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.
EXECUTIVE SUMMIT HIGHLIGHTS PERSPECTIVES ON DEBT BUYING INDUSTRY
DBA International hosted a dynamic and dialogue-rich 2015 Executive Summit in Park City, Utah August 11 to 13. A range of influencers discussed industry perspectives and attendees gained insight on how attorneys general, elected officials, regulators and creditors view the debt-buying industry, the best way to interact with their offices and the roles they take to protect consumers.
“It’s extremely valuable for our membership to learn from these experts how our industry is viewed, how it has changed, and steps we can take to provide streamlined services and enhanced consumer protection,” said DBA International Board President Kaye Dreifuerst. “This Summit gave our members an unprecedented opportunity to shake hands with decision makers and learn about the important steps we are already taking to improve an important industry.”
Read the press release summarizing the conference.
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
Great news on the legislative front! The GLBA language which would exempt debt buyers from sending annual privacy notices has passed the House and has been included in the Senate Financial Services Appropriations bill (S. 1910). This represents the best opportunity for this language to actually become law!
The Federal Committee has completed a policy paper on out-of-statute debt. The paper provides a smart and balanced approach for the treatment of this debt. It has been shared with various regulators.
In response to the JP Morgan Chase Consent Order, the Federal Committee has been discussing its effect on future regulatory and legislative actions. An action plan is being developed.
Through its ongoing work with the Consumer Financial Protection Bureau (CFPB), DBA International has been asked to submit nominations for the Small Business Regulatory Enforcement Fairness Act (SBREFA) panel on the proposed rules on arbitration. SBREFA provides avenues for small businesses to participate in and have access to the federal regulatory arena to evaluate proposed regulations cost and other impacts on small businesses. Read the Member Alert.
State Activity
• Legislatures in Session: 10
• Bills in Active Status: 27 out of 96
• DBA Retained Lobbyists: 5 (California, Maine, Michigan, New York, and Oregon)
• Active Negotiations: 1 (California)
Top Bills in Active Negotiations in Prior 30 Days:
California SB 308 – Increases the individual homestead exemption from $75,000 to $175,000; married homestead exemption from $100,000 to $250,000; 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). Bill passed Senate; in Assembly Appropriations Committee [legislature still in session].
California SB 501 – Limits garnishments to the lesser of 25% of the individual’s weekly disposable earnings or 30% 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 Senate; on Assembly floor [legislature still in session].
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 Senate; in Assembly Appropriations Committee [legislature still in session].
STATE ATTORNEY GENERAL UPDATE
In July, DBA met with over 25 AGs and their staffs at the annual meeting of the Conference of Western Attorneys General to discuss issues concerning the industry. DBA’s AG consultant has scheduled an August meeting with the Washington State AG consumer protection staff. Additional meetings with various state AGs are being scheduled for this fall. These meeting are designed to help educate regulators on the debt buying industry and DBA’s Certification Program.
Certification
Certification Timeline
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 companies and individuals!
| COMPANIES Jormandy, LLC H & S Financial, Inc. Marley, Hunter & Winston LLC Reynolds & Co., LLC Velocity Portfolio Group, Inc. Velocity Investments |
INDIVIDUALS David Acheatel, Credit Corp Solutions, Inc. David Paris, Jefferson Capital Systems LLC Deann Tyner, Marley, Hunter & Winston LLC Donna Boyd, First Financial Asset Management Gregory Hill, H & S Financial, Inc. James Mastriani, Velocity Portfolio Group Joseph Downs, US Mortgage Resolution LLC Robert Warner, Warner Law Firm/ Bloomfield Financial Group Sammy Ahdoot, Gotham Collection Services Corp. Thomas Balcerzak, American Alliance of Creditor Attorneys, Inc. Trudy Weiss Craig, Unifund Victor Diaz, Diaz & Associates, Inc. |
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:
Business Entities as “Persons” Protected by the FDCPA
Anarion Investments LLC v. Carrington Mort. Servs. LLC , Sixth Circuit Court of Appeals, July 23, 2015
The FDCPA affords certain protections only to “consumers.” Not all persons who receive debt collection communications are “consumers,” rather, the consumers must be the target of the effort to collect a “debt” or an alleged debt. The Act defines consumers as “any natural person obligated or allegedly obligated to pay any debt.” 15 U.S.C. § 1692a(3).
But the FDCPA also provides certain protections to a broader category of “persons,” even if they are not consumers. Section 1692g provides only “consumers” with these rights, as opposed to other sections of the FDCPA that afford protections to “any person.” Many of the provisions of §§ 1692d, e and f are applicable to communications with “any person.”
Although § 1692a(3) defines consumers as “natural persons,” the Act does not provide a definition for “any person.” In this decision from the Sixth Circuit Court of Appeals, the court found that because the FDCPA does not likewise limit “any person” to natural persons, an “artificial entity” such as a partnership, can qualify as “any person” and receive FDCPA protections. You can read the decision here.
Representations Must be Material to be Actionable Under the FDCPA
Jensen v. Pressler & Pressler, et al., Third Circuit Court of Appeals, June 30, 2015
A false statement in a communication from a debt collector must be “material” to be actionable under the FDCPA. In so ruling, the Court found that materiality was a part of the “least sophisticated debtor” analysis. A copy of the opinion is available here.
In that case, a debt collector had purchased credit-card debt from the original lender. That debt collector then hired a law firm to help collect the debt. After obtaining judgment, the law firm issued a subpoena to the debtor, requesting her written responses in aid of execution. The subpoena form required the name of the court clerk to be listed, but the law firm listed an incorrect name. The debtor sued for violation of the FDCPA claiming the incorrect name was “fraudulent.” The trial court dismissed the lawsuit and the debtor appealed.
