Keeping you informed about the work that is taking place on your behalf and important news and updates. This is a ‘members only’ publication so you need to login to view on the website.
Federal Activity
DBA held two full days of meetings in Washington DC in late April. These strategic meetings were specifically selected to move DBA’s Federal Legislative and Regulatory goals forward. The committee set the following goals for the year:
- Ensure that the sale of assets on the secondary market is a viable market
- Ensure that the resale market is permitted and that laws and regulations are not enacted to hamper its existence
- Ensure that laws and regulations are not enacted that put up barriers to the collection of legitimate debt.
In several meetings with the CFPB (Rulemaking, Enforcement and Markets), DBA presented the recently released white paper on“The Value of Resale on the Receivables Secondary Market” and provided updates on the Certification Program. In addition to the CFPB meetings, DBA met with the Small Business Administration Advisory Office to discuss the upcoming SBREFA panels that will be held as part of the debt collection rulemaking process. DBA had similar meetings with the FTC. At all meetings, DBA was encouraged by the receptiveness of the regulators to the Resale paper as well as their continued positive comments and impressions of the DBA Certification Program.
On the second day of meetings on Capitol Hill, DBA representatives met with key legislative offices on both sides of the aisle delivering similar messages. Again we received positive responses at every meeting on the robust consumer protection standards contained in the Certification Program.
These strategically planned and selected meetings with regulators, members of Congress and other trade associations representing various segments of the financial services industry are a key component to DBA’s ongoing education on your behalf to protect and promote the debt buying industry.
State Legislative Activity
Legislatures in Session (active): 21
Tracked Bills in Active Status: 70 out of 105
DBA Retained Lobbyists: 6 (California, Connecticut, Maryland, Massachusetts, New York and Rhode Island)
Active Negotiations: 3 (Massachusetts, New York and Rhode Island)
Bills Awaiting Governor’s Signature:
Connecticut HB 5571 (sections 52 & 53 of bill) – 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, 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.
This bill passed both houses and is awaiting the Governor’s signature. DBA and the Connecticut Creditor’s Bar worked 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 – 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 limitationsafter it expires through a consumer payment.
This bill passed both houses and is awaiting the Governor’s signature. DBA International and our MD lobbyists’ work was instrumental in the bill negotiation strategy (which resulted in two additional bills dying in committee) and drafting of the final bill language in order to protect the debt buying industry. DBA and sister trade associations worked closely together to ensure a united industry position.
Noteworthy Bills of Continuing Concern/Interest:
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 madeprior to the statute of 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 # 1 concern for the 2016 State Legislative Session. DBA has retained a lobbying firm and made three visits to Boston to influence the outcome of this legislation.
New York AB 4438 – Called the “Consumer Credit Fairness Act”, this bill would: (1) reduce the statute of limitations from six to three years on consumer credit transactions; (2) “extinguish” the right to collect on consumer debt past the statute of limitations; (3) require the mailing of a notice by the court clerk after filing proof of service of the summons and complaint; (4) require specific data to be included in the complaint; and (5) require the provision of affidavits in a form already required by New York City. This bill is a “program bill” of the New York Attorney General and is sponsored by the Assembly Judiciary Chair. This bill is a significant concern for DBA International. DBA met with the bill sponsor on May 10th and for the first time in five years we heard that the sponsor is open to finding a compromise bill that the industry could support.
Rhode Island HB 7028 – Creates the “Expired Debt Act” which would among other things: (1) prohibit consumer contact until the collector “possesses verifiable information documenting” chain of title, the amount of the debt, and the connection of the debtor to the debt; (2) require consumer notices on out of stat debt in every communication when the debt is beyond the statute of limitations; (3) prohibits default judgements on out of stat debt; and (4) provides damages for mental distress and emotional anguish. DBA and our RI lobbyist met with the bill sponsor; based on this conversation, further action in the current legislative session is not expected on this bill.
Rhode Island HB 7509 – Requires debt buyers to document whether they used statutory or contractual interest when obtaining a judgment and would allow consumers to vacate prior judgments if the plaintiff had not complied with the new standard. DBA and its RI lobbyist met with the bill sponsor to share the industry’s concerns; based on this conversation we anticipate amendments to the bill will be forthcoming.
