At a glanceFriday, June 24, 2022

Collection Industry News At A Glance - June 24, 2022
Friday June 24, 2022
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79% of Consumers Have at Least 1 Commerce Relationship With a Merchant

Commerce relationships — including retail subscriptions, memberships and loyalty programs — are extremely popular with consumers. In fact, 79% of all consumers have at least one of these commerce relationships with merchants, and 17% have all three, according to “Relationship Commerce,” a PYMNTS and Ordergroove collaboration based on a survey of 2,826 consumers.

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Maryland Amends Data Security and Breach Notice Obligations

Maryland recently passed two companion bills amending the state’s Personal Information Protection Act. The bills modify the data breach notification requirements and scope of businesses subject to the data security requirements.

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Citadel Credit Union’s Business Banking Team Ready for August Launch

EXTON, Pa., June 23, 2022 /PRNewswire/ -- Citadel Credit Union is prepared to officially launch its new Business Banking division this August. Earlier this year, the company onboarded a team of business banking experts to build the new division and establish partnerships with clients around the region. Over the past three months, Citadel piloted its business banking offering with multiple organizations ranging from $1 million to $100 million in annual revenue.

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Credit Card Issuer Wins Big ATDS Ruling in TCPA Suit Arising out of Debt Collection Calls

On or about March 7, 2014, Plaintiff David Barnett applied for and received a FNBO credit card account. When applying for the account, Barnett provided his cellular number as way for FNBO to contact him. At some point, Barnett stopped making his minimum monthly payments. As a result, FNBO began to contact him via telephone to discuss his missed payments. Over a 7-month period, FNBO contacted Barnett via phone call, text message or prerecorded message 574 times—an average of 3.2 times a day (excluding Sundays)

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Final rule: Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking (Regulation V)

Consumer Financial Protection Bureau is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to address recent legislation that assists consumers who are victims of trafficking. This final rule establishes a method for a victim of trafficking to submit documentation to consumer reporting agencies, including information identifying any adverse item of information about the consumer that resulted from certain types of human trafficking, and prohibits the consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information

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Renter Migration Patterns Drive 42% Increase in Out-of-State Applicants as Renters Seek Sunnier, Rural Environments

Out-of-state applicants for rental properties increased 42% from 2020 to 2021, according to a new analysis of TransUnion (NYSE: TRU) data. In that same period, rental applications in rural areas increased 28%, while urban rental application volume rose just 10%. The primary driver of these trends appears to be rising housing costs and the widespread availability of remote work, which began during the COVID-19 pandemic.

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FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car Buyers

The Federal Trade Commission has proposed a ruleto ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges. The proposed rule would protect consumers and honest dealers by making the car-buying process more clear and competitive. It would also allow the Commission to recover money when consumers are misled or charged without their consent.

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OCC Reports on Key Risks Facing Federal Banking System

As banks continue to navigate the operational- and market-related impacts of the pandemic along with substantial government stimulus, current geopolitics have tightened financial conditions and increased downside risk to economic growth. The OCC highlighted operational, compliance, interest rate, and credit risks, among the key risk themes in the report.

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Rent-a-Bank Payday Loans Have Highest Loss Rates in Banking System

Federal regulators have long expected banks to issue loans with a high degree of confidence that borrowers will repay them. But some banks supervised by the Federal Deposit Insurance Corp. (FDIC) are issuing loans, on behalf of payday lenders, that have dangerously high levels of default. These loans, known as “rent-a-bank" loans, have loss rates much higher than those of other products in the banking system, including small loans that banks directly offer their own customers with low credit scores.

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CFPB, NCUA rules on Spring 2022 Unified Agenda

Federal regulators, including the Consumer Financial Protection Bureau and NCUA—issued the Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions. The agendas identify projects under consideration from the agencies from June 1 to May 31, 2023.

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62% of Consumers Made Credit Card Payments in Last 90 Days

Credit cards are the most common credit products that U.S. consumers use. In fact, 62% of consumers made credit card payments in the last 90 days, according to “The New Reality Check,” a PYMNTS and LendingClub collaboration based on a survey of 2,326 U.S. consumers.

