Jacksonville, Fla. — Frontline Asset Strategies, LLC (“FAST”), a professional collection agency located in Roseville, MN, and Jacksonville, FL, participated in October’s Breast Cancer Awareness Month. On Friday, October 22nd, the “FAST Team” doned their pink to spread awareness and then banded together on Saturday, October 23rd, both in-person and remote, to participate in the Susan G. Komen Race for the Cure.  The activities provided opportunities for fundraising, team participation, and comradery.

Building an Others-Centered Team

The Frontline Jacksonville office opened early in 2021, and the team has been growing its budding culture and is off to a strong start. Frontline Asset Strategies places emphasis on a positive, determined  mindset focused on helping others. The team is proud of the collegiality and friendly collaboration taking place among new friends and coworkers motivated to build on the strong foundation laid by FAST’s long-successful MN headquarters. The FL office is working to develop locally-based ways to continue to lead by example within the community. 

Beginning New Traditions

“We hope to make this an annual tradition. It’s great bringing team spirit and a greater purpose to the office every chance we get. This is a cause that is meaningful and worthwhile, while centered around an opportunity to be out in the community together giving back. We’re thankful for all who were able to participate and we look forward to next year!” said Tom Clement, Chief Sales Officer and Partner at Frontline Asset Strategies.  

Race for the Cure

The Susan G. Komen Race for the Cure is a fundraising arm of the greater Susan G. Komen® organization, founded in 1982 with a mission to end breast cancer. Susan Komen’s sister, Nancy G. Brinker, began the organization based on a promise she made to Susan in 1980 as Susan was losing her battle with breast cancer. According to its website, the organization has now “invested more than $2.9 billion in groundbreaking research, community health outreach, advocacy and programs in more than 60 countries.” Their “efforts helped reduce deaths from breast cancer by 40 percent between 1989-2016.” 

Breast Cancer Awareness Month

Breast Cancer Awareness Month was started by the National Breast Cancer Foundation, Inc. Its mission is prevention-oriented, focused on leveraging the power of increased awareness to help educate women and encourage routine screenings for early detection. This includes increasing affordable access to mammograms and regular checkups. The organization spreads the important message of knowledge and proactive measures to save lives. The wearing of pink truly is an awareness campaign for routinely taking time to remember the importance of keeping up with regular self-exams and doctor’s exams for early detection.

Learn More

To learn more about breast cancer in general, visit breastcancer.org, a nonprofit source for information and community. 

About Frontline Asset Strategies

Founded in 2008, Frontline Asset Strategies is a nationally licensed and bonded full-service collection agency specializing in accounts receivables management solutions that assist clients with maximizing the recovery of delinquent and non-performing accounts. The Frontline Asset Strategies team works with integrity and transparency to deliver positive consumer interactions that exceed expectations. They are headquartered in Roseville, MN with an additional location in Jacksonville, FL.

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On October 29, the New York Department of
Financial Services issued proposed amendments to 23 NYCRR 1, its regulation
titled “Debt Collection by Third-Party Debt Collectors and Debt
Buyers.”  The proposed amendments would make significant
changes to the sections of the current regulation dealing with initial
disclosure requirements, statute of limitations disclosures, substantiation
requirements, and telephone and electronic communications.  They would
also align the DFS regulation with several of the CFPB’s requirements in Regulation
F, set to become effective on November 30, 2021.

Required initial disclosures by debt
collectors

23 NYCRR 1 currently requires debt collectors
to provide certain written information, within five days of the initial
communication (unless the initial communication was in writing and included the
notice).  The proposed amendments revise the information about the debt
that must be included in the initial disclosures.  They require a debt
collector to disclose:

•  Name of the creditor to which the debt was originally owed or alleged to be owed

• Account number or a truncated version of such number

• Merchant brand, affinity brand, or facility name associated with the debt

• Name of the creditor to which the debt is currently owed

• Date of default

• Date of last payment

• For a debt not reduced to judgment, the applicable statute of limitations expressed in years

• Itemized accounting of the debt, including current amount due

Additionally, these amendments require a debt
collector to send, either in the initial notice or within five days of it:

• Information about the debt

• A notice that the debt collector is prohibited from engaging in abusive, deceptive, and unfair debt collection efforts

• A notice that the consumer has the right to dispute the validity of the debt, including instructions on how to dispute

• A notice that some forms of income are protected from debt collection

Disclosures for debts for which the statute of
limitations may be expired

Under the current regulation, a debt collector
must provide specific disclosures to the consumer before it accepts payment
when it knows or has reason to know that the statute of limitations for a debt
may be expired.  The proposed amendments require a debt collector to
include the disclosures in all communications, including the initial
disclosures, when it seeks to collect on a debt for which it has determined
that the statute of limitations has expired.  (The proposal would change
the required disclosures to inform the consumer that the applicable statute of
limitations “has expired” rather than that it “may be expired.”)

