Governor Hochul Signs Consumer Protection Legislative Package

Governor Hochul today signed a legislative package relating to consumer protection. Legislation S.153/A.2382 enacts the The Consumer Credit Fairness Act, which will protect consumers from abusive debt collection, as many practices relate to old debts being sued on, debt from credit card issuers being resold to other creditors, and minimal information being provided to debt purchasers. By increasing transparency, minimizing gaps in State civil procedure laws, and preventing extreme actions such as wage garnishment and bank account freezing, consumers are given more time to act on burdensome debt collection practices. Legislation S.4823/A.3359 prohibits harassment from utility companies when negotiating a complaint or unpaid balance. Legislation S.1199/A.5838 requires the Public Service Commission to have at least one member who is an expert at consumer advocacy.  

Total Household Debt Climbs to Over $15 Trillion in Q3 2021, Driven by New Extensions of Credit

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 $286 billion (1.9%) to $15.24 trillion in the third quarter of 2021. The total debt balance is now $1.1 trillion higher than at the end of 2019. It is also $890 billion higher than in Q3 2020, and $2.57 trillion higher, in nominal terms, than the $12.68 trillion peak seen in 2008.

Attorney General Bonta Urges Congress to Pass Legislation to Prevent Corporations from Forum Shopping When They File Bankruptcy

OAKLAND – California Attorney General Rob Bonta today joined a bipartisan coalition in urging Congress to pass the Bankruptcy Venue Reform Act, legislation that would close a loophole in the Bankruptcy Code that allows corporations to “forum shop” when they file bankruptcy. Forum shopping refers to the popular corporate tactic of filing for bankruptcy in a district a corporation believes to be most favorable to its interests — instead of the district where the corporation’s principal place of business or assets are located. 

Credit Unions Must Digitalize Products, Services and Support To Re-engage Existing Members

Coming out of the pandemic, consumers are looking for a lot of digital-first experiences. When it comes to financial services, many are moving to FinTechs and downloading new apps that offer innovative digital solutions that often save time and money.

Fonative Launches Real Recipient SMS

LOWELL, Mass., Nov. 9, 2021 /PRNewswire/ -- Fonative^®, the Compliant Communications^® company, has introduced Real Recipient SMS™, a new service that helps make sure text messages go to the intended recipient. Working with Fonative's PCI-DSS certified platform and RegReady^® APIs, Real Recipient SMS-enabled contact center applications and agents can securely send confidential information to the intended recipient, while leveraging the FCC's Reassigned Numbers Database to validate the phone number of the recipient for the text message.

CFPB education loan ombudsman report foreshadows active and wide-ranging engagement by “new CFPB” in student loan market

The report includes an analysis of the approximately 5,300 complaints related to private or federal student loans that the Bureau received during that period.  While complaints overall during this period trended lower, the decrease was most pronounced for federal student loan complaints which decreased approximately 32% compared to the prior year. Private student loan complaints decreased approximately 0.8%.  The Bureau cites the CARES Act and other relief measures for federal student loans as the likely reason for the decrease in federal student loan complaints.

Report: Cyber Attacks Skyrocket in Washington, Set Record

A report by Washington Attorney General Bob Ferguson's office says 6.3 million notices of data breaches have been delivered to state residents in 2021. This number eclipses the previous record of 3.5 million in 2018.

More borrowers are getting forbearance modifications

Forbearance predictably declined across the board last week as exits accelerated, but more borrowers are going into plan modifications because they are still struggling to recover their pre-pandemic income.

FTC Takes Action to Ban Payment Processor From Debt Relief Processing

The Federal Trade Commission obtained an order permanently banning a payment processor that facilitated a fraudulent student loan debt relief scheme from processing debt relief payments.  The order also requires the company and its owner to surrender $500,000 to the FTC for consumer redress.

Attorney General Bonta Continues Fight to Hold Ashford University Accountable for Defrauding and Deceiving California Student

OAKLAND – California Attorney General Rob Bonta today issued the following statement on the first day of trial in the state’s lawsuit against Ashford University, an online for-profit school, and its parent company Zovio, Inc. (formerly Bridgepoint Education) for engaging in false advertising and unlawful business practices. The California Department of Justice (DOJ) filed a lawsuit in 2017 alleging that Ashford University and Zovio provided false and misleading information to students to persuade them to enroll in the school and then used illegal debt collection practices when students struggled to pay their bills. DOJ seeks restitution for these students, a permanent injunction prohibiting Zovio from engaging in similar activities in the future, and civil penalties.

