At a glanceFriday, October 23, 2020

Collection Industry News At A Glance - October 23, 2020
Friday October 23, 2020
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Smaller Firms Could Escape Scrutiny in CFPB Enforcement Shakeup

The Consumer Financial Protection Bureau’s reorganization of its enforcement and supervision unit could mean less oversight of small firms such as payday lenders and debt collectors

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What Wells Fargo’s exit from student lending means for competitors

Wells Fargo’s recently announced exit from private student lending figures to give competitors an opportunity to grab market share at a time when the sector’s prospects are threatened by declining college enrollment and the possibility of Joe Biden becoming president and making college free for many families.

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Is Student Loan Discharge in Bankruptcy Now Within Reach?

Student loan borrowers who seek to have their debt canceled in bankruptcy — what's known as discharge — typically find it an expensive process with standards that can be difficult to meet. But recent bankruptcy court rulings and lawmakers' support of relief for overburdened borrowers may signal a change is coming.

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Consumer Financial Protection Bureau Releases Advance Notice of Proposed Rulemaking on Consumer Access to Financial Records

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued an advance notice of proposed rulemaking (ANPR) requesting information related to consumer access to financial records.

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Debt collection scams on the rise during COVID-19 pandemic

HOUSTON, Texas (KTRK) -- The Federal Trade Commission reports it is already seeing an increase in debt-related complaints, either from abusive collection tactics or from scammers. We've seen fake debt collectors in the past and usually, they come out during an economic downturn. If you get a call from someone saying you owe them money, but you cannot recall the debt or maybe it is something you already paid off, there are some things you can do to make sure it is not a scam. Get some basic contact information, like the debt collector's name, the company name and the mailing address and phone number of the company.

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CFPB Issues Final Rule Extending the GSE Patch

The Consumer Financial Protection Bureau (CFPB) has issued a final rule to extend the government-sponsored enterprise (GSE) “patch” until the mandatory compliance date of a final rule amending the general qualified mortgage (QM) loan definition in Regulation Z.

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The CFPB missed a chance to fix the QM rule

The Consumer Financial Protection Bureau appears to have lost an opportunity to correct a nagging issue in its definition of a qualified mortgage. The current rule provides safe harbor protection to lenders from potential litigation brought by borrowers for loans having debt-to-income ratios of 43% or less. A proposal in June by the CFPB to replace the 43% DTI limit with a rate-based definition of a qualified mortgage still misses the mark by a country mile. A far more accurate measure of a borrower’s ability to repay their mortgage would be to target the most risk-layered loans in the market as unqualified for safe harbor treatment.

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146 jobs to be cut as Utah terminates student loans contract due to ‘financial losses’

SALT LAKE CITY — Effective immediately, the Utah Higher Education Assistance Authority has terminated its contract with the U.S. Department of Education to process student loans, which will result in 146 employees losing their jobs.

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Discover Launches Personalized Tool for Students and Their Families Making Important College Decisions

RIVERWOODS, Ill.--()--Planning for college is an exciting moment in any student’s life and brings with it many important decisions. Students need to pick a school that is the right fit, determine a major that matches their skills and interests and also evaluate different career paths post-college. These are big life decisions for anyone, let alone for someone in high school.

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FTC Announces New Fraud Reporting Platform for Consumers:

The Federal Trade Commission has launched a new website,, where consumers can easily report fraud and all other consumer issues directly to the FTC.

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Judge Rejects Settlement, Fast-Tracks Student Debt Relief Class Action

SAN FRANCISCO (CN) — Finding strong indications of “bad faith” in the way Education Secretary Betsy DeVos denied 94% of student debt relief claims in recent months, a federal judge rejected a proposed settlement Monday night and fast-tracked a lawsuit over long delays in deciding borrower defense claims.

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FTC Issues Annual Report to Congress on Protecting Older Adults

The Federal Trade Commission’s annual report to Congress on protecting older adults, issued Monday, provides a detailed look at the scams that most often affect adults over 60, as well as the FTC’s research, law enforcement, and education efforts aimed at protecting older consumers—a top priority for the agency.

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CFPB extends GSE patch until QM definition is amended

The Consumer Financial Protection Bureau (CFPB) has issued a final rule extending the Government-Sponsored Enterprise (GSE) Patch effectively until a replacement for the patch is established. Specifically, the rule extends the current patch until the mandatory compliance date of a final rule amending the General Qualified Mortgage (QM) loan definition within the Truth in Lending Act. 

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How the CFPB is Helping Homeowners Struggling with Payments

The pandemic, along with the economic downturn it has caused, leaves homeowners across the country struggling to meet their mortgage payments. This has put more pressure on the Consumer Financial Protection Bureau (CFPB) to find ways of helping homeowners who have been impacted by COVID-19.

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U.S. banking regulators set to finalize new net stable funding ratio for large banks

WASHINGTON (Reuters) - A trio of U.S. banking regulators are set to move Tuesday on finalizing a pair of long-running rulewriting projects aimed at ensuring banks have enough liquidity while minimizing volatility.

