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
Representatives of DBA had several meetings in Washington DC with key stakeholders during their September trip to the nation’s Capital. The meetings included:
- CFPB Consumer Response, Office of Financial Institutions, and Markets – Discussion continued about the CFPB Portal and DBA’s ongoing data analysis and recommendations for improvements.
- CFPB Enforcement, Markets, and Examinations/Supervision – A focused conversation on the recent consent orders, an update on the certification program, and a discussion regarding the scope of examinations and what they are learning.
- CFPB Rulemaking – DBA gets a regular update on the rulemaking process and acts as a resource for issues that the CFPB staff may need industry input on.
- Consumer Bankers Association – DBA representatives had a conversation with the Default Management Committee to gain their perspective on the debt sales and resale markets.
- FDIC – An introductory meeting to begin a partnership for the sale of their debt to certified debt buyers.
- FTC – A meeting with FTC Commissioner Ohlhausen to discuss DBA’s Certification Program, DBA’s work with FTC staff on data security best practices in the purchase and sale process, and the industry’s efforts to rid the industry of bad actors.
In other Federal Activity, DBA President Kaye Dreifuerst formed the Documentation and Data Integrity Task Force to review current Consent Orders, regulations and laws to glean from them trends for best practices. The Task Force will provide recommendations to the Board of Directors. It is anticipated that these recommendations and findings will be included in the Resale White Paper currently in development.
State Activity
• Legislatures in Session: 7
• Bills in Active Status: 18 out of 99
• DBA Retained Lobbyists: 5 (California, Maine, Michigan, New York, and Oregon)
• Active Negotiations: 0
California SB 501 (Chapter 800 of the Laws of 2015) – Limits garnishments to the lesser of 25% of the individual’s weekly disposable earnings or 50% 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.
California SB 641 (Chapter 804 of the Laws of 2015) – 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).
STATE ATTORNEY GENERAL UPDATE
In September, DBA met with the consumer protection staff in the Connecticut, New Hampshire, and Rhode Island attorney general offices. The conversation included a dialogue on the benefits of DBA Certification and the types of collection-related complaints they are receiving. In October, DBA will be meeting with the Iowa attorney general’s office to discuss the “no-resale” provision in several recent consent decrees and the harm this provision will bring to both consumers and the industry.
Certification
The clock is ticking for our debt buying members who are under the mandatory timeline of March 1, 2016! 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.
Congratulations to our newly certified companies and individuals!
Companies:
• Hameroff Law Group, P.C.
• KMT Group, LLC
• Kirschenbaum, Phillips & Levy, P.C.
Individuals:
• Celeste Anderson, Frontline Asset Strategies
• Andrew Dunn, Frontline Asset Strategies
• Dale Fresch, Real Time Resolutions, Inc.
• David Hameroff, Hameroff Law Group, P.C.
• Doris Hektor, Encore Capital Group, Inc.
• Chad Randolph, DBA International
• Vincent Raphael, Galbo Sims Holdings, LLC
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:
FDCPA Is Not Enforcement Mechanism for Matters Governed by Other Federal or State Laws
Bentrud v. Bowman,
794 F.3d 871 (7th Cir. 2015)
A recent decision from the Seventh Circuit Court of Appeals may make it more difficult for consumers to allege violations arising from state court collection actions. In response to a state court collection action, the plaintiff -debtor invoked arbitration under the terms of his credit card agreement. The state court stayed the case and allowed the plaintiff-debtor 30 days to commence arbitration. The plaintiff-debtor did not commence arbitration within the time provided and the collection law firm moved for summary judgment.
The Seventh Circuit disagreed that filing a motion for summary judgment after the debtor had elected arbitration violated § 1692f of the FDCPA, reasoning the “FDCPA is not an enforcement mechanism for matters governed elsewhere by state and federal law.” The Court pointed out that the debtor “seeks to transform the FDCPA into an enforcement mechanism for the arbitration provision in his credit card agreement,” and that it had previously rejected such an approach in its decision in Beler v. Blatt, Hasenmiller, Leibsker & Moore, LLC, 480 F.3d 470 (7th Circuit 2007).
Massachusetts Federal Court Imposes FCRA Preemption on State Law Claims
Lance v. PNC Bank, U.S. District Court, Mass. Civil Action No. 15-10250-FDS (Sept. 15, 2015)
A Massachusetts federal court recently held that the FCRA preempts Massachusetts state law claims for violations of the Massachusetts Credit Reporting Act, and the Massachusetts Consumer Protection Act.
PNC, which had reported derogatory information concerning debtor’s mortgage loan (discharged in a Chapter 7 case), argued that Lance’s claims were preempted by the FCRA, which provides that “[n]o requirement or prohibition may be imposed under the laws of any State …relating to the responsibilities of persons who furnish information to consumer reporting agencies….”
