LOS ANGELES, Calif. — Arrears.com is at the forefront of the digital collections transformation, offering a cutting-edge platform built to help debt collectors scale communications and payments with ease. With its advanced AI-powered solutions, Arrears.com revolutionizes the debt collection industry by providing a comprehensive and efficient toolset.

“Our team at Arrears.com is incredibly excited about the capabilities our platform offers to debt collectors,” says Trent McKendrick, Founder of Arrears.com. “Our AI-powered solutions enable collectors to streamline their operations, improve communication efficiency, and maximize debt recovery. We’re committed to delivering an enterprise-grade tool that is accessible to debt collectors of all sizes, including SMEs looking to scale their businesses.”

Arrears.com is an enterprise-grade cloud-based solution that provides debt collectors with the power to optimize their collections processes. With our platform, debt collectors can automate and streamline communication workflows, ensuring timely and personalized interactions with debtors. The AI-powered capabilities of Arrears.com enable intelligent decision-making, allowing collectors to prioritize and focus on high-value accounts.

The platform offers seamless communication across multiple channels, including SMS, email, chat apps, and soon-to-be-integrated Meta DMs. This comprehensive approach ensures that debt collectors can engage with debtors effectively and efficiently, utilizing their preferred communication channels that support traditional debt collection processes.

Arrears.com simplifies the payment process with its omni-channel payment capabilities. Debt collectors can accept payments through various methods, including cards, ACH, payment links, and CashApp. This flexibility empowers debtors to choose the payment option that suits them best, enhancing the likelihood of successful debt resolution.

Launched in September 2022, Arrears offers a monthly subscription plan priced at $99, a huge competitive advantage compared to many of its competitors. By leveraging advanced AI technology and maintaining a customer-centric approach, Arrears is poised to become an indispensable resource for both debtors and debt collection agencies.

Experience the power of Arrears.com and unlock the potential of digital collections. With our advanced AI-powered solutions, debt collectors can scale their operations, streamline communications, and maximize debt recovery. Visit Arrears.com today to learn more about our platform and discover how it can revolutionize your debt collection processes.

About Arrears.com: Arrears.com is a leading provider of AI-powered debt collection solutions. Our enterprise-grade, cloud-based platform is designed to help debt collectors streamline operations, enhance communication efficiency, and drive better debt recovery outcomes. With a commitment to accessibility and scalability, Arrears.com empowers debt collectors of all sizes to optimize their collections processes and achieve superior results.

Learn more about Arrears at: www.arrears.com

Citing research that found about half of U.S. adults find it difficult to afford the cost of their healthcare, the Consumer Financial Protection Bureau (CFPB or Bureau) published a report focusing on medical credit cards and loans used to cover basic medical treatment and emergency health care. According to the CFPB, the use of medical credit cards and installment loans can increase the financial burden on patients who may pay more than they otherwise would pay.

The CFPB acknowledged in its report that both insured and uninsured Americans face significant challenges paying for necessary medical procedures. One reason is that many medical services and devices, such as fertility treatments, auditory devices, and dental services, may not be covered by insurance. Another reason is that average deductibles have grown 336% in the last two decades. For these reasons, many people will use financial alternatives, including medical credit cards and installment loans, to cover healthcare costs.

Specifically, the CFPB found that:

* Medical credit cards and installment loans were once used primarily for elective care but now cover everything from emergency visits and specialty care to regular checkups.

• When a patient signs up for a medical credit card, their card can be used again for medical services until they reach their credit limit.

• Medical installment loans, on the other hand, are generally offered before a treatment and are only authorized to cover that treatment.

* Medical financing companies rely on healthcare providers to market their products.

• According to the CFPB, healthcare providers may be disincentivized to explain mandated financial assistance programs or zero-interest repayment options to patients before offering these products.

• The Bureau also stated that healthcare providers may be unable to adequately explain complex terms, such as deferred interest plans, to patients.

* Certain medical payment products offer deferred interest promotions. These products offer zero or low interest for a set period of time. Once the promotional period expires, the rates can increase significantly.

• Notably, the report acknowledged that for the majority of patients who pay off their full balance in the designated time period, deferred interest financing can be advantageous.

