At a glanceFriday, October 02, 2020

Collection Industry News At A Glance - October 2, 2020
Friday October 2, 2020
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NCUCA Annual Event Is On! October 28-30 in Las Vegas

The National Credit Union Collections Alliance (NCUCA) 6th Annual Conference is gaining momentum with all hands on deck from Bellagio and NCUCA board members.  You can't miss this conference: October 28-30, 2020 at Bellagio Las Vegas.  NCUCA will deploy RAPID DAILY COVID TESTING offered by Bellagio - you will only be admitted after clearing the test - HIPPA will be enforced so privacy is a non-issue.  The tests are super cool technology that are not invasive.  NCUCA is proud to say this has been in the works for some time and will lay the foundation as the first conference in the world to deploy this cutting edge technology as an added layer of security.  It is an honor to be the first conference to deploy a well thought out model that promotes a safe and scientific strategy that allows the Governor of NV to open to larger group gathering segments.

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California’s CFPB-style Agency Moves Ahead After Gov. Newsom Signs Bill Package

The state of California’s desire to create a watchdog agency akin to the federal Consumer Financial Protection Bureau (CFPB) is moving ahead, after Governor Gavin Newsom signed a package of bills into law to reform the state’s Department of Business Oversight (DBO) into a new entity.

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Ohio attorney general files lawsuit against debt collector

COLUMBUS, Ohio (WKBN) – According to a lawsuit filed by Ohio Attorney General David Yost, a Canton-based debt collector harassed customers and was abusive in collection techniques. The lawsuit was filed against Advanced Capital Solutions. Yost said the company was also contacting family members, co-workers and employers of debtors and disclosing their debts, an intimidation tactic that is prohibited by law.

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Lobel Financial reaches $1.4M settlement with CFPB

WASHINGTON, D.C. – Last week, Lobel Financial Corp. finalized a settlement with the Consumer Financial Protection Bureau totaling more than $1.4 million. According to a news release, the bureau found that Lobel engaged in unfair practices with respect to the finance company’s loss damage waiver (LDW) product in violation of the Consumer Financial Protection Act (CFPA). When a contract holder has insufficient insurance, rather than force-placing collateral-protection insurance, the CFPB said Lobel places the LDW product. The bureau said this product is not itself insurance on accounts and charges a monthly premium of approximately $70 for the LDW coverage.

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Repo, Forwarder and Skip Oversight Special Session Added to Oversight Options

October is Oversight Month!  Resource Management Services, Inc. presents Oversight Options - taught as a virtual course on October 20th with an extra added option - a special October 21st add-on course on Oversight of Repo Vendors, Forwarders and Skip Vendors.  See more as the class delves into the Four Key Risk areas of oversight of third party collection vendors (Financial, Operational, Contractual and Compliance).  Learn practical tips and techniques for oversight.  For compliance managers, relationship managers and vendor auditors.  Two for One offer extended!  Register before October 10th and bring two for the price of one.

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‘Seasoned’ QM would aid residential mortgage expansion

CUNA supports the Consumer Financial Protection Bureau’s (CFPB) proposed “Seasoned” Qualified Mortgage (QM) to aid in the expansion of the residential mortgage market. The CFPB has proposed to proposed rulemaking to create a new category of QMs, Seasoned QMs, for first-lien, fixed-rate covered transactions that meet certain performance requirements over a 36-month seasoning period.

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House approves $2.2 trillion Covid measure as bipartisan talks remain stalled

The House on Thursday night cleared a $2.2 trillion coronavirus relief measure in the Democrats’ latest bid to pressure Republicans into a massive bipartisan deal before the election. 

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1,600 customers say Wells Fargo paused their mortgage payments without their consent

Some 1,600 Wells Fargo customers say the bank paused their mortgage payments without their consent, far more than previously known, according to correspondence the bank sent to two U.S. senators in August and September.

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JPMorgan Finds More Than 500 Workers Got U.S. Virus Relief Funds

(Bloomberg) -- More than 500 JPMorgan Chase & Co. employees got assistance from taxpayers aimed at helping businesses through the pandemic -- and dozens of them shouldn’t have, according to people with knowledge of the firm’s internal investigation.

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Big U.S. banks to report profit plunge as pandemic recession takes hold

NEW YORK (Reuters) - As big U.S. commercial banks close their books on the third quarter, analysts expect them to report a 30% to 60% plunge in profits on the year-ago period due to the pandemic-induced recession and near record low interest rates.

