Major Enhancements to Nationwide Multistate Licensing System & Registry (NMLS) 

On July 20, the Conference of State Bank Supervisors (CSBS) rolled out the first phase of significant updates to the Nationwide Multistate Licensing System & Registry (NMLS). These updates aim to address common issues faced by professionals in the mortgage, consumer finance, debt, and money services industries who rely on NMLS for state licensing and federal registration management.  Key Benefits of the NMLS Updates  The enhancements will benefit over 600,000 […]

How Fudge Factors Distort Vendor Measurement 

In the world of data and metrics, the integrity of measurement methods can be easily compromised by various fudge factors, especially when dealing with third-party vendors. These subtle manipulations or adjustments, whether intentional or inadvertent, can significantly skew the results and paint an inaccurate picture of vendor performance. For instance, selecting specific data ranges that favor desired outcomes, omitting outliers that don’t fit the narrative, or tweaking algorithms to produce […]

Exploring the Impact of AI on Consumer Protection: FCC’s Upcoming Inquiry 

The FCC is gearing up to tackle a critical issue: the impact of emerging AI technologies on protecting consumers from unwanted and illegal phone calls and texts under the Telephone Consumer Protection Act (TCPA). As complaints about robocalls and robotexts top the charts, it’s more crucial than ever to stay updated on technologies that could influence consumer privacy.  This inquiry is a golden opportunity to gather insights on how AI […]

CFPB Highlights Debt Collection Issues in Latest Supervisory Report 

On July 2, the Consumer Financial Protection Bureau (CFPB) released its latest Supervisory Highlights report. This report presents findings from examinations of debt collection practices, loan servicing, and medical payment products, covering the period from April 1, 2023, to December 31, 2023.  Key Findings in Debt Collection Practices  The CFPB’s report identified several violations of Regulation F, which enforces the Fair Debt Collection Practices Act, among larger participant debt collectors.  […]

Addressing Medical Debt: Illinois’ New Laws and Relief Initiatives 

In a move aimed at reforming how medical debt is handled, Illinois recently enacted two pivotal laws during its legislative session. These measures, part of a broader trend across the United States, seek to regulate the reporting of healthcare-related debts by credit agencies, as well as provide significant relief for residents burdened by medical expenses.  Senate Bill 2933: Protecting Consumers from Unfair Credit Practices  One of the key legislative changes […]

The Work Around, Compliant? 

Everyone who has worked in collection operations knows what it is like to create workarounds for processes. Often, these processes are designed by corporate teams without a true understanding of operational realities. Cutting corners on lengthy scripts or using alternate approaches is common to save time or simplify execution. However, processes are designed to ensure compliance with policies and requirements. So, is your workaround still compliant?  An Example  In many […]

Navigating Debt Collection and Credit Reporting Disputes – A Look at Hammoud v. J.J. Marshall & Associates

This case highlights the complexities of legal disputes involving debt collection and credit reporting and underscores the importance of providing detailed evidence and understanding specific legal standards when pursuing such claims.  A consumer visited her primary physician, who recommended a colonoscopy and introduced her to Dr. Siddiqui, a gastroenterologist. Before meeting Dr. Siddiqui, the consumer signed a form allowing Dr. Siddiqui’s office to bill her for services. Dr. Siddiqui claimed […]

FTC Takes Legal Action Against Student Loan Scam Under New Impersonation Rule 

In a significant move to protect consumers, the Federal Trade Commission (FTC) has taken action against a fraudulent student loan debt relief scheme that deceived people out of over $20.3 million. This marks the first case under the FTC’s new Impersonation Rule.  What Happened?  A federal court has temporarily stopped the fraudulent operation and frozen its assets. The FTC’s complaint states that the company involved falsely claimed to be affiliated […]

Vendor Termination Basics – Prepare Now 

The due diligence required to hire a collection agency can be exhaustive.  Site visits, reference checks, policy and procedure reviews, cyber reviews, testing and more – and that’s not even counting the contracting phase. The last thing anyone wants to think about is termination preparations!  But, the time to think about termination is at due diligence and contracting.  Most creditors include a termination clause in their contracts with agencies.  Most […]

Public Comments Invited – CFPB Proposes New Rule on Medical Debt Reporting 

The Consumer Financial Protection Bureau (CFPB) is inviting public input on a proposed amendment to Regulation V, which enforces the Fair Credit Reporting Act (FCRA). This amendment focuses on medical information in credit reports and aims to enhance consumer protection regarding medical debt.  Key Changes in the Proposed Rule  The CFPB is looking to eliminate a current regulatory exception that allows creditors to obtain or use medical debt information when […]