RMAI Update January 2025

Last week the CFPB released its final rule on removing medical debt from credit reports. The final rule defines medical debt information as medical information that pertains to a debt owed by a consumer to a person whose primary business is providing medical services, products, or devices, or to such person’s agent or assignee, for the provision of such medical services, products, or devices. Medical debt information includes but is not limited to medical bills that are not past due or that have been paid.

Among the new regulatory restrictions, the final rule states that creditors can no longer use medical debt information in credit eligibility determinations unless specific exceptions apply. The rule will take effect in March 2025 but may be subject to intervention by the Trump administration or the newly elected Congress. More information can be found in the January 7, 2025 RMAI Member Alert.  RMAI submitted comments to the CFPB on August 7, 2024, which can be read here.

The CFPB closed out the year by releasing its Regulatory Agenda, outlining the regulatory matters it expects to address between December 2024 and October 2025. As noted in the Regulatory Agenda and as under review by RMAI’s Federal Legislative and Regulatory Committee, the CFPB is considering proposals to regulate data brokers as covered under the Fair Credit Reporting Act. The broad proposal would treat data brokers like credit reporting agencies, would extend FCRA protections to the collection of consumers’ personal identifiers, and require separate consumer consent for data sharing.

Similar to the final rule on medical debt, the future of the initiatives listed in the Regulatory Agenda remains uncertain as a new administration takes office in early 2025.

In its continued focus on debt collection, the CFPB recently issued a blog post titled, “Protecting you from unlawful debt collection at work.” The blog contains tips for consumers on how to handle debt collection in the workplace. The tips include asking for the communications to stop at work, demanding that the communications stop altogether, and submitting a complaint to the CFPB.

Join RMAI as we discuss these topics and more at the RMAI Annual Conference during the Federal Regulator Update with representatives from the CFPB and OCC, and during the Federal Update Panel with representatives from K&L Gates and the US Chamber of Commerce.

RMAI monitors, tracks, and responds to legislative and regulatory activity in all 50 states as the need arises.  Backed by RMAI’s State Legislative Committee and a team of state lobbyists, RMAI educates legislators and regulators about the industry and the negative impacts or unintended consequences a bill would have on businesses and consumers. RMAI is gearing up for an active state legislative calendar in 2025. We are starting the year with lobbyists in California, Colorado, Michigan, and New York but anticipate by year-end to have six to eight lobbying firms on retainer, based on need.

If you have an interest in volunteering in RMAI’s grassroots advocacy efforts, please contact RMAI General Counsel & Senior Director of Government Affairs David Reid at (916) 779-2492 or [email protected].

January marks the start of the two-year state legislative cycle with newly elected officials taking office and new bills being introduced daily. Here are some recently introduced bills that might be of interest:

Maryland SB 31 – This bill would change the wage garnishment exemption from 30x state minimum wage to 150 percent of the federal poverty level for weekly income as determined by the U.S. Department of Health and Human Services for a household of the judgment debtor’s size. [It is an interesting idea to switch from a minimum wage multiplier to the federal poverty index for wage garnishment. It would potentially resolve the impacts of large spikes in minimum wage on garnishment. The problem is the federal poverty index is based on household size rather than a single individual which would be complicated to administer for employers and the courts.]

New Jersey AB 3513 – This bill would (1) exempt $5,000 in bank account; (2) create a 60x state minimum wage exemption on wages; (3) limit collections to 10 percent of disposable earnings; (4) impose $400,000 homestead exemption; and (5) limit interest on medical debt. [RMAI is investigating this legislation to determine if it has a chance of passage while strategizing our approach. While the bill did not move in 2024, it is not pre-determinative for passage in 2025.]

New York A.1356 – This bill would prohibit state-operated hospitals or health care facilities from suing patients to collect medical debt. [If the bill simply applied to the state, RMAI would unlikely take a position. However, RMAI is opposing the bill as the definition of “medical debt” could apply to credit cards and as such impact the financial services industry. The industry should be concerned that such a law could be expanded to the private sector in the future or to other asset classes.]

Virginia HB 1864 – This bill would exempt $5,000 from garnishment in deposit accounts. This exemption will not reduce or exclude any other exemption provided under state or federal law. [RMAI feels the $5,000 threshold is excessive and would essentially end bank garnishments as a collection tool in Virginia. RMAI is working with an industry coalition to oppose this bill.]

