RMAI Update July 2023

For the accounts receivables management industry, Capitol Hill has been quiet recently. Both houses of Congress were on summer break the first two weeks of July and members of both houses will spend the month of August in their districts.

During this slower time on Capitol Hill, the other branches of government have been very busy. The Supreme Court issued their long-awaited decision on the student loan forgiveness program, ruling that President Biden did not have the authority to forgive the loans. This was the anticipated decision, and now the conversation has turned to what impact consumers needing to start making payments on their loans will have on the economy. In the next Supreme Court session, which convenes in October, the Justices are scheduled to hear the case questioning the constitutionality of the CFPB’s funding structure.

On July 3rd, RMAI submitted Comments on the CFPB’s proposed policy defining the term “Abusive” in UDAAP.

On July 11th, the CFPB held a hearing on Medical Billing and Collections. If you missed the live hearing, here is a link to the recording.  Additionally, the CFPB has issued a Request for Information on Medical Payment Products.  RMAI will submit Comments.

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. 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 dreid@rmaintl.org. The following bills of concern are a sample of the legislation that RMAI is currently engaging on behalf of the industry:

California AB 1414 – This bill would exclude consumer credit accounts from the definition of “common counts” which would force all litigation through a contract theory for litigation. [RMAI and an industry coalition are in opposition to the bill.]

Michigan SB 408 – This bill would among other things: (1) increase the garnishment exemption from 30x federal minimum wage to 80x state minimum wage; (2) limit garnishment to 10% of earnings in excess of the garnishment exemption and then 15% of any earnings over $1,200; (3) create a wild card exemption up to $17,000; (4) eliminate all tax garnishments for judgments obtained pursuant to a “consumer debt”; and (5) increase the homestead exemptions from $35,000 to $250,000 ($350,000 for seniors and those with disabilities); and (6) increase various property exemptions including for automobiles, household goods, tools of the trade, agricultural, etc. [RMAI is developing a coalition to vigorously oppose this bill. RMAI is also looking at retaining a state lobbyist.]

Michigan SB 409 – This bill would adopt similar provisions to SB 408 (see above) for the bankruptcy code. [RMAI is presently analyzing this bill.]

Oregon HB 2008 – This bill, among other things, would: (1) increase the auto exemption from $3,000 to $15,000; (2) increase various personal household property exemptions; (3) increase the homestead exemption from $40,000 to the median housing price for single-family dwellings in the county in which the homestead is located; and (4) protect approximately $52,000 in wages from garnishment. The bill would also authorize the award of punitive damages as part of a private right of action. [RMAI, while acknowledging some of the exemption thresholds could be increased, is strongly opposed to this bill as it is currently drafted. RMAI is working with an industry coalition to seek amendments. The Oregon Legislature adjourned without passage thereby pushing this issue into the 2024 session.]

Seventh Circuit Adopts New Standard for TCPA Claims Under § 1681s-2(b)

Frazier v. Dovenmuehle Mortg., Inc., No. 22-2570, 2023 U.S. App. LEXIS 16933 (7th Cir. July 5, 2023)

A consumer became 90 days delinquent on her mortgage loan and settled the debt with a short sale of her home.  Several years later she noticed that the closed mortgage was shown as delinquent on her credit reports and notified the credit reporting agencies (“CRAs”) that she disputed the information.

One CRA sent the consumer’s previous mortgage servicer, which had furnished information about the delinquency, four Automated Consumer Dispute Verification (“ACDV”) forms.  Pursuant to the Fair Credit Reporting Act (“FCRA”), the servicer was then required “to investigate the disputed data,” and to “correct or verify the information by returning the ACDV form to the credit reporting agency with any amended or verified data inserted next to the old data.”  The servicer did, in fact, amend or verify several of the data items.

Despite the changes, the consumer was subsequently denied a new mortgage loan “because her [] credit report reflected late payments on her previous mortgage in months following the short sale.”  She then filed a lawsuit that, among other things, alleged the servicer “violated § 1681s-2(b) by failing to conduct a reasonable investigation of disputed data and providing false and misleading information to credit reporting agencies.”  The trial court granted the servicer’s motion for summary judgment and the consumer appealed.

