insideARM Weekly Recap – Week of October 7th, 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. Every Monday, we bring you a recap of the need-to-know highlights to help you stay informed.

To start off, we shared news of CFPB Director Rohit Chopra raising concerns about national security risks posed by the misuse of personal data. In his September 19 remarks, he emphasized how data brokers selling sensitive information could be exploited by foreign actors, referencing President Biden’s Executive Order aimed at preventing this. Chopra also discussed the FCRA’s role in consumer data protection, noting many companies’ non-compliance with the law. To strengthen protections, the CFPB is proposing new rules to ensure data brokers follow the FCRA, which will give consumers more control and reduce risks like financial scams and identity theft, especially as AI technology grows. 

On Wednesday, we reported that an Illinois federal judge dismissed a class action lawsuit against two Midwestern banks for allegedly failing to provide repayment disclosures to borrowers, a case notable for the CFPB’s defense of the banks. The plaintiff, Jose Lopez, claimed the banks violated the Truth in Lending Act by not including repayment timelines on statements for his “Vault” line of credit. The CFPB’s amicus brief clarified that since 2010, such disclosure requirements apply only to credit card accounts, not open-end credit lines like Lopez’s. The court agreed, ruling the banks were compliant with Regulation Z. 

On Thursday, we reported the FTC reaching a $48 million settlement with Invitation Homes, a large single-family rental home operator, over allegations of deceptive practices in rental advertising, security deposit management, credit reporting, and eviction processes during COVID-19. The settlement enforces new standards for disclosing all mandatory fees in rental pricing, mandates fair security deposit practices, and requires debt validation for credit reporting. It also ensures tenants facing eviction are informed of available assistance programs. This groundbreaking settlement highlights increasing federal scrutiny of rental management practices, signaling more enforcement actions and litigation in the industry may follow. 

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 September 30th, 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!