Ninth Circuit Holds a Waiver is a Waiver, Regardless of Mischaracterization of Remedy
Consumer Fin. Prot. Bureau v. Cashcall, Inc., No. 23-55259, 2025 U.S. App. LEXIS 99 (9th Cir. Jan. 3, 2025)

A California lender making high-interest loans to consumers sought to expand its operations to other states and incorporated a lending entity under the laws of the Cheyenne River Sioux Tribe.  Under this arrangement, the California lender purchased the tribal entity’s loans which  included choice of law provisions dictating the loans would be governed by tribal law.  The California lender then proceeded to purchase the loans and collect payments from consumers.

The Consumer Financial Protection Bureau (“Bureau”) brought an enforcement action against the lender alleging the loans were invalid under state law and, therefore, the lender had engaged in unfair, deceptive, or abusive acts or practices in violation of 12 U.S.C. § 5536(a)(a)(B).

In its answer, the lender demanded a jury trial but later waived that right after the trial court granted partial summary judgment in favor of the CFPB on the issue of liability. The trial court imposed a civil penalty of $10.3 million, but did not order the restitution sought by the CFPB consisting of the total interest and fees paid on the loans.

The lender appealed on the issue of liability, and the Bureau appealed arguing the penalty was too small and that equitable restitution should have been ordered.  While the appeal was pending, the U.S. Supreme Court “decided Liu v. SEC, in which it surveyed principles of equity jurisprudence and explained that ‘equity practice long authorized courts to strip wrongdoers of their ill-gotten gains’ but ‘restricted the remedy to an individual wrongdoer’s net profits.’”

Based on Liu, the lender argued any restitution would need to be limited to its net profits since the Bureau had been describing the remedy as equitable, rather than legal restitution.  In response, the Bureau argued that in substance, what it had been seeking was legal restitution.

The U.S. Court of Appeals for the Ninth Circuit affirmed the trial court’s holding on liability “but vacated the civil penalty and remanded with instructions for the district court to impose a higher penalty based on a determination that [the lender] had acted recklessly.”

On remand, the trial court agreed with the Bureau, explaining “that whether relief ‘qualifies as legal or equitable depends not on the Bureau’s characterization, but rather on the nature of the underlying remedies sought.’”  The trial court determined: 1) the lender’s unjust gains were approximately $197 million; and 2) that amount overstated the unjust gains and “should not include the interest and fees paid by any consumer who paid [the lender] less than the consumer received in principal.” The court ordered the lender to pay $134 million in restitution. Notably, at no time during the remand did the lender demand a jury trial.

On the second appeal, the lender primary argued that the determination that restitution was legal rather than equitable triggered its Seventh Amendment right to a jury trial. The Court of Appeals declined to decide the issue on that theory because, “assuming without deciding that [the lender] had a Seventh Amendment right to a jury trial, we conclude that it waived that right.”  The Court explained:

[The lender’s] waiver was valid even if [the lender] would not have made it absent the parties’ mistaken characterization of the relief the Bureau sought. We have never held that a party’s legal error can vitiate its waiver of a jury-trial right, or that a party must demonstrate a correct understanding of the law for its waiver to be effective.

The lender also argued that because the Bureau initially characterized the restitution as equitable, “the doctrines of judicial estoppel and waiver should have precluded the Bureau from seeking an award of legal restitution.”  The Court, however, agreed with the trial court’s determination that “whether the relief being sought was equitable or legal ‘depends not on the Bureau’s characterization, but rather on the nature of the underlying remedies sought.’”

Accordingly, the Court of Appeals affirmed the ruling of the trial court.

Donate an Item for RMAI’s 2025 Annual Conference Silent Auction
RMAI is continuing to accept donations for the 2025 Annual Conference Silent Auction, sponsored by Kino Financial Co., LLC, benefiting the RMAI Legislative Fund. We are seeking 50 fantastic and unique items for the auction catalog. If you have an item you would like to donate (if you need some inspiration, check out RMAI’s 2025 Silent Auction Wishlist), please complete this Donor Form. Or you can view the Silent Auction webpage to view the auction catalog, register as a bidder, and donate an item.  We look forward to seeing some great donations and generous bidding!

Join Us at the Legislative Fund Donor Reception at Annual Conference
RMAI invites Legislative Fund donors to the annual Legislative Fund Donor Recognition Reception which will take place on Monday, February 10^th from 4:30-5:30 pm. If you haven’t donated to the Legislative Fund and would like to attend the reception, make your donation online before the Annual Conference.

