At a glanceSunday, July 03, 2022

Collection Industry News At A Glance - July 1, 2022
Friday July 1, 2022
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First Changes to Reporting of Medical Collection Debt Roll Out July 1, 2022

Effective July 1, 2022, all medical collection debt that has been paid by the consumer in full will no longer be included on U.S. consumer credit reports. In addition, the time period before unpaid medical collection debt will appear on a consumer's credit report is being increased from six months to one year, giving consumers more time to address their debt before it is reported on their credit file.

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CFPB Issues Advisory Opinion Clarifying Its Views on When Debt Collectors Can Charge Consumers “Convenience Fees”

The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion on June 29, 2022, clarifying its view as to the legality under the Fair Debt Collection Practices Act (FDCPA) of “convenience fees” for optional methods of expedited payment not prescribed in the underlying loan documents, such as payment by phone or on the web.

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Military Consumer Month 2022

July is Military Consumer Month. Whether you’re a new recruit, a servicemember PCS’ing with your family, or a soon-to-be veteran, the FTC wants to share some ways to steer clear of rip-offs and scammers.

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Debt Collectors May Now Contact Consumers by E-mail, Text, and Social Media

Boise, Idaho… The Department of finance is advising Idaho consumers that debt collectors may now use non-traditional avenues to communicate with consumers when attempting to collect a debt. These avenues may include friend requests and private messages on social media channels including Facebook, text messages, and e-mail. This change is part of a new rule under the Fair Debt Collection Practices Act (FDCPA) approved by the Consumer Financial Protection Bureau that went into effect on November 30, 2021.

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California Privacy Protection Agency Releases Draft of Proposed Regulations to the CPRA

At the end of May, 2022, the California Privacy Protection Agency (“Agency”) released a for the California Privacy Rights Act (“CPRA”). The 66-page draft proposal only covers a few topics the Agency is seeking to cover.

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CFPB issues advisory opinion on permissibility of “convenience fees” charged by debt collectors subject to the FDCPA

The CFPB has issued an advisory opinion that addresses when the Fair Debt Collection Practices Act permits a debt collector to charge “pay-to-pay” or “convenience fees,” such as fees imposed for making a payment online or by phone. 

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CFPB Warns Debt Collectors About Fees

The Consumer Financial Protection Bureau (CFPB) on Wednesday (June 29) issued an advisory opinion warning debt collectors that most “pay-to-pay” fees that they often charge violate federal law.

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Debt collectors’ ‘pay to pay fees’ are ‘often illegal,’ consumer watchdog agency says

Certain “junk” fees often levied by debt collectors are illegal under federal law, the Consumer Financial Protection Bureau said Wednesday. Debt collectors charge so-called “pay-to-pay” fees, which are also known as convenience fees, when consumers make a payment online or over the phone, according to the federal agency. These fees violate the Fair Debt Collection Practices Act when they aren’t “expressly authorized by the agreement creating the debt” or in instances when they’re not “expressly authorized by law,” the CFPB said in an advisory opinion.

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Consumer Collections in Wisconsin

Now that the COVID-19 pandemic has subsided to some extent, banks and lenders are beginning to resume collections.  Further, as interest rates and inflation continue to rise, it is likely that the number of past due accounts will also rise.

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Attorney General James Secures $400,000 From Wegmans After Data Breach Exposed Consumers’ Personal Information

NEW YORK – New York Attorney General Letitia James today secured $400,000 from grocery store chain, Wegmans, for exposing the personal information of more than three million consumers nationwide, including more than 830,000 New Yorkers.

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Accepting applications for CFPB advisory committees

To ensure that the CFPB hears from a variety of external experts with diverse viewpoints, we established the Consumer Advisory Board, the Community Bank Advisory Council, the Credit Union Advisory Council, and the Academic Research Council. These advisory committees provide the CFPB with information about emerging trends and practices in the consumer financial marketplace. They also allow us to hear directly from small financial institutions.

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Students are taking on ‘unsustainable debt’ for college, says former FDIC chair: How to know what you can afford

The student loan crisis has made it clear that many borrowers have gotten in over their heads, said Sheila Bair, who has served as both a bank regulator and college president.

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CFPB Rescinds Special Regulatory Treatment for Payactiv

The Consumer Financial Protection Bureau (CFPB) issued an order today terminating Payactiv’s Sandbox Approval Order relating to its earned wage access products. The CFPB had given Payactiv special regulatory treatment, including as to liability under a relevant federal consumer financial law with respect to these products. Payactiv requested the termination in order to make changes to its fee model.

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NY District Court Rules Consumer With No Intent to Pay a Debt Lacks Standing in FDCPA Claim for Conflicting Collection Letters

A consumer made charges on a credit card account, which she failed to pay as agreed. The creditor referred the account to a law firm, which served the consumer with a collection suit and obtained a default judgment for the balance. The law firm sent four post-judgment collection letters, demanding the $4,225.74 balance. In a fifth letter, it demanded a balance of $3,996.74.

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Bank regulators’ heightened scrutiny of AI highlights third-party risk

As regulators signal a tighter focus on AI and machine learning, banks need to be vigilant about their internal models, as well as the models used by vendors, an expert says.

