At a glanceWednesday, December 09, 2020

Collection Industry News At A Glance - December 9, 2020
Wednesday December 9, 2020
Mid Week Newsletter:
Subscribe for Free - More Information - Advertising


These states have the highest debt burdens

Southern states are facing the highest burden of credit card debt during 2020, and Louisiana residents have the biggest burden of all, a recent survey found. For the Pelican State, the average household carries $7,940 in credit card debt and earns a median income of $51,073, according to the data released Monday. If residents pay off debt with 15% of earnings, it would take a Louisiana credit cardholder 15 months to absolve their debt, while paying $1,013 in interest, analysts noted.

Read More
CFPB sues LendUp for allegedly violating Military Lending Act

The CFPB said LendUp's violations of the MLA include extending loans with a military annual percentage rate (MAPR) exceeding the MLA's cap, extending loans requiring borrowers to submit to arbitration and failing to make certain required loan disclosures, including a statement of the applicable MAPR.

Read More
Here’s the average debt Americans have by loan type

Consumer debt reached a record high in 2019, according to data by Experian, one of the three national credit bureaus. And while the average consumer’s debt as a percentage of their income has decreased since the financial crisis, balances have grown, in some cases significantly.

Read More
Consumer Financial Protection Bureau Settles with Debt Collector for Engaging in Deceptive Debt Collection Practices in Three States

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) issued a consent order against RAB Performance Recoveries, LLC (RAB) for threatening to sue and suing consumers to collect debts where it did not have a legally required license to do so. Through 2012, RAB, a New Jersey company, purchased and collected consumer debts from debt brokers, and through August 2014, it used collections law firms to obtain judgments against consumers. RAB has continued to collect on those judgments against consumers as well as on a handful of payment agreements it obtained from debtors. 

Read More
Securing Work-From-Home Devices

The outbreak of the COVID-19 pandemic resulted in lockdown measures that were imposed to contain the spread of the virus, which included a freeze on commuting to the office to work in person for almost everyone but essential workers. as the manufacturing, logistics and trade industries. 

Read More
New Report Shows Global Growth of Fintech in 2020

This past summer the team from the Cambridge Centre for Alternative Finance (CCAF) in partnership with the World Bank and the World Economic forum embarked on the most ambitious research study in the history of fintech. They wanted to gather empirical data on the impact that Covid-19 was having on the fintech world. So, they sent out a survey to thousands of fintech companies in 190 countries.

Read More
TCN to donate over 40,000 meals to various food banks for Christmas.

St. George, Utah – Dec. 8, 2020TCN, Inc., a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide, makes a substantial donation to the Utah Food Bank on behalf of their clients.

Read More
Tenant Background Report Provider Settles FTC Allegations that it Failed to Follow Accuracy Requirements for Screening Reports

A California-based company that provides background reports to property management companies will pay $4.25 million as part of a settlement with the Federal Trade Commission over allegations the firm failed to follow reasonable procedures to ensure the accuracy of its reports about potential tenants.

Read More
LinkedIn Phishing Scams Most Clicked With a 47% Open Rate in Q3 2020

According to data presented by the Atlas VPN team, emails impersonating LinkedIn were the most clicked on social media phishing attacks, with a 47% open rate in the third quarter of this year. The numbers are based on research by KnowBe4, which examined tens of thousands of email subject lines from simulated phishing tests in Q3 2020 based on real phishing attack data.

Read More
Mortgage Credit Availability Ticks Up In November 2020

The Mortgage Bankers Association's Mortgage Credit Availability Index reported an increase in credit availability in November 2020. The MCAI increased by 0.7% to 122.2 in November, which signifies a loosening of credit, according to the report.

Read More
Mr. Cooper settles $90M lawsuit over illegal foreclosures

Mr. Cooper, the nation’s largest nonbank servicer of mortgage loans, will refund customers nearly $90 million and pay a civil penalty of more than $6.5 million to settle a lawsuit claiming it violated the rights of over 115,000 customers, some of whom it had illegally foreclosed on.