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The CFPB concludes its report by stating, “[w]e will continue to look at how medical credit cards and loans are marketed to providers, the reach of these products, and how the use of these products, particularly for patients with limited access to credit, impacts patients’ finances and health outcomes.”

This is an area where we have not seen much activity from the CFPB in quite some time. The fact that the issue of medical procedure financing is coming up again may indicate that the Bureau’s interest in this area has returned. Troutman Pepper will continue to monitor the CFPB’s activity in this area and report if the Bureau’s findings prompt more enforcement actions.

LOCKPORT, N.Y. — When veterans and brothers Joseph Torriere and Jacob Torriere retired from the U.S. Armed Forces and entered the receivables management industry full-time, they knew they wanted to continue serving by helping other veterans in their families and communities. After researching multiple private nonprofit veteran organizations to get involved in, they were pleased to find several quality choices. Thus began monthly donations from Spire Recovery Solutions to a rotating assortment of organizations dedicated to supporting military and veteran families in many of the common challenges these families face during and after active military duty. 

Semper Fi & America’s Fund

The first monthly donation of the year went to the Semper Fi & America’s Fund. “The fund cares for our nation’s critically wounded, ill, and injured service members, veterans, and military families. Supporting all branches of the U.S. Armed Forces, the Fund provides one-on-one case management, connection, and lifetime support.” 

Donations are applied to programs that ensure service members and military families have the resources they need during their recovery and throughout their transition back to their communities. Some of what they do include a Service Member & Family Support Program, a Transition Program, and an Integrative Wellness Program. Visit thefund.org to learn more about the program and read real stories about the heroes they serve. 

Farmers Assisting Returning Military (FARM)

The second monthly donation went to a unique organization, F.A.R.M., which aims to “reestablish meaning in the lives of veterans through agricultural therapeutic rehabilitation and training. The program allows veterans reintegrating into society to once again become teachers, providers, nurturers and leaders while empowering them to lead the change in America’s distressed food system.” The program offers what they consider three core aspects veterans often miss about military life— purpose, regimen and camaraderie— to returning veterans as they integrate back into civilian life. 

Founders James Jeffers and Steve Smith served in the Army together during various deployments to Iraq and beyond from 1999-2009 but struggled with health issues upon returning home. Their health began to improve as they grew fresh organic food for themselves and their families, discovering “dirt therapy” and the act of farming to be therapeutic and grounding. Learn more at farmingveterans.org. 

Rescue 22 Foundation

In March, Spire contributed to the Veteran Service Dog Trust campaign at the Rescue 22 Foundation. “It is estimated that over 30% of returning GWOT veterans have Post Traumatic Stress and/or Traumatic Brain Injuries. Nearly 1,600 veterans have returned as amputees and there are still more additional medical complexities such as seizure disorders, heart euthymia, and early onset of Parkinson’s.” The VA does not provide funding for service dogs for PTS, TBI  or other non-mobility diagnoses at this time. 

“The Veteran Service Dog Trust [VSDT] fulfills the foundation’s primary mission to provide the highest quality task-trained dogs on behalf of our nation’s veterans. The foundation provides psychiatric, mobility and medical service dogs to veterans at no charge and without geographic restrictions. Service dogs that meet the needs of veterans diagnosed with Post Traumatic Stress remain the organization’s most requested type of dog.” Learn more at rescue22foundation.org. 

Find Out More

Through donations and spreading the word about these organizations and their missions, the Spire team is proud to be able to continue honoring and serving U.S. military veterans throughout the nation. For those interested in joining their efforts, this article as well as others on the Spire news blog provide information about a variety of options with different specialties that the team has selected to support over the years. 

About Spire Recovery Solutions 

Spire Recovery Solutions, LLC was founded by U.S. Veterans Joseph Torriere and Jacob Torriere. Spire is a professional, nationally licensed full-service debt collection agency that assists creditors in the recovery of outstanding balances while providing consumers with exceptional customer service. Spire Recovery Solutions uses customized processes and state-of-the-art technology to provide transparency and compliance that clients and consumers trust and rely on while working together toward account resolution.

