DBA’s mid-month publication is designed to keep members informed about the work that is taking place on their behalf, and remind you of important dates, developing news and updates. This is a members only publication.
Advocacy
DBA serves as the voice of the debt buying industry, representing members before federal and state agencies and in the courts. Here are some of the initiatives that we’ve undertaken in the last month:
Federal Activity
DBA has been closely reviewing the Chase Consent Order and the recent Encore and PRA Consent Orders. The provisions of these Orders will be the topic of several meetings DBA has scheduled with various regulators the week on September 21st in Washington D.C.
During the September trip to Washington D.C., DBA will also be meeting with the FDIC as well as other like-minded financial institution trade associations. These trips to Washington are a part of DBA’s ongoing effort to educate and promote the debt buying industry to key players with whom we wish to form coalitions or discuss the value and importance of the debt buying industry and DBA’s self-regulatory Receivables Management Certification Program.
On Capital Hill, there has been no movement on the bill containing the GLBA language. The Congress has been focusing their efforts on the Iran deal and other political topics with an eye on next year’s elections.
State Activity
• Legislatures in Session: 8
• Bills in Active Status: 21 out of 99
• DBA Retained Lobbyists: 5 (California, Maine, Michigan, New York, and Oregon)
• Active Negotiations: 0
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 3 years). Bill died in Assembly.
California SB 501 – Limits garnishments to the lesser of 25% of the individual’s weekly disposable earnings or 50% of the amount by which the individual’s disposable earnings for the week exceed 40 times the state minimum hourly wage, or applicable local minimum hourly wage, if higher. Bill passed both Houses; awaiting action by the Governor.
California SB 641 – Permits a debtor to serve and file a notice of motion to set aside a default judgment obtained by a debt buying company if the debtor claims the original summons did not result in actual notice to the debtor in time to defend the action. If granted by the court, the action would be retried by the court. The debtor would have the lesser of six years from the date of judgment or 180 days from “first actual notice of the action” to make such a motion (180 days from actual notice with an unlimited lookback period for cases of misidentification or identity theft). Bill passed both Houses; awaiting action by the Governor. DBA International will be seeking gubernatorial veto based on retroactive provision.
STATE REGULATORY ACTIVITY
New York City Department of Consumer Affairs (DCA) – Issued guidance to debt collectors on how to comply with the competing out of statute consumer notices required by DCA and NYS Department of Financial Services (DFS). DCA indicates that given their similarity, a debt collection agency may use DFS’ notice in place of the DCA language BUT the debt collection agency must continue to adhere to DCA’s size, color, and placement requirements.
New York State Department of Financial Services (DFS) – DFS continues to clarify the debt collection regulations it adopted in 2014. In the past month, DFS adopted technical amendments to the regulation and as well as issued additional FAQ’s that all debt collectors that collect on New York accounts should read.
STATE ATTORNEY GENERAL UPDATE
In August, DBA met with the Washington State AG consumer protection staff. The conversation included a dialogue on the benefits of DBA Certification, the types of collection-related complaints they are receiving, and the potential impact of the Chase Consent Order on the industry. In September, DBA will be meeting with the consumer protection staff in the Connecticut and Rhode Island attorney general offices. These meeting are designed to help educate regulators on the debt buying industry and DBA’s Certification Program.
Certification
Mandatory Debt Buying Company Certification Timeline: March 1, 2016 or within two years of membership in DBA International. Here’s what is needed to meet the deadline:
- Individual Certification of Chief Compliance Officer: Each company working toward their company certification needs at a minimum one (1) employee with the title or designated as the Chief Compliance Officer to obtain the individual Certified Receivables Compliance Professional (CRCP) designation. To achieve this certification, the individual must complete 24 hours of continuing education in the prior two (2) years from date of application. Individuals submit their application when they complete all 24 credits.
- Company Certification: Completing the company certification is the second or corresponding step in the process. You need to complete a self-audit of your company’s operations to confirm compliance with all Series A and Series B standards to obtain the Certified Professional Receivables Company (CPRC) designation for debt buying companies. When the self-audit is complete, you will submit your company application. An external audit will need to be performed prior to your renewal in two (2) years after your company becomes initially certified.
Congratulations to our newly certified individuals!
• Sammy Ahdoot, Gotham Collection Services Corp.
• Bob Hodges, Capio Partners
• Patricia Padilla, P & L Acquisitions
• Shannon Parod, DBA International
View all certified companies and certified individuals on our website.
