At a glanceWednesday, January 05, 2022

Collection Industry News At A Glance - January 5, 2022
Wednesday January 5, 2022
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CFPB Data Point Studies Subprime Financing Rates and Default Risks Across Creditor Types

Every creditor with subprime customers has experienced—on one occasion or another, we expect—someone judging it unfavorably for allegedly taking advantage of consumers by charging higher interest rates. That "tsk-tsk" reaction might come from a consumer advocate who is unschooled in the realities of credit losses, servicing costs, and other factors that increase the cost of extending credit to higher-risk borrowers.

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Jan. 14 webinar informs credit unions nearing $10 billion asset level

Increased regulatory requirements loom for credit unions as they reach the $10-billion mark in assets. A Jan. 14 webinar for CUNA members, Nearing $10 Billion in Assets: Key CFPB & NCUA CMS Expectations, will help prepare credit unions for what to expect.

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California DFPI Addresses NMLS Delays on Licensing Applications

Before the end of 2021, the California Department of Financial Protection and Innovation (DFPI) had received approximately 600 applicants for debt collection licenses, which were required to be submitted by Dec. 31, and at the time assured applicants they should not be concerned about delays in a response on their license.

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FTC Issues Biennial Report to Congress on the National Do Not Call Registry

The Federal Trade Commission issued its biennial report to Congress on the National Do Not Call (DNC) Registry. The new report details the number of consumers – now totaling more than 244 million – who have placed their telephone numbers on the Registry over the past two years. It also states the FTC received more than five million Do Not Call complaints in fiscal year (FY) 2021, with people overwhelmingly reporting these violations came via robocalls, as opposed to live telemarketing.

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Miss. AG settles case with auto lender; Private lawyers get six figures

JACKSON, Miss. (Legal Newsline) – The plaintiffs firm Motley Rice will take more than $100,000 from a settlement recently reached between Mississippi Attorney General Lynn Fitch and Credit Acceptance Corp.

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Nebraska Regulator Denies Bank’s Acquisition Deal With GreenState CU

The Nebraska Department of Banking and Finance on Monday denied an application of the $395 million Premier Bank to be acquired by the $7.9 billion GreenState Credit Union in North Liberty, Iowa.

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Mortgage rates hit 9-month high, and loan demand drops further

The economic damage from the omicron variant of the coronavirus is now expected to be less than initially thought, and that has interest rates back on their upward trajectory yet again. As a result, mortgage demand fell 2.7% to end 2021, compared with two weeks before, according to the Mortgage Bankers Association’s seasonally adjusted index. [The MBA did not release application volume last week due to the holidays.]

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Getting out of debt is a top New Year’s resolution, study finds

Following a year marred by record-high inflation and soaring personal debt, 2022 is a clean slate for many consumers who want to improve their finances. The majority (68%) of Americans are considering a New Year's financial resolution, according to a recent study from Fidelity.

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No Surprises Act Tackles Unexpected Medical Bills at the Federal Level

New consumer protections for medical bills are in effect through the No Surprises Act, which hit the roster of federal laws addressing health care costs on Jan. 1.

In addition to banning surprise billing for emergency services, it also bans certain non-emergency care provided by out-of-network providers at in-network facilities and limits high out-of-network cost-sharing, ACA International’s Vice President of State Unit and Government Affairs Andrew Madden and Communications Director Anne Rosso May report in the latest issue of Collector magazine.

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Maryland changes medical debt collection rules for hospitals

A law that took effect Jan. 1 changes medical debt collection rules for hospitals and providers in Maryland, according to NPR affiliate WAMU The law aims to protect low-income residents from medical debt and applies to patients making 200 percent or less of the federal poverty level, according to the report. 

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More Banks Ditching Lucrative Overdraft Fees

Despite bringing in an estimated $15.47 billion in 2019, more banks in the U.S. are ditching or modifying overdraft fees in a move to better compete with zero-fee FinTechs, placate politicians and make customers happy, according to the most recent data from the Consumer Financial Protection Bureau (CFPB).

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Attorney General James and Governor Hochul Continue Efforts to Defend SALT Deduction

NEW YORK — New York Attorney General Letitia James and New York Governor Kathy Hochul today announced that New York, Connecticut, Maryland, and New Jersey filed a petition for certiorari to the U.S. Supreme Court to continue their lawsuit against the federal government for its unlawful and unprecedented cap on the deduction for state and local taxes, known as SALT.

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FTC Reviews Non-Compete Agreements: An Update On The Future Of Restrictive Covenants

In July 2021, President Biden signed an Executive Order directed at promoting competition in the U.S. economy. As part of that overarching goal, the Biden Administration tasked the Federal Trade Commission (“FTC”) with curtailing the use of non-compete clauses “and other clauses or agreements that may unfairly limit worker mobility.” While the FTC has only recently initiated informal proceedings on the issue, the agency – and perhaps Congress as well – seems poised to move forward in 2022 to address restrictive covenants.

