At a glanceFriday, December 18, 2020

Collection Industry News At A Glance - December 18, 2020
Friday December 18, 2020
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Consumer Financial Protection Bureau Issues Final Rule on Consumer Disclosures Related to Debt Collection

WASHINGTON, D.C. The Consumer Financial Protection Bureau (Bureau) issued today a final rule to implement Fair Debt Collection Practices Act (FDCPA) requirements regarding certain disclosures for consumers. The rule requires debt collectors to provide, at the outset of collection communications, detailed disclosures about the consumer’s debt and rights in debt collection, along with information to help consumers respond.

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U.S. banking regulators propose requiring banks to immediately flag computer breaches

WASHINGTON, Dec 18 (Reuters) - U.S. banks would have no longer than 36 hours after finding a cybersecurity breach to flag the issue to their regulators, under a new rule proposed Friday. The proposal from U.S. banking regulators would direct banks to notify their primary regulator as soon as possible after a breach is discovered that could impair services or the organization itself. In addition, the rule would direct third-party service providers to promptly tell client banks of any breaches that would impair their services. (Reporting by Pete Schroeder Editing by Chizu Nomiyama)

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The Fed just pretty much guaranteed that mortgage rates will stay low

With coronavirus infections spiking across the country, Chairman Jerome Powell and his colleagues at the Federal Reserve have announced they're keeping a key interest rate near zero — which promises to help mortgage rates stay at record lows.

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Weekly jobless claims unexpectedly rise, hit highest level since early September

Jobless claims unexpectedly rose last week as states reimposed coronavirus restrictions as lawmakers struggle to push through new government aid, according to a Labor Department report Thursday. The number of first-time unemployment-benefits filers totaled 885,000 in the week ending Dec. 12, the most since the week of Sept. 5. Economists polled by Dow Jones expected initial claims to fall to 808,000.

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Refinance demand jumps 105% annually, as mortgage rates set 15th record low of 2020

Mortgage rates set yet another record low last week — the 15th this year and the second record in as many weeks. The drop, however, did not spark any significant change in weekly mortgage applications, but demand is substantially stronger than it was a year ago. Total mortgage application volume increased 1.1% week-to-week according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgage

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Attorneys Explain the CFPB’s Final Rule on Debt Collection

The Consumer Financial Protection Bureau (CFPB) in October, announced the final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practice by debt collectors when collecting consumer debt. But what, exactly, does it all mean?

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Nevada Extends Temporary Work-From-Home Guidance

The Nevada Financial Institutions Division (NFID) has granted another extension allowing employees of licensed collection agencies to work from home, following data security and other guidance, through March 31, 2021.

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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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Agencies release annual CRA asset-size threshold adjustments for small and intermediate small institutions

WASHINGTON—The Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation today announced the annual adjustment to the asset-size thresholds used to define small bank and intermediate small bank under the Community Reinvestment Act (CRA) regulations.

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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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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