At a glanceWednesday, June 02, 2021

Collection Industry News At A Glance - June 2, 2021
Wednesday June 2, 2021
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11th Circuit Issues FDCPA Decision That Could Dramatically Impact Mortgage Servicers Operations

In Hunstein v. Preferred Collection and Management Services, Inc., 994 F.3d 1341 (11th. Cir. 2021), the Eleventh Circuit held that a debt collector’s communication of a consumer’s personal information to a third party print vendor violated the Fair Debt Collection Practices Act’s prohibition on third party communications in connection with debt collection under 15 U.S.C. § 1692c(b).

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Claims Process Opens for Consumers Who Were Victimized by Fraudulent MoneyGram Transfers

Consumers who lost money to fraudsters and paid through MoneyGram between 2013 and 2017 can now file a claim to get their money back. This claims process is the result of settlements with the Federal Trade Commission and Department of Justice charging that MoneyGram violated previous agreements with the government to crack down on fraudulent money transfers.

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United States: Split Decision: 5th And 11th Circuits Diverge On TCPA Standing

Standing, or the right to bring a lawsuit, is a contentious and often complicated doctrine in the world of the Telephone Consumer Protection Act ("TCPA"). TCPA standing requires that a plaintiff allege a concrete injury beyond just a pure statutory violation. The question raised by a recent opinion from the Fifth Circuit Court of Appeals (covering federal courts in Louisiana, Mississippi, and Texas) is how much of an injury in addition to a statutory violation is necessary to satisfy TCPA standing requirements. The Eleventh Circuit Court of Appeals has held that a plaintiff needs to allege more of a concrete injury than merely "invasion of privacy" for the receipt of unwanted text messages to have standing. In a case captioned Cranor v. Five Star Nutrition, the Fifth Circuit directly disagreed, holding that a statutory violation plus an allegation of "invasion of privacy" or "nuisance" is enough to establish TCPA standing.

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FTC Staff Provides 2020 Annual Financial Acts Enforcement Report to the CFPB

The staff of the Federal Trade Commission has provided its 2020 Annual Financial Acts Enforcement Report to the Consumer Financial Protection Bureau on its enforcement and related activities regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA). The report on TILA, CLA, and EFTA highlights, among other things, the FTC’s enforcement actions related to automobile purchases and financing, payday lending, credit repair and debt relief, and electronic fund transfers.

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CFPB Auto Finance Consent Order: A Sign of Things to Come for Add-On Products?

According to the Consent Order, 3rd Generation purchases and services “subprime auto loans by taking assignment of retail-installment-sales contracts that automobile dealers make with borrowers.” As part of its loan agreement, 3rd Generation requires consumers to use its Loss Damage Waiver (LDW) product. 3rd Generation places the LDW product on the consumer’s account when the consumer has insufficient insurance; it “covers cancellation of the borrower’s debt in the event of a total vehicle loss, or the cost of a repair if the vehicle is not a total loss.” The addition of the LDW product on the consumer’s account results in a monthly LDW fee.

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Toyota Motor North America Introduces Privacy Portal to Make Consumer Data More Accessible and Transparent

PLANO, Texas (June 1, 2021) – As a demonstration of Toyota’s continued commitment and leadership in consumer privacy, Toyota Motor North America (TMNA) is proud to announce the creation of the Toyota Data Privacy Portal to increase data transparency, accessibility and control for Toyota and Lexus vehicle owners.

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Navy Federal Credit Union and Association of Defense Communities Launch Guiding Your Mission Program to Recognize Military Counselors

VIENNA, Va.--(BUSINESS WIRE)--The Association of Defense Communities (ADC), together with Navy Federal Credit Union, announce the launch of Guiding Your Mission, a new program focused on promoting financial wellness and career development within military and veteran communities. With decades of experience working in defense communities and with military families, both ADC and Navy Federal understand the unique challenges that members of the armed forces face when it comes to navigating financial journeys and planning for their futures.

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PNC signs purchase agreement for BBVA, based in Houston, creating the largest regional bank in the United States

PNC on Tuesday completed the acquisition of Houston-based BBVA USA Bancshares Inc. for $ 11.6 billion, including its banking subsidiary BBVA USA based in Birmingham, Ala. Over half of BBVA’s 641 national branches are in Texas.

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Claims Process Opens for Consumers Who Were Victimized by Fraudulent MoneyGram Transfers

Consumers who lost money to fraudsters and paid through MoneyGram between 2013 and 2017 can now file a claim to get their money back. This claims process is the result of settlements with the Federal Trade Commission and Department of Justice charging that MoneyGram violated previous agreements with the government to crack down on fraudulent money transfers.

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Valley Strong Credit Union to merge with Financial Center Credit Union

Valley Strong Credit Union and Financial Center Credit Union has announced their plans to merge pending regulatory approval and membership vote. If approved, the organization will operate under the Valley Strong name.

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CFPB examines risks, barriers to manufactured housing loans

Consumer Financial Protection Bureau (CFPB) officials have issued a report examining manufactured housing financing, noting low acquisition costs present higher interest rates and limited opportunity to refinance.

