DENVER, Col.–Harvest Strategy Group, Inc. (HSG) announced, effective January 1, 2020, David Ravin and Brad McCurnin will serve as Co-Presidents. Mr. Ravin has had an extraordinary record with a 16% compound annual revenue growth rate over the past 10 years, in effect doubling revenues every 4.5 years. He will be responsible for the revenue side going forward; client retention and acquisition, new markets, strategic acquisitions and corporate citizenship. Mr. McCurnin will lead operations, with particular emphasis on building on their service reputation, market leadership in technology and continued development of Intellectual Property that has given HSG the competitive advantages in customer service it enjoys.

Further affirming their industry position, HSG announces the addition to their Board of Directors of Lewis Kling and Leslie Hirsch. Mr. Kling was CEO of Flowserve, a Fortune 500 company with 18,000 employees in 55 countries. He also currently serves on the Board of Eastman Chemical, Alclear LLC [airport security] and several non-profit organizations. Mr. Hirsch is currently President & CEO of St Peters Healthcare System, New Brunswick, New Jersey. Mr. Hirsch became CEO of Touro Infirmary one week before New Orleans took a direct hit from hurricane Katrina in August 2005. He received a great deal of national attention for providing medical care, under extreme circumstances, that was instrumental in helping the community minimize what could have been catastrophic consequences. Both Mr. Kling and Mr. Hirsch have received numerous awards and honors.

“We believe this change to our organizational structure, the significant investment in state-of-the-art collection software, the addition of two nationally recognized business leaders to our Board will all serve to position us for significant growth in the decade ahead” reports Martin Ravin, Executive Chairman.

Harvest Strategy Group, Inc. is the nation’s leading provider of comprehensive debt recovery management services. The Harvest mission is to execute custom collection programs on behalf of our clients to drive increased revenue, while protecting their brand with proven regulatory compliance and oversight systems.

For more information, visit www.harveststrategygroup.com or call (303) 531-0631.

This article is part of an ongoing Think Differently series, launched in October 2019. Written by members of the iA Innovation Council, the series showcases thought leadership in analytics, communications, payments, and compliance technology for the accounts receivable management industry.

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Almost everyone I talk to in the industry rates innovation as a top priority. Not long ago, in my former role as the leader of collections strategy for a major bank, I led a full strategy overhaul. I know first hand there are a lot of hurdles and setbacks once you decide to engage in such a change. In our case, everything needed an update; data infrastructure, scoring models, decision engines, customer contact tools (interactive messaging, text, email, etc.), reporting –  you name it, we needed it.

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Below are some lessons I’ve learned along the way. I hope they help you move more quickly on your way toward innovation.

The Great Debate…be willing to have it — The compliance and legal debate can feel like an insurmountable hurdle when trying to innovate in collections. Because debt collection laws are so dated, there’s a lot of interpretation involved. If the initial answer is “no, we can’t do that,” don’t take your ball and go home. I say broaden the debate; seek input from peers, industry experts and others who have had proven success. This is the single biggest missed opportunity I see in our industry.  Rarely do we talk to each other for the greater good.

Prioritize – Let’s be real; Not all change, no matter how shiny, is equal. I’ve had the greatest success with large scale transformations when I took the time to build a value-based prioritization matrix. Start by listing the capabilities you need and score them against your product lines and your criteria; estimated loss impact, expense reduction, customer value, ease of implementation (funding, regulations, technology), dependencies, etc.  

TIP: DO NOT get analysis paralysis here. High-level swags and some good intuition at this stage will not lead you astray. It’s as easy as 1, 3, 5. By using one of these three numbers to rate the degree of impact each particular criteria have, you keep it simple and have a built-in weighing system.

Build a Case – A common myth is that collections is strictly a cost of doing business. This is especially common on the creditor/lender side of the equation — but couldn’t be further from the truth. If your strategy for getting technology funding is to walk in and say “c’mon, trust me,” you probably won’t get very far. Do the work: Size your impacted population, outline your assumed performance improvement, and then pull that through the roll rates to estimate reduced losses (or expenses, or improved experience, etc.). The ROI is often so clear that smart leaders will pounce!

