RMAI Update November 2024 - Receivables Management Association International

In This Update

The November elections resulted in major wins for the Republican party, as the GOP took the White House, Senate, and (as of this writing) they’ll likely pick up the House of Representatives. If you weren’t able to attend the November 14, 2024 RMAI Post-Election Analysis webinar, you can view the recording here.

A Republican-led Senate means the likely Chairman of the Senate Banking, Housing, and Urban Affairs Committee will be Senator Tim Scott (R-SC). Senator Scott is a former insurance agency owner whose political career has taken him through the South Carolina House of Representatives, the U.S. House of Representatives, and in 2013, into the U.S. Senate where he has been a fierce critic of the CFPB. The Democratic Ranking Member will likely be Senator Elizabeth Warren (D-MA). Senator Warren is one of the biggest supporters of the CFPB and was involved in setting up the agency in the early days following Dodd-Frank.

Should the Republicans take control of the U.S. House of Representatives, which is expected, there would be a four-way race for chairman of the House Financial Services Committee between Congressman Andy Barr (R-KY), Congressman French Hill (R-AR), Congressman Bill Huizenga (R-MI), and Congressman Frank Lucas (R-OK). In this scenario, the likely Democratic Ranking Member would be the current chairwoman, Congresswoman Maxine Waters (D-CA).

President-Elect Trump is currently making appointments to his cabinet, with his agency appointments to be made in the coming months. The appointments will need to be confirmed by the U.S. Senate which is expected to take several months. In addition to changes at the national level, President-Elect Trump’s November win could motivate Democratic-controlled states to fight back against forthcoming changes in Washington.

Current CFPB Director Rohit Chopra is expected to resign, or will face an expected swift termination following President-Elect Trump’s inauguration in January. The CFPB could produce additional Advisory Opinions or regulatory actions (such as the final rule on medical debt) before then, but those actions could be subject to the Congressional Review Act or a freeze by President-Elect Trump following his inauguration.

While names are being discussed as possible CFPB directors, it’s likely the business community will see a shift from a rule-producing agency to an enforcement agency. With a GOP-controlled congress, the funding and structure of the CFPB is also subject to change.

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 synonymous with our governmental advocacy initiatives. It is one of the pillars which our association has been built upon – fighting for the interests of our members. Our association has been blessed with an unparalleled level of success in amending and stopping harmful legislation. A good measure of our success has come from the volunteer efforts of RMAI’s State Legislative Committee and the generosity of our members to the Legislative Fund, which helps pay for our lobbying efforts.

In 2025, RMAI expects to see significant increased state legislative activity as a result of the presidential election. We anticipate some states will take on legislative and regulatory initiatives originally articulated and promoted by the Consumer Financial Protection Bureau during the Biden Administration. How can you help? In December, RMAI Committee Interest Forms will be shared with the membership, for 2025 committee assignments. Please consider joining our efforts in protecting the industry at the grassroots level by joining the State Legislative Committee.

Together we will continue to make a difference!

If you have any questions about volunteering in RMAI’s grassroots advocacy efforts, please contact RMAI General Counsel and Senior Director of Government Affairs David Reid at (916) 779-2492 or [email protected].

Ninth Circuit Affirms Ruling for CRA in Medical Debt Case; Vacates Ruling for Collection Agency
Riser v. Cent. Portfolio Control, Inc., No. 23-35502, 2024 U.S. App. LEXIS 28267 (9th Cir. Nov. 7, 2024)

A consumer incurred medical debt that was sent to a collection agency that reported it to a credit reporting agency (“CRA”). The consumer disputed the debt, alleging “she did not owe the bill because she was covered by Washington’s Medicaid plan and entitled to coverage under a charity care program at the time,” and the debt was eventually discharged by the healthcare provider.

The consumer filed a lawsuit against the CRA and the collection agency alleging violations of the Fair Credit Reporting Act (“FCRA”) and the Fair Debt Collection Practices Act (“FDCPA”).

Regarding the CRA, the consumer alleged it violated the FCRA, 15 U.S.C. §§ 1681i and 1681e(b), “by failing to delete inaccurate information in her credit files after receiving actual notice of such inaccuracies, failing to conduct lawful reinvestigations, failing to mark the disputed account as disputed, failing to maintain reasonable procedures for evaluating disputed information, and failing to establish or follow reasonable procedures to assure maximum possible accuracy in preparation of its credit reports and credit files concerning [her].”

