Article archive
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LicensingMaryland Bond Amounts Set to Increase January 1, 2019
Maryland Bond increase will impact new licenses and renewals effective January 1, 2019. The Commissioner of Financial Regulation in the Maryland Department of Labor, Licensing and Regulation announced this week that there are mandatory increases to the bond amounts for Maryland Consumer Loan, Installment Loan, and Credit Services Business Licenses. The change becomes effective January [...]
LicensingNavigating Corporate Changes for Debt Collection Licensing
Is your company going through changes that may require actions to maintain your collection licensing? Here are some of the most common corporate changes that could impact your collection licensing: Navigating Changes Cornerstone Support has established a reputation over 20+ years as the premier licensing service provider to the collection industry. We've frequently had requests to [...]
From the Desk of the RegulatorHurricane's Florence Impact on North Carolina and Collections Activity
North Carolina: Collections Activity Impacted in the Wake of Hurricane Florence On September 17, 2018 North Carolina Department of Insurance Commissioner, Mike Causey, has issued an amended order to NCGS58-2-46, providing for state of disaster automatic stay of proof of loss requirements, premium and debt deferrals. Premium finance companies, collection agencies and other persons [...]
LicensingGovernor Signs Amendment Regarding Student Loan Servicing Laws
Update: California Governor Makes Law Change favoring Debt Collectors On Friday September 14, California Governor, Jerry Brown, signed into law Assembly Bill 38. This amendment to the "California Student Loan Servicing Act" clarifies that debt collectors who collect on defaulted student loans are NOT student loan servicers. This clarification was important because on July 1, [...]
Licensing5 Compelling Reasons To Outsource Collections Licensing
What are the Benefits of Outsourcing Collections Licensing? Navigating the landmines of state license regulations requires an abundance of time and focused energy to stay current and compliant. Licensing requires that you keep your eye on shifting legislation and knowing the pitfalls of sometimes silly and costly mistakes that generate costly fines and "earnings" downtime.. [...]
LicensingLicensing 101
No two licensing projects are exactly alike. In order to develop the licensing strategy that couples the technical requirements imposed by the states with the intangible benefits of properly positioning you in a very competitive market, the following questions must be answered: Who do you expect to be serving? Identify what types of credit grantors you are [...]
LicensingHow Will a Supreme Court Shift Impact the Collection Industry?
As Kavanaugh Looks to Replace Kennedy on the Supreme Court, What Will be the Impact on the Collection Industry? By Caren D. Enloe (originally posted on Minnlawyer.com) When news broke that Justice Kennedy would be retiring after a thirty-year career as the swing vote on an increasingly partisan Supreme Court, attention immediately focused on who [...]
LicensingNew Colorado Website Requires Updated Communication to Consumers
Communication with Colorado Consumers must reflect the new website: www.coag.gov/car Greetings, It has recently come to our attention that some collection agencies may be using an outdated website address in communication with Colorado consumers in connection with debt collection. The website address (WWW.AGO.STATE.CO.US/CADC/CADCMAIN.CFM) listed in § 5-16-105(3)(c) of the Colorado Fair Debt Collection Practices Act [...]
LicensingConnecticut to License US Locations Only
Update regarding new law: Connecticut to take a NO ACTION POSITION for Qualified Collection Agencies Earlier in August we reported that Connecticut had signed into law an Act that, among other things, stated that the Connecticut Department of Banking would no longer issue consumer collection agency licenses to an office outside of the United States [...]
LicensingCalifornia updates Student Loan Servicing Laws
Update: California Governor Makes Law Change favoring Debt Collectors On Friday September 14, California Governor, Jerry Brown, signed into law. This amendment to the "California Student Loan Servicing Act" clarifies that debt collectors who collect on defaulted student loans are NOT student loan servicers. This clarification was important because on July 1, 2018 student loan [...]
LicensingDo You Have a Fully Developed Cybersecurity Approach?
People, Processes, and Computer Technology: Three Essential Parts of Your Security Program to Protect Non-Public Personal Information. Introduction: Information Security is a Program, Not a Product "If you think security is a technology problem, then you don't understand the problem, and you don't understand technology."- Bruce Schneier, Computer Security Professional. Every "financial institution" (including third-party [...]
