At a glanceWednesday, January 26, 2022

Collection Industry News At A Glance - January 26, 2022
Wednesday January 26, 2022
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Owners Sued After Company Dissolved: New Ruling Highlights Why TCPA Liability Doesn’t Always Die With Company Making Calls

As we’ve covered repeatedly on TCPA.World on the of the most unfair things about this whacky TCPAWorld of ours is that individual employees, officers and directors of companies that violate the TCPA can be sued directly or conduct they took on behalf of their employer.

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Replacing noninterest income

Many credit unions want to adjust their revenue sources and ease the pressure on potentially lost income streams such as overdraft fees, nonsufficient funds fees, interchange income, and mortgages.

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Consumer Financial Protection Bureau Launches Initiative to Save Americans Billions in Junk Fees

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) launched an initiative to save households billions of dollars a year by reducing exploitative junk fees charged by banks and financial companies. Today’s request is a chance for the public to share input that will help shape the agency’s rulemaking and guidance agenda, as well as its enforcement priorities in the coming months and years.

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Marlette Promotes Swift to President of Card Services

WILMINGTON, DE. (Jan. 26, 2022) – Marlette Holdings, Inc, the owner and operator of Best Egg, the AI-powered online financial platform, is pleased to share that it has promoted Jason Swift to the position of President of Credit Card Services.

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Comments Are In: CFPB Proposed Rule for Small Business Lending Data Collection Under the Equal Credit Opportunity Act

As we reported last year, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), among other things, required the Consumer Financial Protection Bureau (CFPB) to adopt regulations governing the collection of certain small business lending data. Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA), as follows: “in the case of any application to a financial institution for credit for [a] women-owned, minority-owned, or small business, the financial institution shall – (1) inquire whether the business is a women-owned, minority-owned or small business.

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Most Americans can’t afford a $1,000 emergency expense

NEW YORK (CNNMoney) -- When the unexpected strikes, most Americans aren't prepared to pay for it. A majority, or 64%, of Americans don't have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC, released on Wednesday.

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Equifax, Experian and TransUnion Extend Free Weekly Credit Reports Through End of 2022

The three nationwide credit reporting agencies – Equifax (NYSE: EFX), Experian (LON:EXPN) and TransUnion (NYSE:TRU) – are taking joint action to extend the pandemic response service offering free weekly credit reports to consumers through the end of 2022. This benefit will continue to help consumers across the country manage their financial health during the ongoing hardship and economic uncertainty caused by COVID-19.

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Mortgage refinance demand plunges 13% as interest rates climb toward two-year high

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 3.72% from 3.64%, with points decreasing to 0.43 from 0.45 (including the origination fee) for loans with a 20% down payment. That rate was 77 basis points lower the same week one year ago.

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Experian Go™ Program Will Allow Millions of Credit Invisibles to Start Building Credit in Minutes

COSTA MESA, Calif.--(BUSINESS WIRE)--To further financial inclusion across the United States, Experian® today launched Experian Go™, a free, first-of-its-kind program to help “credit invisibles,” or people with no credit history, begin building credit on their own terms. Experian Go is the only program available today that helps consumers establish their financial identity by creating an Experian credit report.

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FTC Returns More Than $3.7 Million To Consumers Harmed by Online Lender Avant

The Federal Trade Commission is returning more than $3.7 million to consumers who lost money because of unfair and deceptive loan servicing practices by online lender Avant, LLC.

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“Irrelevant”: Court Chides Defendant for Arguing Lack of ATDS Usage in TCPA Prerecorded Call Case

The Plaintiff in Stewart v. Healthcare Revenue Recovery Group, Case No. 3:20-cv-00679, 2022 U.S. Dist. LEXIS 11288 (M.D. Tenn. January 21, 2022) moved for summary judgment against a debt collector in a TCPA suit recently arguing that she did not consent to the prerecorded calls that were deployed in an effort to get her to pay up.