The proposed amendments would also add a
prohibition on oral communications—telephone calls or other means—by a debt
collector with a consumer regarding a debt for which the debt collector has
determined that the applicable statute of limitations has expired unless the
debt collector has directly received from the consumer “prior written and
revocable consent” or has the express permission of a court of competent
jurisdiction.

Substantiation of consumer debts

Currently, 23 NYCRR 1 allows debt collectors
60 days to provide written substantiation of a charged-off debt to a consumer
if the consumer disputes the validity of the debt in writing and requests
substantiation documentation.  The proposed amendments reduce this period
to 30 days but would require the dispute to have been made in writing to
trigger the debt collector’s obligation to provide written
substantiation.  The proposed amendments also add the requirement that a
debt collector must provide substantiation by hard copy through the mail. 
If the consumer has consented to receive electronic communications from the
debt collector, the debt collector would be required to provide substantiation
both by mail and electronically.  Debt collectors also currently must
retain any requests for substantiation, as well as all documentation sent to
the consumer, “until the debt is discharged, sold, or transferred.”  The
proposed amendments would require documentation to be retained for the longer
of either seven years, or until the debt is discharged, sold, or transferred.

Communication by telephone or through
electronic mail

The proposed amendments would add significant
limits on both telephone and electronic communications.  The proposed
amendments add requirements that a debt collector must comply with to
correspond with a consumer electronically to collect a debt.  Such requirements
include that the consumer must have voluntarily provided contact information
for electronic communications (e.g., email address, a telephone number for text
messages) and have given written revocable consent for electronic
communications from the debt collector in reference to a specific debt.

With regard to telephone calls, the proposed
amendments cap the number of calls a debt collector can make to a consumer
absent the consumer’s prior written and revocable consent given directly to the
debt collector.  Specifically, the proposed amendments would allow a debt
collector to make no more “than one telephone call and three attempted
telephone calls per seven-day period per consumer.”  (The one phone call
cap can be exceeded in specified circumstances, including when a call is made
in response to the consumer’s request to be contacted.)  Because the
proposed caps apply on a per consumer basis, they are stricter
than those in Regulation F, which allow seven attempts in
seven days per debt.

Comments on the pre-proposed amendments were
due by November 8.  The DFS will next publish the proposed amendments in
the New York State Register, with any changes made based on
comments received on the pre-proposal.

Just before noon today, the Eleventh Circuit Court of appeals issued an order (Order) vacating its opinion in Hunstein vs. Preferred Collection & Management Services, Inc, 994 F.3d 1341 (11th Cir. 2021), which means Hunstein is no longer good law.  

The Order also states that the 11th Circuit will rehear the matter en banc (en banc means the full panel of 11th Circuit Judges will hear the matter).  The rehearing date has not been set yet. 

Brief History:

The Hunstein Opinion created shockwaves throughout the ARM industry in April 2021 when the Eleventh Circuit held transmitting data to a mail vendor is an unauthorized third-party disclosure.  In May 2021, the debt collector defendant, Preferred Collection & Management Services, Inc (Preferred), filed a petition for rehearing en banc. In late May and June 2021, 17 parties with an interest in the outcome, including the Consumer Relations Consortium, filed amicus briefs to ensure all the legal issues surrounding the case were presented to the Eleventh Circuit. 

Later in June 2021, the Supreme Court issued its order in TransUnion LLC v. Ramirez, 141 S. Ct. 2190, 2204 (2021).  Preferred immediately filed a notice of supplemental authority arguing that the Transunion opinion supported Preferred’s request for rehearing en banc.  In October 2021, the three-judge panel which issued the April 2021 Hunstein opinion issued a substitute opinion to take the place of its original opinion. 

