RMAI Update December 2024 - Receivables Management Association International

In This Update

Earlier this month, RMAI leadership traveled to Washington, DC, to engage in a series of strategic meetings with industry partners, policymakers, and regulators. Below is a summary of the discussions and outcomes:

Collaboration with ACA and NCBA Leadership
RMAI President Brett Soldevila, Executive Director Mike Becker, General Counsel & Sr. Director of Government Affairs David Reid, and RMAI’s DC Counsel, K&L Gates, met with ACA and NCBA leadership. The primary focus of the meeting was to discuss legislative and regulatory priorities for 2025, laying the groundwork for continued collaboration to support the industry.

Capitol Hill Meetings
RMAI board members participated in multiple meetings on Capitol Hill. These discussions centered on legislative priorities for the House Financial Services Committee and Senate Banking Committee.

Many offices shared their perspective on CFPB reform measures. While some legislative proposals include sweeping reform measures that range from total abolishment of the bureau to creating a five-person panel in lieu of a director, there was considerable agreement that the strongest path forward was a change to the funding process.

The CFPB is currently funded through transfers from the Federal Reserve, rather than the traditional congressional appropriations process. The intention behind this funding structure, as established by Dodd-Frank, was to ensure the CFPB’s independence from political influence by freeing it from the annual congressional budget process. However, as many have argued, this makes the CFPB less accountable to Congress. As was discussed in the RMAI meetings this month, efforts are expected in the new year to change the funding structure to the more traditional congressional appropriations process.

Meeting with CFPB Leadership and Teams
RMAI board leadership also met with nearly a dozen CFPB representatives, comprised of personnel from the Capital Markets team (including those working on medical debt) and the Consumer Response team, which oversees the complaint portal. Topics covered included:

- RMAI Certification: CFPB showed interest in scheduling a dedicated briefing for newer CFPB personnel to understand RMAI’s certification program.
- Emerging Issues: Trends in debt purchasing and litigation were discussed, along with broader emerging industry concerns. The CFPB was also interested in the cost of Reg F compliance.
- Complaint Portal: Significant attention was given to the misuse of the CFPB’s complaint portal. RMAI will collaborate with the CFPB on addressing these issues in 2025. CFPB expressed concern over social media influencers on platforms like TikTok and Instagram spreading misinformation about debt collections.

The RMAI board of directors’ proactive engagement during these meetings underscores the organization’s commitment to advocating for members.

In case you missed it: CFPB Issues Notice of Proposed Rulemaking for Data Brokers

RMAI monitors, tracks, and responds to legislative and regulatory activity in all 50 states as the need arises. Backed by RMAI’s State Legislative Committee and a team of state lobbyists, RMAI educates legislators and regulators about the industry and the negative impacts or unintended consequences a bill would have on businesses and consumers. RMAI is gearing up for an active state legislative calendar in 2025. We are starting the year with lobbyists in California, Colorado, and New York but anticipate by year-end to have six to eight lobbying firms on retainer, based on need.

If you have an interest in volunteering in RMAI’s grassroots advocacy efforts, please contact RMAI General Counsel David Reid at (916) 779-2492 or [email protected].

The following is a sample of the legislative and regulatory activity over the prior month that has direct impact on the industry:

New York City Department of Consumer & Worker Protection (DCWP) Debt Collection Rule – DCWP was seeking comments on amendments to its revised Debt Collection Rule which is set to take effect on April 1, 2025. DCWP is seeking to clarify that originating creditors are subject to the new rule. RMAI’s comments stated our position that the Department needs to retract its adopted rule, address the issues of constitutionality, clean up the rule’s conflicts with state and federal laws and regulations, properly notice creditors of their intended inclusion within the rule, and republish for public comment before readopting the rule.

Massachusetts HB 4429 – This bill would, among other things: (1) increase the garnishment exemption from 50x state minimum wage to 65x state minimum wage; (2) reduce the statute of limitations (SOL) in an action for the collection of a consumer debt from six to five years; (3) prohibit the revival of a debt that is beyond the statute of limitations through the making of a payment; and (4) reduce the time allowed to take action to enforce a judgment from 20 to 10 years but allows renewing the judgment for an additional 10 years. If passed, the bill would take effect on January 1, 2025. [RMAI has been opposing this bill since 2014 when it was first introduced. After eight years of negotiations and countless amendments, RMAI, other industry participants, and consumer advocates agreed to amendments that resulted in a neutral position by the industry. Among items removed from the bill through RMAI’s efforts from its 2014 introduction: (a) 90x minimum wage garnishment exemption; (b) expungement of the debt once the SOL expires; (c) reducing the SOL from six to three years; (d) preventing the tolling of the SOL through a payment prior to the expiration of SOL; (e) reducing the enforcement of a judgment from 20 to 5 years with no renewal; (f) applying the bill’s provisions to real property; and (g) once the consumer exceeds the exemption threshold, only being able to garnish on income above the threshold.]

