At a glanceWednesday, January 19, 2022

Collection Industry News At A Glance - January 19, 2022
Wednesday January 19, 2022
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Credit balances spike as Americans become increasingly reliant on credit card debt

The past year has posed several financial challenges for consumers amid record-high rates of inflation as the omicron variant of the coronavirus impacts the U.S. economy. As a result, Americans are becoming increasingly dependent on high-interest credit cards.

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CFPB Issues Bulletin to Prevent Unlawful Credit Reporting about Medical Debt

The Consumer Financial Protection Bureau (CFPB) has released a bulletin about “Medical Debt Collection and Consumer Reporting Requirements in Connection with the No Surprises Act” to remind credit bureaus of their legal obligations under the “No Surprises Act” that protects consumers from certain unexpected medical bills.

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NEW YORK, Jan. 18, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through December 2021 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate rose three basis points to 0.40%. The bank card default rate increased one basis point to 1.95%. The auto loan default rate was up five basis points to 0.49% while the first mortgage default rate was two basis points higher at 0.28%.

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Gen Z and Millennials Favor National and Online Banks, Survey Shows — What Does That Mean for the Future of Credit Unions?

With roots dating back to the mid-1800s, credit unions have become a pillar of America’s financial landscape, but their popularity could be waning. According to a new survey by GOBankingRates, Gen Z and millennials are less likely to bank with credit unions than they are with national and/or online banks. 

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CFPB Releases Report on Diversity and Inclusion within Financial Services

Today the Bureau’s Office of Minority Women and Inclusion (OMWI) released the CFPB Report on Diversity and Inclusion within Financial Services. As part of the mandate of Section 342 of the Dodd-Frank Act, the Bureau’s Office of Minority and Women Inclusion (OMWI) is charged with developing standards for assessing diversity and inclusion at the financial entities the Bureau regulates. To further that effort, CFPB engaged in analysis of public data to gain a better understanding of diversity and inclusion within the financial services sector and compiled a report to share its findings. The Report can help industry understand more about diversity and inclusion initiatives that their peers are undertaking and the various options available to entities of different sizes.

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CFPB Bans BrightSpeed Solutions and Its Former CEO for Supporting Telemarketing Scammers Targeting Older Americans

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) filed a proposed final judgement and order with a federal district court that, if entered by the court, would resolve a March 2021 lawsuit brought by the CFPB against BrightSpeed Solutions and its founder Kevin Howard. The CFPB alleges that between 2016 and 2018, BrightSpeed and Howard knowingly assisted companies profiting from fraudulent services and products. BrightSpeed and Howard processed payments for companies that claimed to offer technical-support services and products to consumers over the internet, but in reality, the companies tricked consumers into purchasing expensive and unnecessary antivirus software or services.

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OCC Conditionally Approves SoFi Bank, National Association

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today conditionally approved applications from Social Finance Inc. (SoFi) to create SoFi Bank, National Association (SoFi Bank, N.A.), as a full service national bank headquartered in Cottonwood Heights, Utah. As part of the transaction, SoFi Bank, N.A. will acquire Golden Pacific Bank, National Association, a national bank insured by the Federal Deposit Insurance Corporation.

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CFPB issues bulletin on medical debt collection and consumer reporting requirements in connection with the No Surprises Act

CFPB issues bulletin on medical debt collection and consumer reporting requirements in connection with the No Surprises Act. The No Surprises Act sets forth requirements that apply to certain individuals who receive care from an out-of-network provider that furnishes emergency services, inpatient services an in-network facility, or air ambulance services.  The Act applies to health plan years beginning on or after January 1, 2022.

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Supreme Court to Decide Constitutionality of U.S. Trustee Fees in Chapter 11 Cases

The Supreme Court of the United States granted certiorari on Jan. 10, 2022 in a case arising out of the Circuit City bankruptcy regarding certain additional fees imposed on large Chapter 11 debtors. Most Chapter 11 debtors pay quarterly fees to the Office of the United States Trustee (“UST”) pursuant to a schedule set forth in 28 U.S.C. § 1930(a)(6)

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FTC Returns More Than $10 Million to Consumers Who Paid Hidden Fees to LendingClub

The Federal Trade Commission is returning more than $10 million to consumers who were charged undisclosed fees by online lender LendingClub Corporation. The FTC is distributing refunds directly to more than 15,000 LendingClub customers and encouraging additional LendingClub customers to apply for refunds.