The CRA moved for judgment on the pleadings arguing that the consumer’s dispute was based on the legal validity of the debt, and that it was not required under the FCRA to resolve that issue. The trial court granted the motion, noting that the consumer did not allege the debt was not hers but, rather, that she was not legally obligated to pay it. The CRA “was not obligated to undertake a searching inquiry into the consumer’s legal defenses to payment.” Riser v. Cent. Portfolio Control, Inc., No. 3:21-cv-05238-LK, 2022 U.S. Dist. LEXIS 109545 (W.D. Wash. June 21, 2022)

Regarding the collection agency, the consumer alleged it violated the FDCPA, 15 U.S.C. §§ 1692d, 1692e, and 1692f(1), “by reporting a debt that she did not owe to the CRAs, thus misrepresenting the ‘character, amount, or legal status’ of the debt and attempting to collect a debt that was not expressly authorized by an agreement or permitted by law.”

The collection agency moved for summary judgment arguing that there was “nothing to support the claim that the debt was invalid and not collectible.” The trial court granted the motion and explained that “it cannot simply be inferred from the fact that [the consumer] was a Medicaid patient that [the healthcare provider] could not legally charge her after Medicaid denied the claim.” Riser v. Cent. Portfolio Control Inc., No. 3:21-cv-05238-LK, 2023 U.S. Dist. LEXIS 110820 (W.D. Wash. June 27, 2023).

On appeal, the U.S. Court of Appeals for the Ninth Circuit, in an unpublished opinion, held that the consumer failed to state a claim against the CRA. The consumer argued that Washington state laws absolved her of the debt. The Court disagreed with the theory and explained that “determining whether the consumer has a valid defense is a question for a court to resolve in a suit against the creditor, not a job imposed upon consumer reporting agencies by the FCRA.”

However, regarding the collection agency, the court found that genuine issues of material fact precluded the trial court’s order granting summary judgment. The Ninth Circuit briefly reviewed the interplay between Washington state law and Medicaid billing and determined “that factual questions remain regarding whether [the consumer] personally owed a debt to the hospital.”

Thus, the Ninth Circuit vacated and remanded the trial court’s order granting summary judgment in favor of the collection agency but affirmed the order granting the CRA’s motion for judgment on the pleadings.

In Case of Mistaken Identity, California Appellate Court Reverses Anti-SLAPP Ruling
LVNV Funding, LLC v. Rodriguez, No. F086904, 2024 Cal. App. Unpub. LEXIS 6715 (Oct. 23, 2024)

A collection agency filed a lawsuit against a consumer to collect a debt. The consumer answered the complaint and filed a cross-complaint claiming she was not the debtor and alleging violations of the California Rosenthal Act and the federal Fair Debt Collection Practices Act (“FDCPA”). As it turned out, the consumer was not, in fact, the debtor, and the collection agency dismissed its complaint. The consumer, however, did not dismiss her cross-complaint.

The collection agency filed an anti-SLAPP motion to strike the consumer’s cross-complaint, arguing she “could not establish a probability of prevailing on the merits of her FDCPA and Rosenthal Act claims because [the collection agency] was merely mistaken in its effort to collect the debt from the wrong [consumer with the same name].”

The trial court granted the motion finding there was “nothing false, deceptive, or misleading about the debt collection action,” and “even the ‘least sophisticated debtor’ would have recognized the address on the attached to the complaint was not hers, and that there was ‘nothing inherently false about the complaint’ merely because it was served on the wrong [consumer].” The consumer appealed.

In an unpublished decision, the California Court of Appeal, Fifth Appellate District, noted that “[t]here is substantial authority finding that attempts to collect debt based on a case of mistaken identity give rise to a cause of action under the FDCPA. . . and federal courts generally allow claims under the FDCPA to proceed even when they are filed by individuals against whom a debt collection attempt was being made based merely on a case of mistaken identity.”

The collection agency asserted “that the ‘least sophisticated debtor’ would not be confused in the situation presented here, because [the consumer] should have noticed the address on the documents attached to the complaint was not her address.” The Court was unconvinced, stating: “It is hard to imagine a more unfair and misleading debt collection activity than actually suing an innocent person who happens to share the same name as another debtor. This exceeds the misleading effects of sending a letter or making a telephone call to the accused debtor, and is substantially more likely to be taken seriously and to compel a response.”

