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.
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
Members of the DBA Federal Regulatory and Legislative Committee had several key meetings during their visit to Washington, DC on June 23rd. Committee members Bryan Faliero (Sherman Financial) and Laura Jensen (Absolute Resolutions Corp.), joined DBA’s Federal Counsel Bob Belair and DBA Executive Director Jan Stieger for four important meetings. The meetings were with the OCC, the CFPB Markets Research Division, the CFPB Rulemaking Division as well as an introductory meeting with the Center for Responsible Lending. These meetings were part of DBA’s ongoing effort to educate regulators on the intricacies of the debt buying industry, always stressing the importance of balancing consumer protection without putting up barriers to the collection of legitimate debt.
On Capitol Hill, DBA submitted questions to several members of the Senate Banking Committee to ask CFPB Director Richard Cordray when he testifies before the committee on July 15th. DBA will report on the outcome of this hearing.
It has been a busy couple of weeks with several major announcements affecting the debt buying industry. First the National Consumer Law Center issued its report on communication with consumers by debt collection agencies, followed by the JP Morgan Chase multi-state settlement, and ending with the FCC/TCPA Declaratory Ruling. The Federal Committee will be meeting later this week to discuss how DBA will respond to these actions.
STATE ACTIVITY
• Legislatures in Session: 12
• Bills in Active Status: 49 out of 95
• 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 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
DBA’s AG consultant is scheduling meetings this summer with the consumer protection staff of several state Attorney General’s offices including Washington, New York and Connecticut. DBA will also be attending the Conference of Western Attorneys General annual conference which will provide meeting opportunities with over 30 AGs and their staffs. These meeting are designed to help educate regulators on the debt buying industry and DBA’s Certification Program.
Certification
Creditor Outreach
The list of companies that are completing their certification continues to grow, especially as the March 1, 2016 date looms nearer. We’re proud of the companies that have achieved their Certified Professional Receivables Company (CPRC) designation, and those that are working vigorously to get it done before the deadline.
We continue to see banks and other issuers recognize the value of the certification program and integrate all or most of the program requirements into their due diligence process. To this end, we have implemented a new quarterly outreach to our creditor members to make sure they are aware of the safeguards provided to them by working with DBA International certified members. On a quarterly basis, we send our creditors an email outlining the importance of certification and a PDF of the companies that have currently completed the process. In addition, they receive the link to updated Certified Company page on our website.
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 newest certified individual: Jenn Wilson, Market View, LLC (DebtTrader.com)
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:
Attorney Litigation Conduct
Miljkovic v. Shafritz & Dinkin, P.A., et al., Eleventh Circuit Court of Appeals, June 30, 2015
Statements made by a creditor’s counsel in a pleading are actionable under the Fair Debt Collection Practices Act (FDCPA), subject to the limited exemption allowed for disclosures required by § 1692e(11). The Eleventh Circuit concluded that the “FDCPA’s statutory text does not provide nor does it imply immunity for debt collection practices otherwise forbidden by the Act simply because those debt collection practices are directed at a consumer’s attorney or any other non-consumer.”
The decision adversely impacts debt buying companies because several decisions have interpreted the FDCPA to permit a party that hires an agent to be liable under the FDCPA for the agent’s acts if both the principal and the agent are “debt collectors” within the meaning of the FDCPA. This recent decision expands the scope of FDCPA liability for statements made in pleadings by ignoring the exemption provided under § 1692g(d) to a “formal pleading,” and the “implied exceptions” doctrine, which the Supreme Court formulated in Heintz v. Jenkin, 514 U.S. 291, 294, 115 S. Ct. 1489 (1995).
Cease and Desist Letter – Credit Report Pulls and Adverse Action Notices
Scheffler v. Messerli & Kramer, P.A., Eighth Circuit Court of Appeals, June 29, 2015
A debt collector does not violate the FDCPA or the Fair Credit Reporting Act when it “pulls” a credit report for collection purposes and is not required to notify the debtor of the “pull” beforehand. Further, a “cease and desist” letter made under § 1692c(c) of the FDCPA is not violated by a debt collector’s subsequent pull of the consumer’s credit report.
Although the Eighth Circuit found there was no evidence the debtor made a cease and desist request, even if one were made a debt collector may communicate with the debtor “to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor,” under 15 U.S.C. § 1692c(c)(2).
Second, the Eighth Circuit held that the debt collector could request the debtor’s credit report for use “in connection with a credit transaction involving the consumer on whom the information is to be furnishing and involving…review or collection of an account of, the consumer” pursuant to 15 U.S.C. § 1681b(a)(3)(A), and that the debt collector did not need to notify the debtor before reviewing such information.
