DBA Update – January 2017

Keeping you informed about the work that is taking place on your behalf and important news and updates.

Federal Activity

This past month has been quiet in Washington, D.C. as the transition team is focused on the thousands of appointments that need to be made, the administration defines its priorities, and the new Congress gets underway with committee assignments. In the background, DBA has been developing priorities for 2017 and working with K&L Gates to analyze the environment to develop the best strategy for achievement of our goals.

This week, DBA Executive Director Jan Stieger and DBA Director of Government Affairs & Policy are in D.C. attending the quickly called debt-collection news conference, meeting with D.C. Council officials regarding proposed legislation, and meeting with staff from other financial-services associations to discuss mutual concerns and opportunities for joint actions.

FTC Ends “Operation Collection Protection”
Operation Collection Protection, established in November 2015, has recently come to an end. The Federal Trade Commission, in partnership with several other state and federal law enforcement agencies, launched the initiative to identify and prosecute illegal debt collection practices. DBA International remains committed to high standards at all stages of accounts receivables transactions, and will continue to report outliers who do not comply with the law.

The CFPB’s Consumer Debt Collection Survey
A report on the CFPB’s Consumer Debt Collection Survey was released on January 12. CFPB Director Cordray remarked that the survey “indicate[s] that many debt collectors and creditors respect the laws governing their industry and have good practices in place.” DBA International met with Director Cordray in September 2016 to discuss mutual areas of concern. During that meeting, Director Cordray expressed his openness to continuing a “vigorous dialogue” with DBA International.

The CFPB Publishes Report on Online Debt Sales
On January 12, the CFPB released a report on the online marketplace for debt sales. These are accounts receivables listed for sale on websites. The report indicated that some online marketplace practices may not thoroughly protect consumer information. DBA International encourages all of those in the industry to adhere to high standards of data security, consumer identity protection, and record keeping, as outlined in our Certification Program

State Legislative Activity

Even though the state legislative calendar just started two weeks ago, we are already seeing troubling signs that 2017 will be quite active from a legislative and regulatory perspective. Predictably, early activity is coming from west coast and the New England states.

Oregon
The following are noteworthy bills of concern:
Oregon HB 2166 – Requires debt buying companies to: (1) register with Department of Consumer and Business Services to engage in business; (2) give notice to debtor if debt buyer brings legal action to collect debt and to submit certain filings to court; (3) establish and maintain certain practices to ensure that debt buyer complies with applicable law; and (4) maintain errors and omissions insurance policy.

Oregon HB 2356 (introduced at the request of the AG) – Establishes specific requirements for debt buyers to bring a legal action to collect a debt, including specific notice and information requirements, the violation of which would be an unlawful collection practice.

What DBA is doing in Oregon: Both HB 2166 and HB 2356 present concerns which would significantly impede the collection of purchased debt in Oregon. DBA has retained a top Oregon lobbying firm to represent the industry’s interests. While taking a strong stance in opposition to these bills, DBA is planning to introduce a pro-industry consumer bill to drive attention to concepts that the industry can support.

Maine
The following bills were pre-filed in the Maine legislature on Tuesday, January 10th. The bill text for these bills are not available yet, but as you can see the bill summaries would suggest concern:

Maine LR 1021 – Prevents abusive debt collection tactics by debt buyers
Maine LR 1281 – Protects homeowners from debt collectors
Maine LR 1330 – Promotes fiscal responsibility in the purchasing of debt
Maine LR 1594 – Clarifies the Maine fair debt collection practices act

Massachusetts
The Massachusetts court system has proposed amendments to the Massachusetts Civil Procedure Rules 8.1 and 55.1 applicable only to requests to enter default judgments upon “credit card debts.” The proposed amendments would require:

• Itemization of any interest, principal, and fees
• Identification of “the date of default”
• Identification of “the amount due at the time of default”
• Original documents or copies of every assignment in the chain of title
•  An original or copy of the account agreement

DBA also anticipates several legislative bills in MA in 2017, including a bill introduced at the request of the Attorney General, that will likely raise a number of concerns based on prior history.

What is DBA doing in Massachusetts: DBA is continuing our relationship with one of the top lobbying firms in New England to assist us in fighting proposals that are designed to harm the debt buying industry while providing little to no real protections for consumers. DBA is actively exploring opportunities to promote real protections that will equally benefit consumers and the industry.

State Attorney General Update
DBA International is scheduled to meet with the Nevada Attorney General’s consumer protection staff in February to discuss the consumer benefits associated with DBA Certification standards and the types of collection-related complaints they are receiving.

Court Decisions

The following are several noteworthy court decisions recently handed down that may impact DBA members:

NJ Fed. Court Holds 18 Calls Over Two Weeks – Mostly Unanswered – Did Not Violate FDCPA 
Chisholm v. AFNI, Inc., United States District Court, District of New Jersey, No. 15-cv-3625 (November 22, 2016)

The U.S. District Court for the District of New Jersey recently ruled that 18 telephone calls to a consumer over a two-week period – of which 17 were unanswered, and the last where the consumer hung up – did not violate the federal Fair Debt Collection Practices Act (FDCPA). In so ruling, the Court also affirmed that under the federal Telephone Consumer Protection Act (TCPA), persons who knowingly release their phone numbers have in effect given their invitation or permission to be called at the number which they have given, absent instructions to the contrary. As to whether conduct is harassing, the Court noted that “actual harassment or annoyance turns on the volume and pattern of calls made,” and “[t]here is no consensus as to the amount and pattern of calls necessary for a Court to infer a debt collector intended to annoy, abuse, or harass a debtor.”  In addition, numerous courts have found that the number of calls alone cannot violate the FDCPA; there must also be outrageous conduct in order “to have the ‘natural consequence’ of harassing a debtor.”

