At a glanceWednesday, February 17, 2021

Collection Industry News At A Glance - February 17, 2021
Wednesday February 17, 2021
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Total Household Debt Increased in Q4 2020, Newly Originated Mortgages Reach Record High

NEW YORK – The Federal Reserve Bank of New York's Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows that total household debt increased by $206 billion (1.4%) to $14.56 trillion in the fourth quarter of 2020, driven in part by a steep increase in mortgage originations. The total debt balance is now $414 billion higher than the year prior. The Report is based on data from the New York Fed's Consumer Credit Panel, a nationally representative random sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data.

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Coronavirus relief continues for housing and student loans

As the Coronavirus pandemic continues, so does its financial impact. For people who need help with rent or mortgage payments, or have student loans, there may be some good news about the federal relief response.

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NCUA’s next field of membership fight is already brewing

The National Credit Union Administration faces mounting opposition to a shared facilities proposal introduced late last year, with some observers going so far as to question whether the plan violates the Federal Credit Union Act.

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Could the FTC Pass to the Torch to the Consumer Financial Protection Bureau to Oversee the Fintech Industry?

The change in the White House administration combined with a potential ground-breaking Supreme Court decision may move the oversight and enforcement for marketing by the fintech sector from the Federal Trade Commission (“FTC”) to the Consumer Financial Protection Bureau (“CFPB”). This would be a tectonic shift.

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Homeowners have expanded access to protections

If you’re struggling to pay your mortgage during the COVID-19 pandemic, you’re not alone. Millions of Americans are behind on mortgage payments. But help is available to most homeowners:

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Effective cybersecurity starts at the top

Cybersecurity, the ever-changing necessity that is growing seemingly ever more complicated, is now more important to the wellness and success of businesses across the globe. The consequences are higher than ever before: the FBI’s most recent Internet Crime Report reports the total cost of the 467,361 complaints they received at over $3.5 billion in 2019.

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Attorney General Becerra: Federal Reserve Proposal Will Reinforce Access to Banking and Credit Services for Low-Income Communities and Communities of Color

SACRAMENTO – California Attorney General Xavier Becerra today led a coalition of 23 attorneys general in a comment letter in support of the Federal Reserve’s proposed rule to strengthen regulations under the Community Reinvestment Act (CRA). The CRA was enacted by Congress to prevent racially discriminatory redlining in housing, and encourage banks and savings associations to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods and individuals.

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FDIC Appoints First Chief Innovation Officer

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today named Sultan Meghji as the agency’s first Chief Innovation Officer, charged with leading the FDIC’s efforts to promote the adoption of innovative technologies across the financial services sector.

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President Biden to extend mortgage relief, ban on home foreclosures through June

WASHINGTON – President Joe Biden is extending a ban on home foreclosures for federally backed mortgages by three months and expanding a mortgage relief program in a push to stabilize the nation's housing affordability crisis amid the COVID-19 pandemic.

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Eastern District of Texas Holds that Professional TCPA Litigant Can Face Counterclaims for Fraud

A federal magistrate judge in the Eastern District of Texas recently addressed a question of first impression for the jurisdiction: Can professional plaintiffs who manufacture TCPA claims face counterclaims for fraud brought by the defendant in an abusive lawsuit? According to the magistrate and the district judge that adopted her recommendation, the answer is yes.

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The Rise and Rise of Crypto Lending

Crypto lending has taken off in a big way over the past 12 months, with both centralized and decentralized platforms giving users the opportunity to borrow and lend. The arrival of lending in crypto provides yet another use case for blockchain technology, particularly the smart contracts favored by DeFi protocols, while also drawing tremendous liquidity into the market.

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Another TCPA Certification Disaster: Business Practice in Danger After TCPA Case Certified Against PillPack in Suit Involving Oral Consent to Transfer Calls

A fairly common practice in the marketing game is to buy leads from third-parties that obtain written consents to permit calls on a certain subject matter but that do not specifically identify the ultimate seller of the product or service in question. The practice is generally justified on the theory that the called party knows who is calling and why, and the ultimate identity of the seller cannot be known until the caller has a chance to gather some additional information from the called party to determine which service provider is best able to assist the called party.

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Payday loans can have interest rates over 600%—here’s the typical rate in every U.S. state

Over the last few months, several states have moved to limit payday loan interest rates in an effort to protect consumers from getting in over their heads with these traditionally high-cost loans. During the November general election, voters in Nebraska overwhelmingly voted to cap payday loan interest rates in the state at 36%. Prior to the ballot initiative’s passage, the average interest for a payday loan was 404%, according to the Nebraskans for Responsible Lending coalition.

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Mortgage Refinance Demand Climbs 20%: Should You Get a New Home Loan?

Though mortgage refinance rates have stayed competitive in 2021, they've recently begun to creep upward. And that may have some existing borrowers spooked. That could explain why mortgage refinance applications recently climbed 20%, according to the Mortgage Bankers Association. This activity comes in spite of a recently-implemented 0.5% refinance fee for loans signed on Dec. 1, 2020 or later.

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New type of home equity loan caters to major renovation projects

Brandon Segal was set to make a substantial addition to his historic house in a Philadelphia suburb, but he wasn’t sure how to pay for it. He didn’t have enough equity to cover the six-figure renovation bill with a home equity line of credit or a cash-out refinance. A construction loan struck Segal as complicated and cumbersome.

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2021 Officers & Directors Elected to Lead Receivables Management Association International

February 11, 2021 (Sacramento, CA) – Members of Receivables Management Association International (RMAI) elected Officers and Directors to its Board for 2021. Due to the pandemic which created so much uncertainty and program cancellation, all 2020 officers will be serving in their same positions for 2021. Of the ten-member Board, nine are continuing service from the previous year. The 2021 Officers and Directors are:

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Here’s why these big Pittsburgh banks paused PPP loan forgiveness

PITTSBURGH — Some of Pittsburgh’s largest banks have put Paycheck Protection Program loan forgiveness processing on hold — anticipating it will resume next month as the current $284 billion application filing goes down to the wire.

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Student loan payments are suspended. Here’s how to make the most of it

Millions of student loan borrowers received a welcome reprieve last month when President Joe Biden extended the suspension of payments and interest on federal student loans through September 30.

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In wake of major data breach, cyber security office proposed

Reeling from a December breach that allowed hackers to access the personal information of roughly 1.6 million Washington residents, state lawmakers are working with Gov. Jay Inslee to establish a new office to protect state data. Senate Bill 5432, sponsored by Sen. Reuven Carlyle, D-Seattle, establishes a new Office of Cyber Security (OCS).

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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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$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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Delta Credit Management LLC

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Total AI Systems LLC

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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