Keeping you informed about the work that is taking place on your behalf and reminding you of important news and updates.
DBA Member News
DBA International published a statement in regards to the June 5th episode of “Last Week Tonight with John Oliver.” While we disagree with the broad characterizations of the debt buying industry contained in the show, we wholeheartedly agree with the premise of the show that unscrupulous activity within the industry harms consumers. In fact, DBA’s certification program ensures that debt buying companies adhere to all laws and regulations treating consumers fairly and with respect and integrity.
DBA participated in a lengthy interview with the show’s producer in the days before the show aired providing extensive background on the industry and the certification program. While this information was not incorporated into the show, we will use this opportunity to increase education and awareness of industry regulations and reform, benefits to consumers, and contributions to the economy.
Federal Activity
DBA submitted several names to the CFPB for consideration on the upcoming SBREFA panel debt collection rule. Several of our recommendations were contacted last week to be potential panelists. The SBREFA hearings are scheduled for the week of August 22nd. DBA will take a deep dive into the SBREFA outline which will be our first glimpse of what the rule may cover.
Members and staff of DBA will be in DC June 22 – 23 for another round of key meetings. Meetings already set include the OCC, and a various departments of the CFPB. Additional meetings are currently being scheduled both on the Hill, with consumer groups and with additional regulators.
State Legislative Activity
Legislatures in Session (active): 10
Tracked Bills in Active Status: 48 out of 107
DBA Retained Lobbyists: 6 (CA, CT, MD, MA, NY, and RI)
Active Negotiations: 2 (CA and MA)
Signed Into Law:
Connecticut HB 5571 (sections 52 & 53 of bill) – [Takes effect October 1, 2016] Consumer collection agencies will be required to: (1) establish the amount and nature of the debt prior to the court’s entry of a judgment against the consumer; (2) possess the last activity statement showing charge-off balance, and for debt purchased after 10/1/16 one additional monthly statement prior to charge-off; (3) provide post-charge-off itemization of the debt; and (4) clearly indicate when text has been redacted by either blacking out the text or otherwise indicating in writing on such document that text has been redacted. Additionally, creditors and consumer collection agencies will be prohibited from bringing suit and reviving the statute of limitations after the expiration of the statute.
DBA and the Connecticut Creditor’s Bar worked closely together during bill negotiations which resulted in a number of provisions being deleted from the bill including: (1) prohibition from imposing any interest, fee, or charge unless the debtor explicitly agreed to its imposition in writing; (2) requirement to attach a copy of the contract and assignment to the complaint; (3) requirement to provide specific account related information to the consumer within five business days after the initial communication; and (4) subjecting consumer collection agencies to a state-level private right of action.
Maryland HB 1491/SB 771 – [Takes effect October 1, 2016] Codifies existing court rules regarding what data and documents debt buyers (and collectors acting on their behalf) must possess prior to initiating a consumer debt collection action and prohibits reviving the statute of limitations after it expires through a consumer payment.
DBA International and our MD lobbyist’s work was instrumental in the bill negotiation strategy (which resulted in two additional bills dying in committee) and the drafting of the final bill language in order to protect the debt buying industry. DBA, Maryland Bankers Association, Maryland DC Creditors Bar, Mid-Atlantic Collectors Association, and ACA International worked closely together to ensure a united industry position.
Noteworthy Bills of Continuing Concern/Interest:
California SB 308 – Increases the individual homestead exemption from $75,000 to $100,000; married homestead exemption from $100,000 to $150,000; and the senior and disabled homestead exemption from $175,000 to $300,000; increases personal property exemptions to reflect the amounts of the exemptions as adjusted by the California Judicial Council (Council required to do make adjustments every three years). The sponsor has made a concerted effort for bill passage over the past several weeks. DBA International is working closely with the broader industry in opposition.
Massachusetts HB 4194 – Among other things, this bill would: (1) reduce the statute of limitations in an action for the collection of a consumer debt from six to four years to be measured from the earlier of the date of charge-off, placement for collection, or 180 days after the last regular payment; (2) prohibit payments made prior to the limitations period expiring from tolling the statute; (3) prohibit any attempt to collect a consumer debt once the statute of limitations has expired but would allow a debt collector to accept an unsolicited voluntary consumer payment on a debt; and (4) extinguish judgments after five years unless the creditor takes action to enforce the judgment. This bill remains DBA’s top concern for the 2016 State Legislative Session. DBA has retained a lobbying firm and has made three visits to Boston to influence the outcome of this legislation.
