At a glanceWednesday, August 17, 2022

Collection Industry News At A Glance - August 17, 2022
Wednesday August 17, 2022
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Articles

 
CFPB Addresses Data Security Expectations for Financial Institutions

On August 11, 2022, the Consumer Financial Protection Bureau (CFPB) published a Circular stating that the failure of financial institutions, including nonbank financial firms such as fintech companies and credit reporting agencies, to adequately safeguard their customers’ personal data, may violate the Consumer Financial Protection Act (CFPA). The CFPA prohibits unfair, deceptive, and abusive acts or practices. Consistent with Director Chopra’s past statements, this Circular sends a clear signal that regulating nonbank financial firms’ data security practices remain a high priority for the agency. 

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The CFPB Expands Its UDAAP Authority Further Into Data Security Issues

Continuing a trend it has been pursuing, the CFPB on Thursday used a non-rulemaking circular (Consumer Financial Protection Circular 2022-04) to state that its UDAAP authority extends its enforcement authority to situations where financial institutions have insufficient data protection or information security.

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S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW EIGHTH CONSECUTIVE RISE IN COMPOSITE RATE IN JULY 2022

NEW YORK, Aug. 16, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through July 2022 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate rose four basis points to 0.57%. The bank card default rate fell 11 basis points to 2.44%. The auto loan default rate was four basis points higher at 0.66% while the first mortgage default rate was up four basis points to 0.42%.

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Capital One Data Breach Settlement: Who Is Eligible for a Payment and How Much Could They Get?

If you're a Capital One customer, you may be eligible for a payout stemming from the company's infamous 2019 data breach, which exposed the personal information of more than 100 million people.

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U.S. Fed Opens The Door For Crypto Banks To Enter Traditional Banking System

The U.S. Federal Reserve has announced its final guideline that might allow crypto banks to enter the banking system. The central bank will set up a three-tiered system for determining whether financial institutions have access.

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CUs’ Sitting on Valuable Crypto Asset — the Ability to Educate

Cryptocurrencies’ popularity has soared since their introduction in 2008, achieving record growth last year. PYMNTS’ research shows that the share of consumers who held crypto rose from 16% in 2020 to 23% in 2021, and this percentage is even higher among credit union members. A recent report from the Credit Union National Association (CUNA) found that 39% of CU members owned cryptocurrencies, compared with just 17% of nonmembers. CU members are also seeking more innovation from their financial institutions (FIs), with nearly one-quarter of CU members saying they would take their business to another FI to obtain the innovative products and services they demand.

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Director Chopra’s Remarks on the Announcement Regarding the Cancellation of Loans for ITT Tech Students

Thank you all for being here today. Two decades ago, there was a surge in subprime mortgage lending in our country. Mortgage lenders dangled the American dream in front of people’s eyes, but many of those lenders knew that those borrowers would probably crash and burn.

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FTC undertakes inquiry into commercial surveillance practices and wants your insights

Commercial surveillance refers to the pervasive collection, tracking, and monetization of personal data. It’s an enterprise that has proven astonishingly lucrative for platforms and other businesses, but often thrives in the shadows without the knowledge of the consumers whose personal information is their stock-in-trade. The FTC has announced an Advance Notice of Proposed Rulemaking – and a September 8, 2022, virtual public forum – to take a closer look into harmful commercial surveillance practices and lax data security. We want your input into the prevalence of those practices and ways to address potential harms to consumers.

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Nearly 100 million Americans cut spending to cover health care costs

Higher health care prices drove 38% of American adults — an estimated 98 million people — to either delay or skip treatment; cut back on driving, utilities, and food; or borrow money to pay medical bills in the last six months.

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Harris & Harris Firm Responds to Letter Claims Case from Washington Attorney General

Washington Attorney General Bob Ferguson has amended a state court lawsuit alleging violations of the Washington State Collection Agency Act and Consumer Protection Act by 14 Providence Health & Services Hospitals to include two collection agencies working with patients on behalf of the hospitals.

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Education Department approves $3.9 billion group discharge for 208,000 borrowers who attended ITT Technical Institute

Today, the U.S. Department of Education (Department) announced that it will discharge all remaining federal student loans that borrowers received to attend ITT Technical Institute (ITT) from January 1, 2005, through its closure in September 2016. The decision, which follows Departmental findings based on extensive internal records, testimony from ITT managers and recruiters, and first-hand accounts from borrowers, will result in 208,000 borrowers receiving $3.9 billion in full loan discharges. This includes borrowers who have not yet applied for a borrower defense to repayment discharge. These borrowers will have the federal student loans they received to attend ITT discharged without any additional action on their part.

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Attorney General Bonta Co-Leads Coalition in Support of Department of Education Efforts to Expand Access to Student Loan Forgiveness

OAKLAND – California Attorney General Rob Bonta, co-leading a multistate coalition with Illinois Attorney General Kwame Raoul and Massachusetts Attorney General Maura Healey, filed a comment letter in support of the U.S. Department of Education’s (ED) continued efforts to improve access to several critical student loan discharge programs, including the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (TEPSLF) programs. The letter builds on the Attorney General’s ongoing efforts to improve access to student loan forgiveness. Last week, Attorney General Bonta announced that the California Department of Justice will take part in the California Student Loan Debt Challenge to encourage Californians to take advantage of the PSLF Limited Waiver before the October 31 deadline.