The Third Circuit recognized that using the incorrect name on the subpoena was technically “false.” Noting that other circuit courts have required a false statement to be material to be actionable under the FDCPA, it reasoned that materiality was a “corollary” of the “least sophisticated debtor” standard by which communications are judged. That is, the question is not whether the borrower was misled, but whether the “least sophisticated debtor” would be. The Court observed that appellate courts “almost universally employ[]” this standard, even though it is not in the text of the FDCPA.
In affirming the trial court’s dismissal, the Third Circuit held that it was “obvious” that including the incorrect name was not material. The Court found there was no way this would affect the least sophisticated debtor’s decision-making.
Education
Debt Connection Symposium (DCS)
The Debt Connection Symposium which takes place September 9-11, 2015 in Austin, TX is offering DBA’s required Introductory Survey Course on Debt Buying. If you did not attend our Executive Summit and need to take this course for individual certification credit, visit the DCS website to register for this event.
Online Education
- Upcoming Webinars: DBA’s next webinar, What to Do When a Crisis Occurs and Everyday Media Management: The do’s and don’ts of crisis management, media relations and social media, is scheduled for Wednesday, August 19, 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.
Annual Conference
Preparations for the 19th Annual Conference, February 9-11, 2016 have begun. Join us as we explore our theme Moving Forward Together – Industry, Regulators, Consumers. DBA International is certain to provide the latest information on the industry’s hottest issues. Prime exhibit space and sponsorship opportunities remain available, contact Events Manager Sylvia Done at (916) 482-2462 to secure your preference.
Membership
Access the Power of Connection Using DBA’s Member Search
DBA members have access to full contact information on other DBA member companies and the primary contact. Here’s a quick reference to help you navigate the searches on the DBA website:
Member Search: Under the Membership menu, there is a “Member Search” – which is a members only search. You need to log in to view it (contact the DBA office if you need your login credentials) but you will have access to phone numbers and email addresses of the primary contact. Also, certified companies are notated in this directory with a special icon. You can sort by Member Type (e.g., Originating Creditor, Affiliate, etc.), search for a specific company by name, or click on any of the headings to do an alpha sort by Business, Type or State. Debt buying companies appear in multiple Member Types (e.g., Associate, Standard, Professional, Professional Certified and International).
Certified Company Search: Under the Certification menu, there is a Certified Company search which is available to the public.
Find a Debt Buyer: This public search is currently being refined. This search will provide the company name and location of debt buying companies in the U.S. Since this is a public search, it will not include details that are only available to DBA members.
Welcome New Members
(since July 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| American Debt Services, LLC Financial Integrity Resolutions, LLC Portfolio Management Group PMF Capital, Inc. |
Sandia Resolution Company, LLC Stark & Stark, P.C. Warshaw & Burstein, LLP Williamson & Brown, LLC |
Did you know that DBA members can search for other members on the Member Search page?
Weekly CFPB Updates
Have you 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 a summary of the CFPB activity each week. Or you can access the entire library of CFPB updates to find out about past actions that are likely to affect your business.
The CFPB recently issued a questionnaire with approximately 60 questions being circulated to a “random sample of debt collection firms and service providers” to gather more information for the agency’s debt collection pre-rulemaking process. According to a cover letter sent along with the questionnaire, the CFPB is “attempting to better understand the benefits and costs of various policy proposals.” The questionnaire asks about “basic activities and operational costs of collecting debt,” including questions about (1) vendors used for activities such as dialers or print mailings; (2) maintaining data about consumer accounts; and (3) furnishing information to credit bureaus.
The CFPB and 47 states recently ordered JP Morgan Chase to overhaul debt sales and halt collections on 528,000 consumers’ accounts.
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. 9-11 | Debt Connection Symposium & Expo – Austin, TX |
| 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 DBA on panel with FTC, CFPB and AG |
| Oct. 13-15 | Lend 360 (OLA) – Atlanta, GA DBA panel: “When Defaults Come Knocking” |
| Oct. 14-17 | NARCA Fall Collection Conference – Washington, DC Exhibitor |
| Nov. 3-5 | Buy Here Pay Here East Coast Conference – Orlando, FL Panelist and exhibitor |
| 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 |
| 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
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.
Galaxy Asset Management, LLC
Halsted Financial
Icon Equities, LLC
Jan Stieger
John K. Rossman
Law Offices of Ron Canter
Machol & Johannes, LLC
Pressler & Pressler, LLP
Resurgence Capital, LLC
RAzOR Capital
The Bureaus, Inc.
United Collection Bureau, Inc.
United Debt Holding, LLC
VeriFacts, Inc.
Warner Law Firm
Other Contributors
Alliant Capital Management LLC
American Acceptance Co.
Asset Management Group
Bayview Solutions LLC
Capital Alliance Financial
Capital Financial Group, Inc.
Chebat Portfolio Management
CKS Financial
Compumail Information Systems
David Reid
DeVille Asset Management Limited
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
International Collection Services
InvestiNet, LLC
Jefferson Capital Systems
Maryland Portfolios, Inc.
Miller and Steeno, P.C.
N & S Partners
National Debt Holdings
Nationwide Debt Mgmt Solutions
New Century Financial Services
North American Recovery
Real Time Resolutions
Sandia Resolution Company, LLC
Superlative RM
Swan Law Firm, PLLC
U.S. Equities Corp.
