Archives for December 2022

As a further reflection of its recent emphasis on “repeat offenders,” on December 12, the Consumer Financial Protection Bureau (CFPB) published a proposed rule with request for public comment that would require certain nonbank covered entities (with exclusions for insured depository institutions and credit unions) that are under certain final public orders issued by a federal, state, or local agency in connection with the offering or provision of a consumer financial product or service to report the existence of such orders to a CFPB registry. The CFPB would then include all final public written orders and judgments (including consent and stipulated orders and judgments) issued by the CFPB or any government agency for violation of certain consumer protection laws on an online registry. Additionally, larger companies subject to the CFPB’s supervisory authority would be required to designate an individual to attest to whether the firm is adhering to registered law enforcement orders. The CFPB states that it is proposing the rule pursuant to its authority under the Consumer Financial Protection Act of 2010.

According to the CFPB, the proposed rule’s objectives include:

• Establishing an effective system for collecting public orders across different sectors of entity misconduct to allow the CFPB to more effectively monitor for potential risks to consumers arising from both individual instances and broader patterns of recidivism.

• The CFPB also believes that a comprehensive collection of public agency and court orders would help it identify broader trends.

• The CFPB further anticipates that making a registry of these orders publicly available would, among other things, allow other regulators at the federal, state, and local level tasked with protecting consumers to realize the same market monitoring benefits.

• According to the CFPB, requiring certain supervised entities to designate a senior executive officer with knowledge of, and control over, the entity’s efforts to comply with each relevant order, and requiring that executive to submit the proposed written statement, might incentive otherwise reluctant entities to comply with consumer protection laws.

Beyond the stated objectives, the CFPB likely intends to use the information contained in the proposed registry in assessing civil penalties for violations of federal consumer financial laws, given that Congress has provided that such penalties should consider an entity’s “history of previous violations” and “such other matters as justice may require.”

The notice triggers a 60-day comment period (after publication in the Federal Register) for interested parties to submit comments.

Earlier this year, the New York City Department of Consumer and Worker Protection (DCWP) proposed to amend its rules relating to debt collectors. Part of the lengthy proposed amendment sought to prohibit debt collectors from sending text messages without specific consent from the consumer. In other words, debt collectors would be required to communicate with consumers only via letter or telephone until a consumer provided direct consent to receive text messages.  

Earlier this month, the Consoumer Relations Consortium (CRC) submitted comments to the DCWP regarding the unintended negative consequence of the proposed updates to the rule. Legal Advisory Board (LAB) member Abigal Pressler of Ballard Spahr prepared the CRC’s comments.

In its comment, the CRC explained that a direct consent requirement for debt collection text messages will cause the following unintended harm to consumers:

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• Frustration and Annoyance – a direct consent requirement ignores a consumer’s previously expressed choice to receive communications about their account through text messages. Modern consumers expect a seamless customer service experience no matter who handles their account. A direct consent requirement will force consumers who have already chosen to receive communications via text to endure unwanted calls and letters unless they contact the debt collector to opt-in to text messages. This redundant, inconvenient process repeats with each new collector. 

• Loss of Convenience and Privacy –  Phone calls are noisy and unpredictable. Further, until a consumer specifies otherwise, they take place on the caller’s schedule, regardless of what the recipient is doing at the time. Conversely, text messages are quiet and private and a consumer can respond when convenient. 

• Reduced Accessibility for vulnerable consumers – The deaf community relies on electronic communication because it is more convenient than TTY/VOC technology. Text messages allow blind consumers to use an electronic reader at their convenience and where they believe it is appropriate to hear a message, whereas letters must be read by a third party and phone calls from unknown numbers may not be picked up. Neurodiverse consumers may prefer text messages which they can reply to on their own timetable over phone calls for a variety of reasons. Introducing a direct consent requirement will make it harder for each of these groups of consumers to receive important information. 

