On February 14, 2022, the Consumer Relations Consortium (CRC) submitted comments to the the New York Department of Financial Services (NYDFS) regarding the proposed amendments to its debt collection rules. The proposed amendments seek to update disclosure requirements, statute of limitations disclosures, substantiation requirements, and telephone and electronic communications.

The CRC’s comments were prepared by Legal Advisory Board (LAB) members Joann Needleman of Clark Hill, Jim Schultz of Sessions Israel & Shartle, Brit Suttel of Barron and Newburger, John Rossman of Moss and Barnett, PA. as well as non LAB member Abigail Pressler, General Counsel of NCB Management Services, Inc. 

In its comments, the CRC asked NYDFS to consider the following:

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• Allow debt collectors to continue to use the charge-off date as the itemization date. The proposed amendment would prohibit debt collectors from using the charge-off date as the itemization date..” This conflicts with Regulation F.  It is also likely to uniquely disadvantage New York consumers who are accustomed to debt itemization based on the charge-off date by suddenly forcing collectors to use older or less predictable dates for itemization and increasing the likelihood of consumers receiving letters reflecting different itemizations based on different reference points over time.

• Remove the requirement to disclose the applicable statute of limitations for the debt, and allow debt collectors to use the previous time-barred debt language. The proposed amendment would require debt collectors to make a definitive determination regarding the statute of limitations, and disclose that determination to the consumer. The proposed amendments create a serious risk of violating rules prohibiting the unlicensed practice of law by requiring non-attorney debt collectors to analyze the law to determine which statute of limitations applies (an extremely complex legal question involving in-depth analysis), applying the law to the facts of a specific consumer’s account, and then advising the consumer about the law that applies to their accounts. Such legal analysis and advice should be given by a licensed attorney, not a layperson.

• Clearly outline the disclosure required for each type of debt. The proposed amendment has conflicting requirements for certain types of debt.

• Eliminate calling restrictions aimed at time-barred debt. The proposed amendment seeks to ban calls to collect time-barred debt. While there are limited exceptions, they are unclear and unlikely, rendering them functionally non-existent. Banning calls would increase the cost of collection, incentivizing creditors to sue New York consumers earlier and more often than consumers in other states where calls are allowed. 

The comment period ended on February 14, 2022. 

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.

OXFORD, Miss. — Security Credit Services (SCS), a nationally recognized and trusted investment firm that specializes in purchasing receivables, also holds a passion for serving their local community and those in need. Members of the SCS team have made a point to do their part by volunteering at The Pantry, a non-profit organization that has been providing food essentials to Oxford-area residents for 40 years. 

To get involved, employees of SCS offer their availability to their office manager, who can schedule them to work a half-day in the office, spending the rest of their time volunteering.  

“The Pantry has been such a great experience, it truly does feel amazing to help others who are in need,” said Latisha Nash, an employee at Security Credit Services. “Everyone involved is so motivated to be a part of a great cause that helps out so many people.” 

The Pantry accepts both food and monetary donations, the latter being utilized to purchase items from the Mid-South Food Bank in Memphis. Additionally, they receive support from the Mississippi Food Network and the federally funded CARES program. Food assistance is available to many types of families, especially those in lower-income households. The Pantry has adapted to the challenges that COVID-19 has presented, offering bags of prepared goods to feed a family for a week. 

 “The Pantry provides a wonderful service, and I am glad to see many of us here at Security Credit Services participating,” said William Alias III, CEO, SCS. “I look forward to continuing our involvement.” 

About the Pantry 

The Pantry is a 501(c)(3) organization providing food essentials to Oxford and Lafayette County area residents who need food security. The Pantry has been serving the community since 1982, partnering with local churches, institutions and businesses.  

About Security Credit Services 

Security Credit Services is an investment firm that purchases performing and non-performing account receivables. Purchased debt includes credit cards, healthcare, bank loans and specialty financed accounts, among others. The firm is trusted nationally, and its executives play important roles within the receivables management industry. SCS is a top 10 U.S. debt buyer and Inc 5000 company that has purchased over $20 billion in receivables since 2003.

In a short reflection video on regulatory compliance, Andrew Domino and Michelle Macartney hit the highlights of how regulators may respond to new consumer behaviors and what to watch for in both credit reporting and collections.