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Indiana House bill takes aim at discriminatory lending and home appraisals

An Indiana House Democrat has authored a bill aimed at stopping discrimination in residential real estate lending and appraisals. House Bill 1326 by Rep. Cherrish Pryor, D-Indianapolis, prohibits discrimination in appraisals and lending based on the applicant's race, color, religion, sex, disability, familial status, national origin or on the residents of the neighborhood in which the property is located. 

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United States: OCC Conditionally Approves FinTech Company Applications To Charter National Bank

On January 18, 2022, the OCC conditionally approved Social Finance, Inc. ("SoFi") applications to charter a full-service national bank. In the OCC letter, SoFi Interim Bank, National Association ("SoFi Bank, N.A.") has received conditional approval and also received approval to acquire Golden Pacific Bank, National Association as part of the transaction. SoFi Bank, N.A. will have $5.3 billion in total assets. The OCC is requiring, among other conditions, initial paid-in capital of $750 million upon consummation of the transaction. The bank will continue to offer local commercial-focused offerings and deposit products that Golden Pacific previously offered.

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Student loan refinance rates edge up, but 10-year fixed rates still a bargain

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans rose for both 10-year fixed-rate loans and 5-year variable-rate loans. For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender during the week of Jan. 17, 2022:

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A fintech behind the first ‘crypto mortgage’ sees a multi-billion dollar market in allowing borrowers to pledge their bitcoin to gain access to the real estate market

A financial tech company is rolling out what it calls the world's first crypto mortgage through which borrowers obtain bitcoin-backed loans to buy real estate — combining the relatively new asset with one of the most established avenues of building wealth in America. 

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Report estimates that 2.6 million student loan borrowers would be eligible for bankruptcy discharge, and other current student loan news for the week of Jan. 24

Findings from the Student Borrower Protection Center estimate that more than 2 million borrowers would be eligible to have their loans discharged if they declared bankruptcy. Additionally, the Consumer Financial Protection Bureau has begun examining the practices of institutions that offer private student loans. Here’s what to know about this week’s student loan trends.

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Kessler Topaz Meltzer & Check, LLP: Securities Fraud Class Action Lawsuit Filed Against FirstCash Holdings, Inc.

RADNOR, Pa., Jan. 21, 2022 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against FirstCash Holdings, Inc. ("FirstCash") (NASDAQ: FCFS). The action charges FirstCash with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects.  As a result of FirstCash's materially misleading statements to the public, FirstCash investors have suffered significant losses.

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FTC Marks Identity Theft Awareness Week for 2022 January 31-February 4

The Federal Trade Commission will mark 2022’s Identity Theft Awareness Week January 31-February 4 with a series of free events focused on trending issues in identity theft, including how to reduce your risk of identity theft and recover if it occurs.

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USF Federal Credit Union Earns Community Development Designation

TAMPA, Fla., Jan. 24, 2022 /PRNewswire/ -- USF Federal Credit Union (USF FCU) is now certified as a community development financial institution (CDFI). The CDFI Fund provides federal dollars to spur economic growth and opportunities in distressed, low-income communities. With its CDFI designation, the $1 billion USF FCU will be able to partner with groups and organizations to improve economic conditions for underserved areas in West Central Florida.

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How mobile apps can play a larger role in mortgage lending

With technologically adept younger consumers now approaching prime earning years, and mobile use surging among mortgage customers in the COVID era, lenders are looking for ways to serve them with speed and simplicity in the digital space.

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U.S. banks close record number of retail branches in 2021, Wells Fargo shutters most

U.S. banks closed a record number of retail branches in 2021 as customers increasingly turn to digital banking and the industry consolidates. On net, U.S. banks shuttered 2,927 branches last year, according to S&P Global Market Intelligence data. Banks closed nearly 4,000 branches and opened more than 1,000 branches, the analysis found.

