At a glanceWednesday, September 28, 2022

Collection Industry News At A Glance - September 28, 2022
Wednesday September 28, 2022
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Articles

 
FTC Receives Flurry Of Comments As Dealers And Others Oppose New Car Dealer Rule

The Federal Trade Commission (FTC) received dozens of submissions from dealer trade associations, other industry participants, and members of Congress opposing the FTC’s proposed rules for dealers in connection with the advertising and sale of new cars in the run-up to the September 12, 2022 close of the public comment period for those rules, while consumer rights groups and a group of 17 state Attorneys General offered their support for the rule. 

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CFPB Orders Regions Bank to Pay $191 Million for Illegal Surprise Overdraft Fees

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) is ordering Regions Bank to pay $50 million into the CFPB’s victims relief fund and to refund at least $141 million to customers harmed by its illegal surprise overdraft fees. From August 2018 through July 2021, Regions charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases.

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Strange bedfellows petition CFPB to adopt larger participant rule for personal loans

The Center for Responsible Lending (CRL) and the Consumer Bankers Association (CBA) have filed a joint petition with the CFPB that urges the Bureau to engage in rulemaking to define larger participants in the market for personal loans.  In February 2022, the CFPB established a new procedure for members of the public to submit petitions for rulemaking (including amendments to or repeals of existing rules).

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Attorney General Bonta, Senator Eggman, and Pro Tem Atkins Celebrate Signing of Legislation to Strengthen Consumer Protections for Military Service Members

SACRAMENTO – California Attorney General Rob Bonta, Senator Susan Talamantes Eggman (D-Stockton), and Senate President pro Tempore Toni G. Atkins (D-San Diego) today applauded Governor Gavin Newsom for signing Senate Bill 1311 (SB 1311). SB 1311 strengthens financial and legal protections for active duty service members, veterans, and their families.

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Reps. Welch and Gooden Introduce Bipartisan Credit Card Competition Act

Today, Representatives Peter Welch (D-VT) and Lance Gooden (R-TX) introduced the House companion to the bipartisan Credit Card Competition Act of 2022, introduced in July by Senators Dick Durbin (D-IL) and Roger Marshall, M.D. (R-KS). The legislation would finally bring needed competition and choice to the Visa-Mastercard dominated credit card network market.

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CFPB’s Latest Circular on Nursing Home Bills Hits Federal Register

Of note, according to the news release from the CFPB, “while the CFPB does not enforce the Nursing Home Reform Act, contract terms that violate the [a]ct’s ban on requesting or requiring a third-party guarantee of payment are unenforceable. This means that subsequent collection of debts from those contracts may violate the consumer financial protection laws the CFPB does enforce, including the Fair Debt Collection Practices Act and its prohibition of ‘any false, deceptive, or misleading representation or means in connection with the collection of any debt.’”

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OCC Assesses $6 Million Civil Money Penalty Against Sterling Bank and Trust, FSB

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $6 million civil money penalty against Sterling Bank and Trust, FSB, Southfield, Mich. The OCC also terminated the June 18, 2019, Formal Agreement between the bank and the OCC.

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Banc of California Enters Payment Processing Business with Acquisition of Deepstack Technologies

SANTA ANA, Calif.--(BUSINESS WIRE)--Banc of California, Inc. (NYSE: BANC) (the “Company”), the parent holding company of Banc of California, N.A. (the “Bank”), today announced that the Bank has acquired the payments platform and technology of Global Payroll Gateway, Inc. and its wholly-owned subsidiary, Deepstack Technologies, LLC (collectively, “Deepstack”) for $24 million in cash and stock. Headquartered in Jupiter, Florida with a team located in Southern California, Deepstack is a differentiated software-led and e-commerce payments platform that provides clients with payment solutions, including merchant processing, payments acceptance and disbursements, tokenization, virtual accounts, fraud protection tools, chargeback management, and reconciliation and reporting services.

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Consumer Debt Hits Record for Most Americans, Except the Wealthy

Consumer debt, including credit cards, rose to an all-time high for the 118 million US households among the bottom 90%, according to the Federal Reserve’s latest data on the distribution of household wealth.

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Arkansas Federal Credit Union improper repossessions $2.35M class action settlement

Arkansas Federal Credit Union agreed to forgive $2.35 million in outstanding balances as part of a settlement resolving claims it violated repossession laws.