Read More
Federal student loan payments suspended until end of January

(Reuters) - U.S. Secretary of Education Betsy DeVos on Friday said the suspension of federal student loans payments and accruing interest set to end on Dec. 31 will be extended another month as the pandemic presents financial challenges to borrowers.

Read More
Consumer Financial Protection Bureau and Multiple States Enter into Settlement with Nationstar Mortgage, LLC for Unlawful Servicing Practices

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) filed a complaint and proposed stipulated judgment and order against Nationstar Mortgage, LLC, which does business as Mr. Cooper (Nationstar). The Bureau’s action is part of a coordinated effort between the Bureau, a multistate group of state attorneys general, and state bank regulators. The Bureau alleges that Nationstar violated multiple Federal consumer financial laws, causing substantial harm to the borrowers whose mortgage loans it serviced, including distressed homeowners.

Read More
Capital One stops ‘risky’ buy-now-pay-later credit card transactions

SYDNEY (Reuters) - Capital One Financial Corp (CapOne) has barred customers using its credit cards to clear buy-now-pay-later (BNPL) debt as the transactions bear unacceptable risk, it told Reuters, making it the first to distance itself from the finance alternative.

Read More
CFPB adds five to its leadership team

The Consumer Financial Protection Bureau (CFPB) has added five people in various leadership positions, including chief operating officer. Additions are Matthew Bettenhausen, Chris Chilbert, Janis Pappalardo, Donna Roy, and Deborah Royster.

Read More
Consumer Financial Protection Bureau Sues LendUp Loans, LLC for Allegedly Violating the Military Lending Act

WASHINGTON, D.C. Today, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against LendUp Loans, LLC (LendUp). The Bureau alleges that LendUp violated the Military Lending Act (MLA) in connection with its extensions of credit. LendUp, which has its principal place of business in Oakland, California, is an online lender that offers single-payment and installment loans to consumers. The Bureau’s complaint, filed in the United States District Court for the Northern District of California, seeks an injunction, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of civil money penalties.

Read More
Attorney General Becerra Announces $210 Million Settlement Against Dish Network for Illegal Telemarketing

SACRAMENTO – California Attorney General Xavier Becerra today announced a $210 million multistate settlement against Dish Network (Dish), concluding an 11-year legal dispute over the company’s illegal telemarketing campaigns. In 2017, a district court found Dish violated telemarketing laws through millions of illegal telemarketing calls to sell and promote its satellite TV services and programming packages, including unwanted robocalls to thousands of people registered on the Do Not Call registry, many of them Californians. Under the terms of today’s settlement, California will receive $39.9 million.

Read More
Reverse Mortgage Lending Limit Rises to Over $822k in 2021

The lending limit for federally-backed reverse mortgages is increasing for the fifth consecutive year in a row, set to hit $822,375 in 2021. The Department of Housing and Urban Development (HUD) announced on Wednesday via Mortgagee Letter (ML) 2020-42 a maximum claim amount of $822,375 for calendar year 2021, a rise of $56,775 from the $765,600 limit governing the Home Equity Conversion Mortgage (HECM) program in 2020.

Read More
Intuit Completes Acquisition of Credit Karma

MOUNTAIN VIEW, Calif.--()--Intuit (Nasdaq: INTU), proud maker of TurboTax, QuickBooks and Mint, today announced that it has completed its acquisition of Credit Karma, Inc., the consumer technology platform with more than 110 million members in the U.S., Canada and U.K. The combined company creates a new consumer finance platform that will make it simple for consumers to make better decisions with their money and take control of their financial lives.

Read More
Large credit unions deepen their stake in PPP lending

Paycheck Protection Program loans made up a significant portion of the loan portfolios at four of the top credit union lenders in this area during the third quarter. These loans made up at least 15% of the portfolios at Self-Help Federal Credit Union in Durham, N.C., Notre Dame Federal Credit Union in Indiana, Vibrant Credit Union in Moline, Ill., and Greater Nevada Credit Union in Carson City, according to a new analysis by S&P Global Market Intelligence.

