push U.S. wealth to pre-pandemic levels, Fed says

WASHINGTON (Reuters) - A rebounding stock market and massive federal aid payments pushed the net worth of U.S. households back to pre-coronavirus levels in the second quarter, the Federal Reserve reported on Monday, with savings accounts and equity portfolios both rising sharply despite the pandemic.

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CFPB to Extend Comment Period for Notice of Proposed Rulemaking on New Category of Qualified Mortgages

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) is extending the comment period on its notice of proposed rulemaking (NPRM) to create a new category of seasoned qualified mortgages (Seasoned QMs) by three days, from September 28, 2020 to October 1, 2020 in order to accommodate for the Yom Kippur Jewish holiday.

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Three more former Wells Fargo execs settle civil charges

Three former senior Wells Fargo executives have agreed to pay six-figure fines to regulators in connection with the bank’s unauthorized account scandal. Matthew Raphaelson, Kenneth Zimmerman and Tracy Kidd were all once executives in Wells Fargo’s consumer banking unit. The Office of the Comptroller of the Currency found in settlements announced Monday that they either knew or should have known about what the agency described as the unit’s systemic sales misconduct problem.

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U.S. debt jumps by record amount in second quarter led by federal government, Fed data show

The numbers: The debt burden on the U.S. economy increased at a record pace in the second quarter led by government borrowing needed to cushion the blow of the coronavirus pandemic, according to a report from the Federal Reserve released Monday.

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CFPB announces advisory committee members

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger has appointed new members to the Consumer Advisory Board and three other advisory councils who will work with the agency on a broad range of consumer financial issues and emerging market trends.

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Nearly 11 million households missed mortgage or rent payments at pandemic’s outset – study

Nearly 11 million households fell behind on their mortgage or rent payments during the first three months of the COVID-19 pandemic, according to a new study by the Mortgage Bankers Association’s Research Institute for Housing America (RIHA). Meanwhile, 30 million people missed at least one student loan payment.

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Massachusetts Attorney General Creates Data Privacy and Security Division

The Massachusetts Office of the Attorney General has created a new Data Privacy and Security Division. This Division is charged with protecting consumers from the threats to the privacy and security of their data. The Attorney General, Maura Healey, announced “The Data Privacy and Security Division will build on our office’s commitment to empowering Massachusetts consumers in the digital economy, ensuring that companies are protecting personal data, and promoting equal and open access to the internet.”

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FTC to Host Virtual Workshop on Data Portability on September 22, 2020

The Federal Trade Commission will host a workshop that will examine the potential benefits and challenges to consumers, privacy, and competition raised by data portability, which is the ability of consumers to move data from one service to another or to themselves.

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U.S. senators reintroduce postal banking | Information

WASHINGTON — U.S. senators reintroduced a brand new model of a retired submit workplace observe to supply another for important banking providers to low-income and rural People, and make sure the nation’s postal service stays a public, nonprofit entity.U.S. Sens. Kirsten Gillibrand, D-N.Y., and Bernie Sanders, I-Vt., reintroduced a brand new model of the Postal Banking Act in a Fb livestream occasion Thursday afternoon to create a sustainable supply of funding for the U.S. Postal Service after U.S. Postmaster Basic Louis DeJoy has been accused of constructing modifications which have slowed mail supply forward of the upcoming Nov. three election

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Fed officials tussle over practical meaning of new inflation policy

WASHINGTON (Reuters) - Federal Reserve policymakers on Friday began fleshing out what their new tolerance for inflation will mean in practice, an issue critical to how investors and households reshape their own outlooks even if it may not be relevant to any immediate decisions by the U.S. central bank.

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JPMorgan’s Dimon says economic recovery could be derailed: report

NEW YORK (Reuters) - JPMorgan Chase & Co JPM.N Chief Executive Jamie Dimon said the economic recovery from the coronavirus recession could be derailed by a lack of additional economic stimulus, the election and a second wave of infections. Dimon made the comments on Friday to stock analyst Brian Kleinhanzl of Keefe, Bruyette & Woods, who wrote about their meeting in a report.

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Attorney General Becerra Urges California Supreme Court to Hold Mortgage Servicers Responsible and Protect the Rights of Homeowners

SACRAMENTO – California Attorney General Xavier Becerra today filed an amicus brief in support of the rights of homeowners in Sheen v. Wells Fargo Bank, a case under review by the California Supreme Court. The Court granted review in this case to determine whether mortgage loan servicers owe struggling homeowners a duty to act with reasonable care when handling their requests for mortgage modification.

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CFPB Faces Contention On Loan Data For Minority, Women-Owned Businesses

The Consumer Finance Protection Bureau (CFPB) has a new plan for how it looks at data from minority- and women-owned businesses, according to a report from Morning Consult. The issue has been a contentious one for some time, as the CFPB has delayed making rules on a section of Dodd-Frank that requires the collection of data to determine whether minority- and women-owned businesses have equitable access to funds.