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Buy now, pay later – and comply with the FTC Act immediately

Companies are increasingly marketing payment plans known as Buy Now, Pay Later (BNPL). Although BNPL plans vary in their exact terms, people typically pay for purchases over a period of several weeks, generally in equal installments. To transform consumers into customers, companies often make a variety of claims about the costs and conditions of BNPL plans. If your business offers BNPL payment options as a retailer or BNPL company – or if you play a role in the BNPL ecosystem as a marketer, collector, etc. – remember that basic consumer protection ground rules of the FTC Act apply.

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Enhanced Credit Union Diversity Self-Assessment Improves Use Experience

ALEXANDRIA, Va. (Sept. 26, 2022) – To increase the accessibility and functionality of the Credit Union Diversity Self-Assessment, the NCUA has introduced several process improvements. These enhancements include additional details for submitting surveys, improved navigation, prepopulation of certain fields, and compliance with the 21st Century Integrated Digital Experience Act. The modernization also upgrades security and ensures data integrity and confidentiality.

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Details Released on State-by-State Student Debt Relief

The Biden administration and U.S. Department of Education (DOE) have released new details on the targeted student debt relief plan and student loan payments set to resume in January 2023, including state-by-state data on the impact for borrowers.

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CFPB Plans to Increase Regulation over “Buy Now, Pay Later” Lenders

The Consumer Financial Protect Bureau (CFPB) issued a release on September 15, 2022, announcing its intent to issue additional interpretive guidance or rules to ensure “Buy Now, Pay Later” (BNPL) lenders comply with the same or similar regulations already established for credit cards following a study on the industry.

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CFPB Releases RFI on Mortgage Servicing Rules Signaling Potential for Future Regulatory Reform

On Thursday, September 22, 2022, the Consumer Financial Protection Bureau (CFPB) issued a new request for information (RFI) regarding mortgage servicing, potentially opening the door for much-needed regulatory reforms. The RFI is focused on inquiries regarding refinances and, more generally, ways to streamline short and long-term loss mitigation options. It includes 37 specific requests, allowing 60 days for the public to submit comments and responses.

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Buy Now, Pay Later Stretches Limits of Consumer Credit, According to Achieve Center for Consumer Insights Study

SAN MATEO, Calif., Sept. 22, 2022 /PRNewswire/ -- The rapid growth of buy now, pay later (BNPL) financing has had a cascading effect on consumer debt levels, according to a new study by Achieve, the leader in digital personal finance.

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NCUA Board Proposes Rule on Member Expulsion

ALEXANDRIA, Va. (Sept. 22, 2022) – The National Credit Union Administration Board held its first in-person open board meeting since the COVID-19 pandemic began, and its eighth open meeting of 2022, which included a live webcast, and unanimously approved two items:

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Equifax, Experian and TransUnion Extend Free Weekly Credit Reports in the U.S. Through 2023

The three nationwide credit reporting agencies – Equifax® (NYSE:EFX), Experian (LON:EXPN) and TransUnion (NYSE:TRU) – are taking joint action to continue offering free weekly credit reports to consumers in the United States through the end of 2023. This benefit will help consumers manage their financial health during a period of rising inflation and unprecedented economic uncertainty coming out of the COVID-19 pandemic.

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CFPB Examines Potential Impact of Rising Car Prices on Consumer Credit

On September 19, the Consumer Financial Protection Bureau (CFPB) released a blog post, exploring the potential relationship between rising car prices and changes in auto loan performance. The CFPB found that the rate of delinquency, especially for low-income borrowers, has risen over the past year. For example, auto loans for consumers with deep subprime credit scores were 2.4% delinquent two quarters after origination, which is a 33% increase from the previous five-year high set in 2020.

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U.S. bank CEOs set for congressional grilling by Democrats and Republicans

WASHINGTON, Sept 21 (Reuters) - The chief executives of JPMorgan, Bank of America, Citigroup, Wells Fargo and other major U.S. banks are set to be grilled by both Democratic and Republican lawmakers on Wednesday on the economy, consumer protections and the lenders' stance on fossil fuel lending and firearms, among other issues.

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CFPB Launches Effort to Spur New Opportunities for Homeowners in the Mortgage Market

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) is asking for public input on ways to spur new mortgage products that help households. The CFPB seeks insights on ways to improve mortgage refinances for homeowners who would benefit from refinancing, especially for borrowers with smaller loan balances. The agency also seeks public input on ways to support automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions.

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Portfolios For Sale

 
$758,858,462 Auto Deficiencies
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(617) 595-5794

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$6,062,075.19 Payday Loans
BAL Financial LLC

(617) 595-5794

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$1,128,554.24 Other
Sea Side Management, LLC

(800) 917-7183

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Industry Events

 
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