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White House expected to make fresh push to confirm Biden nominees for FTC, FCC

Jan 3 (Reuters) - The White House was expected to make a fresh push as early as Monday to persuade the U.S. Senate to confirm President Joe Biden's nominees for top posts at agencies such as the Federal Trade Commission and Federal Communications Commission, an administration official said.

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Credit Unions Mark Unprecedented Growth

Credit unions saw more than 4.4 million people join their ranks between August 2020 and August 2021, according to a recent report by the Credit Union National Association (CUNA).  CUNA says this figure surpassed the 4.1 million new members from the previous year, bringing the total national credit union membership to 130 million. 

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New York Governor Signs Bill on Money Judgments

New York will lower its interest rate on money judgments in actions involving consumer debt for the first time since 1981 after Gov. Kathy Hochul signed the Fair Consumer Judgment Interest Act (FCJIA) on Dec. 31, 2021.

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The Open Banking Opportunity at the Intersection of Data and Payments

Open banking may be seen as a buzzword in the banking and payment industries. It promises new products and innovations that everybody can enjoy, namely banks, FinTechs, consumers and merchants. But open banking is much more than one product or service; it is a choice (regulatory or market driven) that allows a whole new financial ecosystem to flourish.

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Digitization: The Most Popular Strategy Pursued By Financial Institutions

Various governments are pushing their favorite initiatives to ensure easy availability of credit for businesses, which is expected to drive the adoption of digital lending platforms over the forecast period.

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Morgan Stanley to pay $60 million to resolve data security lawsuit

NEW YORK (Reuters) - Morgan Stanley agreed to pay $60 million to settle a lawsuit by customers who said the Wall Street bank exposed their personal data when it twice failed to properly retire some of its older information technology.

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36% of Americans Took On Holiday Debt, Averaging $1,249

The holiday season can be a busy time for consumers, from making travel plans to purchasing gifts for loved ones. For some Americans, this can mean spending outside their budget by adding debt to their credit card, using buy now, pay later financing or taking out personal loans.

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Mortgage Lending Snag: Boomers & Millennials Vie for the Same Houses

Baby Boomers want to keep their independence by downsizing to smaller homes, but that conflicts with Millennials’ aspirations for first-time ownership. Compounding the situation are investors buying smaller properties in bulk. Mortgage lenders need to factor this complex dynamic into their planning.

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Voluntary Credit Union Diversity Self-Assessment

The NCUA’s 2021 Diversity Equity and Inclusion (DEI) Summit in early November generated considerable energy and highlighted progress within the credit union industry around the principles of diversity, equity, and inclusion. In all, more than 800 attendees participated in this event, and most left the conference with a sense of possibility and empowerment around the positive impact DEI can make not only in their credit union’s products and services, but also the communities they serve. The voluntary Credit Union Diversity Self-Assessment(opens new window) is an appropriate next step for moving ahead on the path from intention to action, which was our theme for the 2021 DEI Summit.

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New year, new low rates: 30-year mortgage rates slide, other rates hold | Jan. 3, 2022

What this means: After closing out 2021 at 3.250% — the second-highest rate of the year — 30-year mortgage interest rates slipped back to 3.190%. It seems unlikely they’ll fall much lower in 2022, as mortgage experts widely predict rate increases ahead. The Mortgage Bankers Association forecasts 30-year fixed-rate mortgages will reach 4.000% by the end of the year. Buyers may want to act quickly to lock in one of today’s relatively low interest rates.

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Cybersecurity: What to expect in 2022 after chaotic 2021

ESET Chief Cyber Threat Officer Tony Anscombe joins Yahoo Finance Live to discuss for cybersecurity threats in 2022 and what to look out for.

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TCN to Donate More than 40,000 Meals to Utah Food Bank and Feeding America, Giving Back to Its Community During the Christmas Season

TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced it will make a substantial donation to the Utah Food Bank on behalf of its clients. This is the second consecutive year that TCN has donated funds to Utah Food Bank and Feeding America that would have otherwise been used to provide holiday gifts to TCN’s clients.

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Two of America’s biggest banks return to remote work to start 2022

Omicron is messing with back-to-the-office plans for both JPMorgan Chase and Citigroup. Citing the spike in COVID-19 cases, both big banks told U.S. employees on Thursday that they can start 2022 by working remotely.

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Photo publisher’s checklist: Seven New Year’s legal resolutions for your website

As we near the end of the 2021, here are seven resolutions – not including the obligatory “get in shape” or “be more organized” – that you may want to consider for 2022.

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Two of America’s biggest banks return to remote work to start 2022

New York (CNN Business)Omicron is messing with back-to-the-office plans for both JPMorgan Chase and Citigroup.Citing the spike in Covid-19 cases, both big banks told US employees on Thursday that they can start 2022 by working remotely.

