RMAI Update May 2023

Via RMAI’s federal counsel, RMAI continues to monitor the activities on Capitol Hill. The debt ceiling and the recent bank failures are currently dominating the Congress’s activities.  However, both the House Financial Services Committee and the Senate Banking Committee have held hearings this past month on topics of interest.  Looking ahead, hearings will be held on digital currency and cannabis banking, as well as more hearings to help better understand the recent bank failures.

RMAI submitted Comments to the FCC on their proposed rule related to robotexting and blocking.  In the Comments, among other items, RMAI stressed the difference between telemarketing texts and those sent by industry members who have a permissible purpose.  Additionally, the Comments encouraged the FCC to include a short timeline for appeals to carriers when text messages are blocked. RMAI also submitted Comments to the CFPB on the 2023 CARD ACT report.

Looking ahead, RMAI will submit Comments to the CFPB on their policy statement defining the term “Abusive” in UDAAP. Those Comments are due the beginning of July.

Today, the RMAI team is lobbying on behalf of RMAI members in Albany, New York. RMAI educates legislators and regulators about the industry and the negative impacts or unintended consequences proposals would have on businesses and consumers. Last week, RMAI issued Member Alerts for new privacy laws in Indiana and Tennessee. The June issue of this newsletter will have a full update on the legislative and regulatory activity RMAI is monitoring in all 50 states.

Seventh Circuit Holds Confusion and Concern Not Enough for Article III Standing
Pucillo v. Nat’l Credit Sys., No. 21-3131, 2023 U.S. App. LEXIS 10237 (7th Cir. Apr. 26, 2023)

A consumer filed for Chapter 7 bankruptcy, listing past-due rent he owed, and was subsequently granted a discharge.  A debt collector unaware of the discharge, allegedly due to a bona fide error, sent several collection letters to the consumer regarding the past-due rent.

The consumer filed a lawsuit claiming the debt collector, by seeking payment following the discharge, “violated 15 U.S.C. § 1692e (demanding payment of a debt not owed) and 15 U.S.C. § 1692c(c) (failure to cease communications and cease collections) of the FDCPA.”  Ultimately, the trial court concluded the consumer lacked Article III standing because “confusion, stress, concern, and fear” were not sufficient to show a concrete injury.  The consumer appealed.

On appeal, the U.S. Court of Appeals for the Seventh Circuit explained “our recent decisions mark the line between FDCPA violations inflicting concrete injuries and those causing no real harm.”  The Court held that “[t]he intangible harms alleged in [the consumer’s] pleadings and summary judgment declaration are insufficiently concrete under the applicable caselaw to satisfy the first element of standing,” which is that to be concrete, the injury must be “’real,’ and not ‘abstract.’”

Explaining its holding, the Court observed that the consumer claimed the letters “confused and alarmed” him, and that “he believed his bankruptcy filing may have been futile and that he did not have the right to a fresh start.”  However, the Court noted that “these claims reflect concerns over harms that might occur, not those that have occurred,” and “a risk of real harm is not enough to establish standing after TransUnion [TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2021)].

The consumer also argued his injuries were concrete because they were “of the same kind held actionable under common law invasion of privacy tort theories.”  Disagreeing, the Court explained that “[i]ntrusion upon seclusion requires more than just an emotional response—it requires a particular kind of offensive intrusion,” and “there is nothing inherently bothersome, intrusive, or invasive about a collection letter delivered via U.S. Mail.”

Based on this, the Court affirmed the trial court’s dismissal for lack of standing.

Pennsylvania Superior Court Holds No Violation for Failing to Advise Debt was Time-Barred
Matteo v. EOS USA, Inc., 2023 PA Super 51

A consumer received a dunning letter from a collection agency stating that the agency had a “willingness to work” with the consumer on her account and that it was there to “assist and help” and “discuss other options.”  The letter did not reveal that the statute of limitations had expired.

The consumer filed suit, alleging that the letter violated Pennsylvania’s Fair Credit Extension Uniformity Act (“FCEUA”), which provides that “[i]t shall constitute an unfair or deceptive debt collection act or practice under this act if a debt collector violates any of the provisions of the Fair Debt Collection Practices Act.” 73 Pa. Stat. Ann. § 2270.4(a).