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Mortgage rates hit 22-month high — here’s how you can get a low rate

What’s more is the supply of homes for sale has hit a five-year low, with only one month of supply available according to Redfin. So, if no more homes were to come on the market and people were to continue buying at the same rate, the current supply of homes would completely vanish after one month. Plus, the Federal Reserve is planning on raising its record-low interest rates multiple times this year.

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Some 36% of US millennials say student loan debt is stopping them owning homes

More than one third of millennials in the US say they feel locked out of buying a home because of their student loan debts, according to a new survey conducted by Legal & General, a UK-based financial services firm.

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6 important things to know about Gen Z’s homeownership goals

Gen Zers — those born between 1997 and 2012 — are as a group more positive than the slightly older millennial generation regarding what homeownership means for their future financial well-being. Research and advisory firm Gen Z Planet founder Hana Ben-Shabat looked at 1,000 people in each group and studied the distinct postures regarding culture, work and commerce

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Data Breach! Time to Tell the Regulators.

For many years, the primary concern of victims of cybersecurity events was mitigating the damage fraudsters caused in the attack. More recently, federal agencies are imposing more legal compliance obligations on organizations in the wake of cybersecurity incidents.

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Third Party Payment Processors Association (TPPPA) files 2nd Amicus Brief in Hunstein v Preferred Collections

On Tuesday, the Third Party Payment Processors Association (TPPPA) filed a second amicus brief in support of Preferred Collections and Management, Inc. in the Hunstein v Preferred Collections matter USCA11 Case: 19-14434 at the Eleventh Circuit Court of Appeals en banc review of this case

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FTC Issues Advisory Opinion on the Holder Rule and Attorneys’ Fees and Costs

The Federal Trade Commission has issued an advisory opinion stating that the Holder Rule does not prevent state law from providing costs or attorneys’ fees against loan holders, as some courts have incorrectly concluded.

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$50 billion of student debt could be wiped away in bankruptcy, report says

One oft-derided, pernicious aspect of student loans is that unlike credit card debt or an auto loan, they can follow a borrower forever because they’re impossible to discharge in bankruptcy — at least according to conventional wisdom. This week, we’re taking a look at evidence that suggests that’s not always the case. A new report indicates that as much as $50 billion in debt, colloquially referred to as private student loans and held by 2.6 million borrowers, could actually be wiped away in bankruptcy court. The findings come from an analysis published Thursday by the Student Borrower Protection Center, an advocacy group.  

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RMAI Announces Attorneys General Ford and Wasden to Speak in the Keynote Session at the 25th RMAI Annual Conference

January 24, 2022 (Sacramento, CA) – RMAI is honored to announce that the Keynote Session at the RMAI 2022 Annual Conference will feature a “fireside chat” with two of our nation’s leading Attorneys General — Lawrence Wasden from Idaho and Aaron D. Ford from Nevada.  The conference will be held February 7-10, 2022, in Las Vegas.  2022 marks the 25th consecutive year holding the RMAI Annual Conference.

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PenFed Credit Union Announces Record Annual Mortgage and Consumer Lending Volume for 2021

TYSONS, Va., Jan. 20, 2022 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, today released financials highlighting another record year in the institution's 87-year history. In the fourth quarter of 2021, PenFed originated a record $6.3 billion in mortgage loans and a record $3.3 billion in consumer loans, bringing the 2021 totals to $19 billion and $12 billion, respectively. Consumer loans include auto loans, credit cards, personal loans and student loans.

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CFPB official says pay advance products may be loans

(Reuters) - A U.S. Consumer Financial Protection Bureau official signaled the agency is rethinking its Trump-era guidance on pay advance companies, saying that some of their products may be loans.

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CFPB to Probe College Loan Programs

The Consumer Finance Protection Bureau (CFPB) has announced its intent to look into post-secondary schools like for-profit colleges, which extend private loans to students.

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Student loan forgiveness has arrived for 70,000 borrowers working public service jobs

The overhaul of a controversial loan forgiveness program was projected to erase the debt of 22,000 student loan borrowers in the effort's first weeks. Three months in, more than triple that figure have had their debts wiped out.