Thus, the Court reversed the order of the trial court and remanded the matter, concluding: “Given the significant authority above finding strict liability FDCPA claims can be stated based on cases of merely mistaken identity, we find [the consumer’s] FDCPA and Rosenthal Act claims have at least minimal merit.”

Donate an Item for the Annual Conference Silent Auction
As we gear up for the 2025 Annual Conference Silent Auction, RMAI is seeking new and returning item donors to help make this auction great. Donating an item to the Silent Auction will provide you with brand recognition for your business in the Auction Catalog and as a Donor. If you would like to contribute an item to the Silent Auction, you can donate here.

Contribute to the Legislative Fund with Your 2025 Renewal
Renewals were sent out last month via mail and email. Please note the suggested voluntary donation included on your invoice. When you donate to RMAI’s Legislative Fund, you are helping to continue the fight for the receivables management industry, so please consider donating with your renewal payment this year. If you have already renewed your membership and would still like to make a donation to the Legislative Fund, you can donate 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 October 31, 2024, you can register for Urgent: Understanding the Major Changes to the New York Debt Collection Rules. This webinar brought together a panel of experts that discussed these complicated amendments, including the monthly log requirements, validation requirements, communication restrictions, expanded itemization requirements, time barred debt requirements, foreign language requirements, and medical debt limitations among other sections.

Recorded on November 12, 2024 you can register for Avoiding Discriminatory Collection Practices Including When Using Digital Technology and AI. In this webinar our presenters discussed the policies and processes that you should have in place to ensure that your operations avoid discriminatory collection practices across all aspects of your interactions with consumers. This webinar was brought to you by the RMAI DEIB Committee and qualifies for the required diversity certification credits.

Recorded on November 14, 2024, you can register for Post-Election Analysis where our presenters analyzed the outcomes of the November Election and provided insights to help you prepare for what’s next.

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)!

CRCP New
Adam Carpenter, Credit Corp Solutions, Inc.
Kelechi Obiechefu, Invenio Financial, a Phillips & Cohen Associates company
Brian Solomon, Accelerated Asset Advisors

CRCP Renewals
Michael Adams, Cavalry Portfolio Services, LLC
Josh Borer, Abrahamsen Gindin, LLC
Noel Crichton, Crown Asset Management, LLC
Clifton Gibson, Spire Recovery Solutions, LLC
Todd Gurstel, Gurstel Law Firm
Don Maurice, Maurice Wutscher LLP
Nicholas Michael, CBE Companies
Susan Namm, Velocity Portfolio Group, Inc
Marian Sangalang, The Bureaus, Inc.
Stephanie Schenking, NCB Management Services, Inc.
Megan Tiani, Hilco Receivables, LLC
Jim Vaughan, Law Offices of James R. Vaughan, P.C.

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

Prepare for Your In-Person Education Credits at the Annual Conference
The 2025 Annual Conference will be here before you know it and now is the time to prepare to take your in-person education credits to complete your initial or re-certification individual certification. With a maximum of 17 credits to earn and multiple tracks of education, you will be able to choose the most interesting sessions for you.

Review the online agenda to start the planning process.

REMINDER: If you are Chief Compliance Officer for your company’s business certification, you will need to get a minimum of 12 credits from in-person education.

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.

Reminder to Renew for 2025!
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 avoid a late fee and continue to enjoy the benefits of being a part of RMAI – including discounted rates for Annual Conference!

RMAI mailed and emailed dues invoices last month. To pay your invoice, please login here. If you require assistance, please call the RMAI office at (916) 482-2462 or email [email protected].

Serve on an RMAI Committee, Task Force and/or Working Group
Primary Contacts and Additional Membership Representatives are eligible to serve on RMAI committees, task forces and/or working groups. The annual Committee Interest Survey will be distributed to Primary Contacts and Additional Membership Representatives next month. Look out for the survey and respond if you want us to know your participation interests. For a list of committees visit https://rmaintl.org/membership/committee-involvement/.

Nominate an Industry Leader for an Award
Click here to learn more about the awards and nominate industry leaders by December 1. Awards will be presented at RMAI’s 2025 Annual Conference.

Run for RMAI Board of Directors
Elected directors will serve a two-year term beginning February 2025 and ending February 2026. Click here for more information. Declare your candidacy by December 1.