The consumer alleged the letter violated the FDCPA being: (1) “a false, deceptive, or misleading communication because it purported to try to collect on debt that was beyond the statute of limitations”; (2) “false, deceptive, or misleading because it offers to ‘work’ with her and offers ‘other ‘options to pay the amount due, but does not specify that the statute of limitations applicable to the debt had expired, or what the ramifications of exploring ‘other options’ might be”; and (3) “misleading or deceptive because it did not indicate that Matteo could not be sued on the debt.”

The debt collector filed preliminary objections arguing: “(1) its conduct in sending the collection letter to Matteo on an allegedly time-barred debt without disclosing that it was time-barred does not violate the law; (2) it was not required to send a validation notice because the letter was not the first one it sent to Matteo; (3) Matteo failed to allege that she suffered an ascertainable loss as required by the Unfair Trade Practices and Consumer Protection Law (“UTPCPL”), which is applicable to her FCEUA claim; and (4) class certification is inappropriate because the proposed class is unidentifiable and claims cannot serve as a basis for class actions since such claims require a showing of reliance.”

The trial court sustained the all the preliminary objects except one which it found moot, and the consumer appealed.

On appeal, the consumer argued that the letter was “false, deceptive, or misleading because ‘it offered financial freedom even though such freedom had already been obtained by virtue of the statute of limitations,’” and because it stated the debt collector “was there to ‘help’ and ‘assist’” her.

The Superior Court first explained that it is not a violation of the FDCPA “to seek voluntary repayment of the time-barred debt so long as the debt collector does not initiate or threaten legal action in connection with its debt collection efforts.”  While “the words ‘settlement’ and ‘settlement offer’ could connote litigation,” the Court found that the debt collector’s letter, when read as a whole, could not reasonably “deceive or mislead even the least sophisticated debtor into believing she had a legal obligation to pay the time-barred debt,” or that litigation was being threatened.

The consumer also argued that “the trial court erred in finding that she failed to set forth an ascertainable loss to support her claim” because the FDCPA doesn’t require such loss.  The Court noted that the consumer’s claim was under the FCEUA and that “a violation of the FDCPA constitutes an unfair or deceptive debt collection act or practice under FCEUA.”  However, the enforcement mechanism for the FCEUA is the UTPCPL which does require an ascertainable loss.

The Court, agreeing with the trial court that the consumer failed to demonstrate any ascertainable loss, affirmed the lower court’s order.

Executive Summit Silent Auction Fundraiser for the Legislative Fund Coming Soon with Pre-Summit Online Auction
The 2023 Executive Summit Silent Auction is adding a pre-Summit online auction that will include up to five (5) activities or experiences that can be redeemed in Monterey, CA during the Executive Summit. If you are planning to come early, stay later, or both, these auction items can be added to your itinerary while you’re in Monterey!

The online auction will take place in advance of the Executive Summit. Then the Executive Summit Silent Auction will take place in Monterey featuring an additional 20 items to bid on in person using standard bid sheets. Stay tuned for additional information on the silent auction and how you can participate.

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.

Call for Presentations
Beginning June 1, 2023, and ending August 7, 2023, RMAI will be seeking proposals for 2024 Annual Conference education, 2024 Executive Summit education, educational webinars, educational articles, and other educational resources. Keep your eye out for an email from RMAI for our Call for Presentations and be sure to submit your proposal.

Upcoming Webinars
Register now for our May 30th educational  webinar, Compelling Arbitration – How to Use Motions to Compel Arbitration. Our expert legal presenters will discuss the basics of using motions to compel arbitration as an effective defense tool, overcoming common factual and legal hurdles for a successful motion, and more.

Register now for our June 13th webinar on the topic of vendor and service provider controls. Our highly qualified presenters will discuss various types of controls, how to evidence your vendor or service provider controls, new risks in service provider oversight, and best practices. 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 Businesses (CRB).