Indiana Gov. Eric Holcomb on May 1 signed into law Senate Bill 5, making Indiana the seventh state to enact a comprehensive consumer data privacy law, following California, Virginia, Colorado, Utah, Connecticut, and Iowa. The law will take effect Jan. 1, 2026.

Applicability

The law applies to any person that conducts business in Indiana or produces products or services that are targeted to residents of Indiana and that during a calendar year:

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1. Controls or processes personal data of at least 100,000 consumers who are Indiana residents; or
   
2. Controls or processes personal data of at least 25,000 consumers who are Indiana residents and derives more than 50% of gross revenue from the sale of personal data.

Exemptions

Importantly, the law exempts financial institutions and affiliates, or data subject to the Gramm-Leach-Bliley Act. Other exemptions include covered entities or business associates governed by the privacy, security, and breach notification rules issued pursuant to the Health Insurance Portability and Accountability Act, and the use of personal information to the extent the activity is regulated by and authorized under the Fair Credit Reporting Act.

Consumer Rights

Consumers are provided the right to:

1. Confirm whether a controller is processing the consumer’s personal data and to access such personal data;
2. Correct inaccuracies in the consumer’s personal data that the consumer previously provided to a controller;
3. Delete personal data provided by or obtained about the consumer;
4. Obtain a copy of the consumer’s personal data, or a representative summary;
5. Opt out of the sale of personal data.

Sensitive Data

A controller may not process “sensitive data” without a consumer’s consent.

“Sensitive data” includes:

1. Personal data revealing racial or ethnic origin, religious beliefs, a mental or physical health diagnosis made by a health care provider, sexual orientation, or citizenship or immigration status;
2. Genetic or biometric data;
3. Personal data collected from a known child;
4. Precise geolocation data.

Contract Requirements

A contract between a controller and a processor must include certain provisions to ensure that:

1. Each person processing personal data is subject to a duty of confidentiality;
2. A processor will delete or return all personal data to the controller upon request;
3. A processor will provide a controller with all information necessary to demonstrate the processor’s compliance;
4. A processor will allow, and cooperate with, reasonable assessments by the controller;
5. Any subcontractor of the processor will meet the obligations of the processor pursuant to a written contract.

Data Protection Impact Assessments

A controller must conduct and document a data protection impact assessment if the processing involves:

1. Targeted advertising;
2. The sale of personal data;
3. Certain profiling;
4. Sensitive data;
5. Activities posing a heighted risk of harm to consumers.

Enforcement

The Attorney General has the exclusive authority to enforce the law. Prior to taking any action, the Attorney General must provide a controller or processor 30 days to cure the violation. In the absence of a cure, civil penalties not to exceed $7,500 may be sought for each violation.

Preemption

The law preempts “all rules, regulations, codes, ordinances, and other laws adopted by a city, county, city and county, municipality, or local agency regarding the processing of personal data by controllers or processors.”

Maurice Wutscher Impression

The Indiana law is very similar to the non-California data privacy laws recently enacted, so it should cause few additional compliance challenges.

Similar legislation will soon be eligible for the governors’ signatures in Tennessee and Montana.

For a chart comparing the state comprehensive data privacy acts, and more information and insight from Maurice Wutscher on data privacy and security laws and legislation, click here.

GRAND RAPIDS, MI — Collection Certifications LLC (formerly FDCPA Certifications LLC) is excited to announce the addition of collection industry compliance expert Sara Woggerman as a full partner. With more than  a decade of experience in the collection industry, Sara brings extensive compliance knowledge and expertise to the company. This addition will enable Collection Certifications LLC to significantly expand its training options and industry impact.

Already, Sara has revamped the flagship FDCPA video course, and the company plans to introduce new modules every month to cover collector-level training for adjacent statutes such as UDAAP, ECOA, FCRA, TCPA, HIPAA, and GLBA, as well as state-specific regulations such as California’s Rosenthal Act. With the introduction of new training programs, the company has rebranded itself to Collection Certifications LLC – to better reflect its expanding mission as the single source for all collector training.

Aligning with Collection Certifications LLC was an easy decision, according to Ms. Woggerman, also the President and Owner of ARM Compliance Business Solutions, LLC. “Learning and development programs are areas I’ve always been personally passionate about. Throughout my time working with third-party collection agencies and law firms, I’ve seen firsthand how quickly a company’s training program can impact an organization from both a compliance and performance standpoint.”