The CRC concluded its comment by noting that putting additional hurdles in a consumer’s path to communicating with a debt collector puts them at an increased risk of negative credit reporting and litigation.

You can read the full comment to the DCWP here.

About the Consumer Relations Consortium

The Consumer Relations Consortium (CRC) is an organization comprised of more than 60 national companies representing the diverse ecosystem of debt collection including creditors, data/technology providers and compliance-oriented debt collectors that are larger market participants. Established in 2013, CRC is evolving the debt collection paradigm by engaging stakeholders—including consumer advocates, Federal and State regulators, academic and industry thought leaders, creditors and debt collectors—and challenging them to move beyond talking points and focus on fashioning real-world solutions that actually improve the consumer experience. CRC’s collaborative and candid approach is unique in the market.  CRC is managed by The iA Institute.

Learn more at www.crconsortium.org.

ROCHESTER, N.Y. — Continental Service Group, Inc., d/b/a ConServe, is a devoted community partner and helps to make the world a better place.  Through the organization’s ongoing philanthropy program, ConServe Cares, the ConServe team supports and funds the efforts of numerous agencies that strive to make a difference.  As a result of the employees’ compassion and generosity, countless lives have been touched and enriched.

In the month of November, the ConServe team along with their organization’s corporate “Matching Gift Program”, donated to the Open Door Mission.  George Huyler, Vice President of Human Resources at ConServe said, “Supporting people in need and giving back to our communities exemplifies the moral and ethical fiber of our employees while capturing the essence of our mission statement – our people helping to improve the human condition. We take great pride in being outstanding role models for other businesses, while being good corporate citizens in all aspects of our operations.”

Kate Munzinger, Open Door Mission Vice President of Advancement said, “Open Door Mission relies on donations from individuals to fulfill our mission of restoring hope and changing lives for those who are homeless, hungry or recovering from addiction in the Rochester community.  We greatly value and appreciate our community partner, ConServe, for their ongoing support of our efforts and their compassion for those in need!”    

About ConServe

ConServe is a top-performing accounts receivable management service provider specializing in customized recovery solutions for their Clients. Anchored in ethics and compliance, and steadfast in their pursuit of excellence, they are a consumer-centric organization that operates as an extension of their Clients’ valued brands.  For over 37 years, they have partnered with their Clients to provide unmatched customer service while simultaneously helping them achieve their accounts receivable management goals.  Visit us online at: www.conserve-arm.com  

About Open Door Mission  

Open Door Mission is a Christian based rescue mission who has been addressing the needs of homelessness and food insecurity in the Rochester community since 1952.  We provide shelter, food and guidance to homeless men, women and children and a path forward when people are at their most vulnerable.   Open Door Mission has several programs including: a food program (which serves approximately 100,000 meals and distributes 300,000 pounds of food annually); a women and children’s shelter; a crisis shelter; a men’s addiction recovery program; a clothing room; and 24 supportive housing units.  Visit them online at:  https://opendoormission.com/

MANCHESTER, UK — Marking their 25th year of providing deceased account care services, Phillips & Cohen Associates Ltd. announces their first UK client launch of the online deceased notification platform, NotifyNOW. NotifyNOW makes it easier for bereaved individuals to notify multiple companies of their loved ones passing by offering a fully digital deceased notification service. 

NotifyNOW, named one of the top two new tech solutions at the 2021 insideARM Strategy and Tech Conference, offers a free, secure, online solution that allows bereaved individuals and Executors to have one place to digitally enter all the decedent’s account information and upload a death certificate, avoiding a distressingly repetitive process. 

NotifyNOW’s launch coincides with the long-awaited report by the UK Commission on Bereavement, which highlights the need for better solutions to support individuals through bereavement. The report found that 61% of adult respondents had difficulties with at least one practical or administrative task following bereavement. The report sets out a vision for change through principles which include, the need for processes after a death to be made simple and straightforward. As a leading deceased account care provider, Phillips & Cohen proudly leads the way in introducing services to address the very challenges outlined in the report. 

