Medical Debt Plagues 41% of Americans, KFF Survey Finds

The survey found that 41 percent of adults currently have debt caused by medical or dental bills. Specifically, 24 percent of respondents said they have past-due medical bills or bills they cannot pay and 21 percent reported medical debt they are paying off over time directly to a provider.

Buy Now, Pay Later services may be getting some Americans deep into debt

Minneapolis CNN Business Buy Now, Pay Later installment plans have become popular among consumers seeking to spread out the cost of big-ticket purchases. But now, rising prices have some cash-strapped shoppers reaching for these alternative payment methods for everyday purchases, such as their daily coffee, gas station fill-up or grocery run, as well.

“This Is an Attempt to Collect a Debt” May Mean What It Says: The Eleventh Circuit’s Recent Decision in Daniels v. Select Portfolio Servicing, Inc.

The Eleventh Circuit’s recent 2-1 panel decision in Daniels v. Select Portfolio Servicing, Inc., provides a fresh example of the difficulty creditors face when navigating the requirements of the Fair Debt Collection Practices Act (FDCPA). In Daniels, the borrower alleged that the creditor’s periodic statements violated certain provisions of the FDCPA by demanding amounts not due.

Did you pay a scammer through Western Union? Check the new deadline for refunds

Refunds are still available to people who were tricked into wiring money to scammers through Western Union between January 1, 2004 and January 19, 2017. In fact, the deadline to file a claim has been extended. If you didn’t file a claim for a refund yet, you now have until August 31, 2022 to file. The refunds are part of a $586 million settlement Western Union reached with the FTC and Department of Justice in 2017 for allegedly violating the law by failing to guard against fraud in its system.

CFPB Interprets the FDCPA to Prohibit Debt Collectors from Charging “Pay-To-Pay” Or “Convenience” Fees—Are Creditors Next?

On June 29, 2022, the CFPB issued an advisory opinion interpreting Section 808 of the Fair Debt Collection Practices Act to prohibit debt collectors from charging or receiving  “convenience” fees or “pay-to-pay” fees.  Section 808 declares it an unfair practice to collect “any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.”[1]

657 Healthcare Providers Affected by Ransomware Attack on Professional Finance Company

A major data breach has been reported by the Greeley, CO-based accounts receivable management company, Professional Finance Company Inc. (PFC) which is believed to have affected 657 of its healthcare provider clients.

Postage Rate Increase

The U.S. Postal Service will implement new postage rates for most mailing (market dominant) products on Sunday, July 10, 2022. The First Class Mail (1 oz.) letter rate for postage purchased at the Post Office will increase two cents to $0.60 from $0.58.

AG Yost Issues Warning to Companies Facilitating Potentially Illegal Robocalls

(COLUMBUS, Ohio) — Attorney General Dave Yost’s Robocall Enforcement Unit has issued warning letters to 10 Voice over Internet Protocol (VoIP) providers who are providing support for customers that may be engaging in illegal conduct.

TCPA Litigation Update — Oklahoma: The Latest State to Enact a “Mini-TCPA”

Oklahoma is the latest to join states like Florida in placing restrictions on telephonic sales calls in the wake of the United States Supreme Court’s decision in Facebook v. Duguid, 141 S. Ct. 1163, 1167 (2021), which significantly limited the application of the Telephone Consumer Protection Act (“TCPA”) to live calls and text messages.

What to know about how medical debt affects your credit rating

As of July 1, the three largest credit reporting agencies — Equifax, Experian and TransUnion — have changed the way medical debt affects people’s credit ratings. Medical debt has become pervasive, as health care and insurance costs continue to rise, while income has not kept up with inflation. About 23 million people in the United States — roughly 9% of the population — owe at least $250 in medical expenses, according to the Peterson-Kaiser Family Foundation Health System Tracker.

Luxury car buyers shell out more than ever with ‘car payments that look more like mortgage payments’

If you can even find a new car to buy, actually purchasing it is going to cost you. “It’s a really difficult time to buy a car,” said Jessica Caldwell, executive director of insights for Edmunds. Limited inventory due to a persistent shortage of computer chips, along with other supply-chain challenges, helped propel new car prices up 12.6% from a year ago and used car prices 16.1% higher, according to the latest data from the U.S. Bureau of Labor Statistics.

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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.

RMAi Executive Summit 2022

RMAi

DCS2022 – Debt Connection Symposium and Expo 2022