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Pa. Senate passes bills aimed at ransomware, data breaches

HARRISBURG — Pennsylvania’s state Senate passed a package of legislation on Wednesday aimed at preventing data security breaches and requiring victims and law enforcement officials to be notified when they happen.

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Consumer Financial Protection Bureau to Examine Colleges’ In-House Lending Practices

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it will begin examining the operations of post-secondary schools, such as for-profit colleges, that extend private loans directly to students. The CFPB is issuing an update to its exam procedures including a new section on institutional student loans. As the CFPB begins its supervision, the exam procedures inform industry about practices that CFPB examiners will review, including placing enrollment restrictions, withholding transcripts, improperly accelerating payments, failing to issue refunds, and maintaining improper lending relationships.

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Americans pay $120 billion in credit card interest and fees each year

At almost a trillion dollars outstanding, credit cards are the largest consumer lending product by number of users – over 175 million consumers have at least one credit card – and one of the largest sources of consumer debt.1 From 2018 to 2020, the CFPB estimates that Americans paid roughly $120 billion per year in credit card interest and fees.2 That works out to about $1,000 per year for every American household. During the pandemic, credit card debt started to decline as many households reduced their borrowing and paid down more. But, as the economy has improved, credit card debt is on the rise again.

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Garnet Capital Advisors Gives Gold Sponsorship Support to RMAI’s 25th Annual Conference

January 19, 2022 (Sacramento, CA) – Receivables Management Association International announced today Garnet Capital Advisors, LLC’s gold sponsorship support of the receivables management industry and the RMAI Annual Conference. The conference will be held February 7-10, 2022, in Las Vegas.  2022 marks the 25th consecutive year holding the RMAI Annual Conference.

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CFPB Will Enforce Laws Preventing the Collection/Reporting of Medical Debts Barred by the NSA

As part of the Biden administration’s focus on enforcement of the No Surprises Act (NSA), the Consumer Financial Protection Bureau (CFPB) has issued a bulletin (the Bulletin) indicating that it will closely review the practices of those engaged in the collection or reporting of medical debt, will hold debt collectors accountable for failing to comply with the Fair Debt Collection Practices Act (FDCPA) and Regulation F, and will hold consumer reporting agencies (CRAs) and furnishers accountable for failing to comply with the Fair Credit Reporting Act (FCRA) and Regulation V. The Bulletin is accessible here.

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Not Even in the Ninth Circuit: LiveVox HCI Platform Continues to Pile Up Wins as a Manual Solution in an Uncertain TCPAWorld

It is tough sledding for TCPA Defendants these days in the Ninth Circuit. Even as other Circuit Courts of Appeal begin limiting the scope of the TCPA by ruling that the statute’s ATDS definition does not apply to dialers that call from a list, the rule remains the opposite in the Ninth Circuit—any dialer that calls “automatically” from stored numbers remains subject to the TCPA under Marks.

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State Creditors Bar Associations, U.S. Chamber of Commerce File Briefs in Support of Preferred Collection

Several groups have filed amicus briefs in support of Preferred Collection and Management Services Inc.’s en banc brief on Article III standing in Hunstein v. Preferred Collection and Management Services Inc. The appeal before the 11th Circuit has become focused, in substantial part, on questions related to the intersection of the federal judicial doctrine surrounding Article III standing, which relies on the U.S. Constitution’s “case or controversy” clause, and bare procedural or technical violations of federal consumer protection laws—here, allegedly, the Fair Debt Collection Practices Act—ACA International previously reported. Judicial analysis in this area of law has become increasingly complex and nuanced over the past 18 months.

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Changes to California Consumer Law Protections on January 1, 2022

Effective January 1, 2022, California implemented several important changes to its consumer protection laws, ranging from data privacy to debt collection to updates to the Consumer Legal Remedies Act. This post highlights several notable changes that companies and practitioners may wish to bear in mind as they ring in the new year.

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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