PCA’s partnering client is known for its technological innovation in the UK. Introducing NotifyNOW to customers furthers their goal of making the bereavement journey as easy as possible.

Phillips & Cohen’s new launch supports its global expansion strategy, with The Estate Registry, realising its vision of being a leading technology provider in the compassionate care industry. TER currently provides three innovative solutions, LegacyNOW, NotifyNOW and InheritNOW offering digital, deceased servicing solutions in areas of life planning, executor support and beneficiary support. 

Saima Hassan, Director of Operations, The Estate Registry UK, a Phillips & Cohen Associates Ltd. company commented, “We’re currently engaging with all our customers to make NotifyNOW the standard for the industry, as we have with PCA and compassionate estate care for the last 25 years. It’s clear that our clients aren’t willing to settle for a simple notification service when their customers deserve so much more. This approach is one of several ways we’re taking a positive lead on the recommendations highlighted in the Bereavement Commissions report, using our market experience to offer enhanced digital solutions to reduce stress in sensitive situations.”

Adam S. Cohen, Co-Chairman/CEO added, “We’re excited to build upon our successful client relationships in a way that significantly improves the deceased notification process for bereaved family members and Executors.  Integral to our forward-thinking strategy, clients recognise that well-built, secure, digital technology can simplify difficult processes and is every family’s prerogative”

About Phillips & Cohen Associates Ltd. 

Phillips & Cohen Associates Ltd. is a specialty receivable management company, providing customized services to creditors in a variety of unique markets, including deceased account management.

Phillips & Cohen Associates Ltd has domestic headquarters in Wilmington, DE, with additional offices located in Colorado and Florida. They also have international offices in the UK, Canada, Spain, Germany, and Australia. 

For more information about Phillips & Cohen Associates visit www.phillips-cohen.com. 

SACRAMENTO, CA — With the passage of AB 156, starting January 1, 2023, the DFPI will be able to approve applications under the Debt Collection Licensing Act (DCLA), with the condition that background checks will be performed at a later date.  Any debt collector that submits an application before January 1, 2023, will be able to operate pending the approval or denial of the application. 

The new law also extends the period from 60 to 90 days for individuals to provide fingerprints once the DFPI requests them.  The DFPI will make further announcements in coming weeks regarding conditional approvals and at least 30 days prior to any changes to existing processes. 

The DFPI will provide to DCLA applicants written notification through the Nationwide Multi-state Licensing System (NMLS) 90 days prior to fingerprinting being due.  Unfortunately, with the delay in the application process there is still a backlog of application so there may still be delays in final approvals

For more information email us at dcla.inquiries@dfpi.ca.gov, or leave a message on the new Debt Collection Licensee Voicemail; (916) 576-8623. 

CHAMPLIN, Minn. — Summit A*R was once again able to spread some cheer this holiday season. As part of their annual community outreach the staff of Summit A*R and their families chose residents of a local veterans’ home to be the recipients of some well-deserved gifts and Christmas joy. Much like last year, a group of the homes’ veterans received “Santa bags” filled with specific gift requests. Donations were also collected to contribute to various ongoing needs and wishes within the home, such as puzzles, games, toiletries, snacks, etc. Toni Olson, Client Care and Community Outreach Director, headed the project, and had this to say, “in all my years with Summit A*R, our veterans’ Christmas project has the most special feeling of the holiday season. As one resident said, ‘There really is a Santa Claus,’ with a wide and brimming smile on his face.”

Summit A*R’s Mission Statement includes the words “We are blessed and we give back to our community.”  “This is another example of our team living by these words. We can’t think of a more worthy cause than giving something back to our brave veterans during this holiday season,” said Tim Turner, President/CEO of Summit A*R. 

