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Compliance12 Key Requirements of the FTC's Updated Safeguards Rule
The FTC's updated Safeguards Rule sets 12 specific security requirements for financial institutions under the Gramm-Leach-Bliley Act. Here is what each one asks for and who has to comply.
LicensingARM Deal Activity Slows as Companies Evaluate Their New Normal
By, Michael Lamm, Managing Partner, Corporate Advisory Solutions, LLC In Q3 2022, merger and acquisition deal volume in the Accounts Receivable Management (ARM) vertical experienced one of the slowest quarters since the start of the pandemic in Q1 2020. The industry saw a 50% decrease in Y-o-Y deal volume compared to Q3 2021 and a [...]
LicensingOne Year into Regulation F: Reflecting on Its Impact So Far
We are about one year into the implementation and enaction of Regulation F upon the accounts receivable industry. From the scramble to prepare model validation notice letters by November 30, 2021 to the present, has it played out as you expected? A Brief Background The Consumer Financial Protection Bureau ("CFPB") was established July 21, 2011 [...]
LicensingWhat is to Become of the CFPB? How will the ARM Industry Respond?
It took only three months for the dust to settle after the West Virginia v. Environmental Protection Agency [i] ("EPA") decision by the United States Supreme Court for the Consumer Financial Protection Bureau ("CFPB" or "Bureau") to see two (2) major challenges to its authority. First, on September 28, 2022, the U.S. Chamber of Commerce [...]
InsuranceCFPB's Statement on Data Security Signals new Compliance Concerns
Insufficient data protection or information security can violate the prohibition against unfair acts or practices according to a circular released last week by the federal Consumer Financial Protection Bureau. This position is not new, as the Bureau has been pursuing covered entities for lax data security measures for some years. In 2016 the Bureau brought [...]
LicensingOnly Make Privacy Promises You Can Keep: Data Security and Cyber Readiness - Top Regulatory Priorities
Regulators at the federal and state levels are focused on non-banks' cyber-readiness. In August 2022, the Consumer Financial Protection Bureau (CFPB) released circular 2022-04, confirming that a company's failure to safeguard consumer information, even if unintentional, could count as an unfair act or practice. Here is what the rule signals and how firms can prepare.
LicensingThe Supreme Court Charts a New Course for Regulatory Scrutiny: Is the CFPB Next?
In one of the last decisions issued from its 2021-2022 term, the Supreme Court in West Virginia v. Environmental Protection Agency ("EPA") found that the EPA exceeded its authority under the Clean Air Act with respect to carbon emissions limits for power plants. The Court invoked the "major questions doctrine" ("doctrine") to reach its decision. [...]
ComplianceAddressing the Wire Transfer Scam Threat
Business Email Compromise Schemes Threaten Funds Transfers As updated statistics from the FBI's Internet Crime Complaint Center show, business email compromise (BEC) schemes increasingly put funds transfers at risk. Between June 2016 and December 2021, reported exposed dollar loss associated with BEC schemes was greater than $43 billion. Now more than ever organizations and individuals [...]
LicensingThe Changing Landscape for Collection Agencies
A Greek philosopher notably observed that the only constant in life is change. And so goes the collection industry. Just when collection agencies thought they could breathe a collective sigh of relief after implementing Regulation F, new state and federal statutes and regulations have come to the fore which potentially impact collection agencies. This article [...]
LicensingUnderstanding Insurance: How to Best Protect Your Collection Business
The global cyber insurance market is expected to grow by 25 percent in the next six years. That indicates the serious risk your business faces from surging cyber threats and data breaches. Do you operate a collection agency, and you want to ensure you have the right insurance coverage? Understanding insurance coverage options can help [...]
LicensingAll that Glitters is Not Gold: The CFPB and the State of Maryland on Charging "Pay-to-Pay" Fees
In January, 2022, the Consumer Financial Protection Bureau (the "Bureau") launched an initiative to examine situations in which Americans are charged billions in junk fees. In support of this initiative, the Bureau published a request for information [1] seeking comments from the public related to fees that are not subject to competitive processes that ensure [...]
LicensingHelpful Insights for Debt Buyers
5 TIPS FOR MITIGATING RISK WHEN BUYING DEBT The regulatory landscape in the debt industry is ever-changing, so it's critical that all players, including debt buyers, understand and implement the proper policies and technologies, and partner with the right vendors to ensure they are always compliant. In today's increasingly complex world, there is more [...]
