At a glanceFriday, August 26, 2022

Collection Industry News At A Glance - August 26, 2022
Friday August 26, 2022
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Banking groups object to CFPB inquiry on customer service practices

A group of banking industry organizations is challenging the legal basis for the Consumer Financial Protection Bureau’s (CFPB) inquiry into banks’ customer service practices. Further, the groups, including the American Bankers Association, Bank Policy Institute, and Consumer Bankers Association, object to the CFPB’s assertion that banks are providing subpar customer service by investing in digital services to meet the needs of their customers.

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U.S. consumers are borrowing at record levels to buy cars

DETROIT — U.S. consumers are responding to surging prices for new cars and trucks by going deeper into debt, pushing the average new vehicle loan to a record-high $40,290 during the second quarter, credit monitoring company Experian said Thursday.

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Fifth Circuit Holds Mere Statutory Violation of the FDCPA, Future Risk of Harm, Confusion, and Lost Time Are Insufficient to Establish Article III Standing

In Perez v. McCreary, Veselka, Bragg & Allen, P.C., --- F.4th ---, No. 21-50958, 2022 WL 3355249, at *1 (5th Cir. Aug. 15, 2022), the Fifth Circuit Court of Appeals (“Fifth Circuit”) vacated a class certification order and remanded the case to be dismissed for lack of jurisdiction, holding that a statutory violation of the FDCPA, alone, is insufficient to confer Article III standing.

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Telemarketer Fees to Access the FTC’s National Do Not Call Registry to Increase in 2023

The fees for telemarketers accessing phone numbers on the National Do Not Call (DNC) Registry will increase in FY 2023, which starts on October 1, 2022. All telemarketers calling consumers in the United States are required to download the numbers on the National DNC Registry to ensure they do not call consumers who have registered their phone numbers.

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CUNA urges NEV Test change

CUNA sent a letter to the National Credit Union Administration (NCUA) Board Wednesday sharing concerns credit unions and Leagues have raised regarding the Net Economic Value (NEV) Supervisory Test. 

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Save the Date: CFPB Field Hearing with Director Chopra on Nursing Home Debt Collection Practices

On September 8, 2022, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra will host a virtual discussion with advocates, service providers, community leaders, and members of the public to explore challenges around nursing home debt collection practices and the impact they can have on the financial wellbeing of caregivers, their families, and friends. We are looking forward to your participation, so please be sure to save the date.

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Duration of the Public Comment Period in Matter No. P204800, Motor Vehicle Dealers Trade Regulation Rule

The Commission has received a number of requests regarding the duration of the period for public comment on its notice of proposed rulemaking (“NPRM”) in Matter No. P204800, Motor Vehicle Dealers Trade Regulation Rule, including requests seeking an extension and those opposing any such extension.

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CFPB and FTC Looking to Ramp Up Data Security Requirements

Enhancing data security programs to protect personal information is a critical area companies cannot ignore. Our Privacy, Cyber & Data Strategy and Financial Services & Products groups unpack the latest moves by the Consumer Financial Protection Bureau and Federal Trade Commission to break new regulatory ground.

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Biden-Harris Administration Announces Final Student Loan Pause Extension Through December 31 and Targeted Debt Cancellation to Smooth Transition to Repayment

Today, the U.S. Department of Education (Department) announced a final extension of the pause on student loan repayment, interest, and collections through December 31, 2022. Borrowers should plan to resume payments in January 2023.

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Exploring the connection between financial assistance for medical care and medical collections

In 2020, Americans spent $4.1 trillion on health care. Despite private insurance coverage and government programs like Medicare and Medicaid that cover all or part of the cost of medical treatments, consumers continue to incur significant medical expenses. By 2028, healthcare-related expenses are projected to reach $6.2 trillion.

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Attorney General Bonta Announces Settlement with Sephora as Part of Ongoing Enforcement of California Consumer Privacy Act

OAKLAND – California Attorney General Rob Bonta today announced a settlement with Sephora, Inc. (Sephora), resolving allegations that the company violated the California Consumer Privacy Act (CCPA), California’s first-in-the-nation landmark privacy law.

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CFPB: Safeguard Consumer Data or Face Liability

The CFPB recently published a circular clarifying liability under consumer financial protection law for financial companies that fail to safeguard consumer data. The circular describes how firms may be violating the CFPA’s prohibition on unfair acts or practices with respect to the handling of consumer data by not implementing adequate measures to protect against data security incidents. According to the CFPB. in the event of large scale, customer-base-wide breaches, consumers may become victims of targeted identify theft.