Robert Pinchuck, and Jack Gordon, the existing partners in Collection Certifications LLC, said that bringing Sara on board  fulfills a long-standing wish to have a respected compliance expert on the team. “With the addition of Sara and our new initiatives for 2023, the company is truly poised to take its services to the next level and provide a needed one-stop solution for collector-level training,” Gordon said.

Collection Certifications LLC (and FDCPA Certifications before it) has been providing debt collection compliance training and certification since 2012, putting nearly 10,000 industry professionals through its training in that time. The company’s training program is iconic in the industry, and it is recognized as an Authorized Education Provider by RMAi.

A new website is under development and will be introduced soon.

For more information about Collection Certification LLC and its services, please visit www.FDCPACertification.com.

NEW YORK, N.Y. —  McGlinchey Stafford is pleased to announce that Rajdai “Camille” Singh has joined the firm’s Financial Services Litigation practice group as an associate in the New York office. Camille focuses her practice on representing consumer financial services companies in litigation matters.

A versatile financial services litigator with more than 20 years of legal experience, Camille represents secured creditors, banks, mortgage servicers, and investors in motion practices as well as in court appearances from trials through appeals. 

“As McGlinchey’s presence in New York grows, our team remains dedicated to providing excellent services to our clients,” said Mikelle Bliss, managing member of the New York office. “Camille’s skills and experience will be a great asset to our financial services clients.”

Camille is the third attorney to join McGlinchey’s New York office in the last six months. Her arrival is part of the firm’s continued, significant growth locally and nationwide. It is also in line with its ongoing strategy to attract like-minded attorneys who want large firm resources with a friendly, small-firm atmosphere.

“We are excited to welcome Camille to McGlinchey,” said Shaun Ramey co-chair of the firm’s nationwide Financial Services Litigation practice group. “Her litigation experience is a welcome addition to our growing practice group and her deep understanding of the real estate market will further enhance our service offerings in the financial sector. We look forward to providing her excellent insights to our clients.” 

Camille has extensive experience working with client litigation matters involving condominium, cooperative, and tax lien foreclosure actions, as well as residential and commercial contract negotiations, acquisitions, and development. Admitted to practice in New York, Camille received her J.D. from the City University of New York School of Law. She earned a bachelor’s degree in criminal justice, public administration, and planning, cum laude, from the City University of New York John Jay College of Criminal Justice.

McGlinchey’s Financial Services Litigation practice is the firm’s largest, with 65 attorneys spanning 15 of McGlinchey’s 17 offices in 11 states plus Washington, DC who are licensed in 25 states. Since the beginning of 2022, the group has made 16 new attorney hires in 11 offices. The team’s attorneys are recognized nationally as industry authorities, from Chambers USA to Best Lawyers and Super Lawyers honors. Their collective experience includes federal and state regulatory and enforcement proceedings, hundreds of class actions in state, federal, and bankruptcy courts, and tens of thousands of consumer litigation matters. The group represents every type of financial services company, including national and state-chartered banks, finance companies, mortgage lenders and servicers, credit card issuers, automobile lenders, student lenders, community banks, thrifts, credit unions, and insurance providers. 

The attorneys in McGlinchey’s New York City office, which opened in 2014, focuses on consumer financial services litigation and other commercial litigation matters, representing some of the largest financial institutions in the United States.

About McGlinchey

McGlinchey Stafford is a premier midsized business law firm offering services in nearly 30 practice areas through a highly integrated national platform. McGlinchey attorneys leverage bold innovation, diverse talent, and leading-edge technology across our powerful network to serve clients at the local, regional, and national level. With nearly 150 attorneys licensed in 32 states, McGlinchey operates from 17 offices nationwide. The firm currently has 18 attorneys and 12 practice areas recognized in Chambers U.S.A. 2022 and Chambers FinTech 2023, and 53 attorneys recognized by Best Lawyers, 40 attorneys recognized in various Super Lawyers rankings, 49 practice areas recognized by Best Law Firms, and was named a “Top Performer” by the Leadership Council for Legal Diversity (LCLD) since 2018. To learn more, visit www.mcglinchey.com. 