About Summit A*R

Founded in 1996, Summit A•R  (Summit Account Resolution) is a national revenue cycle management company serving health care, commercial, consumer and many other industry segments in various stages of the revenue cycle. Their focus is to “Preserve Human Dignity” with their P.H.D. collection philosophy. They are members of the ACA, IACC and BBB among other local and national organizations.  888.222.0793 or www.SummitCollects.com

BLOOMINGTON, Minn. — Absolute Resolutions Corp. (“ARC”), headquartered in Bloomington, MN, announced today that for their annual social service initiative ARC employees supported a well-known local animal rescue, Secondhand Hounds.  

Secondhand Hounds is a nonprofit animal rescue in Minnesota that focuses on rescuing dogs and cats from at risk shelters and from owners who can no longer provide care for their animals. They provide safe shelter, proper veterinary care, and daily necessities for animals at risk, while working hard to find each one a permanent, loving home. 

“We believe strongly in giving back to the community at ARC and we have been privileged to support many extraordinary local charities over the years. I was inspired this year when our team chose to support Secondhand Hounds.” stated Robert Johnson, CEO. “The team at ARC is full of animal lovers, myself included, and I was tremendously proud of the generosity from our employees during this donation drive.” 

ARC employees contributed requested shelter supplies and cash donations in support of the organization. Additionally, ARC purchased a Puppy Party where employees were able to play and cuddle with puppies at their Bloomington office. The financial contributions will directly assist in funding the organization’s many veterinary care programs.  

About Absolute Resolutions Corp.

Absolute Resolutions Corp. is a certified professional receivables company headquartered in Bloomington, MN with offices in San Diego, CA and Scottsdale, AZ. 

www.absoluteresolutions.com

About Secondhand Hounds

Secondhand Hounds is a 501(c)(3) nonprofit animal rescue in Minnesota. Founded in July of 2009, their many volunteers have made a positive impact on the lives of many dogs and cats in our community.

https://www.secondhandhounds.org/

Two groups of state attorneys general have filed amicus briefs in the U.S. Supreme Court urging the Court to grant the CFPB’s certiorari petition seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB.  In that decision, the panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S. Constitution and, as the remedy for the violation, vacated the CFPB’s challenged payday lending rule. 

One amicus brief was filed by a group of 22 Democratic state AGs.  While the AGs argue that the Fifth Circuit erred in holding that the CFPB’s funding violates the Appropriations Clause for the reasons stated by the CFPB in its petition, they urge the court to grant the petition even if it disagrees that the merits of the Appropriations Clause issue are worthy of certiorari.  According to the AGs, the Court should grant the petition “at least to review the question of whether the court of appeals erred in vacating a regulation promulgated during a time when the CFPB received allegedly unconstitutional funding.”  They assert that the Fifth Circuit’s “sweeping remedy…threatens substantial harm to the States” because “[t]he States and their residents could stand to lose the benefits of the CFPB’s critical enforcement, regulatory, and informational functions if the decision below stands and is interpreted to impair the CFPB’s ongoing operations.”  They contend that “the court of appeals’ reasoning could jeopardize many of the CFPB’s actions from across its decade-long existence, to the detriment of both consumers protected by those actions and financial-services providers that rely on them to guide their conduct.”

Among the arguments made by the AGs for why the Fifth Circuit’s remedy is inappropriate is that there is no indication that if the CFPB’s funding had come from the Treasury rather than the Federal Reserve, the CFPB would have altered its behavior as to the payday lending rule.  They assert that former Director Kraninger’s ratification and reissuance of the rule “is strong evidence that the CFPB would have issued the same regulation once again, after any constitutional defect was corrected.”   