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Businesses That Use Consumer Data or Data Products (Everyone?) Take Heed: FTC Moves Ahead with Rulemaking Process on “Commercial Surveillance” Practices

On August 11, 2022, the Federal Trade Commission (FTC) issued an Advance Notice of Proposed Rulemaking (ANPR) and announced it was exploring a rulemaking process to “crack down on harmful commercial surveillance” and lax data security.  The agency defines commercial surveillance as “the collection, aggregation, analysis, retention, transfer, or monetization of consumer data and the direct derivatives of that information.”

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Florida credit union buys bank for 10th such combo this year

Cantonment, Florida-based Harvesters Credit Union will acquire Panama City-based First National Bank Northwest Florida, according to a press release seen Monday by CUToday and American Banker.

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ACTS Retirement Services Faces Class Action over Data Breach

ACTS Retirement Services, Inc. (ACTS), a non-profit corporation that manages retirement communities, suffered a data breach in April 2022, which led to unauthorized access to thousands of current and former employees’ personal information. Specifically, names, Social Security numbers, and financial information were effected. As a result of this incident, ACTS now faces a data breach class action suit in which the plaintiffs allege that ACTS failed to implement adequate security systems to protect employee information, which led to the access of their information by cyber criminals.

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STCU hits $5 billion, eyes more branches in the Tri-Cities

Five years after it expanded into the Tri-Cities, STCU reports it has hit important milestones on its way to becoming a $5 billion institution, making it Washington’s third largest credit union after Boeing Employees and Gesa.

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New York Proposes Bigger Cyber Role for Bank, Insurer Boards

Boards of directors at financial institutions would have to step up their oversight of cybersecurity risks under proposed updates to regulations from New York state’s Department of Financial Services.

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Examining the factors driving high credit card interest rates

When consumers face unexpected expenses and lack the cash to make it from one paycheck to the next, credit cards can provide essential flexibility. More than 175 million Americans have at least one credit card, and at any given time, about half of active credit card accounts carry a balance .

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FTC looking at rules to corral tech firms’ data collection

WASHINGTON (AP) — Whether it’s the fitness tracker on your wrist, the “smart” home appliances in your house or the latest kids’ fad going viral in online videos, they all produce a trove of personal data for big tech companies.

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Credit union difference on display for state legislators

CUNA, Leagues, and credit unions engaged with hundreds of state lawmakers from around the country over the last few weeks at the American Legislative Exchange Council (ALEC) in Atlanta and the National Conference of State Legislatures (NCSL) in Denver.

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CFPB publishes report on impact of medical debt reporting changes

The CFPB recently published a report analyzing how certain actions announced earlier this year by the three largest national consumer reporting agencies—Equifax, Experian, and TransUnion—will affect people who have allegedly unpaid medical debt on their credit reports  The new report is the CFPB’s third report issued this year on medical debt.

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Federal Trade Commission Returns More Than $9.7 Million To Consumers Harmed by LendingClub’s Deceptive Hidden Fees

The Federal Trade Commission is sending payments totaling more than $9.7 million to 61,990 consumers who were charged hidden fees by LendingClub Corporation.

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50% of parents with student loan debt say they will not be able to meet basic financial needs if payment pause ends, survey says

WASHINGTON, DC (KFOR) – A new survey from ParentsTogether Action shows that an overwhelming amount of parents found the repayment pause helpful and made a positive difference for their families. The pause began in March 2020 and gave 42 million student loan borrowers a pause from monthly payments that gained interest during the pandemic. If President Joe Biden lets the pause expire at the end of August, 50% said they would not be about to meet basic financial needs.

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A phantom debt collection scam duped consumers out of more than $1 million. Here are 5 ways you can avoid falling victim

Almost 2,000 consumers who were conned into paying debts they didn’t owe are in the process of getting their money returned to them. More than $1 million, or an average of $516 for each payment, is being returned to the victims either via PayPal or a mailed check, the Federal Trade Commission recently announcedConsumers will be recovering all the money they lost to the scammers,” the FTC noted.

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CFPB Takes Action to Protect the Public from Shoddy Data Security Practices

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) confirmed in a circular published today that financial companies may violate federal consumer financial protection law when they fail to safeguard consumer data. The circular provides guidance to consumer protection enforcers, including examples of when firms can be held liable for lax data security protocols.

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FTC Explores Rules Cracking Down on Commercial Surveillance and Lax Data Security Practices

The Federal Trade Commission today announced it is exploring rules to crack down on harmful commercial surveillance and lax data security. Commercial surveillance is the business of collecting, analyzing, and profiting from information about people. Mass surveillance has heightened the risks and stakes of data breaches, deception, manipulation, and other abuses. The FTC’s Advance Notice of Proposed Rulemaking seeks public comment on the harms stemming from commercial surveillance and whether new rules are needed to protect people’s privacy and information.

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Director Chopra’s Prepared Remarks at the 2022 National Association of Attorneys General Presidential Summit

Thank you for inviting me to be here with you in Iowa to talk about consumer protection in the digital world. The pandemic accelerated the digitization of our daily lives. Health, transportation, education, and much more have been transformed.

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Portfolios For Sale

 
$4,575,424 Other
Capital Asset Management, Inc.

(317) 633-6633

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$5,331,951 Medical
Capital Asset Management, Inc.

(317) 633-6633

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$13,101,701 Medical
Capital Asset Management, Inc.

(317) 633-6633

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$7,636,388 Auto Deficiencies
Capital Asset Management, Inc.

(317) 633-6633

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$2,071,738.93 Other
Sea Side Management, LLC

(800) 917-7183

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Industry Events

 
DCS2022 – Debt Connection Symposium and Expo 2022

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

Mark Naiman at 619-363-2993