Welcome to the first edition of DBA Update. This new mid-month communication is designed to keep members informed about the work that is taking place on their behalf, and remind you of important news and updates. This is a members-only publication so you need to login to view the content on the website.
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
Regulatory: In March, DBA had meetings with the Office of the Comptroller of the Currency in an effort to gain more clarity on their guidance and provide some education on the nuances of specific types of debt such as bankruptcy and deceased.
DBA also met with the FTC where we are promoting the Certification Program in an effort to get FTC recognition of the program.
Along with these two meetings, DBA met with CFPB Rulemaking to get an update on the rulemaking timeline, Market Research, at their request, to discuss industry data availability as well as an introductory meeting with the new lead staff in Enforcement.
DBA met with two divisions in the CFPB in April. The first was with Consumer Response to discuss concerns regarding the input and output of data through the Complaint Portal. CFPB staff was very pleased to receive the constructive feedback. DBA will continue efforts in this area. The second meeting was with Market Research where the discussion focused on the collection of out-of-statute debt. Again, we will continue educating CFPB staff on the debt buying industry, as many involved in the CFPB rulemaking process are new to the industry.
Legislative: With a Republican majority in both the House and the Senate, we are hoping that the GLBA Notice Requirement bill will finally this year become law. To date, the bill has passed the House and is awaiting a hearing in the Senate. When passed, this bill will eliminate the need for the annual privacy notice to consumers regarding sharing of their information.
DBA is following and will lend support to legislation introduced to change the architecture of the CFPB from a single director to a commission, similar to the structure of most other federal agencies, including the FTC.
State Activity
• Legislatures in Session: 28
• Bills in Active Status: 86 out of 92
• DBA Retained Lobbyists: 5 (California, Maine, Michigan, New York, and Oregon)
• Active Negotiations: 7 (California, Indiana, Maine, Michigan, New York, Oregon, and Rhode Island)
Top 5 Bills in Active Negotiations:
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 180 days from “first actual notice of the action” to make such a motion but otherwise contains no limitation on the time period from judgement. DBA has issued memo and testified in opposition in Senate; focus turning to amending or stopping bill in Assembly.
Indiana SB 211 – Requires a debt collector to send within five (5) days after the initial oral communication with a debtor the following: (1) the name of the original creditor, (2) the date of charge-off, sale, assignment, or judgment, and (3) a breakdown of the interest and fees from the date referenced. The bill would also cap the total amount of civil penalties eligible in an enforcement action by the Attorney General to $15,000. DBA worked closely with Indiana AG’s office in the development of compromise language. Bill died in House Committee.
Maine HB 753 (LD 1092) – Establishes specific requirements for debt buying companies in order to collect on a debt, bring a lawsuit on a debt, and to obtain a judgment on a debt. The requirements range from possessing the original contract and multiple data points at the time of consumer contact to the types of affidavits required to receive a judgment. DBA has issued memo and testified in opposition in before joint House/Senate Committee. DBA is currently in active bill negotiations.
Oregon HB 2252 – Adopts the following provisions specifically related to the debt buying industry: (1) prevents debt buying companies from attempting to collect on a debt without having over 25 specified data points and documents; (2) requires debt buying companies to provide specific data and documents to debtors in a 30 day notice prior to beginning legal action, with the complaint, and with the court prior to judgment; and (3) eliminates both the remedy and right to collect after the expiration of the statute of limitations. DBA has been in active bill negotiation on this proposal since February.
Oregon HB 3031 – Requires callers using an automatic dialing and announcing device to provide a method by which a subscriber, within the first 10 seconds after a call begins, may enter a single dual-tone multifrequency signal or otherwise enter or speak a one digit code to notify the caller that the subscriber does not want to receive any future calls from the caller. DBA has received commitment to amend the bill to expressly exempt “debt buyers” from the bill’s provisions.
STATE ATTORNEY GENERAL UPDATE
The DBA AG Team met with the Pennsylvania Attorney General’s Office in April. We learned that the long-standing Assistant Attorney General there has followed the debt buying industry since the mid-‘90’s. DBA’s certification program and outreach to regulators impressed him and made it likely that if he sees debt buying issues in the future, he will first contact DBA.
