RMA Update – March 2017

Federal Activity

We have formed the new RMA Federal Regulatory and Legislative Committee and it will hold its first meeting this week. Items on the agenda include a review of pending legislation on student loans, CFPB reform, off-shore call centers, and class-action legislation. The Congress is still settling in under the new administration and focused work on legislation has not yet begun in earnest. Other items include regulatory activities at the OCC and the FCC. RMA continues to track the PHH legal proceedings; the results will impact the future of Director Cordray.

State Legislative Activity

RMA is currently tracking 141 bills at the state level that impact the receivables industry in both positive and negative ways. Here are a few noteworthy bills of concern that are receiving attention:

Colorado SB 216 – This bill would prohibit the sale of receivables if: (1) it has been discharged in a chapter 7 bankruptcy case with no assets for distribution to creditors; (2) the licensee has been informed or has knowledge that the consumer responsible for the debt is deceased; (3) it has been settled; (4) more than four years have passed since the date of the consumer’s last payment; or (5) it is beyond the date of obsolescence under section 1681c of the federal “Fair Credit Reporting Act.” Additionally, the bill would extinguish the debt after the four-year statute of limitations has expired and would allow consumers to bring a private cause of action to get access to the collection agency’s bond. [RMA testified in front of a Senate Committee in January on the background recommendations prior to its introduction and will be seeking amendments to the introduced bill.]

District of Columbia Bill 71 – This bill would amend the District of Columbia’s Debt Collect Law to: (1) expand the definition of debt collector to include debt buyers; (2) require specific data and documents concerning the debt to be in the possession of the debt collector; (3) limit the frequency of consumer contact using a reasonableness standard; (4) require pre-charge-off itemization of interest and fees; (5) prohibit bringing suit when the debt is beyond the statute of limitations and reviving the statute through payment; and (6) remove “willful” from intent for purposes of determining if a violation occurred. In addition, the following provisions in the bill would only apply to debt buyers: (1) expunge the debt after the statute of limitations expires; (2) requires 11 months of account statements; (3) requires a consumer notice detailing the consumer’s right to obtain copies of all the data and documents required by the act; (4) requires a copy of any payment schedule or settlement agreement to be provided to the consumer within 15 days; (5) when bringing suit, requires all the data and documents to be attached to the complaint; (6) requires authenticated business records; (7) makes debt buyers liable for actual damages, attorney’s fees, punitive damages, and an “additional penalty” of between $500 and $4,000 per violation of the act (including for minor clerical errors); and (8) indicates that any violation of the act by a debt buyer is an automatic ban on future collection activity on the account by anyone. [RMA lobbyist has been retained.]

Massachusetts SB 120 – This bill among other things would: (1) reduce the statute of limitations in an action for the collection of a consumer debt from six to four years. It is measured from the earlier of the date of charge-off, placement for collection, or 180 days after the last regular payment; (2) prohibit payments made prior to the limitations period expiring from tolling the statute; (3) prohibit any attempt to collect a consumer debt once the statute of limitations has expired but would allow a debt collector to accept an unsolicited voluntary consumer payment on a debt; (4) extinguish judgments after five years unless the creditor takes action to enforce the judgment; and (5) reduce the percentage that is subject to wage garnishment. [RMA lobbyist has been retained.]

Oregon HB 2166 – Requires debt buying companies to: (1) provide consumers with a thirty-day notice of intent to bring legal action; (2) provide “authenticated” data and documents in the initial notice, initial pleadings, and prior to judgment; (3) provide an affidavit from the originating creditor and each subsequent purchaser; (4) maintain specific policies and procedures; (5) register with the state; (6) not sell debt to an unregistered buyer; and (7) obtain a bond and E&O insurance. [RMA lobbyist has been retained.]

Oregon HB 2356 (introduced at the request of the AG) – This bill has similar requirements to Oregon HB 2166, except for the bonding, insurance, and registration requirements. [RMA lobbyist has been retained.]

Wage Garnishment & Property Exemption Bills – Every legislative session seems to have a particular subject that rises to the surface as the most popular topic of the year. With 31 bills introduced so far, the hot topic for 2017 is legislation that looks to change wage garnishment and/or property exemptions. Bills have been introduced in Alabama, California, Colorado, Connecticut, Indiana, Massachusetts, Maryland, Maine, Minnesota, Montana, North Dakota, Nebraska, Nevada, New York, Oklahoma, Pennsylvania, Tennessee, Utah, Virginia, and West Virginia.

If interested in a copy of the RMA state tracking list, please contact David Reid at [email protected].

