Article archive
Every published article, newest first. Page 7 of 13.
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.
LicensingMulti-Factor Authentication: A Must-Have for Cyber Coverage
Over the last 18-24 months the rate of ransomware attacks has skyrocketed in both frequency and severity, driving significant changes in the cyber insurance marketplace. In years prior, cyber submissions were simple and it was easy to obtain bindable quotes from multiple markets. When it came to renewals, underwriting typically only required updates around major [...]
LicensingWill Hunstein Require a Reset?
Last month, the entire ARM industry was caught by surprise when the Eleventh Circuit held that a debt collector's transmittal of information to a third-party letter vendor violated Section 1692c(b) of the FDCPA. Hunstein v. Preferred Collection and Management Services, Inc., 2021 U.S. App. LEXIS 11648, 994 F.3d 1341 (11th Cir. 2021). While the case [...]
LicensingFinding Shelter in the Storm
Using the Bona Fide Error Defense with the Final Debt Collection Rule By: Caren D. Enloe The FDCPA provides a bona fide error defense for debt collectors who can show by a preponderance of the evidence that their violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably [...]
LicensingCornerstone's Strategic Assessment Services
As you are aware, each state has the right to enact its own set of debt collection laws and requirements. Most jurisdictions have very different licensing and registration requirements. Failure to comply with state licensing and registration requirements could prove costly (civil and/or administrative action, negative press, etc.) not only to the collection agency but [...]
LicensingAdjusting Procedures for Deceased Consumers
Adjusting Procedures for Deceased Consumers By: Caren D. Enloe Section 1692a(3) defines a consumer as any natural person obligated or allegedly obligated to pay a consumer debt. The final debt collection rule interprets the definition of a consumer to include deceased natural consumers, as well. Looking towards a November 30th effective date, here are some [...]
LicensingAvoiding the Traps of Debt Validation Notices
Picking Apart the Validation Notice Requirements Under the Debt Collection Rule By: Caren D. Enloe With the CFPB undergoing leadership changes, one thing that remains clear about the Debt Collection Rule is that collection agencies should begin readying themselves for a November 30th effective date. Now that the Rule has been fully published, this article [...]
LicensingDissecting the Final Debt Collection Rule: What You Need to Know
The CFPB Publishes the Remainder of its Final Debt Collection Rule - Here's What You Need to Know By: Caren D. Enloe The FDCPA defines a consumer as any natural person obligated or allegedly obligated to pay a consumer debt. Section 1006.2(c) of the Rule interprets 1692a(3) to include deceased natural persons. This definition dovetails [...]
LicensingIs it time to rethink your agency name given the CFPB's Limited Content Voice Message Rules?
Limited Content Messages and Your Company's Name By John Bedard, Jr. Click here to request help with a name change or dba On October 30, 2020, the CFPB published its years-in-the-making amendment to Reg F ("the Rules") to implement the FDCPA. These rules address many topics, including email and text message communications, time, place and [...]
LicensingConsistency and Timeliness are Key
Consistency & Timeliness are Key How accurate is your current licensing information? Licensees must report accurate and current information when filing registrations and licenses. To ensure accurate information, several states require their licenses to be filed through the Nationwide Multi-state Licensing System (NMLS). Within NMLS, company information is gathered based on the requirements of each jurisdiction. Individual information for owners, officers, directors and managers/qualified individ
LicensingThe Final Debt Collection Rule is Here and Focuses on Communication Methods
The Final Debt Collection Rule is Here and Focuses on Communication Methods - Here's What You Need to Know By: Caren D. Enloe On October 30, 2020, the CFPB published its long awaited Final Debt Collection Rule (the "Rule") which is intended to interpret the federal Fair Debt Collection Practices Act (the "FDCPA") and clarify [...]
LicensingDistrict Court Holds that Under Barr v. AAPC it Lacked Subject Matter Jurisdiction Over All TCPA Claims for Calls Made Prior to July 6, 2020
Written by Nadia Adams In Stacy Creasy, et al. v. Charter Communications, Inc., No. CV 20-1199, 2020 WL 5761117 (E.D. La. Sept. 28, 2020) (Creasy), a putative class action, the plaintiffs accused defendant Charter Communications, Inc. of repeatedly violating § 227(b)(1)(A)(iii) of the Telephone Consumer Protection Act ("TCPA") which prohibits almost all telephone calls to cell phones using [...]
LicensingCalifornia to Become the 35th State to Require Licensing for Debt Collection
Update: Newsom Signs Laws impacting Debt Buying and Collecting in California Governor Gavin Newsom has signed two laws changing the landscape of debt collection in California. SB 908 results in a "Debt Collection Licensing Act" that provides for the licensure, regulation, and oversight of debt collectors by the Commissioner of the Department of Financial Protection [...]
LicensingMastering the Art of "Nibbling"
The most common tactic used in negotiation by debt collectors is called "nibbling." Just as a mouse nibbles away at a piece of cheese, one teensy bite at a time until it's gone, nibbling is asking for small items, one at a time, and getting agreement on each until you've gotten a lot. No matter [...]
LicensingDCA Produces NYC's Foreign Languages Services Documentation Requirements
DCA Produces NYC's Foreign Languages Services Documentation Requirements On June 27, 2020 new rules from New York City's Department of Consumer Affairs (DCA) took effect that, among other things, require debt collectors (first and third party) to request and record the language preference of each consumer from whom they collect and inform each consumer [...]
LicensingWhy Debt Collection is Good For the Economy
Debt collection struggles to get good press. News outlets love to promote debt collection horror stories that give a black eye to an industry that otherwise serves a very good purpose for our economy. The bad actions of a few unscrupulous characters have frequently overshadowed the value and importance of an industry that diligently returns [...]
LicensingThe Real ROI of Collection Strategy
The Real ROI of Collection Strategy Almost everyone I talk to in the industry rates innovation as a top priority, especially today. The economy will recover, but your strategies will determine how well you do. Not long ago, in my former role as the leader of collections strategy for a major bank, I led a [...]
LicensingCalifornia's Debt Collection Licensing Act Moving Closer
Insights from ARM Industry Representatives close to California's SB 908 The year 2020 has brought unprecedented days of difficulty on a level that hasn't been seen since the ten plagues swept through the land of Egypt. If you can remember back to life before Covid-19, we started this year with the announcement that California and New [...]
LicensingLessons Learned About Branch Licensing from States' Covid-19 Response
Lessons Learned About Branch Licensing from States' Covid-19 Response One unexpected outcome of the coronavirus pandemic has been a renewed interest in location specific licensing for debt collection. Each state has the right to enact its own set of debt collection laws and requirements. As such, most jurisdictions have very different licensing and registration requirements. Failure to comply with [...]
LicensingAre You Thinking Differently About Who Can Be Your Client?
Are You Thinking Differently About Who Can Be Your Client? I know that many collection agencies are scrambling to keep up with the changing state rules and client decisions about who is considered essential, whether agents can work remotely, and whether/under what circumstances you can engage in proactive outbound collection efforts. I have heard from [...]
Licensing10 Security Tips for Working Remotely
Editors Note: In recent weeks many companies were thrust into a situation where they were forced to work remotely or temporarily close the doors. To learn more about the need to manage privacy and security remotely, we sought out wisdom and best practices from an expert in the field. 10 Security Tips for Working Remotely [...]