Court Decisions
The following are noteworthy court decisions handed down in the past 30 days that may impact DBA members:
Excessive Fees State FDCPA Claim
Eric S. Moore JR et al v. Law Offices of Shapiro, Brown & Alt LLP et al
US District Court, E.D. Virginia, Richmond Division, August 13, 2015
Class action complaint against the Law Offices of Shapiro, Brown & Alt, LLP (“SBA”) and Professional Foreclosure Corporation of Virginia (“PFC”) (Defendants), alleging that Defendants violated both common law duties and various Fair Debt Collection Practices Act (FDCPA) provisions when foreclosing on Plaintiffs’ homes. Specifically, Plaintiffs allege Defendants violated the FDCPA by charging excessive title examination fees related to foreclosures.
The Court ruled the Plaintiffs plausibly set forth a violation for the FDCPA for charging excessive title examination fees because by charging fees in excess of actual charges the Defendants used deceptive and unfair means to collect debts.
Unaccepted Offer of Judgment Does Not Moot Individual or Putative Class Claims
Hooks v. Landmark, U.S. Court of Appeals for the Fifth Circuit, August 12, 2015
The U.S. Court of Appeals for the Fifth Circuit recently held that an unaccepted offer of judgment does not moot a lead plaintiff’s claim in a putative class action. In so ruling, the Fifth Circuit reversed the district court’s ruling that, because a motion for class certification was not filed before the offer, the putative class action was also mooted.
The plaintiff withdrew money from his checking account at an automated teller machine (ATM) and subsequently sued the ATM owner, seeking statutory damages under the Electronic Funds Transfer Act (EFTA), 15 U.S.C. § 1693 et seq., because he was charged $2.95 for the withdrawal, but there was no notice posted on or at the ATM informing customers about the fee.
The defendant made an offer of judgment under Fed. R. Civ. Pro. 68 for $1,000, the maximum recoverable statutory damages for the plaintiff’s individual claim, plus “costs accrued and reasonable and necessary attorney fees, through the date of acceptance of the offer … to be determined by the court if agreement cannot be reached.”
The plaintiff did not accept the offer and subsequently filed a motion for class certification which the district court adopted. The defendant filed a motion to dismiss, arguing that plaintiff’s individual claim and the class action were mooted by the unaccepted offer.
The Fifth Circuit held that the individual offer, which did not include attorney’s fees after the offer was made, did not moot the individual claim.
Education
California Regional Symposium
DBA will be holding a one-day regional symposium in Los Angeles, CA at the Marriott Burbank Airport hotel on Thursday, November 12, 2015. This symposium is geared toward those who collect from residents in California and will cover the recently passed California bills as well as recent legislation that has taken place in other states, a perspective of where California is heading and much, much more.
Online Education
- Upcoming Webinars: DBA’s next webinar, Medical Debt, is scheduled for Wednesday, October 14, 2015.
- Webinar Package: This discounted package is currently available for webinars from May through December 2015. Members will receive eight (8) webinars for the price of seven (7) for $450.
- Recorded Webinars: If you missed a live webinar, they are all recorded and available on our website.
Propose an Educational Presentation
If you have any innovative or insightful ideas for future webinar topics or other educational programs, or if you would like to be a presenter on a specific topic, please use our Proposal Submission Form on our website which is available year-round.
2016 Annual Conference
Join DBA International February 9-11, 2016 for our 19th Annual Conference – Moving Forward Together – Industry, Regulators, Consumers. A room rate of $195 (including resort fee) has been negotiated for Annual Conference attendees at Aria Resort & Casino. Make your reservations online now or contact the Aria directly by calling (702) 590-7757 or (866) 359-7757 and indicate your group is DBA International. Online attendee registration opens October 1, 2015. DO NOT BE SCAMMED! DBA has learned that various “room pirate” companies have been contacting potential attendees indicating a connection with the DBA Annual Conference in an attempt to book rooms at the Aria. These scam artists are NOT associated with DBA International and no outside company should contact you to solicit/book reservations at the Aria. Utilizing the provided online reservation link or calling the Aria directly will make you certain you get the best rate from the right place!
Membership
Membership Renewal … It’s That Time of Year
Your 2016 DBA International membership renewal statement will soon arrive in your office mailbox. Included with your mailed renewal invoice will be the following items:
- Renewal instructions
- Membership profile form. Completing and returning the membership profile form ensures we promote your organization in the best way possible on the online membership directory.
- A printed copy of DBA’s updated Code of Ethics which is also available on the website.
Is your business address current? If your business has moved, please email your new address to bsouza@dbainternational.org.
Welcome New Members
(since August 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| Kronick Moskovitz Tiedemann & Girard Nationwide Credit & Collection, Inc. Orion State Licensing, Inc. |
Porter Wright Morris & Arthur, LLP The 704 Group, LLC |
Did you know that DBA members can search for other members on the Member Search page?
