CFPB Seeks Public Input on Addressing Coerced Debt in Credit Reporting 

The Consumer Financial Protection Bureau (CFPB) is requesting public comments as it prepares a proposed rule to address issues surrounding coerced debt and its impact on credit reporting. The initiative aims to amend certain provisions within Regulation V, which implements the Fair Credit Reporting Act (FCRA), to better protect consumers.  This request, known as an advance notice of proposed rulemaking (ANPR), focuses on updating the definitions of “identity theft” and […]

If You Knew the Outcome of an Onside Kick, Wouldn’t That Make Your Strategy So Much Easier? 

My husband is a life-long Detroit Lions fan, and as season ticket holders, we’ve witnessed our fair share of heartbreak and triumph. At a recent game against the Buffalo Bills, as I watched the strategy and execution unfold on the field, it struck me—being part of an NFL team isn’t so different from auditing collection agencies and repossession forwarders. Think about it:  Creditors are the offense, driving the action and […]

Why a Statistically Valid Sample Isn’t Always Necessary

When auditing collection agencies or repossession forwarders, one common question arises: “Do I need a statistically valid sample?”  The short answer: No. While a statistically valid sample can be useful in some contexts, it’s not always practical or necessary in this heavily regulated industry. Instead, a categorical sampling approach often proves more effective. Here’s why. The Case for Statistical Sampling  A statistically valid sample is typically calculated using tools like […]

CFPB Secures $1.8 Billion Relief Fund Distribution Following Action Against Lexington Law and CreditRepair.com 

The Consumer Financial Protection Bureau (CFPB) has finalized a significant enforcement action against Lexington Law and CreditRepair.com, two of the country’s largest credit repair companies. In August 2023, the CFPB obtained a $2.7 billion judgment against these companies for violating federal consumer protection laws. By December 2024, the CFPB began distributing $1.8 billion to 4.3 million consumers from its victims relief fund, representing the largest distribution in the agency’s history. […]

Beware of the Year-End Goal-Setting Process 

Year-end goal-setting can be a tricky time, especially as a leader of a collections team. As the bank mapped out goals for the upcoming year, objectives like contractual losses or delinquency levels inevitably made their way onto the list for collections leadership. While these goals are undeniably important for the bank’s overall success, I often struggled to fully support them as key performance targets for collection supervisors and managers.  In […]

New York Updates Fair Medical Debt Reporting Act: Key Details 

Governor Kathy Hochul recently approved an important update to New York’s Fair Medical Debt Reporting Act, aimed at resolving ambiguities and strengthening consumer protections. The amendment, signed on November 22, 2024, took effect immediately and applies retroactively to the law’s original implementation date of December 13, 2023.  Refining the Definition of Medical Debt  The amendment, introduced through SB 8373, clarifies the definition of “medical debt” to ensure consistency across state […]

“It’s in the Contract” Is Not an Auditing Method

Relying solely on a contract as a means of oversight is like assuming that having speed limit signs eliminates the need for traffic enforcement. A contract might outline the expectations and responsibilities, but it’s not enough to ensure compliance or effectiveness. In the realm of audits—whether you’re assessing internal operations, third-party vendors, or even a fourth party hired by a third party—simply pointing to contractual clauses is not an adequate […]

Seeing Beyond the Surface: Why Fourth-Party Audits Matter in Debt Collection

As a creditor managing third-party collection vendors, ensuring their compliance and effectiveness is critical to protecting your brand, customers, and bottom line. But have you considered the risks posed by their vendors? These subcontractors, known as fourth parties, often play integral roles in service delivery but can introduce significant risks that ripple through your operations.  In this blog, we explore why auditing fourth-party vendors is essential and provide some practical […]

FCC Receives Mixed Feedback on Proposed AI Communication Rules 

The Federal Communications Commission (FCC) is facing mixed reactions to its proposed rules for regulating artificial intelligence (AI) in communications. The draft rules aim to address potential issues with AI-generated calls while keeping pace with the rapid development of AI technology.  What the Proposed Rules Cover  The FCC’s proposal focuses on outgoing calls that use AI-generated voices, such as voice cloning technology, which has the potential to mislead consumers. However, […]

CFPB Finalizes Rule to Supervise Large Digital Payment App Providers

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to oversee the largest nonbank companies offering digital payment and wallet services. This rule targets companies handling over 50 million transactions annually, ensuring they adhere to federal laws similar to those governing banks, credit unions, and other financial institutions under CFPB supervision. Collectively, the apps covered by this rule process more than 13 billion consumer transactions each year.  Although the […]