At a glanceWednesday, October 05, 2022

Collection Industry News At A Glance - October 5, 2022
Wednesday October 5, 2022
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Colorado AG Weiser Issues Remote Work Guidance for Licensed Lenders

In June 2022, Colorado enacted HB22-1410, a law governing remote work for licensed lenders. Specifically, the law amends the Uniform Consumer Credit Code by permitting employees of a supervised lender to work remotely. A “remote location” is defined in the law as “a private residence of an employee of a licensee or another location selected by the employee and approved by the licensee.”

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OCC Advises “Careful and Cautious” Approach to FinTech-Bank Partnerships

On Wednesday, September 7, 2022, acting Comptroller of the Currency Michael J. Hsu gave remarks in New York City at the Clearing House + Bank Policy Institute Annual Conference. Hsu’s remarks, “Safeguarding Trust in Banking: An Update,”[1] were focused on measures the Office of the Comptroller of Currency (OCC) is taking to build stronger trust among consumers in the banking system.

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FCC Adopts NPRM to Address Spam Text Messages

The Federal Communications Commission released a notice of proposed rulemaking (NPRM) seeking comment on regulations it could adopt to reduce spam and scam text messages. The FCC noted that the number of illegal, unwanted texts has grown significantly over the last few years.

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Here are 3 major ways debt can affect your ability to buy a home

If you’re preparing to buy a home in the future, you likely have a laundry list of things you need to do to get ready — and that includes getting your finances in tip-top shape. Aside from double checking your credit score and credit report and making sure you have enough money saved up to purchase in your desired market, you should also consider the ways your current debt balance might affect your ability to buy a home.

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Is mandatory password expiration helping or hurting your password security?

For decades cybersecurity professionals held tight to the idea that passwords needed to be changed on a regular basis. In recent years, however, organizations such as NIST and Microsoft have abandoned this longstanding best practice and are now recommending against mandatory password expiration.

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CFPB issues Student Loan Servicing Special Edition of Supervisory Highlights

Last week, the CFPB issued a “Student Loan Servicing Special Edition” of Supervisory Highlights.  In this blog post, we highlight a stealth expansion of supervisory jurisdiction and focus on the CFPB’s findings in two key areas:

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CFPB Takes Action Against Choice Money for Remittance Failures

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) is taking action against Choice Money Transfer (Choice Money) for multiple violations of the Remittance Transfer Rule and the Electronic Fund Transfer Act (EFTA). The CFPB found the company did not accurately disclose important prepayment information to remittance senders, such as money transfer fees, current exchange rates and the date the recipient would receive the funds. The company also had deficient recordkeeping practices that made it difficult for consumers to dispute erroneous transactions and receive a refund of certain fees. The CFPB is ordering Choice Money to pay a $950,000 penalty that will be deposited into the CFPB’s victims relief fund.

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Certain Mortgage Communications Must Comply with Both the Truth in Lending Act and the Fair Debt Collection Practices Act

The Eleventh Circuit has held again that certain mortgage servicing communications required under the Truth in Lending Act (TILA) and sent to a borrower also can be subject to the Fair Debt Collection Practices Act (FDCPA).  Lamirand v. Fay Servicing, LLC, 38 F.4th 976 (11th Cir. 2022).  The court vacated an order dismissing the complaint filed by borrowers who received monthly mortgage statements containing payment terms that contradicted the terms of a prior settlement.

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The FTC Thinks B2B ‘Customers’ Are ‘Consumers’

The FTC’s consumer protection enforcement is evolving to include small businesses, explain Mayer Brown attorneys Christa Bieker and Christopher Leach. The commission is going after a number of business-to-business areas, including the gig economy, small business lending, and payment processors, and is looking to expand its B2B coverage to more areas.

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Auto Loan Interest Rates Climb to Highest Level Since 2019 in Q3, According to Edmunds

SANTA MONICA, Calif., Oct. 3, 2022 /PRNewswire/ -- Consumers are digging deeper into their pockets to finance new vehicles, according to the car shopping experts at Edmunds. New data from Edmunds reveals:

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Attorney General James Delivers $2 Million to Erie County to Bolster Consumer Protection Programs

NEW YORK – New York Attorney General Letitia James today delivered $2 million to Erie County to bolster consumer protection programs in Western New York. The funding comes from a previous action that Attorney General James took to shut down a predatory debt collection operation that preyed on consumers nationwide.

