At a glanceFriday, February 04, 2022

Collection Industry News At A Glance - February 4, 2022
Friday February 4, 2022
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Request for Information Regarding Fees Imposed by Providers of Consumer Financial Products or Services

The Consumer Financial Protection Bureau (Bureau or CFPB) is seeking comments from the public related to fees that are not subject to competitive processes that ensure fair pricing. The submissions to this request for information will serve to assist the CFPB and policymakers in exercising its enforcement, supervision, regulatory, and other authorities to create fairer, more transparent, and competitive consumer financial markets.

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Fourth Circuit rules mortgage servicer violated Maryland Consumer Debt Collection Act by charging convenience fees for phone or online payments

The U.S. Court of Appeals for the Fourth Circuit recently ruled that a mortgage servicer violated the Maryland Consumer Debt Collection Act (MCDCA) by charging a $5 convenience fee to borrowers for monthly payments made by phone or online.

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There have never been more ways to build a credit score. Here’s what to know

In recent years, many financial services companies have come out with programs to establish and build credit for those who have struggled to access the traditional banking system. There are even ways that people can build credit without having to take on debt.

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Bankruptcy filings continue to decline despite skyrocketing credit balances

Bankruptcy filings declined when the coronavirus pandemic began in March 2020 as revolving credit balances sharply dwindled. Although revolving credit balances have abruptly risen in 2021, bankruptcy filings have continued to steadily fall.

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U.S. banks see business lending driving 2022 growth

NEW YORK, Feb 3 (Reuters) - Demand for business loans is picking up in the United States as an economic recovery drives consumer spending and encourages companies to bulk up inventories, fueling optimism it will boost banks' 2022 growth.

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Consumer Fees Find Themselves in the Crosshairs: The CFPB Seeks Public Input on Alleged “Junk Fees” in the Consumer Financial Services Industry

The Consumer Financial Protection Bureau (“CFPB”) has continued to ratchet up its regulatory scrutiny over the consumer financial services market.  On January 26, 2022, the CFPB published an initiative seeking public input on so-called “junk fees” in consumer financial services.  According to the CFPB, “junk fees” occur where: (i) fees are charged for things consumers believed were covered by the baseline price of a product or service; (ii) fees are unexpected; (iii) the expense of the fee is greatly disproportionate to the cost of the service; or (iv) it is unclear why a fee was charged.  The CFPB contends that “junk fees” are detrimental to the market for financial services because they “obscure the true price” of a service by, for example, offering attractive introductory pricing, but then make up the difference by levying various back-end fees on consumers.

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U.S. Debt Collections Industry Worth $15 Billion. Moderate Growth

Feb. 2, 2022   Marketdata LLC a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 145-page report entitled:  U.S. Debt Collection Agencies: An Industry Analysis . This  9th edition best-selling study contains the latest survey highlights, facts, and forecasts from the: U.S. Census Bureau, FTC, Federal Reserve, IRS, Consumer Financial Protection Bureau and more. 

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CFPB Issues Bulletin to Restrain Collection and Credit Reporting of Prohibited Medical Debt

The Consumer Financial Protection Bureau (CFPB) has released a compliance bulletin and policy guidance reminding debt collectors that attempting to collect on or furnishing information to consumer reporting agencies regarding medical debt that is prohibited under the recently passed No Surprises Act may violate the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA).

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Marlette Promotes Rhodes to Chief Operating Officer

WILMINGTON, DE. (Feb. 02, 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 Alex Rhodes to Chief Operating Officer. This move follows the transition of former COO Jason Swift, who now serves as Marlette’s President of Credit Card Services. Marlette’s Best Egg platform offers consumers fixed rate personal loans, the Best Egg Visa® credit card, and Best Egg Financial Health, a free set of resources to help people improve their finances.

