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
This past month, DBA’s federal related activities have focused on preparation for the upcoming December meetings in Washington, D.C. We are scheduled/planning to meet with members of Congress, the BBB, the Healthcare Financial Managers Association (HFMA), the US Chamber of Commerce, the National Federation of Independent Businesses (NFIB) as well as the FTC. The meetings will have various purposes, but all will promote the debt buying industry, especially the important role it plays in the collection of legitimate debt and highlighting DBA’s Certification program.
Behind the scenes, the Data Integrity and Documentation Task Force and the Consumer Response Task Force both continue their important work. Their work products will be utilized in multiple ways in DBA’s advocacy work.
Kelly Knepper-Stephens, represented DBA as she participated in the SBREFA panel on Arbitration. Not only was DBA able to convey the importance of arbitration as a tool used by the industry, it provided valuable insight into the SBREFA panel process, which will be critical as we prepare for the anticipated, but as yet unscheduled, SBREFA panel on the debt collection rules.
State Activity
• Legislatures in Session: 6
• Bills in Active Status: 18 out of 101
• DBA Retained Lobbyists: 6 (California, Maine, Massachusetts, Michigan, New York, and Oregon)
• Active Negotiations: 0
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).
STATE ATTORNEY GENERAL UPDATE
In October, DBA International met with the Iowa Attorney General Tom Miller and his consumer protection staff in Des Moines to discuss our concerns with the resale prohibition in the recent Chase consent order. The Iowa AG’s office had a leading role in the drafting of the Chase consent order and whose understanding of how such a prohibition will harm small businesses and consumers is key to preventing the future use of similar provisions. The AG’s office appeared to be intrigued by the dialogue and all parties agreed to continue the conversation after DBA International issues its upcoming White Paper on the Resale Market.
Certification
March 1, 2016 is fast approaching! If you became a member of DBA International prior to March 1, 2014, then 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.
Family of Companies (shared company certification)
A Family of Companies allows for a shared company certification with shared certification number among affiliated companies (debt buying companies, collection law firms and third party agencies) provided that all companies meet the following criteria:
- Have the same Chief Compliance Officer,
- Have the same executive management team that exerts control over business operations (this requirement may be waived by the Administration & Budget Committee if there are other unifying factors that would preclude its necessity),
- Maintain a uniform network of compliance on all accounts serviced between the business entities under the shared certification
- Are governed by the same corporate policies and procedures
- Agree to be audited in a single unified audit, and
- Agree any Deficiency and Remediation against one business entity will apply to all of the business entities under the shared certification.
NOTE: A company that does not meet all of the Family of Companies criteria will need to have a separate company certification.
What are the BENEFITS?
- Only one set of policies and procedures needs to be created rather than multiple versions of the same policy.
- Only the Chief Compliance Officer needs to complete their individual Certified Receivables Compliance Professional (CRCP) designation rather than having multiple CCOs.
- All companies in a “family of companies” have a single unified audit, which significantly reduces costs for external audits for each separate company.
- The cost of adding an additional company to your certification is only $100 rather than an additional fee of $1,250 per company.
Congratulations to our newly certified companies and individuals!
Companies:
• Frontline Asset Strategies, LLC
Individuals:
• David Maczka, Diverse Funding Associates, C & E Acquisitions
• Michael Merz, Cascade Capital, LLC
• Phil Davis, Alpha Collections Services
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:
3rd Cir. TCPA Ruling Restricts ATDS but Gives Nod to “Potential Capacity”
Dominguez v. Yahoo, Inc., Third Cir. Court of Appeals, No. 14-1751 (October 23, 2015)
In an Oct. 23 ruling, the Third Circuit Court of Appeals offered a mixed opinion that has the effect of both limiting and expanding the interpretation of automatic telephone dialing systems (ATDS), which can trigger a claim under the Telephone Consumer Protection Act (TCPA). While the ruling poses increased risk for businesses that use dialers, it also offers guidance on what can be done to reduce that risk.