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Schumer, Warren propose forgiving $50,000 in student debt for borrowers due to pandemic

Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., announced a resolution Thursday that would broadly cancel federal student loan debt due to the coronavirus crisis. The resolution calls on President Donald Trump to take executive action to forgive up to $50,000 in debt for borrowers. The economic aftermath from the pandemic, which caused unemployment to spike and wages to fall, has made it nearly impossible for many borrowers to repay their college loans, the senators said.

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Oversight Options Virtual Class – Two for One Offer Expiring Soon

Get insights on Oversight of third party vendors in this newly developed and scheduled class for compliance managers, vendor managers, auditors and/or recovery managers.  A solid, practical and insightful oversight program is essential for compliance with regulations and well as to validate consumer protection and verify contract requirements, in addition to maximizing results.  Hear collection industry experts, Bev Evancic and Ken Evancic, as they provide strategy, process and practical tips for the oversight of your vendors.  Hear "Oversight Options" fresh insights on oversight with concentration of four key risk areas: Financial Risk, Operational Risk, Contractual Risk and Compliance Risk.  Virtual Class - special 2 for 1 pricing for registrations received prior to September 20.

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Regional bank reserves close to peaking with slower virus spread

Slowing COVID-19 infection rates and higher credit-loss provisions could portend peaked reserves for some regional banks such as PNC, Fifth Third and Huntington. These Midwestern banks have sustained slower infection rates across their deposit markets, while their allowances for credit loss are higher than the 2% median. These factors, as well as improving economic indicators, could spur a sharper decline in provision expense in 2H vs. peers. Consensus bakes in 43%, 47% and 66% dropoffs in 2H provisions for Huntington, Fifth Third and PNC, respectively, vs. a 28% median decrease for the group.

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Newsom signs laws to make those with coronavirus eligible for compensation benefits and require companies to warn of exposures

California Gov. Gavin Newsom has signed two bills into law that are aimed at protecting workers from the coronavirus.   One of them makes people who have the coronavirus eligible for workers compensation benefits. Another requires companies to warn their employees if they have been exposed to someone who has tested positive for the virus.

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Why It’s Harder to Get a Peer-To-Peer Loan Right Now

In this pandemic economy, getting a loan is a lot tougher than usual. Economic conditions have stabilized since the beginning of the COVID-19 outbreak, but unemployment is still at a record high. As a result, lenders across various industries have tightened their belts, implementing restrictions on loan-lending. Peer-to-peer lenders, often seen as the more nimble underdog in relation to big banks, are assessing risk in a similar way. 

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Lawsuit: Iowa court debt collected illegally, with millions routed to private firm

A federal lawsuit alleges that the debt-collection company hired by the Iowa Judicial Branch has been paid millions of dollars in fees while violating state and federal laws through deceptive, high-pressure tactics.

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Justice Department Settles with Florida Towing Company it Alleges Illegally Sold or Scrapped Servicemembers’ Vehicles

The Justice Department today reached an agreement with ASAP Towing & Storage Company (“ASAP”) in Jacksonville, Florida, to resolve allegations that ASAP violated a federal law, the Servicemembers Civil Relief Act (“SCRA”), by auctioning off or otherwise disposing of cars owned by protected servicemembers without first obtaining court orders. 

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The Department of Financial Services (DFS) today announced it has filed a statement of charges against debt collector Forster & Garbus LLP ("Forster & Garbus"). DFS alleges that Forster & Garbus, over the course of years, failed to treat consumers as required by the law. Overall, Forster & Garbus did not honor requests by consumers for substantiation of debt, that is, requests for information proving the validity of the debt and Forster & Garbus’s right to collect the debt. New York law requires that substantiation be provided within 60 days of any such request, and describes the particular kinds of documentation a collector must show to substantiate the debt.  

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Fading fiscal stimulus restraining U.S. consumer spending

WASHINGTON (Reuters) - U.S. consumer spending slowed in August, with a key retail sales gauge unexpectedly declining, as extended unemployment benefits were cut for millions of Americans, offering more evidence that the economic recovery from the COVID-19 recession was faltering.

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CFPB’s Small-Business Lending Data Collection Rule Draws Community Bank Criticism

The way in which many small banks could be required to report small-business loan data on minority- and women-owned businesses is emerging as a contentious issue for the Consumer Financial Protection Bureau, which on Tuesday unveiled its long-awaited outline of how it plans to implement a key part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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Consumer Financial Protection Bureau Announces Advisory Committee Members

WASHINGTON, D.C. – Consumer Financial Protection Bureau Director Kathleen L. Kraninger has announced the appointment of members to the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC). These experts advise Bureau leadership on a broad range of consumer financial issues and emerging market trends.

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Kraken Becomes First Crypto Exchange to Charter a US Bank

On Wednesday, the Wyoming Banking Board voted to approve the San Francisco-based crypto exchange’s application for a special purpose depository institution (SPDI) charter. Kraken is now the first SPDI bank in Wyoming. According to the Wyoming Division of Banking’s general counsel, Chris Land, Kraken will also be the first newly chartered (de novo) bank in the state since 2006. 

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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