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Recent Vintage Loans Perform Well Even as More Non-Prime Consumers Secured Credit in Second Half of 2021

With consumer credit performance maintaining healthy levels across auto, credit card, personal loans and mortgages, lenders continued to ramp up new account origination growth in the non-prime segment of the market near the end of 2021. TransUnion’s (NYSE: TRU) newly released Q4 2021 Quarterly Credit Industry Insights Report (CIIR) also found that loans to non-prime borrowers increased while accounts originated during the pandemic in 2020 continued to perform as well or better when compared to loans from previous years.

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U.S. Has More Credit Cards Than Ever as Issuance Surged in 2021

A record 196 million Americans held cards at the end of 2021, according to a report by credit-data agency TransUnion. In the third quarter, the latest for which detailed numbers are available, the number of new cards issued hit an all-time high of 20.1 million, it said. Some 9 million of them went to so-called non-prime borrowers -- those with poor or fair credit.

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Do People Always Have the Right to Withdraw Consent?

Modern privacy laws contain different definitions for the term “consent,” and different standards for when consent will, and will not, be effective.

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U.S. National Debt Tops $30 Trillion as Borrowing Surged Amid Pandemic

WASHINGTON — America’s gross national debt topped $30 trillion for the first time on Tuesday, an ominous fiscal milestone that underscores the fragile nature of the country’s long-term economic health as it grapples with soaring prices and the prospect of higher interest rates.

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CFPB Wants Your Input on ‘Junk Fees’

Which do you despise the most? Late payment fees? Hotel resort fees? Document preparation fees? Convenience fees? They all fall under the general category of "junk fees," something about which the Consumer Financial Protection Bureau (CPFB) has grown increasingly concerned.

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TCN to Showcase Latest Enhancements to its Advanced Call Center Platform at RMAi 2022 Annual Conference

ST. GEORGE, Utah, Feb. 1, 2022 /PRNewswire-PRWeb/ -- WHAT & WHO
RMAi 25th Annual Conference, hosted by Receivables Management Association International (RMAi), is a premier event for debt buyers, originating creditors, collection agencies, law firms, brokers, and affiliates to gather for timely industry education, in-person networking opportunities, and business development prospects.

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It will be ‘a challenge to motivate’ student-loan borrowers to pay off their debt after a 2-year pause, the Education Dept. tells government watchdog

It's no secret that resuming student-loan payments after a two year pause will be difficult — and the Education Department said that's the reality for both itself and for borrowers.

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Telecom Alert: Ninth Circuit Upholds CA Net Neutrality Mandate; Auction Communications Investigation; FCC Broadband Nutrition Labels; Section 253 Petition; Order to Dismantle [Vol. XIX, Issue 5]

Last week, the U.S. Court of Appeals for the Ninth Circuit affirmed the U.S. District Court for the Eastern District of California’s ruling denying a preliminary injunction against implementation of California’s net neutrality mandate.  After the FCC found in 2018 that it lacked statutory authority to enact federal network neutrality requirements and that States were preempted from adopted such measures as well, California passed a law that prohibits internet service providers from blocking, throttling, or granting paid priority to web content.

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CFPB warnings of bias in AI could spook lenders

Rohit Chopra has seized on nearly every public opportunity as director of the Consumer Financial Protection Bureau to admonish companies about the potential misuse of artificial intelligence in lending decisions. Chopra has said that algorithms can never “be free of bias” and may result in credit determinations that are unfair to consumers. He claims machine learning can be anti-competitive and could lead to “digital redlining” and “robo discrimination.”

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Data Breach Alert: Internews Network

Recently, the non-profit organization Internews Network released additional information relating to a “cyber event” that resulted in the personal data of more than 10,000 individuals being compromised. According to an official filing by Internews Network, on December 7, 2021 the organization discovered unusual activity on some of the organization’s computers. Internews conducted a follow-up investigation, revealing that an unauthorized party gained access to the names, Social Security numbers, and dates of birth of 10,637 individuals nationwide.