ATDS Definition Limited
The TCPA defines an ATDS as “equipment that has the capacity . . . to store or produce telephone numbers to be called, using a random or sequential number generator; and . . . to dial such numbers.” The Third Circuit looked to the recent 2015 FCC TCPA Declaratory Rulings, finding they “hold that an autodialer must be able to store or produce numbers that themselves are randomly or sequentially generated ‘even if [the autodialer is] not presently used for that purpose.’ ” That means “the phrase [random or sequential number generator] refers to the numbers themselves rather than the manner in which they are dialed.” The FCC did not “read out” the requirement that an ATDS have capacity to be a “random or sequential number generator,” according to the opinion.
“Potential Capacity” Can Make an ATDS
Even if your equipment does not have the present capacity to store or produce numbers that are randomly or sequentially generated and dial them, if it has the “potential capacity” to do so, it can still be an ATDS. The evidence that Yahoo offered was that its text messaging system “did not have the capacity to store or produce numbers to be called, using a random or sequential number generator, and to call those numbers.” The court rejected the opinion as “conclusory,” and “begs the question of what is meant by the word ‘capacity.’ ” It remanded the case to the trial court to determine if Yahoo’s equipment had the capacity to store or produce numbers that are randomly or sequentially generated and dial them.
3rd Cir. Holds TCPA ‘Called Party’ Includes Regular User and Roommate of Subscriber
Leyse v. Bank of America, Third Cir. Court of Appeals, No. 14-4073 (October 14, 2015)
The U.S. Court of Appeals for the Third Circuit recently held that a person has standing under the federal Telephone Consumer Protection Act, if they are a regular user of a phone line and occupant of the residence of the telephone line subscriber. In so ruling, the Court held that a caller may invoke the consent of the “called party” as a defense even if the plaintiff is someone other than the “called party.”
The Third Circuit noted that, although Congress did not expressly limit standing to the “called party,” its primary concern in enacting § 227(b)(1)(B) was to protect that party from unwanted robocalls, thus placing a “called party” within the protections of the TCPA. The Court held that the roommate would fall into the “called party” definition, as a regular user of the phone line who occupies a residence with the subscriber of the number being called, and has an interest in privacy, peace and quiet that Congress intended to protect.
The Third Circuit rejected the trial court’s reasoning that a bank who has the consent of the subscriber would face liability whenever any person answers the phone, noting that the caller could still raise consent as a defense to such a TCPA action. In the Court’s words, “[t]he caller may invoke the consent of the ‘called party’ as a defense even if the plaintiff is someone other than the ‘called party.’ ”
Education
Online Education
- Upcoming Webinars:
Drafting Purchase Agreements in an Era of Regulatory Scrutiny: Thursday, November 19, 2015
Current Issues In Debt Buying: Wednesday, December 2, 2015 (required for re-certification)
Federal Regulatory Update: Wednesday, December 16, 2015
New Developments in Credit Reporting and Scoring: Thursday, January 14, 2016 - Webinar Package: This discounted package is currently available for webinars from May through December 2015, excluding December 2nd webinar. 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.
2016 Annual Conference
DBA Annual Conference, February 9-11, 2016
Registration for the DBA International Annual Conference Moving Forward Together is open and now INCLUDES pre-conference! This bonus allows conference attendees to earn up to 15 credits towards certification by attending the pre-conference and conference sessions. Members enjoy up to $500 savings with early registration completed on or before December 12, 2015.
Aria Room Reservations
DBA has learned that “room pirate” companies have been contacting potential attendees indicating a connection with the DBA Annual Conference in an attempt to book rooms at the Aria. These scam artists are NOT associated with DBA International and no outside company should contact you to solicit/book reservations at the Aria. A room rate of $195 (including resort fee) has been negotiated for Annual Conference attendees at Aria Resort & Casino. Make your reservations online now or contact the Aria directly by calling (702) 590-7757 or (866) 359-7757 and indicate your group is DBA International.
Membership
Membership Renewals … add this to your ‘to do’ list!
A second round of 2016 membership renewal invoices were mailed out on November 10 to DBA member office mailboxes. Don’t forget to check your mail and send in your renewal. A late fee of $100 will be applied starting January 1, 2016, so check this task of your year-end list!
Included with your mailed renewal invoice will be the following items:
- Renewal instructions
- Membership profile form. Completing and returning the membership profile form ensures we promote your organization in the best way possible on the online membership directory
- For DBA’s updated Code of Ethics, please click here website.