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CFPB Moves to Reduce Junk Fees Charged by Debt Collectors

Today, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion affirming that federal law often prohibits debt collectors from charging “pay-to-pay” fees. These charges, commonly described by debt collectors as “convenience fees,” are imposed on consumers who want to make a payment in a particular way, such as online or by phone.

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What Should We Do About the Draft CPRA Regulations?: Collection and Notice

The California Privacy Protection Agency (CPPA) recently released the draft proposed CCPA Regulations and draft initial statement of reasons. Importantly, these are draft regulations that are likely to be subject to extensive public comment and modification before they become final. At the June 8 meeting, the board moved to approve the draft regulatory text to begin the formal rule making process and public comment period.

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Ninth Circuit Appeals Court Sets Oral Argument in Nevada Medical Debt Law Case

he 9th Circuit Court of Appeals has set a date for oral argument in the lawsuit challenging S.B. 248, the Nevada medical debt law that took effect in July 2021. The oral argument will be at 9 a.m. PST Sept. 2, in the 9th Circuit Court of Appeals in San Francisco.

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New report explores the impact of credit card line decreases on consumers

When credit risk is on the rise, such as during an economic downturn, credit card companies may look at reducing consumers’ available credit limits to prevent against losses. Credit card line decreases are an industry practice where a company cuts a consumer’s credit limit on an existing account. A consumer’s available credit can disappear, sometimes without warning or subsequent explanation.

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Deputy Director Zixta Martinez’s Prepared Remarks at the FDIC Meeting of the Advisory Committee on Economic Inclusion

Today, I will focus my remarks on the more general need to increase access to affordable payments, credit, and other financial products and services. One of the most significant drivers leading us to double down on our efforts to broaden access is the expansion of electronic payments. Electronic payments are quickly supplanting cash and are now an essential part of the economy. Their increasing omnipresence came into full view during the pandemic as the un- and under-banked faced considerable challenges making purchases and receiving payments, including the Economic Impact Payments.

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Rogers v. LVNV Funding: Court Dismisses FDCPA Claims That Lack a Concrete Injury

A New York district court denied the plaintiff’s request for an injunction ordering a CRA to correct information in his credit report because the FCRA does not provide a private right of action for injunctive relief.

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FTC Sues Walmart for Facilitating Money Transfer Fraud That Fleeced Customers Out of Hundreds of Millions

The Federal Trade Commission today sued Walmart for allowing its money transfer services to be used by fraudsters, who fleeced consumers out of hundreds of millions of dollars. In its lawsuit, the FTC alleges that for years, the company turned a blind eye while scammers took advantage of its failure to properly secure the money transfer services offered at Walmart stores. The company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores, according to the FTC’s complaint.

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CFPB Affirms Ability for States to Police Credit Reporting Markets

Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule affirming states’ abilities to protect their residents through their own fair credit reporting laws. With limited preemption exceptions, states have the flexibility to preserve fair and competitive credit reporting markets by enacting state-level laws that are stricter than the federal Fair Credit Reporting Act (FCRA).

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CFPB Turns to Credit Card Fees and Late Payments in Advanced Rulemaking Notice

The Consumer Financial Protection Bureau is doubling down on its focus on financial services fees with its latest advance notice of proposed rulemaking (ANPR), which will examine credit card fees.

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Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation

Washington D.C., June 28, 2022 —

The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from the SEC’s Enforcement Division during the Division’s investigation of the matter. EY admits the facts underlying the SEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedial measures to fix the firm’s ethical issues.

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Big 3 credit bureaus to erase most medical debts from reports

The three major credit bureaus are erasing most medical debts from credit reports, and the Biden administration is reducing or eliminating medical debt as a factor in government lending decisions.

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DFPI Proposes Rules For Commercial Financial Products And Services

In 2020, California enacted the California Consumer Financial Protection Law, Cal. Fin. Code § 90000 et seq.  The CCFPL authorizes the Department of Financial Protection & Innovation to define unfair, deceptive, and abusive acts and practices in connection with the offering or provision of commercial financing or other financial products and services to small businesses, nonprofits, and family farms.

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CFPB takes aim at card late fees

The Consumer Financial Protection Bureau is sharpening its focus on exorbitant credit card late fees, issuing a new proposal Wednesday to review rules governing the charges.

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Florida mortgage delinquency, foreclosure rates slightly worse than national average

In the first quarter of 2022, Florida ranked almost exactly in the middle of the pack in three key categories of the national homeowner economy: delinquent mortgages, total non-current mortgages, and foreclosure rates, according to a report issued by Jacksonville-based Black Knight Data & Analytics, Inc., a mortgage and loan data broker.

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58% of Americans are living paycheck to paycheck after inflation spike — including 30% of those earning $250,000 or more

As of May, 58% of Americans — roughly 150 million adults — live paycheck to paycheck, according to a new LendingClub report. That’s down slightly from 61% who reported living paycheck to paycheck in April but up from 54% in May 2021.

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Identifying and addressing the financial needs of immigrants

The Consumer Financial Protection Bureau is working to identify and address the financial needs of immigrants and their families.

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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