CRCP New
Idan Bar-Dov, Heka Global
Lindsey Flewelling, Law Offices of James R. Vaughan, P.C.
Tim Mertikas, Axos Bank
Heath Morgan, Martin Lyons Watts Morgan
Keshonda Walker, InvestiNet

CRCP Renewals
Penny Cunha, RMAI
Denise Hatem, Velocity Portfolio Group
Brian Valentin, Lockhart, Morris & Montgomery

CRB New
Southwood Financial, LLC

CRB Renewal
Converging Capital
Stone, Higgs & Drexler

Did You Know? Facts About Individual Certification

• RMAI accepts education credits for individual certification from many other organizations that are Authorized Education Providers.
• RMAI accepts credits outside of RMAI and Authorized Education Providers. If you have taken education that is relevant to the industry from any organization, conference, state bar, etc., our staff will review and consider your courses for credit.
• RMAI accepts education credits going back two years from the date you apply. This is especially beneficial for individuals applying for certification for the first time who have attended conference education or webinars in the past but did not have the opportunity to apply for or were not aware of individual certification.
• You can send your education credit history to Shannon Parod at sparod@rmaintl.org,  and she will let you know how many credits apply toward the 24-credit requirement.

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.

Register for Executive Summit – Early Registration Ends Soon
Registration is open for the 2023 Executive Summit, August 1-3, Monterey, California. Register by June 7 to get the discounted member price plus the early discount. While you’re at it, make your reservation at The Monterey Plaza Hotel & Spa before rooms set aside for our group sell out. The Executive Summit always delivers a perfect blend of networking and education for boosting your business and your brand. See you in Monterey!

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

The RMAI offices will be closed Monday, May 29, in observance of Memorial Day.

Thank you to our May 1, 2022 through May 8, 2023 Legislative Fund Contributors!

Diamond $25,000

Cavalry Investments, LLC

Crown Asset Management, LLC

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.

Titanium $15,000

Blitt and Gaines, P.C.

Klima, Peters & Daly, P.A.

Pressler, Felt and Warshaw, LLP

Rausch Sturm, LLP

Suttell & Hammer

T & I Enterprises, LLC

Platinum $10,000

Andreu, Palma, Lavin & Solis,  PLLC

Cascade365 Family of Companies

EverChain

FMA Alliance, Ltd

Garnet Capital Advisors, LLC

InvestiNet, LLC

National Credit Adjusters, LLC

Plaza Services, LLC

Provana, LLC

Unifund CCR LLC

Velo Law Office

Gold $7,500

Miller and Steeno, P.C.

Superlative RM

Silver $5,000

CKS Financial

Corporate Advisory Solutions, LLC

DebtNext Software, LLC

Digital Recognition Network

Halsted Financial Services, LLC

National Loan Exchange, Inc.

Pharus Funding, LLC

Spring Oaks Capital, LLC

Bronze $2,500

Absolute Resolutions Corp.

Acctcorp International, Inc.

Central Portfolio Control, Inc

Couch Lambert

Kredit Financial Inc.

RAzOR Capital, LLC

Resurgence Capital, LLC

Security Credit Services, LLC

Stillman Law Office

Tobin & Marohn

Troutman Pepper

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

Brass $1,000

Action Collection Agencies, Inc.

Actuate Law, LLC

Advancial Federal Credit Union

AKCP LLC

Aldridge Pite Haan, LLP

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

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

Harvest Strategy Group, Inc.

Hinshaw & Culbertson

Hunt & Henriques, LLP

International Debt Buying Consultants, LLC

Invenio Financial, a Phillips & Cohen Associates company

Investment Retrievers, Inc.

January Technologies, Inc.

Jefferson Capital Systems, LLC

Kota Business Solutions LLC

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

Premier Forty Financial, LLC

Quall Cardot, LLP

Quantum3 Group, LLC

RevSpring

Robinson Hoover & Fudge, PLLC

Scott & Associates, PC

Sequium Asset Solutions, LLC

SimpleCertifiedMail.com

Skit.ai

Slovin & Associates

Stenger & Stenger P.C.

Stone, Higgs & Drexler

Synergetic Communication Inc

The Cadle Company

TrueAccord

US Mortgage Resolution, LLC

USASF Servicing, LLC

Venable LLP

VeriFacts, LLC.

Vertican Technologies, Inc.

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

Moss & Barnett, P.A.

National Recovery Solutions, LLC

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.

Tate & Kirlin Associates, Inc.

The Oakes Law Firm, LLC

Troy Capital, LLC

United Acquisitions, LLC

Vargo & Janson, P.C.

Venandi Systems, LLC