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CFPB considering changes to semi-annual credit card survey

The CFPB is seeking comments on changes to its semi-annual Terms of Credit Card Plans (TCCP) Survey.  Comments must be submitted by October 17, 2022.

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Federal Trade Commission Considers Rulemaking Pertaining to Consumer Privacy & Data

On August 11, 2022, the Federal Trade Commission (FTC) announced proposed rulemaking pertaining to “commercial surveillance and lax data security.”

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Thanks to Temporary Changes, U.S. Department of Education Announces Public Service Loan Forgiveness Surpasses $10 Billion in Debt Relief

Today, the U.S. Department of Education (Department) announced that it has approved more than $10 billion in debt relief for over 175,000 borrowers in 10 months through the Public Service Loan Forgiveness (PSLF) program. This follows changes the Department announced in October 2021 that transformed the program by changing certain rules to make it easier for public servants with federal student loans to have their debts cancelled.

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CFPB spotlights payments risks

The rapidly evolving payments ecosystem that aims to streamline commerce and payments for consumers also poses risks to them, the Consumer Financial Protection Bureau warned in a report published this month.

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CFPB Publishes Circular Confirming Failure to Safeguard Consumer Data Could Be Unfair in Violation of CFPA

On August 11, the CFPB published a Circularannouncing the CFPB’s increased focus on potential misuse and abuse of personal financial data. The Circular details circumstances under which financial companies could violate the CFPA by unfairly putting consumer data at risk through inadequate data security safeguards

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Industry Trade Groups and Small Business Administration Request Extension of FTC Safeguards Rule Deadline

Advocacy efforts are increasing for the Federal Trade Commission to extend its effective date for the Standards for Safeguarding Customer Information rule from Dec. 9 this year to Dec. 9, 2023. The rule requires financial institutions to develop, implement, and maintain a comprehensive information security program.

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Technology, Innovation, and Financial Services

Technology and innovation are a priority interest for my work at the Board of Governors. Technology can offer increased speed, lower costs, and greater efficiency in providing services and products in the financial industry. This week's conference agenda includes many of the topics I follow closely through our work on innovation.

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FTC Declines to Extend Comment Period on Proposed Auto Rule, Deadline For Comments Sept. 12

The Federal Trade Commission has declined to extend the public comment period for its proposed rule that would ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. The deadline for members of the public to comment remains September 12, 2022.

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Alliant Credit Union Selects Upstart for a Personal Lending Fintech Partnership

CHICAGO & SAN MATEO, Calif.--(BUSINESS WIRE)--Alliant Credit Union, a fully digital, top 10 credit union in the U.S. with more than 650,000 members and over $15 billion in assets, today announced it has partnered with Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending marketplace, to offer AI-powered personal loans nationwide.

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CFPB Signals Increased Scrutiny of Credit Card Industry Interest Rates

In a blog post that appeared last week, the CFPB reported on research into various factors considered significant in explaining current credit card interest rates.  The CFPB reported that over 175 million Americans have at least one credit card, half of which carry a balance that continues to accrue increasingly high interest rates. 

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Education Department’s Fresh Start Program Restores Borrowers’ Default Protections When Entering Student Loan Repayment

A one-year program from the U.S. Department of Education will help eligible borrowers in default as soon as the student loan repayment and interest deferral period ends, currently Aug. 31, 2022.

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Debt Consolidation Services Providers Ordered to Pay More Than $2 Million in Penalties and Restitution

BALTIMORE, MD (August 22, 2022) – Maryland Attorney General Brian E. Frosh announced today that his Consumer Protection Division has issued a Final Order against Marcia L. Bailey and Arthur Wittenberg along with their entities, Marcia Bailey Inc. trading as Signature Accounting and the Wittenberg Family Trust, for violating the Consumer Protection Act when they collected hundreds of thousands of dollars from consumers to help them consolidate and pay off outstanding consumer debt, but did not provide the promised services.

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Industry Events

DCS2022 – Debt Connection Symposium and Expo 2022

New sessions. New speakers. DCS is geared for Financial Services, Fintech, Recovery, Collections, Debt Sales and Technology professionals.

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

Mark Naiman at 619-363-2993

2022 Washington DC Regional Event

RMAI once again combines advocacy, education, and baseball to hit a networking home run – this time in Washington, D.C. RMAI regional events have changed from year to year, but they always sell out, so reserve your sponsorship and register early.

Washington DC ,
September 26 - 27 , 2022

916 482 2462

RMAi 2023 Annual Conference

Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference. Registration opens October 3, 2022.

Las Vegas , Nevada
February 06 - 09 , 2023

916 462 2462