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Consumer Financial Protection Bureau Releases Assessment of TRID Mortgage Loan Disclosure Rule

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today published an assessment of the TRID Integrated Disclosure Rule (the Truth in Lending Act and Real Estate Settlement Procedures Act). The assessment found that the TRID Rule made progress towards several of its goals.

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OCC’s Brooks defends special-purpose charters amid growing ‘unbundling’

The acting comptroller of the Office of the Comptroller of the Currency (OCC) argued for the regulatory importance of introducing a charter for fintech and payments companies amid the growing trend of "unbundling," as companies increasingly offer financial services outside of the traditional banking system during a LendIt Fintech virtual conference Tuesday.

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U.S. pending home sales race to record high in August

WASHINGTON (Reuters) - Contracts to buy U.S. previously owned homes surged to a record high in August, suggesting housing market activity was gathering speed amid record-low mortgage rates. The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, jumped 8.8% to an all-time high of 132.8 last month. Economists polled by Reuters had forecast pending home contracts, which become sales after a month or two, rising 3.4% in August.

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Ohio Attorney General Dave Yost Announces Settlements in Groundbreaking Lawsuit Against Illegal Robocall Service

(COLUMBUS, Ohio) – Ohio Attorney General Dave Yost today announced settlements in a lawsuit against ten defendants - six companies and four individuals - that deceived Ohio consumers with illegal robocalls offering bogus credit card interest rate reduction services.

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U.S. Fed to extend curbs on big bank buy backs, dividends through end of year

WASHINGTON (Reuters) - The U.S. Federal Reserve will curb big bank capital distributions through the end of the year, meaning the likes of JPMorgan Chase & CoJPN., Citigroup Inc.C.N, Wells Fargo & CoWFC.N and Bank of America Corp.BAC.Nwill be barred from share buy backs and will have to cap dividends. The central bank announced it would extend its existing policy of limiting capital payouts for banks with at least $100 billion in assets, to ensure lenders have enough capital to weather the economic strain caused by the coronavirus pandemic.

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CFPB, FTC, State, and Federal Law Enforcement Partners Announce Nationwide Crackdown on Phantom and Abusive Debt Collection

WASHINGTON — The Consumer Financial Protection Bureau (CFPB), along with the Federal Trade Commission and more than 50 federal and state law enforcement partners, today announced a nationwide law enforcement and outreach initiative to protect consumers from phantom debt collection and abusive and threatening debt collection practices.

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AG Curtis Hill sues Indiana debt collection agency that operated deceptively and without a license

Attorney General Curtis Hill has filed a civil complaint against an Indiana debt collection agency and its owner, alleging they engaged in deceptive and abusive debt collection practices and acted as a debt collection agency without a license from the state.

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Attorney General Becerra Opposes SBA Move to Shut Small Businesses Out of Emergency Loans

SACRAMENTO – California Attorney General Xavier Becerra joined a coalition of 18 attorneys general in a comment letter opposing a proposed Small Business Administration (SBA) rule governing the appeals process for an emergency loan program designed to help small businesses during the pandemic. As the COVID-19 pandemic spurred layoffs across the nation in March, the federal government created the Paycheck Protection Program (PPP) loan as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 pandemic.

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FTC announces nationwide crackdown on debt collectors

Those mysterious debt collectors who call insisting you’ll be in legal peril if you don’t pay them big bucks are in hot water themselves, accused in a nationwide crackdown of harassing and threatening consumers, often about debts that don’t actually exist. The Federal Trade Commission on Tuesday highlighted enforcement actions filed in recent months against two South Carolina-based debt collection firms accused of bilking people out of a combined $17.2 million, as well as settlements with three other firms accused of using pressure tactics and other shady practices.

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TCN Launches Room 303 Software Update for its Comprehensive Cloud-Based Call Center Platform

St. George, Utah – Sept 29, 2020 TCN, Inc., a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide, celebrates its platform update with Room 303. This new platform feature allows for easy and seamless agent-to-agent and agent-to-manager communication. Room 303 is built directly into TCN’s software, making collaboration convenient for agents and managers in call centers.

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LAFCU named a ‘2020 Best Credit Union to Work For’ in the nation

LANSING, MI (September 29, 2020) — Fifty institutions made Credit Union Journal’s annual ranking of the Best Credit Unions to Work For in the nation, and LAFCU is one of the 50.

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Global Lending Market Report 2020-2030: Impact of COVID-19 and Future Recovery

The global lending market is expected to decline from $6875.5 billion in 2019 to $6751.3 billion in 2020 at a compound annual growth rate (CAGR) of -1.9%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 6% from 2021 and reach $7929 billion in 2023.