STATE ATTORNEY GENERAL UPDATE
Last month, DBA International had a very productive in-person conversation with the consumer protection staff at the Illinois Attorney General’s Office as part of our ongoing attorney general initiative to discuss the benefits of DBA Certification and identify the types of collection-related complaints AG offices are receiving. This week DBA International is meeting with the Georgia Attorney General.
Court Decisions
The following are several noteworthy court decisions recently handed down that may impact DBA members:
7th Cir. Holds No FDCPA Violation for Filing Suit Without Intent to Proceed to Trial
St. John v. Cach, LLC, United States Court of Appeals, Eighth Circuit. Nos. 14-2760, 14-3724, 15-1101 (May 19, 2016)
The U.S. Court of Appeals for the Seventh Circuit recently held that the federal Fair Debt Collection Practices Act (FDCPA) does not prohibit debt collectors from filing a collection lawsuit without intending to proceed to trial to obtain a judgment.
In this consolidated appeal, defendant debt collectors filed suit in state court to recover on the plaintiffs’ delinquent credit card accounts. When the debtors contested the collection lawsuits, the debt collectors moved to voluntarily dismiss the actions with prejudice. Plaintiff debtors sued the debt collectors in federal court alleging the practice was deceptive and in violation of § 1692e(5) of the FDCPA because the debt collectors had no intention of going to trial to obtain judgments.
The Seventh Circuit held that the plaintiffs failed to state a viable claim under the FDCPA. The Court held that the plaintiffs did not sufficiently allege that the defendants did not intend to proceed to trial when they initially filed their complaints in state court. The Seventh Circuit noted that the fact that the defendants voluntarily moved to dismiss their suits prior to trial did not suggest that they had no intention of ever going to trial, indicating there are many reasons why a litigant would want to dismiss its own case.
The Seventh Circuit refused to hold that a debt collector who determines it would be less cost-effective to go to trial would be liable for an FDCPA violation for simply filing a complaint. The Court noted that the FDCPA does not compel this incongruous result, and that § 1692e(5) does not punish debt collectors for engaging in a cost-benefit analysis when conducting litigation.
11th Circuit Double Downs on Crawford – Finds No Irreconcilable Conflict Between FDCPA and Bankruptcy Code
Johnson v. Midland Funding LLC and Brock v. Resurgent Capital Services, L.P., United States Court of Appeals, Eighth Circuit. Nos. 15-11240, 15-14116 (May 24, 2016)
In a much-anticipated follow-up to its 2014 decision in Crawford v. LVNV Funding, LLC, 738 F.3d 1254 (11th Cir. 2014), the U.S. Court of Appeals for the Eleventh Circuit recently held that there is no irreconcilable conflict between the federal Fair Debt Collection Practices Act (FDCPA) and the Bankruptcy Code. In so ruling, the Court reversed the dismissal of two FDCPA cases filed against debt buyers that submitted proofs of claim on debts that were subject to a statute of limitations defense.
In its 2014 decision in Crawford, the Eleventh Circuit held that a debt collector violates the FDCPA when it files a proof of claim in a bankruptcy case on a debt that it knows to be “time-barred.” But the panel in Crawford did not consider whether the Bankruptcy Code preempts or displaces the FDCPA “when creditors misbehave in bankruptcy.” In Johnson, a consolidated appeal involving two cases, the District Court dismissed the lawsuits based on a finding that the Eleventh Circuit’s decision in Crawford placed the FDCPA and the Bankruptcy Code in irreconcilable conflict such that there was an implied repeal of the FDCPA by the Code. The Eleventh Circuit disagreed and reversed.
Education
NEW! Webinar Series for Chief Compliance Officers
DBA International is offering a targeted and advanced lineup of webinars for Chief Compliance Officers (and those holding compliance responsibility in their organization). This series is separate and in addition to our regular monthly webinar offerings. Attendees will learn from experts and benefit from real-world knowledge and experience to ensure their compliance system meets or exceeds requirements and provides robust benefits to your organization.
For only $250 members can purchase the entire Chief Compliance Officer Webinar Series (a $70 savings), or you can purchase webinars a la carte.
JULY WEBINAR
- Significant Cases Affecting the Debt Buying Industry in 2016 – Tuesday, July 19, 2016 at 9:00 am PT / 12:00 pm ET
If you miss a live webinar, they are all recorded and available on our website. If you purchased the series package, you have access to either the live or recorded 2016 webinar.
Certification
Collection Agencies and Law Firms
In 2014, DBA’s highly-regarded Receivables Management Certification Program was expanded to include collection law firms and third party collection agencies as a critical step in strengthening compliance integration between debt buying companies and their vendors.
The importance of company certification for Collection Agencies and Law Firms
- By establishing uniform national best practice standards, DBA ensures that its certified members exceed the consumer protection requirements of state and federal law.