LicensingThe Facts: Licensing Your Branch
Cornerstone Support receives frequent requests from agencies in need of assistance related to their state collection licenses. While requests come from agencies with an array of licensing concerns, one we often assist with is branch licensing compliance. Whether neglected or simply misunderstood, licensing branch locations continues to be an area in need of improvement. Although incorrect, [...]
Debt Collection & BuyingDebt Collection Bonding Requirements in New York City
A question we hear on a regular basis regarding collections in New York City is, "Is there a surety bond requirement that accompanies the license requirement?" The broad answer is "yes" - there is a debt collection bond requirement in NYC. But there is a huge caveat. The bond is only required for agencies that [...]
ComplianceWhat Does it Mean to be Compliant in Today's ARM Industry?
Back in 1964, the Supreme Court heard arguments in the case of Jacobellis v. Ohio. The case, which centered around the First Amendment, involved the manager of a theater in Cleveland Heights, Ohio, who wanted to show a film, "The Lovers." The state of Ohio had deemed the film to be obscene and Nico Jacobellis [...]
LicensingWhen is Safe Harbor Language Not a Safe Harbor?
Section 1692g requires debt collectors to disclose, among other things, the "amount of the debt" a consumer owes. See 15 U.S.C. § 1692g(a)(1). While seemingly simple, this requirement can become thorny when the amount of the debt is subject to fees, interest, and other charges which can increase the amount of the debt owed daily. [...]
LicensingDebt Collection Licensing Strategy
First The agency should identify the states where they are currently communicating with or anticipate communicating with debtors. The statutes are consistently clear among the respective jurisdictions that communicating with a debtor, whether by phone or mail, without being licensed is a violation of the law. The penalty for such violation varies significantly from state [...]
LicensingOutsourcing
The number of conversations I have with agencies regarding the basic tenets of outsourcing is interesting. While most conversations are specifically related to licensing, more often than not, I find myself talking through the more general advantages of outsourcing - those benefits inherent to the idea of outsourcing regardless of industry. While the next few [...]
LicensingDo Minority Ownership Changes Impact Licensing?
Changes to the ownership structure of a licensed collection agency occur for a variety of reasons and are a regular part of the corporate life cycle. Unfortunately, the statutory regulations for the majority of jurisdictions prohibit the transfer of debt collection licenses. Furthermore, the inflexible language of the provisions, in almost all instances, does not [...]
LicensingYou Can't Outsource Risk
Since the burden of compliance flows upstream and you can no longer simply outsource risk downstream it is now imperative that credit grantors and debt buyers understand the state licensing requirements of all their downstream partners and develop a process to make sure that they remain in compliance at all times. Before we move forward [...]
BondsMaryland Bonds in NMLS
The state of Maryland is one of the states that has transitioned many of their bonds to NMLS. They are strongly encouraging current licensees to adopt the electronic bond format and requiring that all new applications be electronic. Look at the checklist below to make sure you are compliant and can avoid time-consuming and costly [...]
LicensingOutsourcing: Why Should I and How Do I?
Why Do I Need To Outsource? I'm always fascinated by the number of conversations that I have with agencies regarding the basic tenets of outsourcing. While my conversations are specifically related to licensing, more often than not I find myself walking through the more general advantages of outsourcing - those benefits inherent to the idea [...]
LicensingWhy Do I Need Errors and Omissions Insurance?
Mistakes happen. It's true in every facet of life, and that includes business. Unfortunately, any professional can be sued or held liable for mistakes made in the course of conducting business. In our highly litigious society, errors and omissions insurance is a good idea for many types of businesses. But in the collections industry, this [...]
LicensingLicensing as Debt Buyer: Who to Trust?
Debt Buyer Licensing Requirements by State Although knowing how to license as a debt buyer has always been a challenge, it certainly isn't getting easier. The list of potential licenses that might apply to debt buyers is continually expanding, and the plaintiff's bar continues to pursue licensing related cases against debt buyers. In addition, courts [...]
LicensingWhy Start a Company in a Regulated Industry?
We are nearing the end of the sales pitch, and the exec I'm speaking to is almost convinced. I feel it: he likes the product and likes the innovation but he has to ask; he can't let me off the hook. He leans forward and looks me right in the eyes. And then it [...]