About the Legislative Fund
RMAI actively monitors and responds to state and federal measures affecting how our members do business. Your contributions to the Legislative Fund extend the reach of RMAI’s advocacy across the country where and when needed. Read more about the Legislative Fund.

2025 Webinar Programming
Register for our February 4th webinar, Innovation and Future Trends in the Accounts Receivable Management Industry, sponsored by Collectors Insurance Agency, Inc.  where our presenters will explore how cutting-edge technologies and practices are shaping the future of debt collection and debt buying.

Register for our March 5^th webinar on AI & Fraud brought to you by the Affiliate Advisory Council. Hear from Brady Harrison with Equifax and Steve Kusic with NRA Group.

Member-Sponsored Webinars Available
Members have the opportunity to sponsor a webinar of their choice and be hosted by RMAI. We will do all the work for you. Members will provide the topic of your choice and speakers. We will then promote and host your webinar. Additionally, with this sponsorship, members and nonmembers can register for the webinar FOR FREE. This means you can promote your sponsored webinar to anyone in your network and not just RMAI’s.

View the benefits and more details of Member – Sponsored Webinars here.

Click here for more information on our live and recorded educational webinars. Contact Shannon Parod-Tsui at [email protected] to find out more about sponsoring an RMAI webinar.

Congratulations to our new and renewed Certified Receivables Compliance Professionals (CRCP) and renewed Certified Receivables Businesses (CRB)!

CRCP New
Toby Gialluca, Collection Attorneys USA

CRCP Renewals
Mohammad Azad, Cavalry Investments
Anna Garcia, Steel River Systems
Michael Hilbig-Ross, Hilco Receivables
Benjamin LaRue, Hilco Receivables
Katherine O’Brien, UHG I LLC
Stacy Rodriguez, Actuate Law

CRB Renewals
HS Financial
Resurgent Holdings
T&I Enterprises

View all certified businesses and vendors.
View all certified individuals.

Version 13.0 30-Day Comment Period Is Out
A Member Alert was sent out to membership on Friday, January 10^th for a 30-day comment period on the red lines of Version 13.0 of the certification Governance Document. We value all input from our members as we continue to evolve the RMAI Receivables Management Certification Program.

For any additional certification needs, please see our in-depth certification resources for all company types (includes 7 steps to get certified, sample policies and procedures, and more).

View educational requirements for certified individuals.

For more information or to discuss the certification process in more detail, please contact Shannon Parod-Tsui at [email protected] to set up a call.

Resolve to Renew Your RMAI Membership in 2025!
Thank you to those who have already renewed their membership for 2025! We look forward to another great year of education, advocacy, and networking. If you have not yet renewed your membership, we encourage you to do so, to continue to enjoy the benefits of being a part of RMAI – including discounted rates for Annual Conference.

To renew your membership, please login here. You can also contact RMAI at 916-482-2462 or [email protected] to pay by card over the phone.

Add an Additional Membership Representative to Your Membership | $100/year
Do you have an employee or coworker who is interested in joining a committee or who is pursuing individual certification? If so, now is a great time for them to enroll as an Additional Membership Representative on your company’s membership! In addition to receiving information critical to certified individuals, Additional Membership Representatives also receive access to the following members-only communications and privileges:

• Member Directory
• Member Alerts
• RMAI Insights (Fall print and digital magazine)
• RMAI Digital Dispatch (Spring digital publication)
• RMAI Update (monthly e-newsletter)
• Eligibility to serve on RMAI Committees, Task Forces & Working Groups

Welcome, New Members
TrueML Products, LLC. | KS
Texas Capital Bank | TX
Apelles, LLC. | OH
Primeritus Financial Services, Inc. | TN
Docketly | CO
Intuit | CA
BAWAG Group | VA

For a complete list of RMAI members, login to check out the Member Directory.

2025 RMAI Annual Conference | February 10-13, 2025

Please note, the RMAI offices will be closed February 10-13, 2025 while our staff is at the RMAI Annual Conference. There will be a delay in response to any non-Conference related communications during that time.

Legislative Fund Donors January 1, 2024 – January 9, 2025

DIAMOND
Cavalry Investments, LLC
Crown Asset Management, LLC
Portfolio Recovery Associates, LLC
Resurgent Holdings, LLC
Second Round, LP
Velocity Portfolio Group, Inc.