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Biden Signs Grassley-Led Bankruptcy Bill Into Law

WASHINGTON – President Joe Biden today signed into law a bipartisan bill authored by Sen. Chuck Grassley (R-Iowa) to help small businesses and individuals stay afloat during bankruptcy. The Bankruptcy Threshold Adjustment and Technical Corrections Act (S. 3823) becomes law at a time when Americans are battling 40-year high inflation, rising interest rates and fears of a looming recession. As Judiciary Committee’s ranking member, Grassley partnered with Sens. Sheldon Whitehouse (D-R.I.), Dick Durbin (D-Ill.) and John Cornyn (R-Texas) to advance the bill, which unanimously cleared the Senate and passed in the House of Representatives with an overwhelmingly bipartisan vote of 392-21.

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200,000 student-loan borrowers are getting their debt wiped out through a settlement with Biden’s Education Department

President Joe Biden's Education Department has agreed to give thousands of student-loan borrowers relief after they said they were defrauded by a for-profit school. In 2019, Harvard Law School's Project on Predatory Student Lending brought a lawsuit against then-Education Secretary Betsy DeVos — known as Sweet vs. DeVos — representing thousands of student-loan borrowers who filed borrower defense claims with the department that had been pending for years.

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CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking

Today, the Consumer Financial Protection Bureau (CFPB) issued a final rule to help survivors avoid some of the financial consequences of human trafficking. The CFPB has established, among other things, a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.

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FTC Takes Action Against Harley-Davidson and Westinghouse for Illegally Restricting Customers’ Right to Repair

The Federal Trade Commission is taking action against motorcycle manufacturer Harley-Davidson Motor Company Group, LLC and Westinghouse outdoor generator maker MWE Investments, LLC for illegally restricting customers’ right to repair their purchased products. The FTC’s complaints charge that the companies’ warranties included terms that conveyed that the warranty is void if customers use independent dealers for parts or repairs.

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CUNA Board and CFPB’s Chopra Talk Credit Union Priorities

The Credit Union National Association (CUNA) board of directors hosted Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra Wednesday to discuss credit union priorities and how the Bureau can support credit unions in their mission to promote financial well-being for all.

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On Heels of Crypto Legislative Activity, NYDFS Follows up With Crypto Stablecoin Guidance

On June 8, 2022, the New York State Department of Financial Services (“NYDFS”) released regulatory guidance applicable only to payment stablecoins that are backed by the U.S. Dollar and issued by entities regulated by NYDFS.

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Prepared Remarks of Director Chopra on Credit Card Late Fees ANPR Press Call

Good morning. Today the Consumer Financial Protection Bureau is taking a critical step to address the billions of dollars that Americans pay in penalties to credit card companies. We are publishing an Advance Notice of Proposed Rulemaking to review provisions originally developed by the Federal Reserve Board that allow credit card companies to sidestep Congressional mandates on reasonable penalty fees. Our effort is particularly timely, given that the rule currently allows credit card companies to hike late fees by the rate of inflation.

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CFPB Initiates Review of Credit Card Company Penalty Policies Costing Consumers $12 Billion Each Year

The Consumer Financial Protection Bureau (CFPB) is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees. In an Advance Notice of Proposed Rulemaking published today, the CFPB asks for information on the Federal Reserve Board of Governors’ 2010 immunity provision for excessive late fees that allows credit card companies to escape enforcement scrutiny.

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Federal Trade Commission Sends More than $2 Million to Students Harmed by Debt Relief Scam

The Federal Trade Commission is sending 22,817 checks totaling more than $2 million to borrowers who lost money to a student loan debt-relief scam that operated under the names Student Debt Doctor.

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Flagstar Bank Announces Data Breach Impacting Over 1.5 Million Names and Social Security Numbers

Recently, Flagstar Bank confirmed that the company experienced a data breach after someone gained unauthorized access to the company’s computer network. According to Flagstar, the breach resulted in the names and Social Security numbers of certain customers being compromised. On June 17, 2022, Flagstar filed an official notice of the breach and sent out data breach letters to all affected parties.

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North Carolina considers new laws to ‘de-weaponize’ medical debt and protect patients

RALEIGH, N.C. — When Erin Williams-Reavis faced a $3,500 surgery bill, the hospital offered to let her pay in $300 monthly installments. It was too much, said Williams-Reavis, 44, who lives in Greensboro, about an hour west of the state capital. Her hours as a personal assistant had been cut, and she and her husband were behind on bills, even requesting a forbearance on their mortgage.

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CFPB to review QM rule

The agency, in a blog post, said it would conduct a review of its Qualified Mortgage (QM) rule. The rule, under the federal Truth In Lending Act, sets standards mortgages must meet in order to have a safe harbor from improper underwriting counterclaims during a foreclosure. The move by the CFPB is part of a larger review of rules the agency says warrant scrutiny because they were inherited from other agencies, published in the first decade of the agency, or have been tested in the market for several years.

