At a glanceWednesday, December 16, 2020

Collection Industry News At A Glance - December 16, 2020
Wednesday December 16, 2020
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Most Americans Will Take on Record Credit Card Debt This Holiday Season: Survey

Since March, millions of Americans have faced a tremendous financial struggle because of the coronavirus pandemic and recession, which have led to mass unemployment. Nine months later, the difficulties have yet to subside. Now it’s the holiday season, a time when money is spent and budgets are stretched. To meet holiday expenses during an economic crisis, many consumers have no other choice but to rack up credit card debt and worry about repaying it later.

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FTC Issues Call for Research Presentations for PrivacyCon 2021

The Federal Trade Commission issued a call for research on a wide range of privacy and security issues as part of its sixth annual PrivacyCon event, which will take place July 27, 2021.

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Idaho Legislation on Medical Debt Extraordinary Collection Takes Effect Jan. 1

New requirements for medical debt collectors will take effect Jan. 1, 2021 under the Idaho Patient Act (HB 515).   The Idaho Patient Act was the subject of an ongoing grassroots campaign by the Idaho Collectors Association to educate key lawmakers about the potential impact of the requirements.

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FDIC Approves Rule to Ensure Safety and Soundness of Industrial Banks

WASHINGTON— The Federal Deposit Insurance Corporation (FDIC) approved a final rule that will require certain conditions and commitments for each deposit insurance application approval, non-objection to a change in control notice, and merger application approval that would result in an insured industrial bank or industrial loan company becoming a subsidiary of a company that is not subject to consolidated supervision by the Federal Reserve Board.

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The average American has $90,460 of debt—but the average net worth is actually more than that

While a debt-free lifestyle might seem enviable, the reality is that most Americans carry some sort of debt and that’s not necessarily a bad thing. In 2019, credit bureau Experian reported the average total debt per consumer (including mortgages) was $90,460, which outpaced the average annual income of $50,413.

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Facing year-end cut off, U.S. banks scramble to extend COVID accounting relief

WASHINGTON (Reuters) - U.S. banks are scrambling to persuade Washington policymakers to extend the Dec. 31 expiry of an accounting waiver that has allowed lenders to give struggling borrowers more leeway on their loans, several bankers and lobbyists said.

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Newark, Delaware – December 7, 2020 – For the second consecutive year SIMM Associates employees participated in a Holiday Food Drive that benefited the local Newark branch of the Food Bank of Delaware. These types of food drives are essential to the local food banks ability to provide food to the thousands of individuals they serve.

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Consumer Financial Protection Bureau and Arkansas Attorney General Settle with Home-Alarm Company for Using Consumers’ Credit Scores Without Proper Notice

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) and the Arkansas Attorney General settled with Alder Holdings, LLC (Alder), resolving their allegations that Alder failed to provide proper notices under the Fair Credit Reporting Act (FCRA). Alder is a Utah-based company that sells home-security and alarm systems, primarily door-to-door, throughout the country and has sold its products and services to over 115,000 customers.

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Consumer Financial Protection Bureau Releases Report on Implementing the Dodd-Frank Act’s Small Business Lending Data Collection Requirement

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) released a panel report today as part of its rulemaking process under Dodd-Frank Act Section 1071 governing the collection and reporting of small business lending data.

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Attorney General Becerra Petitions Court to Compel Amazon to Comply with Outstanding Investigative Subpoenas

SACRAMENTO – California Attorney General Xavier Becerra today announced filing a petition in the Sacramento County Superior Court requesting that the court order, Inc. (Amazon) to comply with outstanding investigative subpoenas. 

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Mortgage Analytics Company Settles FTC Allegations It Failed to Ensure Vendor Was Adequately Protecting Consumer Data

A mortgage industry data analytics company will be required to implement a comprehensive data security program as part of a settlement resolving Federal Trade Commission allegations that the firm failed to ensure one of its vendors was adequately securing personal data about tens of thousands of mortgage holders. 

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Superlative RM Announces the Opening of New Office in Phoenix

Superlative RM, an account receivables management (ARM) company that provides professional recovery solutions for creditors and debt buyers across the US, is excited to announce the opening of our second office located in Phoenix, AZ. 

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FTC Issues Orders to Nine Social Media and Video Streaming Services Seeking Data About How They Collect, Use, and Present Information

The Federal Trade Commission is issuing orders to nine social media and video streaming companies, requiring them to provide data on how they collect, use, and present personal information, their advertising and user engagement practices, and how their practices affect children and teens.

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Here’s the average student loan debt by age

Over half of American students go into debt to pay for college, with average tuition prices starting around $22,000 and climbing even higher for private schools and graduate degrees. With such staggering totals, Americans are looking to politicians in the hopes of debt relief. But while President-elect Joe Biden has big plans, it’s still unclear if and when some form of federal student loan forgiveness will be possible. Collectively, U.S. student loan borrowers owe a total of $1.7 trillion in student debt, according to Federal Reserve data. Of all borrowers, consumers in their mid-30s had the highest balances in 2019, and with payments paused for most of 2020, that is more than likely still true.