Is your business address current? If your business has moved, please email your new address to DBA’s member services manager, Barbara Souza, bsouza@dbainternational.org.
Welcome New Members
(since October 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| Delta Outsource Group, Inc. Recovera, Inc. |
Did you know that DBA members can search for other members on the Member Search page?
Weekly CFPB Updates
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 an easy-to-read digest of CFPB activity each week. Read the most recent update. Or you can access the entire library of weekly updates to find out about past actions that are likely to impact your business.
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 |
| Nov. 18 | Credit Today: Collections & Customer Service – Manchester, UK Panel: Setting up and expanding into new markets |
| Nov. 18 | FTC Debt Dialogue – Atlanta, GA The third of three events hosted by the FTC |
| Nov. 19-20 | Annual Consumer Financial Services Conference – Chicago, IL DBA presentation: “Current Issues in Debt Buying” |
2015 Legislative Fund
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.
Unifund CCR LLC
Silver Contributors ($5,000)
Garnet Capital Advisors, LLC
Javlin Capital, LLC
Mjollnir Group, Inc.
Bronze Contributors ($2,500)
Cascade Capital
Crown Asset Management LLC
Integras Capital Recovery, LLC
JH Capital Group
MauriceWutscher LLP
Pinnacle Credit Services LLC
Security Credit Services, LLC
TRAKAmerica
Velocity Portfolio Group
Brass Contributors ($1,000)
Atlantic Credit & Finance, Inc.
Atlantic Recovery Solutions, LLC
Bankrupt Debt Acquisitions
Barnes Financial Services, LLC
Bloomfield Financial Group, LLC
Collins Asset Group
Credit One Bank N.A.
Dalty Acquisitions, Inc.
Digital Recognition Network
Frontline Asset Strategies, LLC
Galaxy Asset Management, LLC
Halsted Financial
Icon Equities, LLC
InvestiNet, LLC
Jan Stieger
John K. Rossman
Jefferson Capital Systems, LLC
Jormandy, LLC
Law Offices of Andreu & Palma
Law Offices of Ronald S. Canter
Machol & Johannes, LLC
Mercantile Adjustment Bureau, LLC
Pressler & Pressler, LLP
RAzOR Capital
Resurgence Capital , LLC
The Bureaus, Inc.
Troy Capital, LLC
United Collection Bureau, Inc.
United Debt Holding, LLC
VeriFacts, Inc.
Warner Law Firm
Other Contributors
Account Control Technology
Alliant Capital Management LLC
American Acceptance Company
Aramount Portfolio Services, LLC
Ashton & Weinberg, Inc.
Asset Management Group, LLC
Baker Tilly Virchow Krause LLP
Balbec Capital
Bayview Solutions LLC
Brightwater Capital, LLC
Capital Alliance Financial
Capital Financial Group, Inc.
Chebat Portfolio Management, LLC
CKS Financial
Comprehensive Legal Solutions, Inc.
Compumail Information Systems
Converging Capital, LLC
David Reid
DeVille Asset Management Ltd
Diverse Funding Associates
Dynamic Recovery Solutions
Eastpoint Recovery Group
EZ Messenger
G. Reynolds Sims & Associates, P.C.
General Bar Law Directory
Global Debt Registry
Gotham Collection Services Corp.
Harvest Strategy Group, Inc.
Hinshaw & Culbertson
International Collection Services, LLC
Lannister Law Corporation
Law Offices of Steven Cohen, LLC
Maryland Portfolios, Inc.
Miller and Steeno, P.C.
N & S Partners
National Debt Holdings LLC
National Recovery Solutions, LLC
Nationwide Debt Mgmt Solutions
New Century Financial Services, Inc.
North American Recovery
Northland Group, Inc.
Quantum3 Group, LLC
Real Time Resolutions, Inc.
Recovera, Inc.
Resource Management Services, Inc.
Sandia Resolution Company, LLC
Simmonds & Narita LLP
Square Two Financial
Superlative RM
Swan Law Firm, PLLC
Talisman Partners, LLC
The Debt Marketplace, Inc.
U.S. Equities Corp.
Weltman, Weinberg & Reis Co., L.P.A.