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LendIt Fintech Announces 2020 Award Winners

LendIt Fintech has announced the winners of its annual awards competition recognizing innovators from the financial services sector. This is the 4th annual LendIt Fintech Industry Awards with this years’ event, starting tomorrow, being virtual in nature due to COVID.   LendIt reported that there were over 500 entries from around the world with 30 different judges from the Fintech industry reviewing the various platforms.

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How peer-to-peer lending is helping SMEs during the pandemic

In recent years small and medium enterprises (SMEs) have been reporting declining sales and trouble with distribution, among a string of other problems. With small businesses contributing more than 60 percent to GDP, the implications are disastrous. However, SMEs have recently been given a lifeline in the form of peer-to-peer (P2P) lending platforms. Recent research has indicated that businesses on P2P lending platforms had seen a significant increase in revenue, helping the economy dramatically. 

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Moorhead approves limits on payday lending

MOORHEAD — A proposed new city law in Moorhead that will place limits on payday or short-term loans has passed its first test. The City Council voted 7-1 Monday night, Sept. 28, to adopt the ordinance that limits the interest rate on such loans between $350 to $1,000 to 33%, restricts fees, limits the number of loans to two per year, requires repayment within 60 days and also calls for detailed itemizations of all charges.

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Attorney General James Moves to Shut Down Illegal Debt Collecting Scheme

BUFFALO – Attorney General Letitia James filed a lawsuit to put an end to a flagrant debt collecting scheme based out of Buffalo, New York. The scheme, led by Kenneth Thomas and carried out by at least six other persons and entities, consisted of contacting consumers using extremely deceptive and abusive tactics to collect debts.

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Cybersecurity lessons learned from data breaches and brand trust matters

Your brand is a valuable asset, but it’s also a great attack vector. Threat actors exploit the public’s trust of your brand when they phish under your name or when they counterfeit your products. The problem gets harder because you engage with the world across so many digital platforms – the web, social media, mobile apps. These engagements are obviously crucial to your business.

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Public hearings set for payday lending and gambling initiatives

 Voters can participate in three public hearings in Lincoln for the four ballot initiatives appearing on the Nov. 3 ballot. Secretary of State Bob Evnen is required by state law to host public hearings to help educate voters in each of the state’s three congressional districts whenever an initiative petition measure makes it to the ballot. The four measures cover the topics of payday lending and gambling.

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Fannie, Freddie pose risk to financial system, panel says in ‘historic’ finding

Fannie Mae and Freddie Mac, the government-run companies that stand behind about half of the $11 trillion U.S. mortgage market, pose a potential danger to the stability of the broader financial system, a Treasury-led panel said Friday.

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Petition could force House vote on bill to reopen Paycheck Protection Program

WASHINGTON (SBG) — A Republican lawmaker has filed a petition that could force a vote on a bill to free up unused Paycheck Protection funds amid a stalemate in coronavirus relief talks.

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Fed’s George says strains on financial industry could still mount

WASHINGTON (Reuters) - The current recession’s impact on households and businesses could still risk the sort of damage to the banking system that the United States has avoided so far, Kansas City Federal Reserve president Esther George said on Friday.

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Households, businesses fall into financial holes as COVID aid dries up

Americans feeling the economic weight of the coronavirus are about to enter their third month without crucial government aid that helped keep millions of households afloat during the recession. Two months have passed since Congress and the White House allowed emergency COVID-19 protections and safety net programs to expire. Those provisions, enacted in late March under the CARES Act, were credited with preventing an even worse economic downturn. Now, families are struggling to get by without supplemental unemployment funding, and many small businesses are reaching the end of financial lifelines that were extended by the federal government in the spring and summer.

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No forgiveness: Small businesses still on hook for rescue loans

When the government pledged to give small businesses billions of dollars in rescue loans during the pandemic, it was an offer almost too good to refuse: The loans could be forgiven if employers only maintained payroll. In little more than four months, the Paycheck Protection Program doled out $525 billion in loans to 5.2 million borrowers, which economists estimate saved millions of jobs. But to date, none of the loans have been forgiven.

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Oversight Options Virtual Training – October 20th – Two for One Offer Extended

For compliance officers, vendor managers or collection agency auditors. Learn audit/oversight strategies, as well as practical tips and processes for evaluating the risks associated with utilizing third party collection vendors. A solid, practical and insightful oversight program can not only reduce risk, but maximize results. Learn skills and techniques to audit your third party collection vendors for compliance with regulations, to validate consumer protection and to verify that your contract requirements and expectations are being met. Just added - an extra session specifically for repossession and auto finance lenders.

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Phin Solutions

(763) 633-7007

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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 - 20 , 2020

562-906-1101 or email us at

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