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CFPB completes overhaul of two QM loan rules

The Consumer Financial Protection Bureau (CFPB) has finalized two proposed rules that change the lending requirements for qualified mortgage (QM) loans, in an effort to maximize consumer access and affordability.

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Kraninger Marks Second Year as Director of the Consumer Financial Protection Bureau

WASHINGTON, D.C. – Today, Consumer Financial Protection Bureau (Bureau) Director Kathleen L. Kraninger made the following statement regarding her second-year anniversary leading the Bureau:   “In these challenging times, I’m proud of the work that the Bureau has undertaken to protect consumers during the pandemic,” said CFPB Director Kraninger.

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Payment Processor and its Former CEO Pay $1.5 Million to Settle FTC Charges They Facilitated Fraud

Complete Merchant Solutions, LLC (CMS) and its former CEO, Jack Wilson, have settled Federal Trade Commission charges that they illegally processed millions of dollars in consumer credit card payments for fraudulent schemes when they knew or should have known that the schemes were defrauding consumers. 

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Despite tough economic climate, credit card debt drops by 9% according to Experian

This has been a year unlike any other, and so it’s not entirely surprising that many Americans have changed the way they use credit cards. Millions of Americans filed for unemployment in 2020, and millions more shifted from commuting to an office daily to working from home full-time as a result of the pandemic. Stay-at-home orders across the country means that people are dining out, shopping and traveling less. And as a result, many have seen significant changes to their daily spending. And these changes are having a positive impact on their credit usage.

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U.S. consumer watchdog finalizes new mortgage rules

WASHINGTON (Reuters) - The U.S. consumer watchdog on Thursday finalized two rules relaxing mortgage-lending requirements regarding a borrower’s ability to repay, in a bid to boost the range of products available to lower-income, riskier customers.

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Consumer credit originations could rebound by mid 2021 -report

Dec 10 (Reuters) - After economic uncertainty due to the coronavirus pandemic sent credit card originations to a 10-year low, one major credit reporting bureau is predicting that demand will bounce back.

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Weltman, Weinberg & Reis Co., LPA Elects Charles Pona as Managing Partner

CLEVELAND — December 9, 2020 — Weltman, Weinberg & Reis Co., LPA, a full-service creditors' rights law firm in its 90th year of client service, is pleased to announce the election of Shareholder Charles (Chuck) Pona as the new firmwide Managing Partner. 

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Consumers are spending more in 2020 than they did in 2019, says Bank of America CEO

Consumers are spending more via Bank of America accounts this year, in the midst of the coronavirus pandemic, than they did in 2019, according to CEO Brian Moynihan. “When you look at what they’re spending year-to-date, they’ve spent more in 2020 than they did in 2019, and that is now across $2.7 trillion in money moved by our consumers,” Moynihan told CNBC’s Wilfred Frost in a Wednesday interview.

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On-Demand Pay: What Does the CFPB Have to Say About It?

Over the years, consumers have become accustomed to getting what they want when they want it, usually by doing no more than clicking a few buttons. They can watch new shows by the season, get same day shipping from marketplaces like Amazon, and order groceries online for immediate delivery.

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CFPB issues consent order against Washington Federal for HMDA reporting violations

The Consumer Financial Protection Bureau issued a consent order against Washington Federal Bank in October for Regulation C and Home Mortgage Disclosure Act violations. The bank will pay a $200,000 fine for reporting inaccurate HMDA data in 2016 and 2017 — with error rates up to 40% in some cases, according to the CFPB.

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CFPB Issues Consent Order for Debt Collector

The Consumer Financial Protection Bureau issued a consent order Dec. 8 for RAB Performance Recoveries LLC (RAB), according to a news release . Through 2012, RAB, a New Jersey company, reportedly purchased and collected consumer debts from debt brokers, and through August 2014, it used collections law firms to obtain judgments against consumers, according to the CFPB, which states RAB’s actions are in violation of the Fair Debt Collection Practices Act and the Consumer Financial Protection Act of 2010.

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Consumer Financial Protection Bureau Sues Debt Collector BounceBack, Inc.

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit against BounceBack, Inc. for allegedly engaging in deceptive and otherwise unlawful debt collection acts or practices. BounceBack, based in Kansas City, Missouri, operates bad-check pretrial-diversion programs on behalf of more than 90 district attorneys’ offices throughout the United States. The Bureau alleges that in the course of implementing this program, BounceBack violated the Fair Debt Collection Practices Act (FDCPA) and the Consumer Financial Protection Act of 2010 (CFPA). The Bureau’s complaint seeks injunctions against BounceBack, as well as damages, redress to consumers, disgorgement of ill-gotten gains, and the imposition of a civil money penalty.

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Industry Events

RMAI 2021 Annual Conference – In Person and Virtual

Receivables Management Association International (RMAi)

Las Vegas, Nevada
April 12 - 15 , 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