At a glanceFriday, February 12, 2021

Collection Industry News At A Glance - February 12, 2021
Friday February 12, 2021
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Delaware falls to last place in PPP 2.0 lending

WILMINGTON – More than two weeks into the latest round of lending in the U.S. Small Business Administration’s Paycheck Protection Program, the First State ranks last. As of Feb. 7, Delaware ranked last overall in total PPP loans obtained and aggregate dollars allocated in all 50 states, according to SBA data. Borrowers have obtained 2,787 loans worth a total of more than $287.8 million, but the slow start in Delaware comes as about a third of all the money allocated by Congress for the round has been claimed.

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As TCPAWorld previously reported, the Federal Communications Commission (FCC) may have unintentionally expanded prior express written consent requirements when it recently codified certain Telephone Consumer Protection Act (TCPA) exemptions for informational prerecorded or artificial voice calls to residential lines and imposed number limits and opt-out requirements. 

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Consumers and their experiences to be at the foundation of CFPB policymaking

As consumers of financial products and services, you deserve a Bureau designed to serve and listen to you, the American people. Last week I met with staff from the Division of Consumer Education and External Affairs (CEEA). During the meeting, I listened to CEEA leadership and staff suggest how CEEA could most effectively implement my policy priorities. Today, I shared with CEEA what I am asking of them

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FTC Acts to Ban Payday Lender From Industry, Forgive Illegal Debt

The owners and operators of a vast payday lending scheme that overcharged consumers millions of dollars will be permanently banned from the lending industry under the terms of a settlement with the Federal Trade Commission. The settlement also provides that nearly all outstanding debt—made up entirely of illegal finance charges—held by the company will be deemed as paid in full.

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Four Defendants Settle with the FTC for Their Alleged Role in Credit Card Laundering Scheme

The Federal Trade Commission reached settlements with four defendants charged with helping to launder millions of dollars in credit card charges through fraudulent merchant accounts. The settlement orders permanently ban Jay WigdoreElectronic Payment Solutions of America, and Electronic Payment Services from payment processing and telemarketing. A previously-entered stipulated order against Michael Peterson bans him from payment processing or acting as an independent sales organization or sales agent in the payment processing industry.

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Robocalls topped your list of consumer complaints in 2020

Attorney General Josh Stein released a top 10 list Tuesday of the most common consumer complaints filed with his office in 2020. Topping that list: Robocalls. “North Carolinians were inundated with robocalls in 2020,” Stein said. “Scammers use them to try to trick and scare people out of their hard-earned money ... And we’ll do everything in our power to hold accountable those who defraud and scam hard-working people.”

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CFPB makes it clear: fair servicing is back, for real this time

A new presidential administration and a clarion call from the Consumer Financial Protection Bureau has transformed fair servicing from a seemingly remote risk into a front and center mandate. After the 2008 financial crisis, regulators enhanced long-standing fair lending examination guidelines to incorporate the concept of fair servicing. They began to scrutinize potential discriminatory loss mitigation and foreclosure practices and threatened to hold mortgage servicers accountable if such impermissible practices were identified.

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Calling attorneys interested in joining the CFPB

We are at a critical moment in our nation. Americans’ financial lives have suffered tremendously as a result of the COVID-19 pandemic, the associated economic dislocation, and ongoing racial inequity. These challenges are most acute amongst the most economically vulnerable Americans.

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No FDCPA Harm, No FDCPA Foul

The United States Court of Appeals for the Seventh Circuit has recently released a veritable avalanche of debt collector-friendly opinions regarding “standing” under the Fair Debt Collection Practices Act (FDCPA), which given the relative dearth of lender-slanted opinions in this legal niche, seems practically momentous. As of the time of writing, no less than six opinions on this narrow topic were issued over little more than a week in mid-December of 2020, leaving the distinct impression that the Court is sending a message. 

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Main Street Lending Program Ends With Just $17.5 Billion Disbursed

The Federal Reserve’s Main Street Lending Program, intended to give support to small- to medium-sized businesses (SMBs) during the pandemic, has only disbursed $17.5 billion, around 3 percent of its total $600 billion, Bloomberg reported, citing data released by the central bank.

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$10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers

It remains uncertain whether student loan forgiveness will happen — and if it does, how much of borrowers’ loans will be canceled. On the campaign trail, President Joe Biden promised to wipe out at least $10,000 for all borrowers, and more for those who attended public colleges or historically Black colleges and universities. However, amid the coronavirus pandemic, Biden is under mounting pressure from members of his own party, advocates and borrowers to go further by forgiving $50,000 per person and to do so through executive action.

