Keeping you informed about the work that is taking place on your behalf and reminding you of important news and updates. This is a ‘members only’ publication so you need to login to view on the website.
Federal Activity
Leaders from DBA will meet the first week of March to set the strategic initiatives for the 2016 Federal Legislative and Regulatory Committee. This meeting will look at all avenues available to influence the CFPB in the rulemaking process, potential legislative initiatives and enhanced coalition building.
At last week’s DBA Annual Conference, several educational sessions focused on the effects of several regulatory actions, including the pending SBREFA panels, the effects of the 2015 Consent Orders, the economic outlook for 2016, the anticipated impact on DC politics from the November elections, and more.
State Legislative Activity
Legislatures in Session (active): 44
Tracked Bills in Active Status: 84 out of 84 (52 percent increase from last month)
DBA Retained Lobbyists: 3 (California, Massachusetts and New York)
Active Negotiations: 3 (Maryland, Massachusetts and Rhode Island)
Noteworthy Bills Introduced in Prior 30 Days:
Georgia SB 255 – Amendments were made to a comprehensive rewrite of Georgia’s garnishment laws to address concerns raised by the broader banking and collection industries.
Illinois HB 5776 – Replaces an Illinois statutory requirement that a debtor assert a defense in order to stop a wage assignment with language that would allow the debtor to simply revoke a wage assignment with written notice.
Maryland HB 783 – This bill would require debt collectors to possess “verifiable information” to collect on a debt; requires specific affidavit requirements for litigation; requires creditors to provide debt buyers with specific documentation; and prohibits a debt buyer from reselling a purchased debt to any entity other than the originating creditor.
Maryland HB 1159/SB 773 – [Attorney General Program Bill] Prohibits debt buyers (and collectors acting on their behalf) from attempting to collect an alleged debt without providing specific consumer notices and possessing specific data and documents.
Maryland HB 1491/SB 771 – [Attorney General Program Bill] Prohibits debt buyers (and collectors acting on their behalf) from initiating a consumer debt collection action unless they possess specific data and documents.
Rhode Island HB 7509 – Require 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.
Noteworthy Bills of Continuing Concern:
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).
Indiana HB 1143 – Provides that if a judgment debtor leaves the employment of an employer who is garnishing their wages and subsequently returns to employment with the same employer the judgment creditor must obtain a new judgment against the judgment debtor before the employer is required to resume wage garnishment.
Massachusetts SB 146 – Reduces the statute of limitations in an action for the collection of a consumer debt from 6 to 3 years to be measured from the earlier of the date of charge-off, placement for collection, or 180 days after the last regular payment. Payments made while within the limitations period will not toll the statute. The debt will be expunged once the statute has expired (loss of both the legal remedy and the contractual right to voluntary collection).
Pennsylvania SB 1072 – Amends the Pennsylvania Fair Credit Extension Uniformity Act to prohibit debt collectors or creditors from communicating with consumers regarding a debt more than three times by telephone. The bill would define such action as an unfair act or deceptive practice.
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.
STATE ATTORNEY GENERAL UPDATE
In January, DBA International met with consumer protection staff of the Maryland and District of Columbia offices of attorney general. The conversation included a dialogue on the benefits of DBA Certification and the types of collection-related complaints they are receiving. DBA International is in direct communication with the Maryland AG’s office concerning their recently introduced legislative proposals.
Congratulations to Our New Board Directors
DBA International is happy to welcome our newly elected Board of Directors: incumbent David Paris, Director of Business Development for Jefferson Capital; James Mastriani, President of Velocity Portfolio Group, Inc.; and Adam Parks, Chief Compliance Officer for Lismore Holdings, Inc.
Trish Baxter now holds the reigns as President and Mark Naiman has been named President Elect.
Advocacy
COURT DECISIONS
The following are several noteworthy court decisions recently handed down that may impact DBA members:
4th Cir. Holds No Violation of Maryland Usury Law Where Lender Properly Cured Interest Rate
Askew v. HRFC, LLC., No. 14-1384 (4th Cir. Jan. 11, 2016)
The U.S. Court of Appeals for the Fourth Circuit recently held that a finance company did not violate the Maryland usury interest law and was not liable under the Maryland Credit Grantor Closed End Credit Provisions (MCLEC) because it properly cured the violating contractual interest rate when it had actual knowledge of the violation.