On appeal, the U.S. Court of Appeals for the Seventh Circuit explained that “the federal circuit courts that have interpreted § 1681s-2(b) agree on two threshold requirements for a claim under the statute:

1. The plaintiff must make a prima facie showing that the data furnisher provided incomplete or inaccurate information.
2. The plaintiff must also show that the incompleteness or inaccuracy was the product of an unreasonable investigation—that is, had the furnisher conducted a reasonable investigation, it would have discovered that the data it provided was incomplete or inaccurate.”

However, the Court also noted that “to the frustration of district courts within our circuit,” it had never adopted “a standard for incompleteness or inaccuracy under § 1681s-2(b).”

Accordingly, the Seventh Circuit set the standard as requiring “a showing that the information the data furnisher provided was (1) patently incorrect, or (2) materially misleading, including by omission.  By materially misleading, we mean “misleading in such a way and to such an extent that it can be expected to adversely affect credit decisions.”

In this case, the Court disagreed that the data with which the consumer took issue would “materially mislead a reasonable observer to conclude that [the consumer] is currently delinquent.”  The Court found that the data was in some instances simply accurate, and in others reflected historical delinquencies when read in context and considering the report as a whole.

Therefore, the Seventh Circuit affirmed the holding of the trial court.

First Circuit Dismisses Appeal from Order Denying Debt Collector’s Motion to Compel Arbitration

Powers v. Receivables Performance Mgmt., LLC, 70 F.4th 59 (1st Cir. 2023)

A consumer accrued an unpaid balance of several hundred dollars with a telephone company. Eventually, the telephone company referred the consumer’s account to a debt collector and the  consumer alleged that the debt collector called her more than twice within a seven-day period in violation of Massachusetts law which places limits on collection call frequency.

The consumer later brought a putative class action against the debt collector in state court and the debt collector moved to compel arbitration, relying on an arbitration provision that was contained in the service contract.

The state court denied the motion, “reasoning that, as a nonsignatory to that service contract, [the debt collector] was not entitled to invoke the arbitration provision under the contract law principles set forth in Landry v. Transworld Systems Inc., 485 Mass. 334, 149 N.E.3d 781 (Mass. 2020).”

Subsequently, the debt collector removed the case to federal court, where it filed another motion to compel arbitration instead of moving to “dissolve or modify the state court order denying arbitration.”  The debt collector did not raise any new issues and relied solely on the same arguments that the state court rejected.  The federal trial court “treated the motion as a motion for reconsideration of the state court order denying the arbitration,” denied it, and the debt collector appealed.

On appeal, the U.S. Court of Appeals for the First Circuit explained:

When a case is removed from state court to federal district court, “all injunctions, orders, and other proceedings had in such action prior to its removal shall remain in full force and effect until dissolved or modified by the district court.” 28 U.S.C. § 1450. These prior state court orders are not appealable federal orders absent some action by the district court. Rather, § 1450 serves merely to preserve the status quo in the removed case.

Thus, the “status quo” was the state court’s denial of the motion for reconsideration, from which the debt collector had never sought a timely interlocutory appeal.  As such, the Court explained “the order is not a final decision and not within an exception that would permit interlocutory review.  At least absent some newly available evidence, law, or a new stage of the proceedings, orders denying untimely motions for reconsideration of appealable interlocutory orders are generally not themselves appealable.”

Because the debt collector relied only on its previous arguments in support of the motion, the Court dismissed the appeal.

2023 Executive Summit Silent Auction Supports the Legislative Fund
Get into a friendly competition with your colleagues as you bid on unique items in our Executive Summit Silent Auction. This will be an on-site event only for registered attendees. View our online Auction Catalog to get ready for bidding.

We are still accepting donated items for the Auction Catalog. Get brand recognition for your business in the Auction Catalog, on the Donors page and on-site. When you bid or donate, you support the RMAI Legislative Fund! We put every dollar to work advocating for the industry.

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.Click here to see a list of current contributors on the right-side bar.

Call for Proposals
RMAI’s Call for Proposals was sent to you all on June 5, 2023, and we are accepting proposals for the following:

• An education session at the 2024 Annual Conference
• An educational webinar
• An article for the spring or fall annual publications (print/digital)
• An education session at the 2024 Executive Summit

Please submit your proposals no later than Monday, August 7th.

Upcoming Webinar
Register now for our July 26th webinar, Stand Out for the RIGHT Reasons: Strategies to Enhance Client/Creditor Collaboration and Opportunities.  Our presenters will highlight solutions to properly monitor, manage, and educate your clients/creditors with industry changes that can impact daily processes and strategies, through a thoughtful discussion on how to effectively engage clients and prospective clients to build confidence, enhance collaboration, and increase placements.