Michigan SB 408 – This bill would among other things: (1) increase the garnishment exemption from 30x federal minimum wage to 35x state minimum wage; (2) decrease the limit on garnishment of earnings in excess of the garnishment exemption from 25 percent to 15 percent; (3) increase the homestead exemptions from $35,000 to $125,000 ($200,000 for seniors and those with disabilities); and (4) increase various property exemptions including for automobiles, household goods, tools of the trade, agricultural, etc. [RMAI and an industry coalition are currently opposing this bill as we attempt to resolve a few remaining issues. RMAI has had in-person meetings with the bill sponsors and key legislators, followed by several virtual meetings with the Senate sponsor, to express our concerns. Our efforts were successful in getting a number of provisions amended or removed, including: (a) an 80x minimum wage garnishment exemption; (b) a 10 percent limit on garnishment of earnings; (c) a $17,000 wild card exemption; (d) eliminating all tax garnishments for judgments obtained pursuant to a “consumer debt”; and (e) increasing the homestead exemption to $250,000.]

Sixth Circuit Holds ER Authorization Form Constitutes a Written Contract (15-Year SOL)
Williams v. Louisville Recovery Serv., LLC, No. 24-5303, 2024 U.S. App. LEXIS 30611 (6th Cir. Dec. 3, 2024)

A consumer had numerous visits to a hospital emergency room and each time signed a “Conditions and Authorization for Treatment” form prior to receiving treatment from a third-party emergency physician healthcare provider. The consumer didn’t pay the provider’s bills, and eventually the provider retained a collection agency which reported the debts to credit reporting agencies.

Several years later, the consumer discovered the negative credit reporting and disputed the debts. The collection agency provided an account itemization and threatened to pursue legal action if the bills weren’t paid. The consumer responded by filing a lawsuit alleging the collection agency threatened legal action on time-barred debts in violation of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692, et seq. The trial court granted the collection agency’s motion for summary judgment, determining that the 15-year statute of limitations for written contracts applied, and the consumer appealed.

In an unpublished opinion, the U.S. Court of Appeals for the Sixth Circuit began by noting that a debt collector violates the FDCPA “if it threatens to take legal action against a time-barred debt.” The question was, then, whether Kentucky’s 15-year statute of limitations for written contracts, or the 5-year statute for oral contracts applied. If the 5-year statute applied, the debts would have been time-barred.

The Court explained that a written contract must include “the parties to the contract, the price to be paid, and the performance to be rendered.” The consumer claimed that the authorization forms she signed included none of the items. The Court disagreed.

First, although the forms didn’t specifically name the third-party emergency physician healthcare provider, “Kentucky does not require that a contract name its third-party beneficiaries,” and a “non-party qualifies as a third-party beneficiary when the contract was created for that party’s ‘actual and direct benefit.’” Here, the forms clearly indicated that the hospital used “mostly ‘independent contractors and practitioners’ to provide care, that these independent contractors and practitioners ‘bill separately,’ and that the patient agrees to ‘accept full responsibility for all charges associated with the care provided.’”

Second, the Court dispensed with the consumer’s argument that the forms failed to include a price by noting that in Kentucky a written contract need not assign a specific price if it “includes a ‘definite promise to pay,’” as did the authorization forms.

Third, the consumer’s argument that the forms failed to describe the performance to be rendered failed because “Kentucky does not require written contracts to provide every detail of performance— only to describe the required performance with reasonable certainty.” The Court noted that this makes sense in the emergency room setting where “a patient’s condition and required treatment are still unknown.” Here, the forms described that third-party providers would perform various tests and procedures to diagnose the consumer’s condition.

Determining that the authorization forms included all the required elements to constitute written contracts, the Court applied the 15-year statute of limitations and affirmed the decision of the trial court.

Donate an Item for the Annual Conference Silent Auction
RMAI is now accepting donations for the 2025 Annual Conference Silent Auction sponsored by Kino Financial Co., LLC. The silent auction will begin Tuesday, February 11^th and will end during the Networking Reception on Wednesday, February 12^th.

We are seeking 50 fantastic and unique items for the auction catalog. If you have an item you would like to donate, please complete this Donor Form. You can also view the auction catalog and register as a bidder on the Silent Auction webpage . We look forward to seeing some great donations!

Donate to the Legislative Fund with Your Membership Renewal
December is the last month to renew your membership without a late fee, so now is a great time to pay and include your Legislative Fund donation with your renewal. Donating is voluntary and there is a suggested donation amount on your renewal invoice. Every donation to our Legislative Fund is appreciated and greatly helps us to continue the fight for the receivables management industry, so feel free to donate a different amount than suggested. If you’ve already paid your membership dues but would still like to contribute, you can do so by donating here.