TESTIMONIAL OF THE MONTH

Court Decisions

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

9th Cir. Throws Out FDCPA Class Settlement
Koby v. ARS National Services, Inc., Ninth Circuit Court of Appeals, No. 13-56964. (Jan. 25, 2017)

The Ninth Circuit Court of Appeals rejected a class action settlement as “worthless” for absent class members in a recent federal Fair Debt Collection Practices Act case. The decision represents another addition to the growing list of FDCPA and other consumer-related class action settlements facing tough scrutiny where absent class members receive minimal or no monetary relief in proportion to their release of future claims, while class representatives and their counsel receive handsome rewards.

9th Cir. Holds TCPA Revocation of Consent Must Be Clearly Expressed
Van Patten v. Vertical Fitness Group, Ninth Circuit Court of Appeals, No. 14-55980 (Jan. 30, 2017)

In a claim under the federal Telephone Consumer Protection Act (TCPA), the U.S. Court of Appeals for the Ninth Circuit held that although a consumer may revoke consent to receive automated text messages or calls, the revocation but must clearly express that the consumer does not want to receive the messages or calls. The Court concluded that, in this case, the consumer gave prior express consent to receive the text messages at issue and did not effectively revoke his consent, thereby dooming his TCPA claims.

Statutory Interest Cannot Accrue on Charged-off Credit Cards Says Kentucky Supreme Court
Unifund CCR Partners v. Harrell, Supreme Court of Kentucky, No. 2015-SC-000117-DG (Feb. 16, 2017)

The Kentucky Supreme Court recently ruled that a debt buying company may not charge or collect statutory interest on an account it acquired after it was charged-off by the original creditor. The Kentucky Supreme Court held that once a credit card account is charged off and the original creditor ceases sending monthly statements, federal law prohibits further interest charges. Because the original creditor is prohibited from assessing interest, a debt buying company that purchases the account is likewise prohibited from assessing statutory interest.

Education

Receivables Management Association International members can now access ALL webinars for *free! As a member, you now have access to all live and previously recorded webinars on our website and they all count towards credit for certification. *One free webinar per company per month; all additional registrations will be billed at the membership price.

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

• The CFPB’s New Enforcement Tool: Bankruptcy Code Section 105 – Wednesday, March 29, 2017

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

Certification

Need “live/in person” continuing education credits for certification? Members who are seeking to earn live credits to obtain RMA’s Certified Receivables Compliance Professional designation can do so at the Executive Summit,  August 1–3, 2017  at the Resort at Squaw Creek in Lake Tahoe, CA. You can also contact one of our Authorized Education Providers who may have a live seminar in your area. Be sure to check out the certification tab on our website.

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

CONGRATULATIONS
Congratulations to our newly certified companies and individuals!

Companies
Market View, LLC dba DebtTrader (RMA’s First Certified Broker!)

Individuals
Jennifer M Anderson, Alliant Capital Management, LLC
Jeremy Croteau, Oliphant Financial, LLC
Matthew Clark, EOS CCA
Tyler Peska, Credit Management Corporation
Daniel Schindler, Plaza Services, LLC
Julie Simes, Zealandia Capital, Inc.
Richard  Tilley, TCF

View all certified companies and certified individuals on our website.

New Members

(from February 15, 2017 – March 14, 2017)

Welcome new RMA members!
The RMA membership continues to grow.
Welcome to our newest members:

American Credit Resolution, Inc. – Georgia
Apple Recovery – Arizona
Capital Collection Management, LLC – New York
Direct Recovery Services, LLC – Minnesota
Foundation Finance Company – Wisconsin
Law Offices of Daniel C. Consuegra – Florida

Read more about these members and other members on the Member Search page.

RMA Receives Overwhelming Response for 2017 Committee Participation 

Thank you for all the responses to the 2017 Committee Interest Form. The association and industry are better because of the abundance of talent and commitment spread among our membership.

Over half of the interest forms submitted were from new volunteers, a testament to members wanting to engage with shaping RMA and the future of the ARM industry. No matter what committee you serve on, you are an Ambassador for the association and we can’t do the good work we do without you. RMA committee chairs and co-chairs want to thank all who voiced their interest to serve.

Executive Summit

It’s not too early to plan your summer vacation!

Join your peers at the Executive Summit, August 1-3 in Lake Tahoe, California, for three days of networking and education. Then extend your visit (while enjoying an extended-stay discount at the Resort at Squaw Creek) for fishing, mountain biking, river rafting, and more.

Registration opens April 3. Contact Sylvia Done for more information.

Industry Events

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