LicensingWhat Is Debt Collection Insurance?
Insurance is critical for protecting the investment you've made in your business. This is especially true when starting a collection agency or debt buying firm. While there is not a single specific product for debt collection insurance, there are several important types of insurance policies that you will need to guard against possible claim scenarios. [...]
LicensingMedical Debt is Top of Mind for Law Makers and Law Enforcers
An Apple a Day Might Keep the Doctor Away, But Medical Debt is Top of Mind for Law Makers and Law Enforcers ... For companies providing revenue cycle services to healthcare providers - services including coding, billing, collections, extended business office or outsourced business or patient support services, this is an important time to review [...]
LicensingReg F Imputed Permission to Contact by Email
Reg F imputed permission to contact by email Agencies and debt buyers would like to take advantage of all forms of collection communication. In order to effectuate collection by e-mail, it may not be practical to independently establish permission to utilize email. Regulation F sets forth the requirements to ensure that the electronic permission received [...]
LicensingTo Outsource or In-Source? The Top 5 Questions to Ask When Considering Outsourced Compliance Licensing
The Top 5 Questions to Ask When Considering Outsourced Compliance Licensing Companies in heavily regulated industries are often surprised at the breadth and complexity of their compliance requirements, especially licensing and the tasks related to licensing. After working through the registration or licensing process in their own state, the idea of obtaining and maintaining licensing [...]
LicensingThe ARM Industry Reaches an Inflection Point - Reg F Anticipated to Drive More M&A Activity
In Q3 2021, CAS witnessed ARM players dedicate a significant amount of time and resources to prepare for the implementation of Regulation F on November 30, 2021. This is a massive regulatory overhaul that will have reverberations across the industry for quarters to come. Implementation of Regulation F To start, one of the largest announcements [...]
LicensingThe Final Countdown to the Effective Date: Ten Tips for a Smooth Implementation
The Final Countdown to the Effective Date: Ten Tips for a Smooth Implementation By Caren D. Enloe On November 30th, the CFPB's Debt Collection Rule (the "Rule") will take effect. While the industry has spent most of the past two years preparing for this date, implementation is finally here. Here are Ten Tips for a [...]
LicensingReconciling the "Rule" Requirements with State Requirements
Reconciling the "Rule" Requirements Where the Rubber Meets the Road By Caren D. Enloe For the past year, the industry's attention has been focused on the Debt Collection Rule (the "Rule"), its changes, and the new expectations it will place on debt collectors; but as the rubber meets the road, collection agencies and other debt [...]
LicensingGet your Questions Answered about the California Debt Collection License Application
Part 1 - Everything You Need to Know about the California Debt Collection License Application - September 2, 2021 Part 2 - California Debt Collection Licensing Application Q&A - October 4, 2021 Click here to rely on the experts for this license
LicensingCrucial Conversations for a Smooth Transition to Reg. F
Crucial Conversations for a Smooth Transition to Reg. F By Caren D. Enloe With the CFPB having decided to leave the effective date of the Debt Collection Rule as November 30th, the push is on for debt collectors to ensure their compliance with the Rule by that date. As debt collectors make the final push [...]
LicensingConsiderations when Completing the California Debt Collection License Application
On September 1, 2021, the California Department of Financial Protection and Innovation (DFPI) began accepting applications for debt collection licenses under the Debt Collection Licensing Act. This article walks through the information you must provide in the application and in the NMLS, plus key considerations for completing it accurately.
LicensingDebt Collection Licensing is Coming to California. Are You Ready?
Debt Collection Licensing is Coming to California. Are You Ready? Beginning January 1, 2022, the California Department of Financial Protection and Innovation (DFPI) will require all debt collectors operating in California to be licensed under the Debt Collection Licensing Act ("DCLA"). However, DFPI will be accepting applications starting September 1, 2021. Under the DCLA, "debt [...]
Licensing2021 Cybersecurity Risks & Trends for the ARM Industry
The ARM industry runs on data and information management. Debt collection and debt buying firms, collection law firms, and repossession partners all control or process large volumes of sensitive personal information. The industry is ready to use the benefits of digital innovation, but ransomware, hybrid work, and an evolving risk landscape make attention and planning worthwhile now.