At a glanceWednesday, August 31, 2022

Collection Industry News At A Glance - August 31, 2022
Wednesday August 31, 2022
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California Attorney General Issues Second Year CCPA Enforcement Report: Key Takeaways

Yes, your privacy notice does need to be “that good.” If it isn’t, the California Attorney General’s Office might come knocking. Here are some key points from the AG’s second year enforcement report:

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VA extends debt collection relief until the end of 2022

Veterans Affairs officials are once again extending the suspension of benefit debts for veterans facing financial difficulties, this time through the end of 2022.

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Third Circuit Adopts New “Reasonable Reader” Standard and Holds Reporting Consumers’ Pay Status as Past Due with $0 Balance after Transfer Did Not Violate the FCRA

In Bibbs v. TransUnion LLC, 2022 WL 3149216 (3d Circ. Aug. 8, 2022), the Third Circuit Court of Appeals (“Third Circuit”) affirmed the United States District Court for the District of Pennsylvania’s (“District Court”) orders granting TransUnion’s motions for judgment on the pleadings and dismissing the Complaints in three separate actions by Appellants Marissa Bibbs, Michael Parke, and Fatoumata Samoura (collectively, “Appellants”) for violations of the Fair Credit Reporting Act (“FCRA”).

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Walmart Says FTC Lawsuit Over Money Transfers Is ‘Overreach’

Walmart on Monday (Aug. 29) asked a federal court to dismiss a Federal Trade Commission lawsuit against the retailer, calling the case “an egregious instance of agency overreach.” “The FTC is trying to hold Walmart liable for the criminal actions of completely unrelated third-party fraudsters, in spite of Walmart’s extensive efforts to prevent those very fraudsters from defrauding our customers, and despite the FTC’s lack of constitutional or statutory authority to bring the lawsuit,” the retailer said in a news release.

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Last month we talked about the “June Litigation Slog” – and now we are extending it to the “Dog Days Slump”. Consumer litigation is down across the board again from last month (TCPA -3.8%, FDCPA -18.7%, FCRA -5.1%), and YTD too (TCPA -26.1%, FDCPA -23.6%) with the exception of FCRA filings – which only ticked up a meager +1.6%.

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Napa Valley College Files Report of Recent Data Breach Following Ransomware Attack

On August 25, 2022, Napa Valley College confirmed that the company experienced a data breach after an unauthorized party gained access to sensitive consumer data contained on NVC’s network. According to NVC, the breach resulted in the names and Social Security numbers belonging to certain individuals being compromised. Recently, NVC sent out data breach letters to all affected parties, informing them of the incident and what they can do to protect themselves from identity theft and other frauds.

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Education Department Approves $1.5 billion in Debt Relief for 79,000 Borrowers Who Attended Westwood College

Today, the U.S. Department of Education (Department) announced that it will discharge all remaining federal student loans for borrowers who enrolled in any location of Westwood College (including enrollment in Westwood's online program) between January 1, 2002 through November 17, 2015 when it stopped enrolling new borrowers in advance of its 2016 closure. The Department has analyzed the evidence related to Westwood and concluded that the school engaged in widespread misrepresentations about the value of its credentials for attendees' and graduates' employment prospects such that all borrowers who attended during the period described above are entitled to a full loan discharge. This finding is based on extensive internal records, evidence from Westwood employees and administrators, and testimony recounting borrowers' first-hand experiences.

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Next CFPB Virtual Field Hearing Focuses on Nursing Home Debt Collection Practices

The Consumer Financial Protection Bureau is continuing its focus on medical debt collections for its next event, a virtual field hearing specifically tailored to a discussion on “nursing home debt collections practices and the impact they can have on the financial well-being of caregivers, their families and friends.”

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NY Legislature Bans Some Types of Medical Debt Collection

The New York State Legislature passed two bills aimed at easing medical debt back in May, and a new report indicates they're much needed. The first bill bans medical liens and wage garnishment; the second regulates the billing of so-called "facility fees," and requires that patients be informed about those fees up front.

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NCUA to Distribute $395 Million Under Corporate System Resolution Program

ALEXANDRIA, Va. (August 29, 2022) – The National Credit Union Administration, in its role as liquidating agent, announced a $313 million distribution to more than 400 membership and paid in capital shareholders of the former Members United, Constitution, and U.S. Central corporate credit unions. NCUA will also distribute $82 million in dividends to more than 1,100 shareholders of Southwest Corporate. NCUA completed capital distributions to Southwest Corporate capital holders last year.

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Attorney General Bonta Urges Department of Education to Strengthen Proposal to Prevent Sham Conversion of For-Profit Schools to Non-Profits

OAKLAND – California Attorney General Rob Bonta, as part of a multistate coalition, filed comments in support of the Department of Education’s (ED) proposal to issue regulations clarifying the recent closure of a loophole that had incentivized predatory for-profit schools to target student-veterans for enrollment. The Higher Education Act’s so-called “90/10 Rule” caps the amount of revenue for-profit schools can receive from federal funding at 90% with the goal of preventing fraud, waste, and abuse in the for-profit education sector. However, until recently, benefits administered by the Department of Veterans Affairs and the Armed Forces were excluded from the calculation of federal funding, creating a loophole that made servicemembers an attractive revenue source for schools to secure the final 10% of funding.

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Service Delayed: Military members and veterans lodge thousands of complaints over credit report mistakes

InvestigateTV - Tiffany Ellett has lived her adult life dedicated to service. After four years in the Army as an intelligence analyst, with tours in Afghanistan and Iraq, she took a new role with The American Legion, a veteran service organization. In her position as Deputy Director for Health Policy, Ellett said she’s able to help veterans navigate the same challenges she faced while transitioning back to civilian life after living in a system where many things were handled by the military.

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Are HOA Debts Subject to the FDCPA?

The Fair Debt Collection Practices Act (“FDCPA”) is a federal law that establishes protection for consumers from abusive debt collection practices. The FDCPA covers debt used for “personal, family, or household purposes” incurred by a consumer.   Generally, when people think of the FDCPA, they are considering credit card debt, third party-debt buyers, medical bills, student loans and auto loans. However, the FDCPA covers a broad range of debts.

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Black Knight: Mortgage Delinquency Rate Edged Up in July

The national mortgage delinquency rate edged up to 2.89% in July – driven by a 4% increase in early-stage delinquencies, according to Black Knight’s First Look report.

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FTC Sues Kochava for Selling Data that Tracks People at Reproductive Health Clinics, Places of Worship, and Other Sensitive Locations

The Federal Trade Commission filed a lawsuit against data broker Kochava Inc. for selling geolocation data from hundreds of millions of mobile devices that can be used to trace the movements of individuals to and from sensitive locations. Kochava’s data can reveal people’s visits to reproductive health clinics, places of worship, homeless and domestic violence shelters, and addiction recovery facilities. 

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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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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

Fall Forum 2022

ACA International

Radisson Blu Aqua
Chicago , IL
November 02 - 04 , 2022

800 269 1607

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