- Banks and other issuers recognize the value of the DBA certification program and integrate the program requirements into their due diligence process.
- Companies that have completed the DBA certification process note the confidence gained through excellent control over their business processes, resource expenditures, performance results and measurements as well as consumer confidence gains.
- Legislative and regulatory communities view the DBA certification program very favorably which opens the doors of communication to give DBA International a seat at the table with discussions on proposed laws, rules and regulations.
The DBA Receivables Management Certification Program includes a mandatory annual review of the program requirements to ensure that they evolve with industry best practices and incorporate any new statutory, regulatory and judicial developments
Certification Help and Questions: DBA Staff is here to assist you in completing your certification and to answer any questions you have about the bylaw changes. Contact Michelle Wren at (916) 482-2462 or [email protected].
CONGRATULATIONS
Congratulations to our newly certified companies and individuals!
Companies
Peroutka, Miller, Klima & Peters, PA
Maryland Portfolios, Inc
Dobberstein Law Firm, LLC
ALCO Capital Group LLC
BCG Equities, LLC
Duke Capital, LLC
Salander Enterprises, LLC
Interim Capital Group, Inc.
Real Time Resolutions, Inc.
Individuals
Greg Delev, Delev & Associates, LLC
Todd Cory, Routhmeir Sterling, Inc.
Artur Aleksandrowicz, National Recovery Service
John (David)Taylor, Portfolio Recovery Associates, Inc.
Scott Turner, Arbeit Software
View all certified companies and certified individuals on our website.
Executive Summit
August 2 – 4, 2016, Omni Hotel, Hilton Head, South Carolina
Early Bird Registration Ends This Week
The early bird not only catches the worm, but they ensure a seat at the premier executive-level event in the receivables management industry. And if that’s not enough, you’ll save money when you register for the Executive Summit before Friday, June 17.
Consider sponsoring an event or session
All sponsors receive:
- Recognition on the sponsorship page
- Recognition in the Executive Summit program book
- Recognition from the podium at the general session
- Signage with your company logo at the Summit
- The gratitude of the DBA membership
Contact Sylvia Done at (916) 482-2462 or [email protected].
Welcome New Members
(since May 16, 2016)
The DBA International membership continues to grow. Welcome to our newest members:
Avant – Illinois
Cal West Attorney Srvices – California
Cedar Investment Analysts, LLC – Washington
Cosgrave Vergeer Kester, LLP – Oregon
Credit Collections Services Group Pty. Ltd.
FTA Financial, LLC – New Jersey
Law Office of Howard B. Weber – New York
Schachter Portnoy, LLC, Attorneys at Law – New Jersey
Read more about these members and other members on the Member Search page.
Making the Most of Membership
Keep Your Staff ‘in the know’
Add key staff to your company’s DBA membership for only $50 per person. The additional member fee entitles each individual to receive all DBA Member Alerts and electronic newsletters, the DBA magazine, “members only” access to DBA website pages, and discounts on educational offerings and conferences.
Email or call DBA’s member services manager, Barbara Souza, with the staff person’s name, title and email address along with charge information: (916) 482-2462, [email protected].
Upcoming Industry Events
DBA International works to open new markets and promote the industry at various conferences and events throughout the year (look for us at these upcoming events). Also, you can earn education credits towards certification at these events.
DATE | EVENT/LOCATION |
Aug. 2 – 4 | DBA International Executive Summit; Omni Hotel, Hilton Head, SC |
Sep. 13-15 | Debt Connect Symposium & Expo; Tucson, AZ |
Sep. 20-21 | DBA International Washington D.C. Symposium; Washington, D.C. |
Legislative Fund Contributors
Thank you 2016 Legislative Fund contributors. Your support allows us to influence threatening legislation, while also promoting and preserving the best interests of DBA members. Make your contribution today!
Titanium ($15,000)
Calvary Investments
Silver ($5,000)
Javlin Capital
Second Round
U.S. Equities Corp
Bronze ($2,500)
Digital Recognition Network
Brass ($1,000)
Barnes Financial Services
Empire Capital Funding Group
Halsted Financial Services
Other Contributors
Alliant Capital Management
American Lawyers Company
Balbec Capital
Blitt and Gaines
Boone Account Recovery Corp.
ComplyARM
Crosby Capital
Debt Control Agency, Inc. (DCA)
Dynamic Recovery Solutions
Federal Pacific Credit Company
FocuseData, Inc.
Fort Crook Financial
Michael Haynes & Associates
Moss Adams
Premier Forty Financial
Rodriguez Fernandez Law Office
WebRecon
s, Inc.