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Five things to do to protect yourself online

Your online accounts, computer, and phone hold a lot of your personal, financial, and health information. Information that’s valuable to you — and to scammers who try to steal it. Here are five things to do to keep hackers out of your accounts and your personal business.

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Credit Unions In Nevada

As with most sectors in the financial industry, Nevada credit unions are in the midst of change. COVID accelerated multiple trends credit unions were already experiencing, many of which are tied to the growing preference of customers to use mobile banking and the resulting drop in branch visits and necessary cyber security upgrades.

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After a summer season where most litigation was either consistently down or only marginally increasing, August litigation and consumer complaints rebounded with double-digit increases across the board.

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How JPMorgan Chase allots its $14B IT budget

Hybrid cloud infrastructure, digital products and services, predictive analytics, data security, software development and roughly 6,000 apps. Those are some of the larger line items in the $14 billion 2022 IT budget Lori Beer, JPMorgan Chase’s global CIO, oversees — along with a little research-and-development spend on metaverse technologies.

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TCPA Litigation Update — Good News for Defendants Facing Claims Under Florida’s Mini-TCPA

Since the beginning of 2022, dozens of Florida Telephone Solicitation Act (“FTSA”) claims have been filed. The FTSA and related case law have been bad news for defendants. The FTSA is significantly more restrictive than the TCPA because it contains an overly broad definition of “autodialer” that looks at any system that either automatically dials or selects phone numbers to be dialed; unlike the TCPA, no random or sequential number generator needs to be used.

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FTC calls attention to buy-now-pay-later compliance issues

In a new blog post, “Buy now, pay later – and comply with the FTC Act immediately,” the FTC reminds nonbank participants in the buy-now-pay-later (BNPL) market, such as retailers, BNPL providers, marketers, and debt collectors, that they can be liable for violations of Section 5 of the FTC Act based on the information they communicate to consumers and how they communicate such information.

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California Passes New Requirements for Call Center Employers

On September 29, 2022, California passed Assembly Bill (AB) 1601, which requires an employer of customer service employees in a call center to comply with the California Worker Adjustment and Retraining Act (Cal/WARN) requirements prior to a mass layoff, relocation, or termination of employees

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33% of Americans anticipate going into debt after splurging on their favorite sports teams

Americans are willing to spend a good amount of money on their favorite sports teams. Tickets for Super Bowl LVI sold for an average of around $9,500, according to TicketIQ, for example. And this fall, 33% of Americans are anticipating going into debt after splurging on their favorite teams.

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A financial toolkit for victims of hurricanes Fiona and Ian

When a catastrophe like Hurricane Fiona or Hurricane Ian happens, your world can be turned upside down. During these tough times, it may be difficult to know who to trust and where to look for guidance and assistance, as well as what financial steps to take as you begin recovering.

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Student loan scammers are circling. Keep them at bay

With the recent announcement of the one-time federal student loan debt relief plan, we knew scammers were on their way. Well, they’re here. The application for debt relief is rolling out any day now, so focus on getting information directly from the Department of Education.

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Suit Over CFPB Anti-Discrimination Stand Is ‘Tip of the Iceberg’

A banking industry lawsuit against the Consumer Financial Protection Bureau over new anti-discrimination guidelines will likely spur more challenges to the agency’s fast-paced actions to rewrite rules.

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U.S. Department of Education Estimate: Biden-Harris Student Debt Relief to Cost an Average of $30 Billion Annually Over Next Decade

In August, the Biden-Harris Administration announced its plan to cancel up to $20,000 in student debt for eligible borrowers to give working and middle-class families more breathing room as they recover from the pandemic. Today, the U.S. Department of Education (Department) released its estimate of the costs of the Biden-Harris Administration's Student Debt Relief. The Department estimates that one-time student debt relief will cost an average of $30 billion a year over the next decade.

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CoreLogic: Estimated Losses from Hurricane Ian Wind, Storm Surge are Between $28 Billion and $47 Billion in Costliest Florida Storm Since Hurricane Andrew

IRVINE, Calif.--(BUSINESS WIRE)--CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today announced residential and commercial wind and storm surge loss estimates for Hurricane Ian. According to this new data analysis, wind losses for residential and commercial properties in Florida are expected to be between $22 billion and $32 billion. Insured storm surge losses in Florida are expected to be an additional $6 billion to $15 billion.

