insideARM Weekly Recap – Week of August 12th, 2024

The world of debt collection is never at a loss for updates, but separating the important stuff from the background noise isn’t always easy. At insideARM, our goal is to help you answer those questions. We wade through the constant onslaught of updates and bring you the need-to-know highlights. Every Monday, we bring you a recap to help you stay informed and let you know why that piece of news is important.

The news was full of CFPB stories last week, but be sure to check out all of the below because – spoiler alert- one of the updates isn’t like the others. 

On Tuesday, we brought you an article detailing CFPB Director Chopra’s defense of the Medical Debt Collection Rule. The CFPB maintains that any rule is within its authority and that medical debt is not predictive on credit reports. Any organization that collects medical debt should be paying attention to the writing on the wall here. Those that don’t collect medical debt should take note of the CFPB’s reasoning and stance here. Rarely does anything with the CFPB happen in a vacuum.

On Wednesday, we brought you Hudson Cook’s CFPB Bites of the Month series. The recurring monthly blog provides highlights of everything the CFPB was up to the previous month. Of note for the ARM industry, in July 2024, the CFPB issued supervisory highlights and a rulemaking agenda. Settlements and other actions taken are also included in the post and are worth reading. The CFPB isn’t subtle. They broadcast the things that are on their radar, and those affected by the CFPB and its movements should pay close attention. The easy-to-read CFPB bites are a great way for all ARM industry participants to stay informed, regardless of their specialty. 

On Thursday, we had another CFPB story, but from a different angle. This time, it was the CFPB that was on the receiving end of a lawsuit. Noting that the CFPB proposed a settlement that would be “impossible” to abide by, the lawsuit brought by a lease-to-own company alleges that the CFPB is engaging in regulatory overreach and that their “aggressive and illegitimate” investigation of the business was unconstitutional. This CFPB has continued to push the envelope on its regulations and the entities it regulates.  It will be interesting to see how this one shakes out, as it could provide insight into what is and is not regulatory overreach. 

As always, we thank you for reading the weekly recap to stay on top of this ever-changing industry! For a breakdown of the week of August 5, 2024 click here. 

Have a question about how your company should react to the news above? We have a group for that! The weekly peer call hosted by insideARM’s Research Assistant is the perfect place to ask a question and get advice from industry colleagues who are facing the same challenges you are. Not sure if it is for you? Try it on for size with our 1-month free trial. Click here to learn more!