4th Cir. Revives Homeowner’s ‘Unconscionable Inducement’ Claims Against Mortgage Lender
McFarland v. Wells Fargo Bank, N.A., No. 14-2126 (4th Cir. Jan. 15, 2016)
In a case that attracted a number of amici for both the borrower and the mortgagee, the U.S. Court of Appeals for the Fourth Circuit recently affirmed a trial court’s summary judgment ruling against a borrower holding that “the amount of a mortgage loan, by itself, cannot show substantive unconscionability under West Virginia law.” However, the Fourth Circuit allowed the borrower’s claim of “unconscionable inducement,” holding that the applicable West Virginia statute authorized such a claim “even when the substantive terms of a contract are not themselves unfair.” The case was remanded to the district court with instructions to “consider in the first instance whether [borrower’s] mortgage agreement was induced by unconscionable conduct.”
Leaving Messages for Debtors with Third Parties Violates FDCPA Says New York Federal Court
Halberstam v. Global Credit and Collection Corp., No. 15-cv-5696 (BMC) (E.D. N.Y. Jan. 11, 2016)
A debt collector was found to violate the Fair Debt Collection Practices Act (FDCPA) when it telephoned its debtor but left a message with a third party who answered the call, requesting that the debtor return the call, without disclosing that he is a debt collector.
SCOTUS Holds Unaccepted Offer of Judgment Does Not Moot Class Actions
Campbell-Ewald Co. v. Gomez, No. 14-857 (Sup. Ct. Jan. 20, 2016)
The Supreme Court of the United States held that a class action defendant cannot “pick off” the named plaintiff and thereby render the case moot by simply offering full relief by way of settlement offer or offer of judgment under Federal Rule of Civil Procedure 68. However, as the majority acknowledges, the Court also left open the question of what happens when a defendant actually tenders full relief to the named plaintiff, thus potentially leaving class action defendants an alternative weapon to cost-effectively defeat class claims.
Education
MEMBERS ONLY: 2016 webinar series now on sale!
Receive 11 webinars for the price of 9!
For only $575 you will receive a years’ worth of 2016’s regularly scheduled live webinar series and/or the recorded version of each webinar (if you have to miss a live event).
ONLINE 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: Revenue Recognition on Purchased Debt- Thursday, March 10, 2016
- 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.
SERVE ON THE EDUCATION COMMITTEE
Volunteers are needed to serve on our 2016 Education Committee. This committee is responsible for the development of DBA educational programs. This includes, but is not limited to a robust webinar lineup; programs offered at the annual conference and executive summit; regional symposium as needed, and additional offerings deemed to be needed by the Committee and/or Board.
Certification
At the Annual Conference last week, DBA International members voted to approve bylaw amendments.
The amendments to the association bylaws result in two membership categories (Certified member or Associate member) for Debt Buying Companies, Law Firms, and Collection Agencies. For debt-buying companies, the changes have an impact on the timelines for certification:
March 1, 2016 Deadline for Active Debt Buying Companies: Debt-buying companies currently buying portfolios must complete their company certification by the March 1st deadline (or within two years of membership for newer members). 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. 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.
Associate Debt Buying Companies: A debt-buying company will qualify for Associate Member status and willnot have to become a “Certified Professional Receivable Company” (CPRC) if they meet the following criteria:
- Have not purchased a receivables portfolio since its last membership renewal;
- Have an employee that holds the “Certified Receivables Compliance Professional” designation by March 1, 2017;
- Agree that if the company purchases a receivables portfolio it will meet or exceed the CPRC standards; and
- Agree to obtain the CPRC designation within one year of purchasing a receivables portfolio.
Certification Help and Questions: DBA Staff is here to assist you in completing your certification by the March 1stdeadline or answer any questions you have about the bylaw changes. Contact Michelle Wren at (916) 482-2462 or [email protected].
CONGRATULATIONS
Congratulations to our newly certified companies and individuals!