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

RMAI Bankruptcy Alert: Western District of North Carolina
A recent issue has arisen pertaining to objections to Proof of Claims in bankruptcy cases filed in the Western District of North Carolina. RMAI recommends that our members consult with their legal counsel on how best to address the issue as it pertains to their organizations.

Specifically, there has been an increase in the number of objections to claims being filed in cases where there is a joint bankruptcy and particularly in cases where the property is held by the tenancy in the entireties. The debtors’ basis for the objection to the claim is that the creditor is not providing clear proof of which of the debtors is liable on the debt. Although many creditors attach documents purporting to show liability or a statement of which debtor is liable, debtors counsel has been able to convince the court to sustain the objections and obtain an award of attorney fees for the time spend researching the liability on the underlying obligation on the claim.

As we are all aware the debtors have a duty to properly list their creditors, and which parties are liable. The schedules are filed under oath. Nevertheless, currently the Western District of North Carolina, Western Division (Statesboro) has now shifted that burden to the creditors. As of this alert, we are seeing this issue only in the above referenced court, but the possibility strongly exists that other Debtor’s counsel will attempt to raise these types of objections.

2025 RMAI Annual Conference | February 10-13, 2025

Please note, the RMAI offices will be closed November 28 & 29, in observance of Thanksgiving.

Leg Fund Contributors November 1, 2023 – November 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
EverChain
InvestiNet, LLC
Pharus Funding, LLC
T & I Enterprises, LLC
Unifund CCR LLC

GOLD
Corporate Advisory Solutions, LLC
Rausch Sturm, LLP

SILVER
Andreu, Palma, Lavin & Solis, PLLC
Blitt and Gaines, P.C.
DebtNext Software, LLC
FirstSource
Klima, Peters & Daly, P.A.
National Credit Adjusters, LLC
Velo Law Office

BRONZE
D & A Services, LLC
Equabli, Inc
First Financial Portfolio Services, LLC dba FFAM360 Capital
Slovin & Associates
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
Collection Attorneys USA LLC
ConServe
Convoke, Inc.
Cornerstone Licensing Services
Credit Control, LLC
Credit Corp Solutions Inc.
Debt Recovery Solutions, LLC
Exelero Corp.
FDR Alliance LLC
FMA Alliance, Ltd
General Collection Co.
Genesis Recovery Services
Gordon, Aylworth & Tami, P.C.
Grassy Sprain Group, Inc
Guglielmo & Associates, PLLC
Halsted Financial Services, LLC
Investment Retrievers, Inc.
Jefferson Capital Systems, LLC
Lateral Technology
Law Office of James R. Vaughan, P.C.
Moss & Barnett, P.A.
National Debt Holdings, LLC
National Recovery Solutions, LLC
NCB Management Services, Inc.
Nelson & Kennard
NICE
Phin Solutions, LLC
Pressler, Felt and Warshaw, LLP
RAS LaVrar LLC
Reassigned Numbers Database (RDN)
Revenue Assistance Corporation dba Revenue Group
RevSpring
Robinson Hoover & Fudge, PLLC
SAM – Solutions for Account Management, Inc.
Security Credit Services, LLC
Shepherd Outsourcing, LLC
Smith Debnam Narron Drake Saintsing & Myers, LLP
SMS Financial, LLC
Stillman Law Office
Stone, Higgs & Drexler
The Cadle Company
Tobin & Marohn
Tratta
TriVerity, Inc.
Troutman Pepper
Troy Capital, LLC
TrueAccord
Vertican Technologies, Inc.

OTHER
Alliance Credit Services, Inc.
Barron & Newburger, P.C.
Burr & Forman LLP
Caddis Funding LLC
CASA Receivables Management, LLC
CMS Services
Comtronic Systems, LLC
Consuegra & Duffy, PLLC
Converging Capital, LLC
David Reid
Equifax, Inc.
Gaskell & Giovannini, LLC
Hinshaw & Culbertson
InDebted
Indiana Receivables, Inc.
Kino Financial Co., LLC
Martin Golden Lyons Watts Morgan PLLC
National Recovery Associates, Inc.
Orbita Capital Group, LLC
Palinode, LLC
Poser Investments, Inc.
Roosen, Varchetti & Olivier, PLLC
Sandia Resolution Company, LLC
SCJ Commercial Financial Services
Sonnek & Goldblatt, Ltd.
The Oakes Law Firm, LLC
Vargo & Janson, P.C.
Womble Bond Dickinson