Read More
P2P lending spikes in the spring

The volume of loans funded on European peer-to-peer lending platforms spikes during springtime, new analysis has found. According to research by Croatia-based P2P lending platform, there are similar surges in lending during the months of October and January. After collating the monthly growth rate of loans across a number of European P2P platforms, found a 7.2 per cent increase in lending volumes during the spring.

Read More
Possible business bankruptcy surges being weighed by US Fed, global Financial Stability Board, Quarles says

The US Federal Reserve and the international Financial Stability Board are looking into the possibility that bankruptcies, especially among small businesses, will swell next year, the Fed’s top regulator said. The current consensus, Fed Vice Chairman for Supervision Randal Quarles said, is that bankruptcy filings will increase as a result of the pandemic but not overpower the financial system. “Has the success of official intervention delayed an inevitable wave of bankruptcies of firms, especially small firms, instead of happening over the course of the summer?” he asked at a conference. “We thought we’d see this in the third or fourth quarter, but it’s not happening.”

Read More
American Express’ 11th Annual Small Business Saturday® Reaches a Record High with an Estimated $19.8 Billion in Reported Spending

New York, December 3, 2020 – In a year like no other, U.S. shoppers supported the small businesses in their communities on November 28th, making American Express’ 11th annual Small Business Saturday one of the biggest shopping days of the holiday season. The results of the American Express 2020Small Business Saturday Consumer Insights Survey show that total reported projected spending among U.S. consumers who shopped at independent retailers and restaurants on Small Business Saturday reached an estimated $19.8 billion, up from $19.6 in 20191.

Read More
U.S. labor market slowing as COVID-19 pandemic rages

WASHINGTON (Reuters) - The U.S. economy added the fewest workers in six months in November, hindered by a resurgence in new COVID-19 cases that, together with a lack of more government relief money, threatens to reverse the recovery from the pandemic recession.

Read More
November Bankruptcy Filings Hit 14-year Low

NEW YORK, Dec. 03, 2020 (GLOBE NEWSWIRE) -- Epiq, a global leader in legal services, released its November bankruptcy filing statistics from its AACER business. The total number of new U.S. bankruptcy filings across all chapters was 34,440 for the month, which is the lowest monthly total since January 2006. New Chapter 11 commercial filings in November were up 40% with 654 new cases compared to 449 from the same period last ye

Read More
Experian Launches “United for Financial Health” to Uplift and Empower Vulnerable Consumers

LONDON--()--The world’s leading information services provider, Experian, has today announced the launch of a new global project that aims to empower vulnerable consumers so they can improve their financial health through education and action.

Read More
Fake calls from Apple and Amazon support: What you need to know

Scammers are calling people and using the names of two companies everyone knows, Apple and Amazon, to rip people off. Here’s what you need to know about these calls.

Read More
FHA raises loan limit by nearly $25,000 for 2021

Given massive year-over-year gains in home prices, the Federal Housing Administration (FHA) is increasing its 2021 loan limit in most of the U.S. to $356,362, an increase of nearly $25,000 over 2020’s loan limit of $331,760. That loan limit figure is determined as a percentage of the national conforming loan limit for Fannie Mae and Freddie Mac, which is increasing in 2021 to $548,250. FHA’s 2020 minimum national loan limit, or “floor,” of $356,362 is 65% of the national conforming loan limit of $548,250. This floor applies to low-cost areas, which are counties where 115% of the median home price is less than the floor limit.

Read More
Cyber-security in the age of Covid-19

In June, Israeli business daily Calcalist reported that Sapiens, a software company, had paid $250,000 in bitcoin to end a ransomware attack. The breach is thought to have happened when employees started working from home due to Covid-19, according to the article. Sapiens has neither confirmed nor denied the story, and did not respond to a request for comment.

Read More

Industry Events

RMAI 2021 Annual Conference – In Person and Virtual

Receivables Management Association International (RMAi)

Las Vegas, Nevada
February 08 - 11 , 2021

Collection and Recovery Solutions 2021 (CRS2021)

Resource Management Services, Inc.

Produced by: Resource Management Services, Inc. 10440 Pioneer Blvd., Suite 2 Santa Fe Springs, CA. 90670-8235
Las Vegas , Nevada
May 12 - 14 , 2021

(562) 906-1101