On April 25, officials from the Federal Trade Commission (FTC), the Civil Rights Division of the U.S. Department of Justice (DOJ), the Consumer Financial Protection Bureau (CFPB), and the U.S. Equal Employment Opportunity Commission (EEOC) (together, the Agencies) issued a joint statement warning against the potential for automated systems, including artificial intelligence (AI), used in credit decisions, housing, and employment opportunities to “perpetuate unlawful bias,” “automate unlawful discrimination,” and produce other “harmful outcomes.” To combat these perceived risks, the Agencies resolve to monitor the development and use of automated systems and promote responsible innovation while underscoring that “[e]xisting legal authorities apply to the use of automated systems and innovative new technologies just as they apply to other practices.”

In the joint statement, each of the Agencies recapped their recent activities related to automated systems or AI.

• As discussed here, in May 2022, the CFPB published a circular relating to adverse action notices and AI/machine learning models, stating that federal consumer financial laws apply regardless of the technology being used. The joint statement notes that “[t]he circular also made clear that the fact that the technology used to make a credit decision is too complex, opaque, or new is not a defense for violating these laws.”

• In January 2023, the DOJ filed a statement of interest in federal court asserting that the Fair Housing Act applies to algorithm-based tenant screening services.

• As discussed here, in June 2022, the FTC issued a report to Congress titled “Combatting Online Harms Through Innovation,” warning about using artificial intelligence to combat online problems, noting concerns that these tools can have inherent potential for inaccuracy, bias, and discrimination, and can harm marginalized communities. The agency has also warned businesses that it may violate the FTC Act “to use automated tools that have discriminatory impacts, to make claims about AI that are not substantiated, or to deploy AI before taking steps to assess and mitigate risks.”

• In addition to the EEOC’s enforcement activities on discrimination related to AI, the EEOC issued a technical assistance document explaining how the Americans with Disabilities Act applies to the use of software, algorithms, and AI to make employment-related decisions about job applicants and employees.

The joint statement concluded by reiterating the Agencies’ “pledge to vigorously use our collective authorities to protect individuals’ rights regardless of whether legal violations occur through traditional means or advanced technologies.”

Find the complete statement here.

Troutman Pepper’s Take:

The joint statement did not announce any new policies by any of the Agencies. However, this marks another unprecedented “all of government” approach by a consortium of federal agencies to enforce existing federal consumer financial protection laws and to work collaboratively on AI risks, which is similar to the approach taken by the DOJ, CFPB and federal banking agencies in the “Combatting Redlining Initiative” announced in October 2021. Even though they are providing little to no guidance on what regulated companies should do, the Agencies are signaling that they are looking for examples of AI/machine learning-related harms to consumers to pursue in enforcement actions.

SACRAMENTO, Calif — In 2021 the Department of Financial Protection and Innovation (DFPI) announced the formal creation of its Debt Collection Advisory Committee, a seven-member board that would provide critical feedback to the Department.  As the first 2-year term (2021-2023) comes to a close a new committee has been appointed for the 2023-2025 term. 

The committee members were appointed by Commissioner Clothilde Hewlett for a two-year term according to Financial Code Section 100025 as of 5/1/2023.

As can be seen, by the list below, this diverse group includes representatives from the debt collection, debt-buying, third-party collection, and collection law industries:

• Angela Reed-Becker – Equabli Inc.
• Cindy Yaklin – States Recovery Systems Inc.
• Desiree Nguyen Orth – East Bay Community Law Center
• Kali Miller – OPTNSVC Mexico (Oportun, Inc.)
• Robert Tavelli – Tavelli Co., Inc.  
• Scott Hyman – Severson & Werso
• Sean Welch – P & B Capital Group, LLC

The first meeting with the newly appointed committee took place virtually on May 1, 2023. To learn more about the Debt Collection Advisory Committee, please  visit: https://dfpi.ca.gov/dfpi-debt-collection-advisory-committee.

The CFPB has filed a Statement of Interest in a case pending before a Florida federal district court in which the plaintiffs allege that the defendant engaged in discriminatory targeting in violation of the Equal Credit Opportunity Act (ECOA).