About the Legislative Fund
RMAI actively monitors and responds to state and federal measures affecting how our members do business. Your contributions to the Legislative Fund extend the reach of RMAI’s advocacy across the country where and when needed. Read more about the Legislative Fund.

Recorded Webinars
Recorded on December 12 2024, register for Understanding Buy Now, Pay Later (BNPL): Trends, Consumer Insights, and Lender Strategies. This webinar provides an in-depth exploration of the Buy Now, Pay Later (BNPL) market, examining its growth, consumer demographics, and transaction dynamics.

2025 Webinar Programming
With the New Year comes New Webinars. Webinar planning is currently underway and will include a CLE webinar series for attorneys. Stay tuned for more details.

Click here for more information on our live and recorded educational webinars. Contact Shannon Parod-Tsui at [email protected] to find out more about sponsoring an RMAI webinar.

Congratulations to our new and renewed Certified Receivables Compliance Professionals (CRCP) and renewed Certified Receivables Businesses (CRB)!

CRCP New
Anthony Albanese, Pendrick Capital Partners
Naomi Moore, Absolute Resolutions Corp
Mark Ravanesi, TrueAccord

CRCP Renewals
Michael Cassidy, Velocity Portfolio Group
Adam Parks, Branding Arc
Marian Sangalang, The Bureaus, Inc.
Mitch Williamson, Barron & Newburger, P.C.

CRB Renewals
Full Circle Financial
National Recovery Solutions
Oak Harbor Capital, LLC
Portfolio Recovery Associates
Steel River Systems

View all certified businesses and vendors.
View all certified individuals.

Version 13.0 30-Day Comment Period Coming Soon
The Standards Committee which is part of the Certification Council has wrapped up their review for Version 13.0 of the Certification Governance Document. We anticipate submitting the redline of Version 13.0 for a 30-day comment period to the RMAI membership later this month. Please be on the lookout for a Member Alert regarding the 30-day comment period. We love to see feedback from our members!

For any additional certification needs, please see our in-depth certification resources for all company types (includes 7 steps to get certified, sample policies and procedures, and more).

View educational requirements for certified individuals.

For more information or to discuss the certification process in more detail, please contact Shannon Parod-Tsui at [email protected] to set up a call.

Renew your RMAI Membership by December 31!

Thank you to those who have already renewed their membership for 2025! We look forward to continuing to provide you with ongoing valuable networking opportunities, timely education, helpful resources and comprehensive and robust state and federal advocacy! If you have not yet renewed your membership for 2025, we encourage you to do so by December 31, to continue avoid a $100 late fee and enjoy the benefits of being a part of RMAI – including discounted rates for 2025 Annual Conference!

To renew your membership, please login here. If you need any assistance, email [email protected].

RMAI Annual Conference First Time Attendee – New Member Zoom
During this interactive Zoom meeting on January 29 at 10 am PST, we will offer insight into how to prepare for the 2025 Annual Conference. We’ll share best practices and tips for maximizing your experience, and answer your questions about RMAI and the 2025 Annual Conference. Invitations will be sent out on December 16, so keep an eye on your inbox. Questions? Contact Nicole at [email protected].

Network with Other RMAI Members via the Member Directory
A key benefit of your RMAI membership is networking with other members. Take advantage of the online Member Directory and sort by Member Type or State or search using keywords or for a specific company’s name. Make new connections ahead of RMAI’s 2025 Annual Conference to maximize your time there. Login to start networking!

For a complete list of RMAI members, login to check out the Member Directory.

Recognize excellence in our industry by nominating a deserving peer for an RMAI award! This is your chance to celebrate the outstanding contributions, innovation, and leadership of your fellow members who go above and beyond to make a difference. Submit your nomination today and help shine a spotlight on their achievements!

Nominate an Industry Leader for the Bud Reitzel Award
Considered one of the industry’s founding fathers and a mentor to so many in the industry, Bud Reitzel brought integrity, innovative thinking, and passion to the industry he helped create. The values Bud instilled at Asset Acceptance and impressed on those with whom he did business are put into practice every day by thousands of industry professionals who knew him, or who work for those who did.

RMAI created the Reitzel Award to recognize an individual for outstanding leadership and dedication in the receivables management industry, who has demonstrated over many years of service the ideals that Bud so firmly believed in. RMAI members are encouraged to nominate someone for this prestigious award by submitting the nomination form. The nomination deadline is January 8, 2025. Please use the button below to read more about the award and to submit your nomination.