CFPB Issues TILA (Regulation Z) Annual Threshold Adjustments for 2022

The CFPB recently amended TILA’s implementing Regulation Z by updating the dollar amounts of various thresholds for several provisions that are adjusted annually. The new threshold adjustments will go into effect on January 1, 2022.

CFPB and the Use of Abusiveness – Ten Years In

A little over 10 years ago, the US Consumer Financial Protection Bureau (“CFPB” or “Bureau”) gained authority to enforce a prohibition against abusive acts and practices in connection with the provision of consumer financial products or services. This new authority raised a host of questions about what conduct was abusive and how the CFPB would use this new tool. Five years ago, we reviewed the CFPB’s use of abusiveness in its first four-plus years of existence. This Legal Update summarizes our prior findings and examines the CFPB’s use of abusiveness in the exercise of its enforcement, supervisory and rulemaking authorities over the subsequent five-plus years.

Beyond Big Tech: CFPB’s Payments Data Obsession May Broadly Target Third-Party Data Purchasers

In late October, the Consumer Financial Protection Bureau (CFPB) sent a shot across the bow at Big Tech’s use of consumer payments data. While much of the industry has focused on the impact on Big Tech, some lenders, lead generators and data brokers may be unaware how the recent orders impact them. They do, and we explain why below.

Report: Merchants Fight Data Breaches, Payments Fraud with Employee Education, Cybersecurity Insurance

Digital platforms from every corner of the web welcomed new customers amid the lockdowns and restrictions during the pandemic. More than 80% of United States consumers now use the internet every day to conduct basic errands or scroll through social media. While most consumers look favorably upon the many conveniences digital marketplaces offer, they still have valid cybersecurity and data privacy concerns.

CFPB issues advisory opinion on use of “name-only matching” by consumer reporting agencies; Director Chopra warns of enforcement consequences

The CFPB has issued an advisory opinion that affirms that the use of “name-only matching” by consumer reporting agencies, including tenant and employment screening companies, does not satisfy the FCRA requirement for a CRA ”to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the [consumer] report relates.”

HAPPY REASSIGNED NUMBER DATABASE DAY: The FCC’s New Recycled Number Spotting Database is Live—Here’s How to Use It

On December 12, 2018 the FCC first announced the creation of the reassigned number database. The results of years of advocacy by industry participants who advised the FCC they were being held strictly liable under the TCPA for efforts to contact their customers after phone numbers had changed hands without their knowledge, the database helps to assure that good actors in the ecosystem can safely detect phone numbers that may no longer be valid.

Remarks of Deputy Director Zixta Martinez at Academic Research Council Meeting

When Congress created the CFPB, it entrusted the Bureau with carefully monitoring financial markets to spot risks, ensure compliance with existing laws, educate consumers, and promote fairness and competition. As a consumer-centric regulator, research is a key part of meeting our statutory requirements. With that purpose in mind, the ARC was created to help us utilize and develop the latest research and methods along with the models we need to understand the impacts of emerging risks to consumers. With your insights, the CFPB will be better positioned to improve the methods we use to develop analytical frameworks that inform rulemakings and help us pose questions to identify the root causes of challenges that consumers face.

FTC Approves Fiscal Year 2020 Hart-Scott-Rodino Premerger Notification Report

The Federal Trade Commission and the Justice Department’s Antitrust Division released the agencies’ 43nd Annual Hart-Scott-Rodino Report. The report provides HSR Premerger Notification data for fiscal year 2020, and its release coincides with an unprecedented surge in pre-merger filings during the current fiscal year.

New York State DFS Issues Proposed Amendments to its Debt Collection Rules for Third-Party Debt Collectors and Debt Buyers

On October 29, 2021, the New York State Department of Financial Services (DFS) posted proposed amendments to its debt collection rules for Third-Party Debt Collectors and Debt Buyers (under 23 New York Codes, Rules, and Regulations Part 1) that could significantly change procedures for communicating with consumers.

Medical Debt and Reg F: Communication, Communication, Communication

As accounts receivable management (ARM) industry professionals make final preparations for Reg F compliance before Nov. 30, there are long-term takeaways to remember when it comes to health care collections and communication with clients and consumers.

Mortgage rates rising amid uptick in US economic confidence: Freddie Mac

Mortgage interest rates rose once again, hitting 3.14% for the average 30-year fixed-rate loan as confidence in today’s economy and recovery from the COVID-19 pandemic increases, according to the latest Primary Mortgage Market Survey from Freddie Mac.