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Suncoast Credit Union Reaches 1 Million Members

Suncoast Credit Union has reached 1 million members—one of only 10 credit unions in the United States to reach this milestone.

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NAFCU, other trade groups urge CFPB to conduct more research on overdraft fees before making policy

A group of trade associations, including the National Association of Federally-Insured Credit Unions (NAFCU), are urging the Consumer Financial Protection Bureau to conduct more research before making any policy recommendations related to overdraft fees.

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Around 1,400 Washington residents will have student debt wiped out in settlement

SEATTLE — Around 1,400 Washington residents will have their student loan debt erased, as part of a $1.7 billion settlement from a lawsuit led by state Attorney General Bob Ferguson. Ferguson started the legal process against student-loan lender Navient years ago and 38 other states eventually joined the suit.

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Thousands of Nevadans share in student loan debt settlement

CARSON CITY, Nev. (AP) — Thousands of Nevadans will share in a big settlement 39 state attorneys general negotiated with a major student loan collecting company accused of abusive lending practices tied to more than $1 billion in loans, Nevada Attorney General Aaron Ford said Friday.

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US State Banking Regulators Drop Lawsuit Over FinTech Charters

The Conference of State Bank Supervisors (CSBS), the national trade group of bank regulators, announced Thursday (Jan. 13) that it has dropped the complaint in federal court challenging the Office of the Comptroller of the Currency’s (OCC) nonbank charter program and Figure Technologies’ application for an OCC nonbank charter. 

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CFPB and DOJ Send Joint Letters to Landlords and Mortgage Servicers About Servicemembers’ and Veterans’ Rights

Recently, the CFPB and DOJ jointly issued two letters reminding landlords and mortgage servicers about legal housing protections for military families under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Servicemembers Civil Relief Act (SCRA).  The first letter was sent to landlords and property management companies regarding protection for military tenants.  The second letter was sent to mortgage servicers regarding military borrowers and the COVID-19 mortgage forbearance programs.

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CA Adopts Proposed Regulations Under the Debt Collection Licensing Act

California recently adopted its “Proposed Regulations under the Debt Collection Licensing Act.”  Among other things, effective December 22, 2021, the Commissioner of Financial Protection and Innovation designated the NMLS to receive and store filings, obtain credit reports, and collect fees and assessments from applicants and licensees on behalf of the Commissioner. 

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Fintech TrueAccord Partners with Synapse to Expand Collections as a Service Offering

TrueAccord Corporation, a debt collection firm providing machine learning or ML-powered digital recovery solutions, recently announced a partnership with Synapse as “an expansion of its Collections-as-a-Service offering.”

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Citibank accused of ‘bait and switch’ in deal with debt purchaser

Citigroup pulled a “bait and switch” on a purchaser of delinquent consumer credit card debt by offloading less valuable accounts while keeping those that had a more likely chance of recovery, according to a lawsuit.

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CFPB Announces Settlement Regarding the 2019 Taskforce on Federal Consumer Financial Law

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it has settled a lawsuit filed by the National Association of Consumer Advocates, U.S. Public Interest Research Group, and Professor Kathleen Engel. The lawsuit alleged that the Taskforce on Federal Consumer Financial Law did not comply with the Federal Advisory Committee Act (FACA).

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U.S. Supreme Court Remands Article III Standing Case to 4th Circuit with Instructions to Reconsider Based on TransUnion v. Ramirez

Article III standing remains a focus at the highest levels of appellate litigation, as demonstrated by a recent U.S. Supreme Court decision to vacate a judgment against Rocket Mortgage LLC (formerly Quicken Loans) and remand the case to the 4th Circuit Court of Appeals based on the high court’s June 2021 decision in TransUnion v. Ramirez LLC.

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Open Banking Series: What Data Do Banks and FinTechs Share?

Open banking is, undoubtedly, a good innovation for the banking sector, especially for consumers and FinTechs. But open banking can also help traditional banks to provide better services, with the assistance of third-party providers (TPPs) to their customers.

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WILMINGTON, Del., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI), a leading provider of education loan management and business processing solutions, announced today that it has reached agreements with state attorneys general to resolve their previously disclosed multistate litigation and investigations.