Learn More and Nominate

Nominate an Industry Leader for the Integrity Award
RMAI’s Integrity Award recognizes an individual from an RMAI member company for demonstrated integrity in action, either professionally or personally. You may nominate yourself or another individual from an RMAI member company by clicking the button below and submitting the nomination by January 8, 2025.

Learn More and Nominate

2025 RMAI Annual Conference | February 10-13, 2025

Please note, the RMAI offices will be closed December 24 & 25, in observance of Christmas, and January 1, in observance of New Year’s Day.

Leg Fund Contributors December 1, 2023 – December 13, 2024

DIAMOND
Cavalry Investments, LLC
Crown Asset Management, LLC
Portfolio Recovery Associates, LLC
Resurgent Holdings, LLC
Second Round, LP
Velocity Portfolio Group, Inc.

TITANIUM
Financial Recovery Services, Inc.
Garnet Capital Advisors, LLC
TRAKAmerica

PLATINUM
Cascade365 Family of Companies
InvestiNet, LLC
National Credit Adjusters, LLC
Pharus Funding, LLC
T & I Enterprises, LLC
Unifund CCR LLC

GOLD
Rausch Sturm, LLP

SILVER
Andreu, Palma, Lavin & Solis, PLLC
Blitt and Gaines, P.C.
Corporate Advisory Solutions, LLC
DebtNext Software, LLC
EverChain
Firstsource
Halsted Financial Services, LLC
Klima, Peters & Daly, P.A.
Velo Law Office

BRONZE
D & A Services, LLC
Equabli, Inc
First Financial Asset Management, Inc. (FFAM 360)
Resurgence Capital, LLC
Security Credit Services, LLC
Superlative RM
Tromberg, Morris & Partners, PLLC

BRASS
AAA Lenders Inc
AACANet, Inc.
Acctcorp International, Inc.
Advancial Federal Credit Union
Aldridge Pite Haan, LLP
ARM Compliance Business Solutions LLC
ARS National Services, Inc.
Automated Collection Services Inc
Balbec Capital
Basham & Scott, LLC
Bayview Solutions, LLC
Call Center Services International
CBE Companies
CMS Services
CNG/Axcess Financial Services, Inc.
Collection Attorneys USA LLC
CompuMail Information Systems
ConServe
Cornerstone Licensing Services
Credit Control, LLC
Credit Corp Solutions Inc.
Debt Recovery Solutions, LLC
Exelero Corp.
FMA Alliance, Ltd
ForgiveCo PBC Inc
Frost Echols LLC
Genesis Recovery Services
Gordon, Aylworth & Tami, P.C.
Grassy Sprain Group, Inc
Guglielmo & Associates, PLLC
Investment Retrievers, Inc.
Jefferson Capital Systems, LLC
Lateral Technology
Law Office of James R. Vaughan, P.C.
Martin Golden Lyons Watts Morgan PLLC
Mountain Peak Law Group, PC
National Debt Holdings, LLC
National Recovery Associates, Inc.
NCB Management Services, Inc.
Nelson & Kennard
NICE
Nuvei Technologies Inc.
Phin Solutions, LLC
Plaza Services
Premium Asset Recovery Corp (PARC)
Pressler, Felt and Warshaw, LLP
RAS LaVrar LLC
Reassigned Numbers Database (RND)
Revenue Assistance Corporation dba Revenue Group
RevSpring
Robinson Hoover & Fudge, PLLC
SAM – Solutions for Account Management, Inc.
Scott & Associates, PC
Slovin & Associates
Smith Debnam Narron Drake Saintsing & Myers, LLP
SMS Financial, LLC
Stillman Law Office
Stone, Higgs & Drexler
The Cadle Company
Tratta
Troutman Pepper Locke
Troy Capital, LLC
TrueAccord
Vertican Technologies, Inc.
Zarzaur & Schwartz, P.C.

OTHER
Barron & Newburger, P.C.
Bedard Law Group, P.C.
Burr & Forman LLP
C & E Acquisition Group, LLC
Caddis Funding LLC
CASA Receivables Management, LLC
Ceteris Portfolio Services LLC dba J.J. Marshall & Associates
Comtronic Systems, LLC
Consuegra & Duffy, PLLC
Convoke, Inc.
Credit Management Corporation
David Reid
Denali Capital, LLC
Gaskell & Giovannini, LLC
Harvest Strategy Group, Inc.
Hinshaw & Culbertson
InDebted
Indiana Receivables, Inc.
Kaleo Legal
Kino Financial Co., LLC
National Recovery Solutions, LLC
Orbita Capital Group, LLC
Payment Savvy, LLC
Pro Forma Inc
Sandia Resolution Company, LLC
SCJ Commercial Financial Services
SIMM Associates, Inc.
Sonnek & Goldblatt, Ltd.
Vargo & Janson, P.C.
Womble Bond Dickinson