Education
Earn up to 15.5 continuing education credits toward your new or renewal individual certification at the upcoming Executive Summit in Park City, Utah, August 11-13, 2015:
- Pre-Summit: Earn up to 6 credits while you take the two (2) DBA required courses for certification in a classroom setting:
- Introductory Survey Course on Debt Buying (initial certification only) – 4 credits
- Ethics as the Cornerstone of a Compliance Management System (initial and renewal certification) – 2 credits
2016 Annual Conference Call For Presentations
We are now accepting submissions for the 19th Annual DBA Conference, February 9-11, 2016. If there is educational programming you would like us to have at our next Annual Conference, please submit your ideas using our Call For Presentations Submission Form. Submissions are due by Friday, July 31, 2015.
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.
- Recorded Webinars: If you missed a live webinar, they are all recorded and available on our website.
Executive Summit
Executive Summit discounted room rates of $279 (with a cut-off date of July 18, 2015) are LIMITED. Make your room reservation today before the resort sells out and rates increase to $360+ per night! Book your room now! Space remains available for Tuesday, August 11th Golf event and Pre-Summit educational sessions. Review the Agenda, and register NOW!
Membership
Keep Your Staff ‘In the Know’
Do you know that you can add key staff to your company’s DBA membership for only $50 per person? The additional member fee entitles each individual to receive all DBA Member Alerts, electronic newsletters, DBA the Magazine, access to “members only” content on DBA’s website, and discounts on educational offerings and events. Simply email DBA’s member services manager, Barbara Souza, at [email protected], with the staff person’s name, title and email address along with charge information, or call Barbara at (916) 482-2462.
Welcome New Members
(since June 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| Carlson & Messer, LLP DeVille Asset Management Ltd Swan Law Firm, PLLC |
Platinum Holdings Group, LLC South College |
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 and 47 states recently ordered JP Morgan Chase to overhaul debt sales and halt collections on 528,000 consumers’ accounts.
Public & Media Relations
On August 19, DBA’s public relations firm will be hosting a webinar on What to Do When a Crisis Occurs: The dos and don’ts of crisis management, media relations and social media.
This webinar will include:
- Crisis communication checklist – know what your next steps will be when you enter a crisis situation.
- Dos and don’ts when talking to reporters – understand the difference between a “conversation” and “message delivery.”
- How to write a statement for the media – learn the anatomy of a statement and when it’s appropriate to issue one.
- How to change the conversation – learn how to make your voice heard on social media in the face of hard hitting reporters and anxious consumers.
- Templates for message training – teach your staff, board members and employees to “stick to the message” when speaking publicly about your company.
- Resources to send reporters – DBA International will provide content highlighting key issues in the debt buying industry to use for educating reporters, employees and stakeholders.
In many instances a crisis can strengthen an organization’s reputation. The key is to be prepared.
DBA International proactively reaches out to financial reporters, bloggers and others who follow or write about the debt buying or receivables management industry to provide context and background to promote fair and accurate reporting. These fact sheets and white papers can also be used by DBA members when you need to communicate with media or other audiences.
Upcoming 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 |
| July 19-20 | ACA Convention & Expo – Boston, MA |
| Aug.11-13 | DBA International Executive Summit – Park City, UT |
| Sept. 8-10 | Debt Connection Symposium & Expo – Austin, TX |
| Nov. 18 | Credit Today: Collections & Customer Service – Manchester, UK |
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
Security Credit Services, LLC
TRAKAmerica
Brass Contributors ($1,000)
Bloomfield Financial Group, LLC
Credit One Bank N.A.
Galaxy Asset Management, LLC
Halsted Financial
Icon Equities, LLC
Jan Stieger
John K. Rossman
Law Offices of Ronald S. Canter
Machol & Johannes, LLC
MauriceWutscher LLP
Pressler & Pressler, LLP
RAzOR Capital
The Bureaus, Inc.
United Collection Bureau, Inc.
United Debt Holding, LLC
Warner Law Firm
Other Contributors
American Acceptance Company
Asset Management Group, LLC
Bayview Solutions LLC
Capital Alliance Financial
Chebat Portfolio Management, LLC
CKS Financial
Compumail Information Systems
David Reid
DeVille Asset Management Ltd
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
International Collection Services, LLC
InvestiNet, LLC
Jefferson Capital Systems, LLC
Maryland Portfolios, Inc.
Miller and Steeno, P.C.
N & S Partners
National Debt Holdings LLC
Nationwide Debt Mgmt Solutions
New Century Financial Services, Inc.
North American Recovery
Real Time Resolutions, Inc.
Superlative RM
Swan Law Firm, PLLC
U.S. Equities Corp.