In Roberson v. Health Career Institute LLC, the plaintiffs are students at a for-profit nursing school who allege that the school engaged in various unfair and deceptive practices and other unlawful conduct in connection with enrolling students in and operating its “functionally valueless” nursing program.  A subclass of Black students allege that the school “intentionally used marketing, advertising, and recruiting techniques to target their nursing program to individuals on the basis of their race, with the understanding that such individuals were highly likely to require an extension of credit in order to pay for HCI’s nursing program.”  They allege that the school caused students to apply for and take out credit in the form of federal and private student loans, including retail installment contracts.”  According to the plaintiffs, the school engaged in “reverse redlining” by targeting the subclass for “an illusory program.”  

In its motion to dismiss, the school argues that “[p]laintiffs fail to specify any aspect of any credit transaction that they allege is discriminatory based on race (or any other protected class under the [ECOA]) and fail to identify any specific loan term that they allege was unfair or predatory, let alone unfair or predatory based on race.”

In challenging the school’s argument in its Statement of Interest, the CFPB points to the ECOA language that prohibits discrimination “with respect to any aspect of a credit transaction.”  Based on this language, the CFPB argues that “even where loan terms are not themselves unfair or predatory, a plaintiff may still proceed with a discriminatory targeting claim because, contrary to Defendants’ suggestion otherwise, ECOA covers every aspect of a credit transaction, not just the loan terms in the four corners of the contract.”  According to the CFPB, by alleging “that HIS misrepresented program requirements-and consequently, the length, and therefore the cost of the program-to convince students to take out credit to pay for tuition for the nursing program,” the plaintiffs had identified ‘an aspect of a credit transaction’ with respect to which HCI discriminatorily targeted them and have accordingly stated a claim under the ECOA.”

The CFPB’s attempt to extend the ECOA to redlining was recently rejected by a federal district court in Townstone Mortgage, with the court holding that ECOA protections only apply to “applicants.”  The CFPB has appealed that decision to the U.S. Court of Appeals for the Seventh Circuit.  The CFPB’s Statement of Interest represents another attempt by the CFPB to extend the ECOA beyond its terms, in this case through an expansive reading of what is “any aspect of a credit transaction.”

CHICAGO, Ill. — Leading accounts receivable management company, Harris & Harris LTD. is excited to announce the appointment of David Peters to the role of Chief Operating Officer. This addition to the Harris & Harris senior leadership team shows the continued investment in elevating our talent by introducing seasoned executives with diverse professional experience.  

Peters brings over 20 years of relevant experience across multiple industries, having served as an executive in numerous public companies and private equity-backed businesses.  His experience spans multiple industries, and, most recently, he served as Divisional Vice President & General Manager for Automatic Data Processing’s (‘ADP’) Major Account Services business.  In this role, he led a team of over 700 US-based & offshore professionals serving mid-market clients on ADP’s HCM platforms.   His knowledge of the application of technology to process improvement, call center expertise, and client success will prove valuable as H&H scales its business and continues the path of building a digital-first, analytical organization.

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“David Peters is an immediate asset to our team. He is a very successful leader and demonstrates a passion for our industry that will drive positive outcomes for our partners.” Sal Hazday, Harris & Harris CEO goes on to say, “Dave is a huge proponent of company culture, which both aligns with and energizes our strong existing values.”

While Peters continues to expand his impact on the organization, he will lead senior members of our team in Operations, Analytics/Business Intelligence, and our Omnichannel Strategies. Harris & Harris is experiencing strong growth across several business segments and is implementing new technology and broadening its suite of services. The addition of David Peters allows the company to successfully manage these expansions while continuing to provide superior service to our new and existing clients.

Former Harris & Harris co-owners Dave & Arnie Harris are active advisors on the board of directors and remain committed to the success of Harris & Harris.

About Harris & Harris 

Founded in 1968, Harris & Harris is an accounts receivable management and customer care firm, providing first-party and third-party debt collection, third-party liability, and other complementary services through advanced onshore call-centers. Harris & Harris is headquartered in Chicago, Illinois.  Additional information on Harris & Harris can be found at www.harriscollect.com