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CFPB Sues MoneyLion for Overcharging Servicemembers and Trapping Consumers in Costly Memberships

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) sued MoneyLion Technologies, an online lender, and 38 of its subsidiaries, for imposing illegal and excessive charges on servicemembers and their dependents. The CFPB alleges that MoneyLion violated the Military Lending Act by charging more than the legally allowable 36% rate cap on loans to servicemembers and their dependents, through a combination of stated interest rates and monthly membership fees.

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Populus Financial Group moves for dismissal of CFPB lawsuit and stay pending Fifth Circuit decision

Populus Financial Group, Inc., which does business as ACE Cash Express, has filed a motion to dismiss the lawsuit filed by the CFPB in July 2022 against Populus in a Texas federal district court in which the CFPB alleges that Populus engaged in unfair, deceptive, and abusive acts or practices by concealing the option of a free repayment plan to consumers and making unauthorized debit-card withdrawals.

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Feds slam N.J. bank for discriminatory lending, reach $13M settlement

A New Jersey bank has been ordered to pay $13 million to settle allegations that it avoided opening branches in Black and Hispanic communities in the Newark area and giving mortgages to people of color, federal authorities announced Wednesday.

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3rd Cir. Holds Pennsylvania Consumer Discount Company Act Does Not Apply to Mere Debt Buyers

The U.S. Court of Appeals for the Third Circuit recently affirmed a trial court’s dismissal of a putative class action complaint alleging that the defendant debt buyer violated the federal Fair Debt Collection Practices Act (FDCPA) by trying to collect interest supposedly in excess of limits imposed under Pennsylvania law.

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CFPB Supervisory Examinations Find Violations of Federal Law by Student Loan Servicers and University-Owned Lenders

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a special edition of Supervisory Highlights on recent examination findings covering the practices of student loan servicers, and schools that lend to students directly. The exams found that these schools had improper blanket policies of withholding transcripts to force students to make payments. 

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Eight states file enforcement actions against crypto-lending platform Nexo

Eight states announced on Monday they’re bringing actions against the crypto-lending platform Nexo Group in connection with its unregistered, interest-bearing cryptocurrency product.

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CFPB sued over unlawful mortgage transparency rule

US trade groups have taken the Consumer Financial Protection Bureau (CFPB) to court for acting unlawfully in issuing an anti-transparency rule for mortgage lenders. Chief district judge Beryl Howell ruled that the CFPB overstepped its authority when it issued the Home Mortgage Disclosure Act (HMDA) in 2020, exempting 5% of all mortgage lenders from reporting critical data under the designed to prevent potential discrimination and redlining in banking services.

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Examining the potential impact of high vehicle costs on Americans with deep subprime credit scores

Vehicle prices have increased dramatically since 2019. In a recent blog post, other experts at the CFPB examined the potential impacts of these cost increases on consumers using information in consumer credit reports. This information is available through our Consumer Credit Panel (CCP), a deidentified sample of records from one of the three nationwide consumer reporting agencies.

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Regions Bank Comments on Settlement with the Consumer Financial Protection Bureau

BIRMINGHAM, Ala.--(BUSINESS WIRE)--Regions Bank today commented on a settlement announced by the Consumer Financial Protection Bureau (CFPB) on Sept. 28 regarding one type of overdraft fee the bank stopped charging over a year ago. As part of the settlement, Regions will pay a $50 million civil monetary penalty and provide customer redress of approximately $141 million; the financial impact of the settlement will be reflected in the company’s results for the third quarter of 2022.

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Westlake Financial to Pay Over $225,000 to Resolve Servicemembers Civil Relief Act Claims

The Justice Department today announced that Westlake Financial has agreed to pay over $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.

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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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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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Help us spur new opportunities for homeowners in the mortgage market

Mortgage payments are often a household’s single largest expense, so the terms of a mortgage greatly impact a household’s financial stability. When interest rates decline, many borrowers benefit from the lower rates by refinancing their loans. However, mortgage refinancing can be harder to access for borrowers with smaller loan balances. Black and Hispanic borrowers, who on average have smaller loans, have not participated in recent refinance booms at the same rate as white borrowers.

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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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Industry Events

ACA 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