The Court noted that Lance’s Massachusetts Credit Reporting Act claim would appear to fall within the FCRA’s preemptive language because FCRA explicitly preempts any requirement imposed by state law that clearly relates to the responsibilities of a furnisher of credit information. However, the FCRA expressly exempts only section 54A(a) of the state law from its preemptive reach and includes no such exemption for section 54A(g), which creates a private cause of action for Lance to assert the state law violation. In the Court’s view, the absence of express language exempting § 54A(g) from the FCRA’s preemption provision was fatal to Lance’s Massachusetts Credit Reporting Act claim. PNC also successfully argued that Lance’s claim under the Massachusetts Consumer Protection Act, was preempted because it was based on its reporting of Lance’s credit information.
Education
CALIFORNIA REGIONAL SYMPOSIUM (November 12, 2015)
DBA is holding a one-day regional symposium in Los Angeles, CA at the Marriott Burbank Airport hotel on Thursday, November 12, 2015. This symposium will cover new California laws, recent consent orders, laws passed in other states and a perspective on where the regulatory community is heading. This is a must attend event, which will also earn 5 education credits toward individual certification.
Online Education
- Upcoming Webinars: DBA’s next webinar, Drafting Purchase Agreements in an Era of Regulatory Scrutiny, is scheduled for Thursday, November 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.
2016 Annual Conference
DBA Annual Conference, February 9-11, 2016
Registration for the DBA International Annual Conference Moving Forward Together is now open.
This annual event brings together a diverse range of networking, education and solutions designed to increase your success. Join with us as we illustrate how anything is possible when industry, regulators and consumers move forward together. Don’t Get Left Behind.
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
DBA Rolls Out New Member Offer … Tell a Friend!
If you know someone who should be a part of DBA, encourage them to join with DBA’s 15-4-12 new member offer (expires December 31, 2015). This offer provides up to 15 months of membership for the price of 12 months. New members joining in the 4th quarter of 2015 receive DBA membership benefits beginning on the date of member acceptance through December 31, 2016. What a great way to stretch the business dollars! Read more about this offer. Questions? Contact DBA’s member services manager, Barbara Souza, bsouza@dbainternational.org.
Welcome New Members
(since September 15, 2015)
The DBA International membership continues to grow. Welcome to our newest members:
| TrueAccord | Venable, LLP |
The following DBA members have been instrumental in recruiting new members this past year. Thank you for your efforts!
• Steven Cohen – The Law Offices of Steven Cohen
• TK Kimmel – Security Credit Services.
• Luis Lopez – Dalty Acquisitions
• Chris Runci – Runci Group
• Marian Sangalang – The Bureaus, Inc.
• Larry Schiavi – Diverse Funding
• Anthony Swatsworth – Solutions to Portfolios
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 |
| Oct. 13-15 | LEND360 (OLA) – Atlanta, GA |
| Oct. 14-17 | NARCA Fall Collection Conference – Washington, DC Exhibitor |
| Nov. 2-4 | NAAG Fall Consumer Protection Conference – Washington, DC Panelist |
| Nov. 3-5 | Buy Here Pay Here East Coast Conference – Orlando, FL Two panels: Maximizing Recoveries the Right Way and Collections, Repos & Pymt Devices |
| Nov. 4-6 | ACA Fall Forum – Chicago, IL |
| Nov. 8-11 | NASP Annual Conference – Reno, NV Exhibitor |
| Nov. 12 | California Symposium – Burbank, CA Host and panelists |
| 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 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
Integras Capital Recovery, LLC
JH Capital Group
MauriceWutscher LLP
Pinnacle Credit Services LLC
Security Credit Services, LLC
TRAKAmerica
Brass Contributors ($1,000)
Atlantic Credit & Finance, Inc.
Atlantic Recovery Solutions, LLC
Bankrupt Debt Acquisitions
Barnes Financial Services, LLC
Bloomfield Financial Group, LLC
Credit One Bank N.A.
Dalty Acquisitions, Inc.
Frontline Asset Strategies, LLC
Galaxy Asset Management, LLC
Halsted Financial
Icon Equities, LLC
Jan Stieger
John K. Rossman
Jormandy, LLC
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
Alliant Capital Management LLC
American Acceptance Company
Asset Management Group, LLC
Baker Tilly Virchow Krause LLP
Balbec Capital
Bayview Solutions LLC
Capital Alliance Financial
Capital Financial Group, Inc.
Chebat Portfolio Management, LLC
CKS Financial
Compumail Information Systems
Converging Capital, LLC
David Reid
DeVille Asset Management Ltd
Dynamic Recovery Solutions
EZ Messenger
General Bar Law Directory
Global Debt Registry
Harvest Strategy Group, Inc.
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
National Recovery Solutions, LLC
Nationwide Debt Mgmt Solutions
New Century Financial Services, Inc.
North American Recovery
Real Time Resolutions, Inc.
Sandia Resolution Company, LLC
Simmonds & Narita LLP
Superlative RM
Swan Law Firm, PLLC
Talisman Partners, LLC
U.S. Equities Corp.