While the substitute opinion did not change the holding, it included a scathing dissent that included language taken directly from several amicus briefs, including the brief filed by Jessica Klander of Bassford Remele and Brit Suttell of Barron & Newburger, P.C. on behalf of the Consumer Relations Consortium. Their brief argued in part that the CFPB has authorized the use of mail vendors since Regulation F (Reg F) specifically discusses letter vendors as part of the collections ecosystem. This argument made it directly into footnote 13 of the dissent in the October 2021 substitute Hunstein opinion.

Brit Suttell stated that today’s developments are “an interesting turn of events and should get the attention of everyone in the industry.  We still need to understand what exactly the Court is going to want to be briefed – are they going to take a closer look at the standing argument or the underlying substantive argument regarding § 1692c(b)?”

insideARM Perspective:

This is big news for the ARM industry. The Hunstein opinion has done little for consumer protection while creating a windfall for consumer attorneys. While we have no way of knowing how the Eleventh Circuit will decide after rehearing the matter, courts outside the Eleventh Circuit have already suggested that that the Transunion decision calls Hunstein’s viability into question.  We will continue to provide updates as they unfold.

ST. GEORGE, UT — TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced the launch of “A Comprehensive Guide to Regulation F and How It Impacts Debt Collection,” an online guide that details the new rules announced by the Consumer Financial Protection Bureau (CFPB) in its interpretation of the Fair Debt Collections Practices Act (FDCPA), which takes effect on Nov. 30, 2021.

“Regulation F has caused collections and call centers to step back and take a hard look at their compliance with national standards. It can be difficult to understand exactly where your company falls in terms of the newest compliance regulations,” said McKay Bird, chief marketing officer at TCN. “At TCN, we strive to make the implementation of Regulation F as seamless and carefree as possible for our customers with this new, robust library of resources and compliance best practices.”

Enforced by the CFPB, Regulation F is a rule of the FDCPA, which significantly impacts the overall debt collection process. The regulation outlines prohibitions on harassment or abuse, false or misleading representations and unfair practices by debt collectors. The new regulation applies to collection agencies, debt buyers, collection law firms and loan servicers. It will create the need for them to make significant changes on how and when they can communicate with debtors.

The CFPB’s July 2021 interpretation of Regulation F clarified several rules about communications with debtors, including telephone calls, emails and text messages. The main requirements and contact restrictions include the 7-in-7 rule, which stipulates that no more than seven calls may be made in seven days, time of day, place of employment, reasonable procedure rules, limited content messages, itemization dates, model validation notices and retaining records.

TCN’s new online guide offers a variety of tools that serve as a way for call centers to educate themselves about the parameters of Regulation F and how to better manage compliance, such as:

• An overview of Regulation F compliance
• A guide to understanding the CFPB, FDCPA, and Regulation F
• Tools to avoid Regulation F penalties and methods to stay compliant
• A how-to guide on how call centers can best follow Regulation F practices
• Regulation F frequently asked questions

In addition to the services available to aid in the implementation of Regulation F, TCN also offers a resource library that includes a catalog of current challenges for Regulation F, a directory of the latest updates and rules announced by the CFPB, and several webinars and articles to help applicable users navigate the change.

To explore TCN’s Regulation F resources, or to request a demo of their services, visit https://www.tcn.com/a-comprehensive-guide-to-regulation-f-and-how-it-impacts-debt-collection/

About TCN

TCN is a global provider of a comprehensive, cloud-based call center platform for enterprises, contact centers, business process outsourcing firms (BPOs) and collection agencies. Founded in 1999, TCN combines a deep understanding of the needs of call centers with a unique approach to pricing – no contracts, monthly minimums or maintenance fees – that supports rapid scaling and instant flexibility to changing business needs. TCN’s contact center platform features a holistic set of easy-to-use, automated agent tools and advanced apps for omnichannel communications, workforce engagement, compliance & data management, integration & automation, intelligence, reporting & analytics and collaboration & accessibility. Its suite of compliance tools helps businesses meet the requirements of the Telephone Consumer Protection Act (TCPA) and other state and federal regulations, including new and updated debt collection rules issued by the Consumer Financial Protection Bureau. TCN’s secure platform integrates seamlessly with leading APIs and is accessible to agents with visual impairments. TCN is trusted by Fortune 500 companies and enterprises of all sizes in multiple industries in many countries. For more information, visit https://www.tcn.com/ and follow on Twitter, @tcn.