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Fintech Startups Broke Apart Financial Services. Now The Sector Is Rebundling

As fintech companies mature, many no longer aspire to be the best at one thing. That could mean not only new revenue sources for fintech companies, but also additional venture capital to startups and even a surge in M&A activity. One example of a hot startup that has drawn attention from a big financial services company is San Francisco-based Plaid, an early fintech startup that manages the connections between apps and banks. Earlier this year, Visa agreed to acquire Plaid for $5.3 billion.

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Massachusetts Eviction and Foreclosure Moratorium Expires and is Replaced by a More Limited CDC Order

On October 17, 2020, the Baker-Polito administration allowed the Massachusetts moratorium on residential foreclosures and residential and small business evictions to expire. Accordingly, commercial landlords may proceed with summary process actions against businesses formerly protected by the moratorium; residential landlords may now be able to move forward with some summary process actions against tenants who have not complied with lease obligations; and lenders may now pursue residential foreclosures.

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Governor Cuomo Signs Executive Order Extending Moratorium On COVID-Related Commercial Evictions Through January 1

Governor Andrew M. Cuomo today signed an Executive Order extending the state's moratorium on COVID-related commercial evictions and foreclosures through January 1. This measure extends protections already in place for commercial tenants and mortgagors in recognition of the financial toll the pandemic has taken on business owners, including retail establishments and restaurants. 

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Federal, state agencies crack down on illegal debt collectors

KANSAS CITY, Mo. — Consumer debt in the United States topped $14 trillion in 2019, a record level according to credit bureau Experian. With so much debt floating around, there are bound to he collectors making calls. But some of those calls are breaking the law. "It continues to be a top consumer complaint at our agency year after year," Federal Trade Commission Attorney Robin Rock said of illegal debt collection

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How Fintech Business Lenders Handle Coronavirus Crisis

Banks and insurance companies are not the only ones to mobilize to help companies in difficulties facing the coronavirus crisis. Fintech companies specializing in participatory small business loans also want to breathe new life into the small and medium-sized enterprises. The global economy finds itself affected by this crisis. All players in the financial sector are in limbo. Large banking networks have struggled on two fronts:

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    More than 7 million households lacked bank, credit union accounts in 2019: FDIC

    Roughly 7.1 million U.S. households did not have an account with a bank or credit union in 2019, according to a report released Monday by the Federal Deposit Insurance Corp. (FDIC). Last year, 5.4 percent of U.S. residents was “unbanked,” the FDIC reported in its biannual survey of how American households interact with the financial system. The unbanked rate fell 1.1 percentage points from 2017 and has declined in every survey conducted since 2011.

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    Why Do People Get Payday Loans? Here’s How it Breaks Down By Income, Age and Location

    With unemployment at a record high and the CARES Act expiring without additional funding, a record number of Americans are experiencing financial difficulties related to the Coronavirus pandemic. At LendUp, we provide loans to people to cover unexpected expenses and when they need the money fast. These types of loans are often called payday loans, and they’re typically the only type of loan available to Americans with lower incomes. Because of our years of underwriting loans and working with our customers, we know a lot about reasons why lower-income Americans need to get these kinds of loans. In this analysis, we’ll review the data on the reasons why Americans turn to payday loans and how it varies by age, income and geographic location.

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    The average American has $90,460 in debt—here’s how much debt Americans have at every age

    In our efforts to keep up with the Joneses (or just get by during this period of economic uncertainty), debt has become a normalized part of the American lifestyle. Borrowing money is often an important part of a long-term financial plan, whether it’s to access education and career opportunities, buy a car for your commute or find a place to call home. However, debt also involves a little risk and can be expensive. Not only do you pay interest fees, borrowing of any kind requires you to make your payments on time in order to keep your account and credit score in good standing. 

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    Closing The B2B Trade Credit Gap With AI, Machine Learning

    Although the COVID era continues to have an outsized impact on small businesses, frontline lending experts say SMBs have recently begun to catch a break when it comes to getting loans through FinTechs and other non-bank lenders. Ken So, founder and CEO of Flowcast, told PYMNTS that today’s $3 trillion worldwide SMB “credit gap” is narrowing because the criteria to secure loans are changing, and increasingly, embracing alternative data sources.

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    The average FICO credit score hit new record highs during the pandemic—here’s why

    The average FICO credit score hit another record high of 711 in the U.S. in July — several months into the global coronavirus pandemic, according to the latest research from the popular scoring company. It may sound crazy that FICO scores actually went up at a time when tens of millions of Americans were unemployed and struggling to pay bills and loans. But when looked at in aggregate, FICO scores don’t shift rapidly, says Ethan Dornhelm, who leads the research and analytic development of FICO scores globally. 

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    Event Information: NM Regulation and Licensing Department Licensees Transition to NMLS Live Q/A and Demonstration

    The New Mexico Regulation and Licensing Department is proud to announce that starting November 1, 2020, will begin using NMLS to manage Collection Agency, Collection Agency Manager and Repossessor licensees. Through NMLS, your company will be able to apply for, amend, and renew its license authority conveniently and safely online.

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    Portfolios For Sale

    $13,189,835.35 Credit Cards
    BAL Financial LLC

    (617) 595-5794

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    Law Offices of Matthew H. Herman, Esq.

    (929) 335-4221



    (888) 461-6161

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    Industry Events

    NCUCA 6th Annual Conference – October 28 – 30th

    Bellagio, Las Vegas

    October 28 - 30 , 2020