Understanding the Minnesota Debt Fairness Act: Medical Debt Collection Reforms Effective October 2024 

As of October 1, 2024, significant reforms related to medical debt collection under the Minnesota Debt Fairness Act are set to take effect. Here’s an overview of the critical components and how they will impact healthcare providers, debt collectors, and consumers.  Key Sections Taking Effect in October  Publicly Available Medical Debt Collection Policies (Section 26 [62J.806])    This section mandates that healthcare providers must make their medical debt collection policies […]

Agency Selection:  Fallacies, Theories & Fundamentals

Selecting the right recovery agency is a critical decision for any creditor, but it’s easy to fall into common traps that lead to suboptimal results. From assuming bigger is better to thinking aggressive sales tactics reflect the agency’s collection abilities, many misconceptions influence the selection process. This blog explores the fallacies that often cloud agency selection, the theories guiding agency performance, and the fundamentals you should consider to ensure you’re […]

CFPB’s Upcoming Proposed Rule on Data Brokers and Consumer Protection: Key Insights from Director Rohit Chopra

The Consumer Financial Protection Bureau (CFPB) is preparing to introduce a proposed rule regarding data brokers’ compliance with the Fair Credit Reporting Act (FCRA). Recent remarks by CFPB Director Rohit Chopra have shed light on the bureau’s intentions, emphasizing the heightened attention on how data brokers handle Americans’ personal information.  Background on the Upcoming Rulemaking  Director Chopra’s comments follow President Biden’s executive order aimed at preventing unauthorized access to Americans’ […]

CFPB’s Annual Report on Medical Debt: A Need for Caution 

The Consumer Financial Protection Bureau (CFPB) recently released its annual report to Congress on the Fair Debt Collection Practices Act (FDCPA), with a significant focus on medical debt collection and consumer complaints tied to health care providers’ financial assistance programs. However, concerns have been raised about the accuracy of some claims, which rely solely on reports from the CFPB’s Consumer Complaint Database.  Concerns Over Medical Debt Reporting  The CFPB’s report […]

FCC Seeks Feedback on Enhancing the Robocall Mitigation Database: What You Need to Know 

The Federal Communications Commission (FCC) has issued a call for public comments on a proposed rule aimed at improving the Robocall Mitigation Database. This database, established in 2021 under the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, requires voice service providers to track call authentication and ensure their services are not facilitating illegal robocalls.  Why It Matters  Although the database is primarily for voice service providers, professionals in […]

PHEAA Faces Legal Challenge Over Mishandling of Student Loans: A Closer Look

The Pennsylvania Higher Education Assistance Agency (PHEAA), operating under the name American Education Services (AES), is embroiled in a significant legal battle with the Consumer Financial Protection Bureau (CFPB). The CFPB’s lawsuit against AES centers on serious allegations concerning the management of private student loans, particularly those discharged in bankruptcy. Key Allegations in the Lawsuit   Ignoring Bankruptcy Discharges: The CFPB claims that AES has failed to implement effective policies or […]

FTC Announces Updated Fees for National Do Not Call Registry in FY 2025

The Federal Trade Commission (FTC) has updated the fees telemarketers must pay to access phone numbers listed on the National Do Not Call (DNC) Registry for fiscal year 2025, which begins on October 1, 2024. These fees apply to telemarketers who are required to check the registry to avoid contacting consumers who have opted out of telemarketing calls.  Telemarketers operating in the U.S. must download the DNC Registry numbers to […]

California Advances Bill to Protect Consumers from Medical Debt Credit Reporting

California’s legislature has passed a bill aimed at protecting consumers from having their medical debts reported to credit agencies. Senate Bill 1061, sponsored by State Senator Monique Limón (D-Santa Barbara) with support from California Attorney General Rob Bonta, has cleared both the Assembly and Senate, making it eligible for approval by Governor Gavin Newsom.  Legislative Approval and Key Provisions  Senate Bill 1061 was approved with significant margins—58-9 in the Assembly […]

CFPB Takes Action Against NewDay USA for Misleading Veterans on Loan Costs 

The Consumer Financial Protection Bureau (CFPB) has imposed a $2.25 million civil penalty on New Day Financial, operating under the brand NewDay USA, for deceiving veterans and active-duty servicemembers with misleading cost comparisons on cash-out refinance loans. The CFPB found that NewDay USA made these loans appear less expensive than they were, particularly in North Carolina, Maine, and Minnesota, by omitting certain costs in their comparisons. This led many borrowers […]

Vendor Management: Audit Sampling and Intuitive Judgment 

For years, when assessing third-party collection vendor performance, I have tried to come up with a better word than “audit”.  Much of the time, the audit word conjures up a negative impression, and I think of the audit as a tool for communication and effectiveness between the vendor, in this case, the collection agency, and the client.  By verifying that performance aligns with contract expectations, and work effort meets expectations, […]