Weekly CFPB Updates
Read the latest news about the Consumer Financial Protection Bureau (CFPB).
Every week, DBA posts updates on the actions and activities of the CFPB. Published by Arnall Golden Gregory LLC, these updates provide an easy-to-read digest of CFPB activity each week. Read the most recent update. Or you can access the entire library of weekly updates to find out about past actions that are likely to impact your business.
Public & Media Relations
DBA International responds to egregious, inaccurate and misleading articles on the industry. Some recent examples include DBA’s response to Jim Hightower’s article, “Debt Buyers Bury Hard-Hit Consumers in Lies” and Timm Herdt’s, “Not all debtors are like Trump”. In addition, we submit articles that support our advocacy efforts and certification program like the article, Debt Collection Plays an Important Role in the Economy, which was published by Fox & Hounds.
Upcoming Industry News
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 |
| Sept. 16-19 | ABA Business Law Section Annual Meeting – Chicago, IL DBA panel: “Debt Collection Litigation and Legislative Update” |
| Sept. 29 | FTC Debt Dialogue – Dallas, TX (Note: Venue moved to Southern Methodist University’s Dedman School of Law to accommodate a larger audience. Pre-registration reopened.) DBA on panel with FTC, CFPB and AG. |
| Oct. 13-15 | Lend 360 (OLA) – Atlanta, GA |
| Oct. 14-17 | NARCA Fall Collection Conference – Washington, DC Exhibitor |
| Nov. 3-5 | Buy Here Pay Here East Coast Conference – Orlando, FL |
| Nov. 4-6 | ACA Fall Forum – Chicago, IL |
| Nov. 8-11 | NASP Annual Conference – Reno, NV Exhibitor |
| Nov. 18 | Credit Today: Collections & Customer Service – Manchester, UK Panel: Setting up and expanding into new markets |
| Nov. 19-20 | Annual Consumer Financial Services Conference – Chicago, IL DBA presentation: “Current Issues in Debt Buying” |
2015 Legislative Fund Contributors
Thank you to our 2015 Legislative Fund contributors. Your support allows us to influence threatening legislation, while also promoting and preserving the best interests of DBA members. Without contributions from committed DBA members, we could not continue pursuing these vital legislative efforts. Make your contribution today!
Diamond Contributors ($25,000)
PRA Group
Titanium Contributors ($15,000)
Cavalry Investments, LLC
Platinum Contributors ($10,000)
Credit Control, LLC
Gemini Capital Group, LLC
MSW Capital, LLC
National Loan Exchange, Inc.
Sherman Financial Group, LLC
Gold Contributors ($7,500)
Financial Recovery Services, Inc.
Silver Contributors ($5,000)
Garnet Capital Advisors, LLC
Javlin Capital, LLC
Mjollnir Group, Inc.
Bronze Contributors ($2,500)
Cascade Capital
Crown Asset Management LLC
Integras Capital Recovery, LLC
JH Capital Group
MauriceWutscher LLP
Pinnacle Credit Services LLC
Security Credit Services, LLC
TRAKAmerica
Brass Contributors ($1,000)
Bankrupt Debt Acquisitions
Bloomfield Financial Group, LLC
Credit One Bank N.A.
Dalty Acquisitions, Inc.
Frontline Asset Strategies, LLC
Galaxy Asset Management, LLC
Halsted Financial
Icon Equities, LLC
Jan Stieger
John K. Rossman
Jormandy, LLC
Law Offices of Ronald S. Canter
Machol & Johannes, LLC
Mercantile Adjustment Bureau, LLC
Pressler & Pressler, LLP
RAzOR Capital
Resurgence Capital , LLC
The Bureaus, Inc.
United Collection Bureau, Inc.
United Debt Holding, LLC
VeriFacts, Inc.
Warner Law Firm
Other Contributors
Alliant Capital Management LLC
American Acceptance Company
Asset Management Group, LLC
Balbec Capital
Bayview Solutions LLC
Capital Alliance Financial
Capital Financial Group, Inc.
Chebat Portfolio Management, LLC
CKS Financial
Compumail Information Systems
David Reid
DeVille Asset Management Ltd
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
International Collection Services, LLC
InvestiNet, LLC
Jefferson Capital Systems, LLC
Maryland Portfolios, Inc.
Miller and Steeno, P.C.
N & S Partners
National Debt Holdings LLC
Nationwide Debt Mgmt Solutions
New Century Financial Services, Inc.
North American Recovery
Real Time Resolutions, Inc.
Sandia Resolution Company, LLC
Superlative RM
Swan Law Firm, PLLC
U.S. Equities Corp.