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Tell us your stories about employer-driven debt

The Consumer Financial Protection Bureau (CFPB) wants to hear your stories about practices and financial products that leave you financially worse off as a result of being indebted to your employer or an affiliated third party.

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DFPI Seeks Public Comment on Oversight of Crypto Asset-Related Financial Products and Services

Governor Gavin Newsom issued Executive Order N-9-22 (Executive Order) on May 4, 2022, to foster responsible innovation, bolster California’s innovation economy, and protect consumers. In his announcement, Governor Newsom outlined his aim to create a transparent regulatory and business environment for web3 companies which harmonizes federal and California approaches, balances the benefits and risks to consumers, and incorporates California values such as equity, inclusivity, and environmental protection.

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CFPB outlines BNPL expectations

The CFPB’s new blog post titled “Buy Now, Pay Later and Credit Reporting” appears intended to send a message about the CFPB’s expectations to industry. 

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CFPB continues focus on overdraft practices

In a blog post published last week, the CFPB reported that since the beginning of 2022, it has been collecting data from supervised institutions on their overdraft and non-sufficient fund (NSF) practices and intends to use the information to identify institutions for further examination and review.

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Hackers stole Social Security numbers in Flagstar data breach affecting 1.5 million customers

Flagstar Bank, one of the largest financial service providers in the United States, has notified more than 1.5 million customers of a data breach in which Social Security numbers were stolen — its second incident in two years.

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Federal Trade Commission Returns More Than $9.7 Million To Small Businesses Harmed by Yellowstone Capital’s Merchant Cash Advance Operation

The Federal Trade Commission is sending 7,731 checks totaling more than $9.7 million to small businesses who were harmed by Yellowstone Capital, a merchant cash advance company that withdrew money from their bank accounts without permission.

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CUNA education campaign directly reaches state legislators and staff

CUNA has undertaken a robust campaign to target and educate lawmakers in state capitols across the country on the credit union difference. Using opportunities like Financial Literacy Month to capture lawmaker attention, CUNA has focused on driving lawmakers and staff working inside all 50 state capitals to CUNA’s Advancing Communities page to learn how credit unions in their state are improving consumers’ financial well-being.

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Congressman Kim Introduces Dental Care for Our Troops Act and Military Family Protection from Debt Act

WASHINGTON D.C. – Yesterday, Congressman Andy Kim (NJ-03) introduced two bills, the Dental Care for Our Troops Act and the Military Family Protection from Debt Act, to put servicemembers and their families first. These policies are two of Congressman Kim’s top priorities for the Fiscal Year 2023 National Defense Authorization Act (NDAA) that is being considered by the House Armed Services Committee next week.

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Retailers have had a rough few years as Amazon and COVID have more or less crushed the idea that people want to go to the store for stuff.

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CFPB report: Many borrowers still behind on mortgage payments after COVID-19 forbearance

The report was sourced from data by 16 large mortgage servicers between May and December 2021, and revealed that homeowners continue to face significant risks and challenges when it comes to paying their mortgages. The servicers used for the data collection service many types of loans including VA, FHA, GSE, PLS or portfolio, across many locations in the U.S. to give the CFPB a better understanding of how servicers are handling all areas.

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‘Don’t Annoy Me’: A Cardinal Rule for Banks to Keep Consumers’ Trust

Consumers are sending a crystal-clear message to the banks and credit unions that have been trusted partners in their everyday financial lives, according to Doug Brown, president of NCR. That message is just three simple words: “Don’t annoy me.”

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FTC Weighs In On Data Breach Notification

The FTC recently reminded companies that principles of fairness and the likelihood of harm may in some cases prompt breach notification. This requirement might exist even if state breach notice laws have not been triggered. The FTC emphasized at the same time the need for breach disclosures to be accurate. These comments appeared in the FTC blog, and underscore the agency’s continuing trend to exercise its enforcement authority under the FTC Act in the data security and data breach context.

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Industry Events

RMAi Executive Summit 2022


The Osthoff Resort
Elkhart LakeI , WI
August 02 - 04 , 2022


DCS2022 – Debt Connection Symposium and Expo 2022

Red Rock Casino Resort Spa 11011 W Charleston Boulevard
Las Vegas , Nevada
September 07 - 09 , 2022