5-year fixed personal loan rates plummet to lowest level since July

Borrowers with good credit seeking personal loans during the week of Oct. 25, 2021, prequalified for rates that rose for 3-year terms and fell for 5-year terms compared to the previous week's fixed-rate loans.

How the student debt crisis ballooned to $1.7 trillion

The student debt crisis ballooned to over $1.7 trillion in recent years. This debt has varying effects on students, workers and the larger economy. Since taking office, President Biden has been largely silent about a plan to broadly cancel student debt, even though he campaigned on canceling up to $10,000 in student debt for all borrowers. However, his administration has absolved some student debt for certain groups, like borrowers with disabilities and active duty service members.

CFPB Takes Action to Stop False Identification by Background Screeners

WASHINGTON, D.C. — The CFPB today issued an advisory opinion affirming that consumer reporting companies, including tenant and employment screening companies, are violating the law if they engage in shoddy name-matching procedures. Regulators are concerned about the significant harms caused by false identity matching, where an applicant is disqualified from rental housing or a job based on having the same name as another individual with negative information in their credit history.

Student loan refinance rates hover near record lows and provide path to savings

Pulling yourself out of the quicksand of student debt has gotten easier, thanks to cheaper rates on a money-saving refinance. Five-year and 10-year refi loans remain in the neighborhood of their recent all-time lows, according to new numbers from a major loan marketplace.

The CFPB Director Expresses Concern About Section 1071 Regulatory Burdens on Small Banks

After the Consumer Financial Protection Bureau (CFPB) issued their Notice of Proposed Rulemaking (NPRM) related to Dodd-Frank 1071, Rohit Chopra, the new CFPB director, expressed his concern regarding the regulatory burden that the proposed rule would have on small banks. Director Chopra stated that he hoped the CFPB could move towards bright-lined rules that are both easy to follow and enforce. He further expressed the importance of helping small banks remain successful, as opposed to forcing small banks into consolidation.

DCM Services Announces Membership With Telecommunications Risk Management Association (TRMA)

Minneapolis, Minn. — (November 4, 2021) —DCM Services, LLC (“DCMS”), the industry leader in data and contact management solutions for the estate and specialty receivables recovery market, has become the newest business affiliate member of the Telecommunications Risk Management Association (“TRMA”). This new partnership will be mutually beneficial, allowing both organizations to share best practices, benchmarking data, and other relevant information to elevate the industry.

FirstCash to Acquire American First Finance, a Leading Technology-Driven Virtual Lease-to-Own and Retail Finance Platform for Underserved Customers

FORT WORTH, Texas, Oct. 28, 2021 (GLOBE NEWSWIRE) -- FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading international operator of over 2,800 retail pawn stores in the U.S. and Latin America, today announced that it has entered into a definitive agreement to acquire American First Finance, Inc. (“American First Finance” or “AFF”), a rapidly growing, technology-driven virtual lease-to-own (“LTO”) and retail finance provider focused on underserved, non-prime customers. Under the terms of the agreement, the total consideration payable at closing is valued at approximately $1.17 billion, based on FirstCash’s closing stock price on October 26, 2021, consisting of approximately 8.05 million shares of common stock and $406 million in cash, subject to a net debt adjustment. Up to an additional $300 million of consideration is payable in the event AFF achieves certain performance targets through the first half of 2023.

$1,320,963.96 Payday Loans

BAL Financial LLC

(617) 595-5794

$1,320,963.96 Payday Loans

BAL Financial LLC

(617) 595-5794

$781,185 Payday Loans

Capital Asset Management, Inc.

(317) 633-6633

$2,511,395 Auto Deficiencies

Capital Asset Management, Inc.

(317) 633-6633

$5,327,290 Medical

Capital Asset Management, Inc.

(317) 633-6633

$6,666,174 Medical

Capital Asset Management, Inc.

(317) 633-6633

$55,000,000 Auto Deficiencies

Capital Debt Solutions, LLC

(866) 305-5102

$37,000,000 Credit Cards

Capital Debt Solutions, LLC

(866) 305-5102

$ 3,855,339.00 Retail

Capital Debt Solutions, LLC

(866) 305-5102

$ 15,041,450.00 Payday Loans

Capital Debt Solutions, LLC

(866) 305-5102

$ 32,076,119.24 Credit Cards

Capital Debt Solutions, LLC

(866) 305-5102

$199,568,044.50 Auto Deficiencies

Capital Debt Solutions, LLC

(866) 305-5102

RMAI 2022 Annual Conference

Receivables Management Association International