STATE ATTORNEY GENERAL UPDATE
Last month, DBA International distributed its latest White PaperThe Value of Resale on the Receivables Secondary Market to the consumer divisions of the 50 state attorneys general and DBA has already received feedback that it is beginning to influence their thought process on the prohibition of resale. DBA has a meeting scheduled with 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 the AG office is receiving.
Court Decisions
The following noteworthy court decisions recently handed down may impact DBA members:
Even if Some of FDCPA Plaintiff’s Allegations are False, Defendant Not Entitled to Fees and Costs if Other Claims Had Support
Duranseau v. Portfolio Recovery Associates, LLC
United States Court of Appeals, Eighth Circuit. Nos. 15-1551, 15-1604 (April 4, 2016)
Section 1692k(a)(3) of the Fair Debt Collection Practices Act (FDCPA) allows a court to award a defendant its attorney’s fees and costs if it finds the action was brought “in bad faith and for the purpose of harassment.” The Eighth Circuit Court of Appeals recently affirmed a trial court’s decision denying attorney’s fees and costs because even though several of the plaintiff’s allegations proved to be false, there was evidentiary support for other FDCPA claims.
No FDCPA Standing if Person Neither Stands in Shoes of Debtor nor has “Analogous Authority”
Anarion Investments, LLC v. Carrington Mortgage Services,
U.S. District Court, M.D. Tenn. (April 4, 2016)
A third-party creditor of a debtor does not have standing to assert a claim for violation of the FDCPA where all of the alleged conduct was directed solely at the debtor. Here, the third-party creditor and FDCPA-plaintiff (Anarion Investments, LLC) was a tenant under a residential lease agreement which provided Anarion Investments with a right to purchase the property during the lease term. The property was subject to a mortgage made by Kirk Leipzig. The mortgage was foreclosed. Anarion claimed the foreclosure did not properly notice interested parties, like itself, and this failure (as well as others) violated the FDCPA.
Last summer the Sixth Circuit Court of Appeals, in a decision involving this case, held that “the term ‘person’ as used in the FDCPA includes both artificial entities and natural persons alike.” The Sixth Circuit’s decision is available here.
However, the court in the Anarion decision concluded while persons who receive threatening or harassing communications who are not debtors have standing; persons, like Anarion, neither stand in the debtor’s shoes nor have “analogous authority to ‘read his mail’” because it could not, under law, stand in the shoes of the debtor and the complained conduct was not directed at it.
A Dialer May be Subject to the TCPA Even if its Present Configuration Would Not Qualify as an ATDS
Cartrette v. Time Warner Cable, Inc.
U.S. District Court, E.D. N.C, No. 5:14-CV-143-FL (Jan 14, 2016)
The U.S. District Court for the Eastern District of North Carolina recently rejected the defendant’s (cable provider) arguments that its contract with the plaintiff (consumer) did not allow revocation of prior express consent under the federal Telephone Consumer Protection Act (TCPA), and that the defendant’s telephone communication system was not an “automatic telephone dialing system” under the TCPA because it dialed from a list of numbers.
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.
Receive 5 webinars for the price of 4!
For only $250 members can purchase the entire Chief Compliance Officer Webinar Series; or you can purchase webinars a la carte.
MAY WEBINAR
- The National Consumer Assistance Plan Credit Reporting Updates – Are You Prepared? – Wednesday, May 25, 2016 at 9:00 a.m. PT
Note: This webinar is only being offered “live” on May 25th.
Recorded Webinars: If you miss a live webinar, most are recorded and available on our website. If you purchase the series package, you have access to either the live or recorded 2016 webinar (less the May NCAP webinar).
Members who attended the 2017 Annual Conference in Las Vegas, NV had the opportunity to earn up to 15 credits towards RMA’s Certified Receivables Compliance Professional designation. To learn more about how to obtain continuing credits for certification, be sure to check out the certification tab on our website.
Certification Help: Contact Michelle Wren at (916) 482-2462 or [email protected].
View all certified companies and certified individuals on our website.