Companies
Gemini Capital Group LLC
Warner Law Firm
Bloomfield Financial Group LLC
Sandia Resolution Group LLC
First Financial Asset Management Inc
First Financial Portfolio Service LLC
First Financial Investment Fund Holding LLC
Strategic Alliances Inc
Credit Corp Solutions Inc
Credit Corp Collections Agency
Converging Capital LLC
Dalty Acquisitions Inc
Individuals
William Kolz, Kolz Associates LLC
Zachary Schwartz, Debt Recovery Solutions
View all certified companies and certified individuals on our website.
Save the Date
Plans for the DBA International Executive Summit are now underway. We look forward to having you join us August 2 – 4, 2016 at the Omni Hilton Head Oceanfront Resort. Join us as we meet to affect positive change with other leaders in the industry, participate in interactive sessions with key stakeholders on trending issues, and network with other top managers and owners. This deliberately intimate meeting is a must-attend event.
Conference Presentation Materials Remain Available
As we close the books on a very successful Annual Conference boasting more than 1,000 attendees and 28 educational sessions, we want to remind you that presentation materials remain available via the mobile app. Was there a session you didn’t have the opportunity to attend, or a speaker you particularly enjoyed?
Welcome New Members
(since January 15, 2016)
The DBA International membership continues to grow. Welcome to our newest members:
- Atlas Voicecom – Kansas
- Caddis Funding, LLC – South Carolina
- Caribbean Asset Recovery Services, Ltd.- Kingston, Jamaica
- Certified Capital, LLC – Florida
- CSF Receivables Management – Canada
- Debt Control Agency, Inc. (DCA) – Canada
- Debt Management Holdings, LLC – New York
- DebtLogics – California
- Desci Asset Management Co., Ltd. – China
- Diversified Equity Systems, LLC – Idaho
- Edgewood Capital Partners, LLC – Michigan
- Elevate Credit Services – Texas
- General Credit Services, Inc. – Canada
- Genesis Financial Solutions – Oregon
- Gladstone Law Group, PA – Florida
- Ironshore Capital, LLC – Texas
- Landon Credit Solutions – Texas
- Law Office of James R. Vaughan, P.C. – Arizona
- MRF, LLC – Minnesota
- Peritus Portfolio Services II, LLC – Texas
- Phoenix Financial Services, LLC – Indiana
- Pilgrim Christakis, LLP – Illinois
- Premier Forty Financial, LLC – Texas
- Puerto Rico Consumer Debt Management Co., Inc. – San Juan, Puerto Rico
- Rosedale Financial Solutions, Inc. – Canada
- Simple Finance – Utah
- SoftVu, LLC – Kansas
- U Financial and The Title Store – Canada
- Westlake Financial Services – California
The following DBA members have been instrumental in recruiting the above new members. Thank you for your effort!
Marcelo Aita, NCB Management Services
Alex Dunlap, FLOCK Finance
Gerald Lewis, Plaza Services
Joe Torriere, Market Street Debt Partners
Read more about these members and other members on the Member Search page.
Other 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 |
| Mar. 29 – Apr. 1 | 10th Annual Credit and Collection News Conference; Jacksonville, FL |
| May 4 – 7 | NARCA 2016 Spring Conference; Sheraton Chicago Hotel, Chicago, IL DBA exhibiting |
| May 24 – 26 | NABD 18th Annual Conference; The Wynn, Las Vegas, NV DBA presenting a workshop on Preparing a Portfolio for Sale |
| Aug. 2 – 4 | DBA International Executive Summit; Omni Hotel, Hilton Head, SC |
Public & Media Relations
As an industry, we have a lot to be proud of. DBA International member companies are making a positive difference in their communities every day. Share your story with us and we’ll post on the DBA Members in the Community page on our website and the DBA LinkedIn page. Send your story to Jason Litchney at [email protected].
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!
Silver ($5,000)
Second Round
Other Contributors
Debt Control Agency, Inc. (DCA)
Dynamic Recovery Solutions
Fort Crook Financial
Moss Adams
Premier Forty Financial, LLC
Rodriguez Fernandez Law Office