TITANIUM
Financial Recovery Services, Inc.
Garnet Capital Advisors, LLC
TRAKAmerica

PLATINUM
Cascade365 Family of Companies
InvestiNet, LLC
Pharus Funding, LLC
T & I Enterprises, LLC
Unifund CCR LLC

GOLD
Rausch Sturm, LLP

SILVER
Andreu, Palma, Lavin & Solis,  PLLC
Blitt and Gaines, P.C.
DebtNext Software, LLC
EverChain
Firstsource
Halsted Financial Services, LLC
Klima, Peters & Daly, P.A.
National Credit Adjusters, LLC
Velo Law Office

BRONZE
Central Portfolio Control, Inc
Corporate Advisory Solutions, LLC
D & A Services, LLC
Equabli, Inc
Resurgence Capital, LLC
Security Credit Services, LLC
Superlative RM

BRASS
AAA Lenders Inc
AACANet, Inc.
Acctcorp International, Inc.
Advancial Federal Credit Union
AgreeYa Solutions, Inc.
Aldridge Pite Haan, LLP
ARM Compliance Business Solutions LLC
ARS National Services, Inc.
Balbec Capital
Basham & Scott, LLC
Bayview Solutions, LLC
CBE Companies
Channel Payments, Inc.
CMS Services
CNG/Axcess Financial Services, Inc.
Collection Attorneys USA LLC
CompuMail Information Systems
ConServe
Cornerstone Licensing Services
Couch Lambert
Credit Control, LLC
Credit Corp Solutions Inc.
Exelero Corp.
FLOCK Specialty Finance
FMA Alliance, Ltd
ForgiveCo PBC Inc
Frost Echols LLC
G. Reynolds Sims & Associates, P.C.
Genesis Recovery Services
Gordon, Aylworth & Tami, P.C.
Grassy Sprain Group, Inc
Guglielmo & Associates, PLLC
InterProse
Investment Retrievers, Inc.
Jefferson Capital Systems, LLC
Law Office of James R. Vaughan, P.C.
Mandarich Law Group LLP
Markoff Law LLC
Moss & Barnett, P.A.
Mountain Peak Law Group, PC
National Debt Holdings, LLC
NCB Management Services, Inc.
Nelson & Kennard
NICE
Nuvei Technologies Inc.
PaymentVision (Autoscribe)
Phin Solutions, LLC
Plaza Services
Premium Asset Recovery Corp (PARC)
Pressler, Felt and Warshaw, LLP
RAS LaVrar LLC
Reassigned Numbers Database (RND)
Remitter
Revenue Assistance Corporation dba Revenue Group
Robinson Hoover & Fudge, PLLC
SAM – Solutions for Account Management, Inc.
Scott & Associates, PC
Shepherd Outsourcing, LLC
Slovin & Associates
Smith Debnam Narron Drake Saintsing & Myers, LLP
SMS Financial, LLC
Stillman Law Office
Stone Creek Financial Inc.
Stone, Higgs & Drexler
The Cadle Company
The Oakes Law Firm, LLC
Tratta
Tromberg, Morris & Partners, PLLC
Troutman Pepper Locke
Troy Capital, LLC
Vertican Technologies, Inc.
Zarzaur & Schwartz, P.C.

OTHER
Alliance Credit Services, Inc.
Barron & Newburger, P.C.
Bedard Law Group, P.C.
C & E Acquisition Group, LLC
Caddis Funding LLC
CASA Receivables Management, LLC
Ceteris Portfolio Services LLC dba J.J. Marshall & Associates
Cohen & Cohen Law, LLC
Complete Credit Solutions, Inc.
Consuegra & Duffy, PLLC
Convoke, Inc.
Credit Management Corporation
Denali Capital, LLC
Harvest Strategy Group, Inc.
Hinshaw & Culbertson
Indiana Receivables, Inc.
Kaleo Legal
Kino Financial Co., LLC
London & London
Martin Golden Lyons Watts Morgan PLLC
MauriceWutscher LLP
National Recovery Associates, Inc.
National Recovery Solutions, LLC
Orbita Capital Group, LLC
Payment Savvy, LLC
Pro Forma Inc
Sandia Resolution Company, LLC
SCJ Commercial Financial Services
SIMM Associates, Inc.
Sonnek & Goldblatt, Ltd.
Tavelli Co., Inc. dba Tavco Credit Services
Vargo & Janson, P.C.
Womble Bond Dickinson