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FTC Sends More than $1.7 Million in Refunds to People who Lost Money to Student Loan Debt Relief Scam

The Federal Trade Commission is sending more than $1.7 million to people who lost money to a debt relief scheme that targeted individuals trying to pay down their student loan debt.

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Mortgage Delinquency in November Reaches the Lowest Level Since March, CoreLogic Reports

IRVINE, Calif.--(BUSINESS WIRE)--CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for November 2020. On a national level, 5.9% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), which represents a 2-percentage point increase in the overall delinquency rate compared to November 2019, when it was 3.9%. This is the lowest overall delinquency rate since an initial jump in April 2020.

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Mortgage demand drops as interest rates hit a three-month high

Mortgage interest rates have increased in four of the first six weeks of 2021, putting a chill on mortgage demand. Overall mortgage application volume fell 4.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

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Citi to pay five states $4.2 mln over interest overcharges

Citibank NA agreed on Monday to pay $4.2 million to settle claims by five states that it failed to recalculate credit card interest rates on accounts held by 25,000 consumers, thus overcharging them.

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Debit Card Use Increasing Online, But Credit Cards Remain More Popular

A new study by PYMNTS and Elan Financial Services shows that Americans are using their debit cards more for online shopping. However, they’re not moving away from credit cards entirely, which remain the most popular way to pay.

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Forbearance is nearing its end and over 5% of borrowers are still in the program

We’re approaching the one-year anniversary of mortgage forbearance programs and while many American borrowers have gotten off the program for one reason or another, a frustrating number of homeowners remain. A little less than 5.5% of homeowners are still missing mortgage payments, representing a group of homeowners who have not gotten back on their feet since the initial COVID-related lockdowns in spring of 2020.

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Regional Banks Accelerate Modernization Through FinTech

For large, global financial institutions (FIs), modernizing is no easy feat. Bogged down by legacy infrastructure, big banks often find that FinTech collaboration wins in the “build-versus-buy” debate as a more agile way to digitize and bring competitive products to market.

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Mortgage servicers take steps to support borrowers amid COVID-19

As COVID-19 cases continue to rise, borrowers are facing new financial risks. According to Black Knight, as of late November, 2.73 million homeowners were still in a forbearance plan, down from the May 2020 peak of 4.7 million. Even though the forbearance numbers continue to fall, homeowners are showing signs of distress. As a result, call volume to servicers spiked to a level not seen since last April. Lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through these difficult times.

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CFPB accuses servicers of misleading borrowers about forbearance

Several mortgage servicers gave consumers incomplete and inaccurate information about CARES Act forbearances, according to a new Consumer Financial Protection Bureau (CFPB) report.

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Housing market bracing for new changes with FHA loans

There are new developments in the housing market that are helping DACA immigrants become eligible for FHA loans. Joining us to talk more about that and some topes for new home buyers dealing with this market, is mortgage expert Brian Sacks.

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The Bureau is taking much-needed action to protect consumers, particularly the most economically vulnerable

Last week, I was honored to have been appointed Acting Director of the CFPB by the President. Having joined the Bureau in 2011, I have seen firsthand the impact of the Bureau’s mission and the incredible work being done by its staff. I know that the Bureau’s staff shares my devotion to the Bureau’s mission, and I look forward to serving in this latest capacity.

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Biden’s CFPB Focuses On Debt Collection As Early Priority

Every new presidential administration gets to make its imprint on regulations — and by extension, the financial services industry. In the midst of grappling with the pandemic and the headwinds still buffeting the U.S. economy, the President Joe Biden administration may be gearing up to take a closer look at the way firms, particularly debt collectors and payday lenders, interact with consumers.

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Venmo’s debt-collection practices probed by CFPB

The Consumer Financial Protection Bureau is probing the way that Venmo, the digital money-transfer service operated by PayPal Holdings Inc., treats customers whom the company says owe it money for transactions that went awry. In a regulatory filing Friday, PayPal said it had received a "Civil Investigative Demand" from the CFPB "related to Venmo's unauthorized funds transfers and collections processes, and related matters." The company said the CFPB had requested documents and answers to written questions, and that it was cooperating with the regulators. Venmo's debt-collection tactics were the subject of articles in The Wall Street Journal in 2019 and 2020.

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Biden Wants to Shut Down Credit Bureaus – What Would That Mean for You?

One of the more fascinating platform items of the Biden presidential campaign was the idea of transferring consumer credit ratings from Equifax (NYSE: EFX), Experian PLC (OTC: EXPGY) and TransUnion (NYSE: TRU) to a public registry under the Consumer Financial Protection Bureau.

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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

Tentatively Postponed - Future Dates To Be Announced