Certification
Associate Debt Buying Companies have until March 2017 to have an individual in their organization complete the 24 education credits needed to earn their Certified Receivables Compliance Professional designation. We have many webinar offerings planned for the year, and members can take advantage of a discounted 2016 subscription. The required live education credits can be earned at the upcoming Executive Summit (Aug. 2-4, 2016). Save-the-date for the 2017 20th Anniversary Conference, Feb. 7-9, 2017 in Las Vegas where there will be plenty of opportunities to earn education credits.
Certification Help and Questions: Contact Michelle Wren at (916) 482-2462 or [email protected].
CONGRATULATIONS
Congratulations to our newly certified companies and individuals!
Companies
USI Solutions
Bankrupt Debt Acquisitions
Capital Enterprise Services
Brightwater Capital, LLC
Individuals
Valerie Towery, SquareTwo Financial
Thomas Ludwig, National Loan Exchange, Inc.
A. Brian Williams, BDO Financial, LLC dba BuyingDebt.org
James Barron, Balbec Capital LP
Greg Delev, Delev & Associates LLC
Todd Cory, Routhmeir Sterling Inc.
View all certified companies and certified individuals on our website.
Executive Summit
August 2 – 4, 2016, Omni Hotel, Hilton Head, South Carolina
Consider sponsoring an event or session. The Executive Summit is a unique opportunity to get in front of decision makers in the industry and demonstrate your commitment. 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
Sponsorship opportunities are filling up fast! Contact Sylvia Done at (916) 482-2462 or [email protected].
Look Who’s Coming!
Absolute Resolutions Corp., Akerman LLP, Barron & Newburger PC, Bedard Law Group PC, Better Business Bureau, Calvary Investments LLC, Capital Alliance Financial LLC, Encore Capital Group, EZ Messenger, Jefferson Capital Systems, KMT Group LLC, Lismore Holdings LP, Maurice Wutscher LLP, Moss & Barnett PA, Resurgent Capital LLC, Security Credit Services LLC, The Bureaus Inc, Velocity Portfolio Group Inc, Unifund CCR LLC,Venable LLC, VeriFacts Inc, WebRecon LLC, and many more!
Welcome New Members
(since April 15, 2016)
The DBA International membership continues to grow. Welcome to our newest members:
Black Creek Asset Management Group, LLC – California
FocuseData, Inc. – California
Harrington, Anderson & DeBlasio – Oregon
Suttell, Hammer &White, A.P.C. – Washington
Read more about these members and other members on the Member Search page.
Making Most of Membership
Are you displaying the DBA member logo?
If you don’t have the special DBA member logo displayed on your company’s home page, you’re missing out! Most organizations choose to display logos of associations they are affiliated with to convey a commitment to their industry.
To display DBA member logo, click here to complete the DBA logo use agreement form, or email Barbara Souza at[email protected].Member News
Member News
In addition to our Members in the Community Page, DBA now offers members an opportunity to share company news or press releases at no cost. If you have something you would like to share with DBA members, please check our Submission Guidelines, and contact Jason Litchney via email.
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 |
| May 24 – 26 | NABD 18th Annual Conference; The Wynn, Las Vegas, NV; DBA exhibiting and presenting a workshop on Turning Your Charge-offs Into Cash |
| June 1 – 3 | NAF Non-Prime Auto Financing Conference; Marriott Legacy Town Center, Plano, TX; DBA presenting a workshop on You’ve Made the Decision to Sell Debt – Now What? |
| June 14 – 16 | TPPPA Member Conference; Atlanta, GA; DBA participating on a Value of Certification Panel and Regulatory Panel |
| Aug. 2 – 4 | DBA International Executive Summit; Omni Hotel, Hilton Head, SC |
2016 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, LLC
Silver ($5,000)
Javlin Capital, LLC
Second Round
U.S. Equities Corp.
Brass ($1,000)
Barnes Financial Services
Other Contributors
Crosby Capital
Debt Control Agency, Inc.
Dynamic Recovery Solutions
Federal Pacific Credit Company, LLC
FocuseData, Inc.
Fort Crook Financial
Michael Haynes & Associates
Moss Adams
Premier Forty Financial, LLC
Rodriguez Fernandez Law Office