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OCC Formally Rescinds June 2020 CRA ‎Rule and Generally ‎Reinstates 1995 Banking ‎Agencies’ Joint ‎CRA Rule‎

On December 14, 2021, the U.S. Office of the Comptroller of Currency (“OCC”) adopted a new ‎final ‎rule (“Final Rule”)‎ under the Community Reinvestment Act of 1977, as amended (the ‎‎“CRA”) which ‎will be effective on January 1, 2022, with certain compliance requirements ‎delayed to April 1, 2022. 

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: FLOCK Specialty Finance Champions RMAI 2022 Annual Conference with Gold Sponsorship

December 30, 2021 (Sacramento, CA) – FLOCK Specialty Finance has once again demonstrated their ongoing commitment to superior education and distinguished presenters by sponsoring the Receivables Management Association International (RMAI) Annual Conference, occurring February 7-10, 2022.  FLOCK is participating as a Gold Sponsor, the highest sponsorship level available.

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Plaintiff’s Confusion Over Debt Collection Letter Is Not Enough to Create Standing to Assert an FDCPA Claim

In Whitfield v. Contract Callers, Inc., Civil Action No. RDB-21-1540 (D. Md. Dec. 20, 2021), the District of Maryland dismissed claims asserted under the Fair Debt Collection Practices Act (FDCPA), holding that confusion concerning the identity of the original creditor allegedly caused by a poorly-worded collection letter did not result in the type of concrete injury necessary for the plaintiff to have standing under Article III of the Constitution.

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Room Block Closes January 3rd for RMAI’s Annual Conference – Registration Now Open

December 29, 2021 (Sacramento, CA) –  The room block for the Receivables Management Association International (RMAI) Annual Conference, at the Aria Resort & Casino in Las Vegas, will close on January 3rd. RMAI recommends reserving a room now.  The room block has sold out in past years, and staying at the Aria puts conference attendees in the heart of the action.

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Firstsource Solutions Acquires American Recovery Services, Inc.

MUMBAI, India, Dec. 30, 2021 /PRNewswire/ -- Firstsource Solutions Limited (NSE: FSL, BSE:532809), a global provider of business process management (BPM) services and a RP-Sanjiv Goenka Group company, announced it has entered into an agreement to acquire American Recovery Services, Inc. (ARSI), a nationwide legal collections network headquartered in Southern California.

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Graduates can save more money than ever as fixed student loan refinance rates set record low

Interest rates on 10-year fixed-rate refinance loans averaged 3.33% for the week of Dec. 13, according to Credible. This is the lowest fixed student loan rates have been since Credible started collecting this data in June 2020.

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More Than a Third of Americans Took on Debt This Holiday Season

More Americans took on debt this holiday season than in 2020, according to a new survey by LendingTree. From making travel plans to purchasing gifts for loved ones, more than a third of American consumers (36%) incurred holiday debt this season up from 31% in 2020. This year, borrowers owe an average of $1,249, down 10% from $1,381 last season, LendingTree found.

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CA DFPI provides assurance of no action to debt collection license applicants experiencing NMLS delays

The California Department of Financial Protection and Innovation (DFPI) has published a notice on its website concerning delays that debt collectors and buyers seeking to comply with the new licensing requirement in the state’s Debt Collection Licensing Act are currently experiencing.

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Leveraging Fintechs and Big Data in a Fair Lending Focused 2022

Over the past decade, financial technology companies (fintechs) have been on the rise, disrupting all segments of the financial industry. Their innovative technology, swift adaptation to market trends, and ability to create personalized and efficient customer experiences enabled them to reshape the way we look at, use, and provide financial services.

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NMLS Slowdown Frustrates Debt Collector License Applicants As Application Deadline Looms

California had been one of 16 states that did not require licensing of debt collectors. That changed last year with the enactment of the Debt Collection Licensing Act. 2020 Cal. Stats. ch. 163 (SB 908). The law takes effect on New Year's Day. The Department of Financial Protection & Innovation began accepting applications for licenses on September 1 of this year. The DCLA requires the DFPI to allow debt collectors and buyers who apply for a license by year-end to operate after January 1 pending approval or disapproval of their applications. Cal. Fin. Code § 100000.5(c). Debt collectors and buyers who apply for a license after December 31, 2021 will be required to wait for the DFPI to issue of a license before they can operate in California.

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Industry Events

RMAI 2022 Annual Conference

Receivables Management Association International

Aria Resort & Casino
Las Vegas , Nevada
February 07 - 10 , 2022

916 482 2462

AFCC 2022 Spring Conference

American Fair Credit Council

Four Seasons Hotel
New Orleans , LA
March 27 - 29 , 2022

(888) 657-8272

Collection and Recovery Solutions 2022

Resource Management Services, Inc.

Our live Collection and Recovery Solutions event will be held May 25 – 27 at the Four Seasons in Las Vegas. We hope you can join us! More details will be provided soon. Our team can always be reached at

May 25 - 27 , 2022