Federal Court Ruling on Language Accessibility in New Jersey’s Fair Credit Reporting Act 

A federal district court recently addressed a complex issue involving New Jersey’s Fair Credit Reporting Act and its implications for national credit reporting agencies (CRAs). The law, amended in 2019, mandated that CRAs provide credit file disclosures in English, Spanish, and at least 10 other languages upon consumer request.   However, this requirement faced legal challenge from the Consumer Data Industry Association (CDIA), representing major CRAs like Equifax, Experian, and TransUnion. […]

Auditing Policy and Procedures of Collection Service Providers

The Consumer Financial Protection Bureau (CFPB) emphasizes the importance of institutions managing relationships with service providers to ensure compliance with Federal consumer laws. Verification of an established Compliance Management System (CMS) is crucial, as it serves as the framework for compliance oversight at the service provider. A robust CMS relies on effective policy and procedure management to guide all employees on adhering to the service provider’s processes.  Let us look […]

Two Supervisory Highlights for Spring 2024

The Consumer Financial Protection Bureau (CFPB) has released two Supervisory Highlights for Spring 2024, covering Fair Credit Reporting Act (FCRA) Compliance, Supervision, Credit Reports, Scores and Identity Theft and Mortgage Servicing, Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs), Deceptive Practices, and Mortgages. These Supervisory Highlights identify various issues and offer guidance to organizations on ensuring compliance with federal regulations concerning credit reporting and mortgage loan operations.  If your focus […]

California Attorney General Takes Aim at Surprise Bank Fees: A Breakdown of the Letter

In a move aimed at protecting consumers, California Attorney General Rob Bonta issued a letter on February 20, 2024, directed at California-chartered banks and credit unions with assets under $10 billion. The letter highlighted the potential violation of California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA) by charging surprise overdraft fees and returned deposited item fees. Understanding the Legal Framework California’s UCL prohibits any business […]

Virginia Legislative Updates Impacting Collection Agencies: A Closer Look 

Virginia’s legislative session resumed this week, representing an important moment for collection agencies as they navigate amendments proposed by Governor Glenn Youngkin. One of the significant changes under scrutiny is the reevaluation of HB 34 concerning the statute of limitations for medical debt.  HB 34 Initially, HB 34 outlined a statute of limitations for medical debt collection contracts, setting a timeframe of three years from the due date on the […]

Adapting to Oregon’s New Wage Garnishment Law: Insights for Collection Agencies 

As a collection agency operating in Oregon, staying informed about legislative changes is important for navigating the evolving landscape of debt collection practices. Governor Tina Kotek’s recent signing of SB 1595 introduces multiple amendments to wage garnishment regulations, impacting how collection agencies operate within the state. Here’s why paying attention to this bill is essential and how it will affect collection agencies.  Understanding Revised Exemption Values SB 1595 raises the […]

Acceptable Performance – 50% of a Top Performer?

Consider this scenario: You hire a landscaper to mow your lawn for $100, but upon returning home, you realize the backyard has not been touched. Subsequently, you receive a bill for the full $100. How would you handle this situation?  Now, let us parallel this with collection teams. Is it fair for a collector to only deliver 50% of what the best performer achieves and still be deemed as meeting […]

Collection Agency Audits – Understanding AI’s Role without the Jargon

From A Non-AI Guru’s Perspective I am not an artificial intelligence (AI) guru. In fact, I am that annoying person who must use my watch to find my phone, only to discover it’s been in my pocket all along. What I do understand, however, is the intricate world of auditing Collection Agencies. My expertise lies in ensuring that these agencies have dedicated resources and oversight for all their processes.  What […]

Collection Agency Financial Transaction Audits for Non-Financial Individuals 

The term “financial transaction audit” might sound like a daunting phrase, particularly to those without a background in finance.  Trust me, I understand. I am not a CPA, nor do I hold a finance degree. However, through my experiences and research, I have come to realize that delving into financial transaction audits is not reserved solely for the financially savvy. In fact, non-financial individuals like me can navigate these audits […]

The Importance of Auditing Third-Party Collection Agencies and Closed Accounts 

In the landscape of financial management, one often encounters a critical yet frequently overlooked aspect: auditing closed accounts managed by third-party collection agencies. While this task may not be immediately captivating or urgent, neglecting it could potentially bring consequences if not handled properly.  Auditing Third-Party Collection Agencies: Why It Matters  Before going into the specifics of auditing closed accounts, first understand why auditing your third-party collection agencies could be considered […]