MD Pa. Holds Initiation of a Call is Enough for TCPA Liability 
Manuel v. NRA Group, LLC, United States District Court, Middle District of Pennsylvania, No. 15-cv-274 (December 7, 2016)

The United States District Court for the Middle District of Pennsylvania recently determined that the sole issue for trial was whether the consumer should be awarded treble damages in his complaint alleging a violation of the Telephone Consumer Protection Act because “a plaintiff need not answer or hear a call to prove prohibited conduct under the TCPA, but need only prove the act of placing the call itself.” While the Third Circuit had not addressed the issue at hand, it noted that the Ninth Circuit in Satterfield v. Simon & Schuster, Inc. found that a “call” within the TCPA means “to communicate with or try to get into communication with a person by telephone.” The Court relied on the Ninth Circuit’s holding and other district courts’ decisions in finding that “a plaintiff need not answer or hear a call to prove prohibited conduct under the TCPA, but need only prove the act of placing the call itself.”

7th Cir. Holds Judgment Against Bankruptcy Debtor’s Husband Did Not Violate Co-Debtor Stay
Smith v. Capital One Bank (USA), NA, United States Court of Appeals for the Seventh Circuit, No. 16-cv-1422 and 16-cv-1423 (December 22, 2016)

The U.S. Court of Appeals for the Seventh Circuit recently held that a bank’s lawsuit against a Chapter 13 debtor’s husband did not violate the “co-debtor stay” because the husband’s credit card debts were not a consumer debt for which the debtor was personally liable.

20^th Anniversary Conference

Celebrate 20 Years of Connections at DBA’s Anniversary Conference – February 7 – 9, 2017. There is still time to register! Late registration begins January 31, so be sure to claim your spot now to avoid the price increase.

Prime exhibit space and sponsorship opportunities are available. Review the prospectus and then contact Events Manager Sylvia Done at (916) 482-2462 while space is still available.

Education

As of January 1, 2017, DBA members now have access to all live and previously recorded webinars on our website. Even better, they all count towards credit for certification.

January Webinar
DBA offers a robust lineup of educational programs for professional development and credits towards your individual Certified Receivables Compliance Professional (CRCP) designation.

• Recertification: How to Prepare and What to Expect – January 11, 2017 (pre-recorded)

• Recorded Webinars: Did you miss a live webinar in 2016? No worries, they are all recorded and available on our website.

Certification

Working towards your Certified Receivables Compliance Professional designation and need live education credits?
Members who are working towards their individual certification have the opportunity to earn up to 15 credits towards certification at DBA’s 2017 ANNUAL CONFERENCE. Check out the agenda for more information on speakers, workshops and activities. Register today!

Certification Help: Contact Michelle Wren at (916) 482-2462 or [email protected].

CONGRATULATIONS
Congratulations to our newly certified companies!

Individuals
Dale Dobberpuhl, Premier Bankcard
Katherine O’Brien, Jefferson Capital Systems, LLC
Sam Tuchman, Peppertree Capital, Inc.
Lauren Savage, Frontline Asset Strategies, LLC
Michelle Wren, DBA International

Companies
Law Offices of Steven Cohen, LLC
Credit Management Corporation
Orion Portfolio Services, LLC

View all certified companies and certified individuals on our website.

New Members

New in 2017! Complimentary Online Education for DBA Members
DBA members who have renewed their 2017 membership will now enjoy complimentary webinars. This includes our recorded webinars! This is another value-add for your membership, in addition to receiving member rates on the 2017 Annual Conference.

Tip of the Month: Make the most of your membership
Involved members experience the greatest benefits. Here’s a tip for the month:

• Serve on a DBA committee. There are numerous opportunities to share your talent and industry knowledge while learning more about the industry and other DBA members. Committee sign-ups begin every February after the DBA Annual Conference.

Who are you looking for?
Use DBA’s online membership directory to locate a variety of members. Here is a link to DBA’s debt buyers that is available to the public. For a more drilled-down listing of members, like vendors that provide a product or a service to the ARM industry, or law firms that represent debt buyers, you will need your login credentials. Email Barbara Souza if you don’t know your login credentials.

Public & Media Relations

Help create an Industry Consumer Testimonial Databank!
Representatives of DBA International are often asked if we have any consumer testimonials to support our message. They indicate it would be helpful to hear consumer accounts of how debt buying companies have worked with consumers to help them get back on their financial feet to counter the stories of woe they hear from consumer advocates and see in the media. DBA International is asking its members to join the effort. Read the Member Alert for more information.

DBA International’s Rebranding Initiative
The association is undergoing a rebranding initiative, comprising a new name, tagline, and logo. These changes will better reflect our current and future membership and goals. Pending membership approval of the revised Bylaws, our new name will be Receivables Management Association International. The tagline and logo are under development and will be revealed at the Annual Conference on Wednesday, February 8, 2017.

Upcoming Events

DBA International works to open new markets and promote the industry at various conferences and events (look for us at these events).

DATE	EVENT/LOCATION
Feb 7 – 9	20th Annual Conference , Las Vegas, CA
March 1 – 3	NTLA, Fort Lauderdale, FL
March 6 – 7	LendIt USA, New York, NY
March 15 – 17	NCUCA, Las Vegas, NV