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Attorney General James Secures $1.85 Billion From Deceptive Student Loan Servicer Navient

NEW YORK – New York Attorney General Letitia James today announced a $1.85 billion agreement with one of the nation’s largest student loan servicers, Navient, after it deceived thousands of student loan borrowers into costly, long-term, forbearance plans, causing students to pay more than they should have. A bipartisan coalition of 39 attorneys general negotiated the multistate agreement that cancels $1.7 billion in private student loan debt and recovers $95 million in restitution for thousands of students nationwide.

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CFPB Issues Bulletin to Prevent Unlawful Medical Debt Collection and Credit Reporting

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. Companies that try to collect on medical bills that are prohibited by the No Surprises Act, or who furnish information to credit bureaus about such invalid debts, may face significant legal liability under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.

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AG Ferguson lawsuit nets $45M in debt relief, payments from Navient

SEATTLE — Attorney General Bob Ferguson today announced that, as a result of his lawsuit, student loan servicer Navient will provide nearly $45 million in debt relief, restitution and costs to resolve Washington’s lawsuit. Ferguson asserted Navient, the Sallie Mae offshoot that was then the nation’s largest student loan servicer, engaged in numerous unfair and deceptive practices harming Washington student loan borrowers.

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In Response to FTC Charges, Dun & Bradstreet to Clean Up Small Business Credit Reporting Process and Refund Customers

To settle Federal Trade Commission charges that it engaged in deceptive and unfair practices, Dun & Bradstreet (D&B) has agreed to an order requiring substantial changes in the firm’s operations that will benefit small- and mid-sized businesses. Under the proposed order, D&B will also provide refunds to certain businesses that purchased the company’s products in the belief that using the products would improve their business credit scores and ratings.

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From California to Washington: State Laws on the Horizon This Year

The accounts receivable management (ARM) industry and ACA International saw a flurry of activity in 2021. Although Regulation F and the Hunstein letter vendor case have been at the center of attention at the federal level, states and municipalities from coast to coast were also busy with ARM industry legislation and regulations.

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SCOTUS Cert Recap: Civil Procedure, Bankruptcy, And Worker’s Comp

This week, the U.S. Supreme Court granted three of the cert. petitions it considered at its first conference of the new year.  The Court agreed to hear issues involving: 1) the grounds for relief from a final judgment under Federal Rule of Civil Procedure 60(b)(1), 2) the limits on Congress’ authority to apply different bankruptcy rules to different parts of the country, and 3) the scope of states’ authority to apply their workers’ compensation laws to federal facilities.

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FCC Proposes New Reporting and Notification Requirements Following Uptick of Telecom Company Data Breaches

On Wednesday, the Federal Communications Commission (FCC) announced that it would begin the process of enhancing certain rules concerning breaches of customer proprietary network information (CPNI). The notice of proposed rulemaking would update current requirements to better align with recent developments in federal and state data breach laws, the agency said.

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New York reduces judgment rate on consumer debts to 2%

On December 31, 2021, New York Governor Hochul signed into law S5724-A which reduces the annual rate of interest on judgments arising out of a consumer debt where the defendant is a natural person from 9% to 2%.  The laws take effect 120 days from the Governor’s signature, which is April 30, 2022.

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TCN Named a Finalist in 2021-22 Cloud Awards for Its Advanced Call Center Platform

ST. GEORGE, Utah – January 13, 2022 – TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced it has been named a finalist for the Best Use of Telephony / Unified Communications in Cloud Computing category in the 2021-22 Cloud Awards, which celebrates the brightest and the best in cloud computing. TCN received recognition for TCN Operator, its next-generation call center platform with a holistic set of easy-to-use, automated agent tools, and advanced apps. 

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Steve Bouras Appointed President and CEO of The District Credit Union

AURORA, Colo., Jan. 12, 2022 /PRNewswire/ -- The District Credit Union (formerly Aurora Schools Federal Credit Union) announces the selection of Steve Bouras, the institution's current vice president and chief operating officer, as its next president and chief executive officer. The appointment became effective January 1, 2022. Bouras takes the helm from retiring CEO Brad Johnson.

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Portfolios For Sale

$5,634,109 Payday Loans
BAL Financial LLC

(617) 595-5794

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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