Certification
Mandatory Debt Buying Company Certification Timeline: DBA International debt buying member companies must complete their company certification by March 1, 2016 or within two years of membership in DBA International. If a company is on chain of title at any time, they must comply with the certification requirement for debt buying companies. DBA International has several resources designed to make the certification process easier:
- Certification Webinar Series: A six-part webinar series was developed for small- to mid-size debt buyer companies to walk them through some of the steps needed to draft their company policies and procedures as part of their company certification; these sessions were recorded and are provided complementary for DBA members on our website.
- Mentor Program: This program pairs companies with a similar size company that completed the certification process so you have a resource that can share their experience and guide you through the process. Contact Shannon Parod at [email protected] to sign up.
- Robust website information and resources.
Congratulations to these newly certified companies and individuals. View all certified companies and individuals on our website.
EDUCATION
DBA offers a robust lineup of educational programs for professional development and credits towards your individual Certified Receivables Compliance Professional (CRCP) designation.
- Upcoming Webinars: DBA’s next webinar, The FDCPA and State Licensing: Liability and Implications for Collectors and Creditor’s Counsel, is scheduled for Wednesday, June 10, 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 $450.00.
- Recorded Webinars: If you missed a live webinar, they are all recorded and available on our website.
EXECUTIVE SUMMIT
Executive Summit registration is now open! Early bird member pricing available until June 22, 2015. Register Now. Discounted room rates of $279 (with a cut-off date of July 18, 2015) have been established for the dates Monday, August 10 to Thursday, August 13, 2015. Book your room now!
MEMBERSHIP
Looking for a DBA member debt buying company? Look no further that DBA’s home page. No log in required. Simply click here or on the Find a Debt Buyer link at the top of this page and sort by Member Type, search for a specific company by name, or click on any of the headings to do an alpha sort by Business, Type or State.
WELCOME NEW MEMBERS (as of January 1, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| Adams London & Weiss, LLC Alliance Data Alpha Recovery Corp. Arko Consulting LLC Ashton Asset Management Bush & Ramirez, PLLC Credit One Bank, N.A. DAKCS Software Systems, Inc. EZ Messenger Factor Capitol TN, LLC Marlette Funding Monument Adjustment Bureau, LLC N&S Partners National Recovery Association, LLC Nationwide Financial Group |
Nationwide Recovery Systems NewVest Recoveries SDN BHD Noam J. Cohen, P.A. P & L Acquisitions, LLC Pinnacle Asset Recovery, LLC Precise Financial Group, LLC Provana, LLC Recoveries Corporation Group Limited Sundance Vacations, Inc. The Guerrini Law Firm The Katz Law Firm, P.C. Transit Capital Group, LLC Troutman Sanders, LLP Zanc |
PUBLIC & MEDIA RELATIONS
DBA responded to an erroneous Op-ed in American Banker reiterating that when debt is collected in a professional and ethical manner, everyone wins. Consumers get the assurance of lower interest rates and businesses know that bad debt simply isn’t a “cost of doing business.” DBA International addressed many of the concerns the article raised by adopting an industry-leading national certification program ensuring our member companies follow responsible consumer protections through the adoption of uniform industry standards and best practices – the hallmark of which is greater transparency for the consumer. Read the response here.
UPCOMING INDUSTRY EVENTS
| DATE | EVENT/LOCATION |
| May 19-21 | NABD 17th Annual National Conference – Las Vegas, NV (DBA members receive special price of $375 – a savings of $420; DBA will be participating in a panel discussion and exhibiting at this conference) |
| May 27-29 | NAF Non-Prime Auto Financing Conference – Plano, TX (DBA will be participating in a panel discussion at this conference) |
| Aug.11-13 | DBA International Executive Summit – Park City, UT |
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 donation 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
Silver Contributors ($5,000)
Javlin Capital, LLC
Bronze Contributors ($2,500)
Cascade Capital
JH Capital Group
Security Credit Services, LLC
TRAKAmerica
Brass Contributors ($1,000)
Bloomfield Financial Group, LLC
Credit One Bank N.A.
Halsted Financial
Jan Stieger
John K. Rossman
Pressler & Pressler, LLP
The Bureaus, Inc.
United Collection Bureau, Inc.
United Debt Holding, LLC
Warner Law Firm
Other Contributors
American Acceptance Company
Asset Management Group, LLC
Chebat Portfolio Management, LLC
Compumail Information Systems
Crown Asset Management LLC
David Reid
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
International Collection Services, LLC
InvestiNet, LLC
Jefferson Capital Systems, LLC
Miller and Steeno, P.C.
N & S Partners
New Century Financial Services, Inc.
Real Time Resolutions, Inc.
U.S. Equities Corp.