The other amicus brief was filed by a group of 16 Republican state AGs.  While they also urge the Supreme Court to grant the CFPB’s petition, they ask the Court to affirm the Fifth Circuit decision.  They assert that a prompt answer to the Appropriations Clause issue is needed because “as co-regulators, States are left to wrestle over how to engage with an agency whose constitutionality is a matter of open dispute.”  They also contend that if the Supreme Court does not provide an answer soon, “States will have to litigate the same issue in other districts and circuits over and over.”  The AGs claim that the appropriations process “makes the federal government more accountable to the states.”  They assert that the Fifth Circuit’s decision on the Appropriations Clause issue is correct and that the Fifth Circuit “was right to vacate a rule enacted without constitutional funding.”

Last month, the Supreme Court granted the unopposed request of the Community Financial Services Association for a 30-day extension until January 13, 2023 to file its brief in opposition to the CFPB’s certiorari petition.  In its extension request, CFSA indicated that it is also planning to file a cross-petition for certiorari to ask the Supreme Court to review the Fifth Circuit’s rejection of its other challenges to the CFPB’s payday loan rule.  It stated that it will file its cross-petition on January 13, the same day it files its opposition to the CFPB cert petition.  The CFPB has indicated that it will respond to CFSA’s cross-petition on January 25.  To facilitate the Court’s ability to consider both petitions at the February 17 conference, CFSA agreed to waive the 14-day waiting period under Rule 15.5 for distributing the cross-petition and the CFPB’s brief in opposition to the Court, which will allow distribution to the Justices on February 1.  The CFPB is seeking to have the Supreme Court hear and decide the case this term.

DALLAS, TX — Hampton Pryor Group International (HPGI) and Techno Brain Group BPO ITES Limited  (Techno Brain)  have entered into a strategic relationship to enhance offshore BPO and collections in the East Africa Community (Kenya, Uganda, Tanzania and Rwanda). This region has recently emerged as a “hot spot” for providing consumer contact and back office services, with  Techno Brain having long-established operations in East Africa. This strategic relationship will find HPGI working to further strengthen the Techno Brain 1st and 3rd party collections operations, through training and oversight, to better serve U.S. based clients. Additionally, HPGI will assist growing the BPO program. 

States Joe Adams, President and CEO of HPGI, “The countries that now perform nearshore or offshore services for U.S. clients are saturated with multiple operations which have cannibalized on each other for staff, thus driving the cost of services upward. I’ve watched this occur in India, Jamaica, the Philippines and Central America. Techno Brain is considered the premier call center operation in East Africa region, with virtually no competition and a waiting list of individuals in both countries that want to work for the company due to their reputation for training and treating employees as professionals. I have observed firsthand that the English and communication skills are on par with, or superior to, other offshore countries and the pricing is extremely competitive with other countries.”

Adds Vinay Subbaramaiah, Director, Techno Brain BPO ITES “East Africa in particular has strengthened its position to be a highly competitive destination with highly skilled and trainable youth, who constitute 60% of African population under 25 years of age.  Techno Brain Group’s expertise and experience of 25 years in Africa delivering world class services and solutions, by nurturing talented and marginalized youths  and building capabilities to deliver complex projects gives us confidence that, by joining hands with HPGI, we can offer a compelling argument for U.S. companies to consider East Africa for their call center and collections needs.”

Consider Techno Brain BPO ITES for that large segment of consumer debt and services that U.S. operations,  even with the most recent advances in technology, simply can’t afford to work.

About Techno Brain BPO ITES

Techno Brain BPO ITES, LTD., a Business Unit of Techno Brain Group (Est. in 1997) is an ISO 9001:2015, ISO 27001: 2013, FDCPA and HIPAA compliant service provider with U.S. offices located in Naples, Florida; and state-of-the-art, 1000 + seat, operational facilities, and delivery centers in several East Africa countries.

About Hampton Pryor Group International

Since its founding in 2003, the Hampton Pryor Group has been a leading provider of advisory and consultant services internationally  to banks, credit unions, SACCOs,  mortgage servicers, credit grantors, debt purchasers and collections agencies.  We have a proven track record of delivering on our commitments to our clients, both domestically and internationally.