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On Data Privacy Day, Attorney General Bonta Puts Businesses Operating Loyalty Programs on Notice for Violations of California Consumer Privacy Act

OAKLAND – California Attorney General Rob Bonta today announced an investigative sweep of a number of businesses operating loyalty programs in California and sent notices alleging noncompliance with the California Consumer Privacy Act (CCPA). Under the CCPA, businesses that offer financial incentives, such as discounts, free items, or other rewards, in exchange for personal information must provide consumers with a notice of financial incentive. This notice must clearly describe the material terms of the financial incentive program to the consumer before they opt into the program. Letters were sent today to major corporations in the retail, home improvement, travel, and food services industries, who have 30 days to cure and come into compliance with the law. 

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Personal loan rates continue to trend upward, but are lower than this time last year

Borrowers with good credit seeking personal loans during the past seven days prequalified for average rates that were higher for 3-year fixed-rate loans and 5-year fixed-rate loans compared to the previous seven days.

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Proposed State Privacy Law Update: Jan. 31, 2022

Keypoint: This week lawmakers introduced new bills in Georgia, Hawaii and Oklahoma, the Indiana Senate passed a bill out of committee, and hearings were held on bills in Alaska, Maryland, and Washington.

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3 Challenges Facing Credit Unions

Talk to experts in the credit union (CU) space, and they’ll tell you most CUs are trailing their peers in the banking industry when it comes to innovations. Catching up will mean CUs making substantial digital strides — from technological investments to complete overhauls of infrastructure — as well as an honest assessment of the digital experiences CUs offer.

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Debt Buyer Sued for Deceptive Practices of Downstream Third-Party Collectors; CFPB Uses Its Substantial Assistance Authority

On January 10, 2022, the Consumer Financial Protection Bureau (CFPB) filed a complaint in federal district court against three affiliated debt-buying businesses and the individuals who founded and operated them for "knowingly and recklessly [placing debts with and selling them to] debt collection agencies that used threats and misrepresentations to coerce payments from consumers."

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Justice-Involved Individuals and the Consumer Financial Marketplace

From arrest to incarceration and reentry, people who come into contact with the justice system are confronted with numerous financial challenges, including financial products and services that too often contain exploitative terms and features, offer little or no consumer choice, and can have long-term negative consequences for the individuals and families affected. This report outlines some of the challenges faced by justice-involved people and their families in navigating their finances at each stage of the criminal justice system. The available information raises serious questions about the transparency, fairness, and availability of consumer choice in markets associated with the justice system, as well as demonstrating the pervasive reach of predatory practices targeted at justice-involved individuals.

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CFPB Report Shows Criminal Justice Financial Ecosystem Exploits Families at Every Stage

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today published a review of the financial issues facing people and families who come in contact with the criminal justice system. The report, “Justice-Involved Individuals and the Consumer Financial Marketplace,” describes an ecosystem rife with burdensome fees and lack of choice, and where families are increasingly being forced to shoulder the costs. It walks through the financial challenges families encounter at every stage of the criminal justice process, and the ways in which providers – often for-profit private companies – are leveraging a lack of consumer choice and their own market dominance to impose hefty fees at families’ expense.

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The Government Needs Your Help Cracking Down on Fees From Banks and Mortgage Lenders

The Consumer Financial Protection Bureau (CFPB) just launched a new initiative encouraging people to lodge complaints about the worst fees they’ve encountered. The CFPB — a federal agency established in 2011 to protect and enforce consumer financial laws — says it will use this feedback to crack down on “junk fees” charged by bankscredit unions, credit card companies, mortgage lenders and more, potentially saving Americans billions of dollars in the process.

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On Data Privacy Day, Attorney General Bonta Puts Businesses Operating Loyalty Programs on Notice for Violations of California Consumer Privacy Act

OAKLAND – California Attorney General Rob Bonta today announced an investigative sweep of a number of businesses operating loyalty programs in California and sent notices alleging noncompliance with the California Consumer Privacy Act (CCPA). Under the CCPA, businesses that offer financial incentives, such as discounts, free items, or other rewards, in exchange for personal information must provide consumers with a notice of financial incentive.

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Portfolios For Sale

$13,213,608 Credit Cards
BAL Financial LLC

(617) 595-5794

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$25,996,000 Credit Cards
Capital Debt Solutions, LLC

(866) 305-5102

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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