Recorded Educational Webinars
If you missed our May 31st webinar on compelling arbitration or our June 13th on vendor and service provider controls, you can register for the recordings on our Online Education webpage which will be available for one (1) year. Click here for more information on our live and recorded webinars.

Congratulations to our new and renewed Certified Receivables Compliance Professionals (CRCP) and renewed Certified Receivables Business (CRB).

CRCP New
Marian Crawford, SCJ Commercial Financial Services
Marc Maiorca, Southwood Financial, LLC
Zabrina Shepherd, Southwood Financial, LLC
Lana Taylor, Crown Asset Management

CRCP Renewals
Kimberlee Basha, Autovest, LLC
Sarah Daley, Galaxy Capital Acquisitions, LLC
Amber Knight, Accelerated Portfolio Inc.
Jon Mazzoli, Resurgent Holdings
Rebecca Napier, Huntington Debt Holdings, LLC
Garon Robinett, Paradigm Assets, LLC
Jerry Terrill, Superlative RM
Jenn Wilson, EverChain, LLC

CRB Renewal
National Debt Holdings

Obtain 12 Hours of In-Person Education at the RMAI Executive Summit
The 2023 Executive Summit is the perfect place to get your in-person education credits for your new or renewing CRCP designation. 24 credits are required for certification. (Chief Compliance Officers of a CRB must earn a minimum of 12 credits from in-person attendance. All other employees of a CRB or anyone from a non-certified business, can earn all education online.) Make sure you are registered for the chance to get 12 in-person credits. Online registration is still open for the 2023 Executive Summit.

View all certified businesses and vendors.
View all certified individuals.
View educational requirements for certified individuals.

For questions about certification, contact RMAI at (916) 482-2462 or email cert@rmaintl.org.

2024 Annual Conference DEI Scholarship
RMAI is an inclusive organization that fosters the participation of a diverse group of employees from all member companies in all RMAI networking activities, educational programming, and committee service. To that end, RMAI created the Diversity Equity Inclusion (DEI) Annual Conference Scholarship.

The scholarship is open to all receivables management professionals employed by Certified Receivables Business and Certified Receivables Vendor members, who have never attended an in-person RMAI event (i.e., Annual Conference, Executive Summit, or Fall Networking) and are viewed as emerging leaders in their organization.

Click here for more information and the required forms to apply. Applications must be submitted on or before October 13, 2023.

Register for Fall Networking & Baseball
Remember, one of the most valuable and popular benefits of your RMAI membership is attending our events at a discounted member registration rate. Registration is open now for Fall Networking & Baseball, taking place in Denver, CO, on Monday, September 11! Connect with industry colleagues during the no-host lunch and pre-game reception, and while you take in a Chicago Cubs vs. Colorado Rockies baseball game. The fan atmosphere makes renewing and building connections easy and enjoyable. Sponsorships are available too! Register and find out more.

RMAI’s leadership cultivates relationships within the receivables management industry to expand business opportunities for members.

RMAI 2023 Executive Summit | August 1-3, 2023
2023 Fall Networking & Baseball | September 11, 2023
2024 RMAI Annual Conference | February 5-8, 2024

Thank you to our July 1, 2022 through July 14, 2023 Legislative Fund Contributors!

Diamond $25,000

Cavalry Investments, LLC

Crown Asset Management, LLC

Encore Capital Group, Inc.

Financial Recovery Services, Inc.

First Financial Portfolio Services, LLC dba FFAM360 Capital

Portfolio Recovery Associates, LLC

Resurgent Holdings, LLC

Second Round, LP

TRAKAmerica

Velocity Portfolio Group, Inc.

Platinum $10,000

Blitt and Gaines, P.C.

EverChain

Garnet Capital Advisors, LLC

InvestiNet, LLC

National Credit Adjusters, LLC

Plaza Services, LLC

Provana, LLC

T & I Enterprises, LLC

Unifund CCR LLC

Velo Law Office

Gold $7,500

Halsted Financial Services, LLC

Klima, Peters & Daly, P.A.

Pressler, Felt and Warshaw, LLP

Ragan & Ragan, PC

Rausch Sturm, LLP

Superlative RM

Silver $5,000

Andreu, Palma, Lavin & Solis,  PLLC

AscensionPoint Recovery Services, LLC

CKS Financial

Corporate Advisory Solutions, LLC

DebtNext Software, LLC

Digital Recognition Network

FMA Alliance, Ltd

National Loan Exchange, Inc.