TIP:  Don’t limit your ROI to loss reduction or expense reduction. The less quantifiable, but impactful, benefits to customers, colleagues, operational risk should also be included.   

Prove It (test, test, test) – People sometimes glaze over when I talk about this, but if you’re still reading you’re probably with me. It’s one thing to make solid assumptions in the business case, but if you can’t back it up post-deployment, you’ll lose buy-in and credibility. Think proactively about how you’ll test each of your strategies, always keeping an unchanged portion of the portfolio clean for comparison. If we want to dispel myths about being a cost center, we need to take the time to prove the value. Test and control gets it done every time.

Each of us is constantly at different stages of development, and there is nothing to lose by learning from each other. 

Driving transformational change is by far the hardest work I’ve ever done. It requires a great deal of planning and perseverance. 

We’ll talk about these strategies and more at our first annual Strategy and Tech Conference in Austin, TX June 10-12th. Join us to see live demos of the hottest tech in collections, as well as in-depth sessions to help you advance your collections strategy and technology.

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About the iA Innovation Council

The iA Innovation Council is a collaborative working group of product, tech, strategy, and operations thought leaders at the forefront of analytics, communications, payments, and compliance technology. Group members meet in person several times each year to engage in substantive dialogue and whiteboard sessions with the creative thinkers behind the latest innovations for the industry, the regulators who audit and establish guardrails for new technology, and educators, entrepreneurs and innovators from outside the industry who inspire different thinking. 

Learn more at www.iainnovationcouncil.com

2020 members include:

A TCPA claim for an ATDS violation cannot be a bare conclusion.  On the other hand, you don’t need to plead specific technical detail. Rather, a plaintiff only needs to describe facts that make it plausible an ATDS was used to make the calls. Scalercio-Isenberg v. Citizens Fin. Grp., Inc., 2019 U.S. Dist. LEXIS 221222, *16-17, zeros in on this. The court held that the Plaintiff’s allegations against the Defendant, Citzens Bank for:

• unwanted calls;

• instances where nobody was on the line when she picked up;

• and when she called back, the line was automatically answered with “you’ve reached Citzens Bank”,

taken together, were sufficient allegations to state an ATDS use claim. The Court did note that ultimately discovery could show the technology was not an ATDS. 

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But wait! We haven’t officially launched FDCPAWorld.com yet, and it may or may not be in the works. (You’ll have to ask the Czar.)  But the FDCPA news from this case is so juicy that we had to report on it, even though it isn’t TCPA related per se. 

In this case, the Defendant, Citizens Bank, purchased and serviced the pro se Plaintiff’s Home Equity Line of Credit.  The Plaintiff alleged many problems with Citizens Bank’s servicing. One of her claims was a FDCPA violation, namely, that when communicating with her, Citizens Bank used other names, or aliases, like ‘Citizens Financial Group’, ‘Citizens Bank N.A.’, and ‘Citizens Home Loans’, which obscured the fact that Citizens Bank was the true entity collecting the debt. The Court dismissed this claim.   

As a brief background, creditors, like Citizens Bank here, are generally exempt from the FDCPA.  But, if a creditor uses a different name when collecting its own debts, which indicates that a third-party is collecting, then the creditor may be subject to the FDCPA under the “false name exception” in Section 1692(a).  This court followed a growing majority (2nd, 7th, and 11th Circuits) to hold that the slightly different names that Citizens Bank used was not enough to imply a third party was collecting, especially since each name the Plaintiff listed in her allegations contained the word ‘Citizens’ in it. 

This decision may provide a defense boost to creditors that choose to not use their exact name in their collection efforts.

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Editor’s note: This article is provided through a partnership between insideARM and Squire Patton Boggs LLP, which provides a steady stream of timely, insightful and entertaining takes on TCPAWorld.com of the ever-evolving, never-a-dull-moment Telephone Consumer Protection Act. Squire Patton Boggs LLP—and all insideARM articles—are protected by copyright. All rights are reserved. 

ROCKVILLE, Md. and PHILADELPHIA, Pa. — The iA Institute and Corporate Advisory Solutions (CAS) are excited to announce that CAS will be a strategic advisor to the iA Innovation Council. The iA Innovation Council is an exclusive membership group where forward-thinking creditors, tech companies, and collection agencies envision the future and map how to get there.