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United States: CFPB Files Another Status Report In Section 1071 Rulemaking Lawsuit

The CFPB has filed its fifth status report with the California federal district court as required by the Stipulated Settlement Agreement (Agreement) in the lawsuit filed against the Bureau in May 2019 alleging wrongful delay in adopting regulations to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.

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CFPB report reveals what’s going on with manufactured home lending

Most manufactured home loan applications are denied and, despite the low-interest rates, very few manufactured housing loans were refinanced, according to a new report from the Consumer Financial Protection Bureau (CFPB).

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CFPB Takes Action Against Company and its CEO for Deceptive Deposit and Loan Products

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today filed a proposed settlement against Driver Loan, LLC, and its CEO, Angelo Jose Sarjeant. If entered by the court, the settlement would require the defendants to refund about $1 million in deposits to harmed consumers, stop deceptive practices, and pay a civil penalty. The CFPB alleges that Driver Loan and Sarjeant violated federal law by misrepresenting the risks associated with their deposit product and the annual percentage rate (APR) associated with the consumer loans they make.

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It’s your last chance at a PPP loan. Here’s how to apply

Time is running out for small-business owners looking to get a government Paycheck Protection Program loan. Applications for the final round of PPP loans will be accepted only until Monday or until the remaining funds are drained, whichever is sooner. Most of the money is already gone. As of Friday, only about $3 billion was left of the $800 billion provided for the program, according to congressional staff. The Small Business Administration has approved more than 11 million of the loans over the course of the program.

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Student debt rises as the future of loan forgiveness remains uncertain

Because of the coronavirus pandemic, the price of higher education is an even bigger consideration for students and their families than usual. At the same time, the cost of a four-year college or university has never been higher. For the 2020-21 academic year, average tuition and fees increased 1.1% for in-state students at four-year public colleges, reaching $10,560, and 2.1% for students at four-year private institutions, to $37,650, according to the College Board, which tracks trends in college pricing and student aid.

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FDIC-Insured Institutions Reported Net Income of $76.8 Billion In First Quarter 2021

WASHINGTON— Reports from the commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate net income of $76.8 billion in first quarter 2021, an increase of $58.3 billion (315.3 percent) from a year ago. Aggregate negative provision expense, reflecting improvements in the economy and asset quality, drove the increase in quarterly net income. Financial results for first quarter 2021 are included in the FDIC’s latest Quarterly Banking Profile released today.

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US average mortgage rates decline; 30-year loan at 2.95%

WASHINGTON (AP) — Mortgage rates declined this week, pushing the benchmark 30-year home loan back down below the 3% mark. Signs continued of the economy’s recovery from the pandemic recession. Mortgage buyer Freddie Mac reported Thursday that the average for the 30-year rate fell to 2.95% from 3% last week. At this time last year, the average long-term rate was 3.15%.

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Summary of the 2021 CFPB Research Conference

The Bureau’s Office of Research held its 5th Research Conference on May 6. The presentations included research by academics and policymakers covering various topics in household and consumer finance. We were honored to have a keynote address  by Dr. Raphael Bostic , President and CEO of the Federal Reserve Bank of Atlanta. President Bostic discussed a number of pressing research areas, including disparities in homeownership and access to mortgage credit, improving our understanding of the Community Reinvestment Act, and the evolution of credit scores across economic cycles

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U.S. bank profits rose to $76.8 bln in Q1 2021, a 29.1% jump from previous quarter

WASHINGTON, May 26 (Reuters) - U.S. bank profits rose 29.1% during the first quarter of 2021 from the previous quarter as banks adjusted expectations for future credit losses downwards, a bank regulator said on Wednesday.

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Real Quick: Navient May (May) Get Another Chance to Defeat TCPA Claim Arising Out of Government-Backed Debt Exemption

You might recall last month Navient was hammered for calls it made in reliance on the government-backed debt exemption. Although the TCPA plainly permitted the calls it made at the time–as in the express language of the statute literally exempted the calls it made from coverage–the Court determined that AAPC voided the exemption as if it never existed.

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10 Best Cities to Get Out of Credit Card Debt

The Federal Reserve says that revolving consumer credit debt – including debt from credit cards, home equity lines of credit and personal lines of credit – increased to $974.4 billion in February 2021, marking a 10.1% annual rate increase from the year before. This is almost one-third of all consumer debt, which also includes student and car loans, and adds up to a grand total of $4.2 trillion. With so many people trying to pay off credit card debt, SmartAsset crunched the numbers to identify and rank the best cities where it’s easiest to do so.

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4 Tips for Small-Business Owners Paying Down Pandemic Debt

After more than a year of navigating lockdowns, mandates and COVID-19 protocols, small-business owners are starting to see a light at the end of the tunnel. But the debt many needed to take on to weather the pandemic still casts an ominous shadow.

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Industry Events

RMAI Executive Summit

Receivables Management Association International

The Lodge at Spruce Peak
Stowe , Vermont
August 02 - 04 , 2021

916 482 2462

Collection and Recovery Solutions 2022

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 11 - 13 , 2022