Pharus Funding, LLC

Spring Oaks Capital, LLC

Bronze $2,500

Absolute Resolutions Corp.

Acctcorp International, Inc.

Actuate Law, LLC

Aldridge Pite Haan, LLP

Central Portfolio Control, Inc

Harvest Strategy Group, Inc.

Hinshaw & Culbertson

Invenio Financial, a Phillips & Cohen Associates company

January Technologies, Inc.

Kredit Financial Inc.

Premier Forty Financial, LLC

RAzOR Capital, LLC

Resurgence Capital, LLC

Security Credit Services, LLC

Slovin & Associates

Stillman Law Office

Suttell & Hammer

Tobin & Marohn

Troutman Pepper

TrueAccord

Venable LLP

Vertican Technologies, Inc.

Weltman, Weinberg & Reis Co., L.P.A.

Brass $1,000

Action Collection Agencies, Inc.

Advancial Federal Credit Union

AKCP LLC

Arbeit

Arko Consulting LLC

Balbec Capital

Barron & Newburger, P.C.

Beam Software

Bread Financial

Butler & Associates, P.A.

C&R Software

Call Center Services International

Capio

Cascade365 Family of Companies

CBK, Inc.

CCMR3

Cedar Holdings International Inc. DBA Cedar Financial

Commercial Credit Group Inc.

Commercial Funding Inc.

Convergence Acquisitions, LLC

Cornerstone Support, LLC

CSS Impact

D & A Services, LLC

Dobberstein Law Firm, LLC

Epicenter Technologies Pvt. Ltd.

Equabli, Inc

FLOCK Specialty Finance

G. Reynolds Sims & Associates, P.C.

Genesis Recovery Services

Gordon, Aylworth & Tami, P.C.

Guglielmo & Associates, PLLC

Hunt & Henriques, LLP

International Debt Buying Consultants, LLC

Investment Retrievers, Inc.

Jefferson Capital Systems, LLC

Kota Business Solutions LLC

Law Offices of Goldberg & Oriel

Levy & Associates, LLC

Lockhart, Morris & Montgomery, Inc.

Mandarich Law Group LLP

Markoff Law LLC

Maxwell & Graves Solutions, LLC

Metacorp, LLC

Mountain Peak Law Group, PC

National Debt Holdings, LLC

Nelson & Kennard

NRA Group, LLC

Nuvei

PCI Group Inc.

Phin Solutions, LLC

Portnoy Schneck, LLC

Quall Cardot, LLP

Quantum3 Group, LLC

RevSpring

Robinson Hoover & Fudge, PLLC

Scott & Associates, PC

Sequium Asset Solutions, LLC

SimpleCertifiedMail.com

Skit.ai

Stenger & Stenger P.C.

Stone, Higgs & Drexler

The Cadle Company

US Mortgage Resolution, LLC

USASF Servicing, LLC

VeriFacts, LLC.

VoApps, Inc.

Other

Alliance Credit Services, Inc.

ARM Compliance Business Solutions LLC

Atlas Acquisitions

Bedard Law Group, P.C.

CMS Services

Coastal Law Firm, APLC

Converging Capital, LLC

Convoke, Inc.

Credit Corp Solutions Inc.

Credit Management Corporation

D1AL

InDebted

Kino Financial Co., LLC

Kirschenbaum & Phillips, P.C.

Law Offices of Steven Cohen LLC

London & London

Martin Lyons Watts Morgan PLLC

MauriceWutscher LLP

Miller and Steeno, P.C.

Moss & Barnett, P.A.

National Recovery Solutions, LLC

POM Recoveries, Inc.

Poser Investments, Inc.

ProVest LLC

Receivables Management Association International

Resource Management Services, Inc.

SAM – Solutions for Account Management

Sandia Resolution Company, LLC

SCJ Commercial Financial Services

Simmonds & Narita LLP

Smith Debnam Narron Drake Saintsing & Myers, LLP

Solutions by Text

Sonnek & Goldblatt, Ltd.

Stone Creek Financial Inc.

The Oakes Law Firm, LLC

Troy Capital, LLC

United Acquisitions, LLC

Vargo & Janson, P.C.

Venandi Systems, LLC

WebRecon LLC