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On February 2, 2022, the Federal Communications Commission (FCC) issued a Press Release to announce that FCC Chairwoman Rosenworcel proposed an action, that if adopted by the full commission, would require a company to obtain consent before leaving a ringless voicemail for a consumer. Under the Chairwoman’s proposal, ringless voicemails would be considered “calls” requiring prior express consent. 

The proposal is in response to a March 2017 petition filed by All About the Message, Inc. (AAM), in which AAM asked the FCC to exempt ringless voicemails from anti-robocall rules. AAM’s petition opined that delivering a voice message directly to a consumer’s voicemail box is not a “call” subject to the Telephone Consumer Protection Act’s (TCPA) general prohibition against the use of auto-dialers or pre-recorded voice messages (absent appropriate consent). The FCC sought comment in April 2017; however, AAM withdrew the petition in June 2017.

“Ringless voicemail can be
annoying, invasive, and can lead to fraud like other robocalls—so it should
face the same consumer protection rules,” said Chairwoman Rosenworcel. “No one wants to wade through voicemail spam, or miss important messages because their mailbox is full. This FCC action would continue to empower
consumers to choose which parties they give permission to contact them.” 

insideARM Perspective:

The FCC Press release does not indicate why FCC Chairwoman Rosenworcel is championing this cause nearly five years after AAM filed (and withdrew) its petition. We’ll provide updates if and when the FCC issues guidance on this issue.  

SACRAMENTO, Calif. — Members of Receivables Management Association International (RMAI) elected Officers and Directors to its Board for 2022. Of the ten-member Board, nine are continuing service from the previous year. The 2022 Officers and Directors are:

• Adam Parks, Plaza Services LLC, President
• Anne Thomas, Cavalry Portfolio Services, LLC, President Elect
• Jon Mazzoli, Resurgent Capital Services, Treasurer
• Brett Soldevila, Security Credit Services, LLC, Secretary
• James Mastriani, Velocity Portfolio Group, Past President
• Mike Colby, Second Round, LP, Director
• Laura Jensen, Absolute Resolutions, Corp./RAzOR Capital LLC, Director
• Kelly Knepper-Stephens, TrueAccord, Director representing collection agencies and law firms
• Amber Russo, Kino Financial Co., LLC, Director
• Brian Williams, Crown Asset Management, LLC, Director

Amber Russo of Kino Financial Co., LLC, is joining the RMAI Board of Directors for 2022. Amber Russo is President and co-founder of Kino Financial Co., LLC., a regional debt buyer based in Arizona. Amber has dedicated over sixteen years to the receivables management industry as an advocate for state and regional debt buyers.  Over the past few years, Amber has worked with the RMAI organization as a committee member on various committees including State Legislative and Editorial, and as an advocate for RMAI’s legislative fundraising efforts. Amber also contributes to the RMAI Diversity, Equity, and Inclusion task force and was recently appointed to the RMAI Certification Council.

In her candidate statement, Amber explained her motivation for running for election to the RMAI Board, “Throughout my career I have been blessed with great mentors, colleagues, and friends, and now I want to give back to the industry that has afforded me so many incredible opportunities…I believe my perspective as a smaller regional debt buyer can be an asset to the Association. I hope to utilize my experience and industry contacts to benefit the RMAI membership as a member of the Board of Directors and I look forward to continued participation with the RMAI organization.”

RMAI’s plans for 2022 include continuing its well-known role of being present and involved in advocating for the accounts receivables management industry and engaging members in strategic grassroots efforts.

“2022 promises to be another busy year advocating in a number of states and Washington D.C.,” said Jan Stieger, Executive Director of RMAI.  “Our members count on RMAI to represent the industry at both the state and federal levels, and to keep them informed of important regulatory and legislative activity. In addition to our advocacy work, we look forward to holding our Executive Summit in beautiful Elkhart Lake, Wisconsin, and our regional networking event in Washington D.C.”

About RMAI

Receivables Management Association International (RMAI) is a nonprofit trade association representing more than 580 companies that purchase or support the purchase of performing and nonperforming receivables on the secondary market. The RMAI Receivables Management Certification Program and Code of Ethics set the global standard within the receivables industry due to the rigorous uniform standards of best practice which focus on protecting consumers. More information about RMAI is available at www.rmaintl.org.

RMAI’s 2022 Annual Conference is the 25th anniversary of the conference and brings together stakeholders in the receivables management industry—welcoming attendees and exhibitors, presenting highly-respected educational programming, and numerous networking opportunities with key participants, including debt buying companies, collection law firms, collection agencies, brokers, vendors, major creditors, and international members.