In today’s modern environment, the continuing evolution of technology has had a significant impact on every aspect of our world, affecting big business and our daily personal lives alike. The ARM industry is no exception, with new technology issuing disruption via artificial intelligence, predictive analytics, automation, and omni-channel communications that work across text, email, social media, and more.

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Regulatory changes will soon be upon us with the modernization of debt collection rules. The Consumer Financial Protection Bureau is proposing changes to the Fair Debt Collection Practices Act, first introduced in 1977, that will bring it into the modern era by introducing clarity around the lawful use of newer technologies.

With this, CAS will be involved in helping to advise how technology will impact M&A activities and valuation of companies in the industry as well as assist to position these companies with technology to enhance their value.

Stephanie Eidelman, CEO of the iA Institute said, “We are constantly evolving our approach to industry innovation and CAS adds an important element — the dynamic between technology, funding, and company value. I’m really looking forward to incorporating the insight and connections that Michael Lamm and his team bring to this part of the equation.”

Michael Lamm, Managing Partner of Corporate Advisory Solutions added, “We couldn’t be more excited to work with Stephanie and the insideARM team on the Innovation Council.  The ARM industry is going through a significant technology shift, and the Innovation Council and its members will be on the forefront leading the charge for change in the digital era. This will not only impact how our industry survives, but also how it will thrive when it comes to communications, analytics, payments, and compliance technologies.”

About Corporate Advisory Solutions

CAS is a merchant bank based in Philadelphia and Washington, D.C., specializing in M&A, and strategic advisory for the tech-enabled Outsourced Business Services (OBS) sector. Our core markets include Accounts Receivable Management (ARM), Revenue Cycle Management (RCM), Healthcare and Customer Relationship Management (CRM). The CAS team brings over 25 years of combined M&A, valuation and strategic advisory experience to every engagement, and its members have successfully completed over 100 transactions representing more than $2 billion in deal value within these core markets. For more information, please visit https://corpadvisorysolutions.com/ and see our latest newsletter, CAS Insights.

About the iA Innovation Council

iA Innovation Council is a membership group for organizations that understand their ability to survive depends on thinking differently and being at the forefront of communications, analytics, payments, and compliance technology. Please visit www.iAinnovationcouncil.com. 

The Innovation Council is managed by the iA Institute, a media company that advances the credit & collections industry through substantive and handcrafted news, education, events, and connection. Other iA Institute initiatives include insideARM, Women in Consumer & Commercial Finance, iA Strategy & Tech, the One-to-One Appointments Forum, the Consumer Relations Consortium, the Case Law Tracker, and the iA Research Assistant. Please visit www.theiainsitute.com for more details.

The debt collection industry is set to have a busy year adjusting to several “new normals” that are either already at its doorstep or are making their way over. Last year saw a lot of groundwork laid for new laws and regulations that will impact how debt collectors conduct business, and these new requirements will come to fruition in 2020. Below are five key items that 2020 has in store for the industry.

1. CCPA Implementation

Ready or not, the California Consumer Privacy Act (CCPA) is now in effect. The law aims to give consumers knowledge and control of their personal information: what data is collected, how companies use that data, and how to stop that use.

The CCPA came under criticism for how hastily the state legislature passed it and for the challenges it presents to implementation. California’s Attorney General (AG). who is tasked with enforcement of the new law, held several public forums both, both in early and late 2020 to receive public input on the CCPA and, more recently, on the AG’s proposed regulations. 

Companies have scrambled to do the best they could to prepare. Many pre-implementation efforts dominated much of 2019, including mapping out company data, setting up procedures for receiving and processing consumer requests, and trying to figure out what type of designation the company has per the CCPA’s complicated definitions. (For more information, or if your company is still struggling to figure out a way forward, watch our webinar on CCPA here.)

As of January 1, 2020, the law is in effect. The AG’s office is required to provide CCPA regulations by July 1 of this year. It will be an interesting year to see how consumers react to their new rights, whether companies’ procedures are sufficient to meet the CCPA’s purpose, and how the AG will move forward in regulating the law.

And let’s not forget that legislatures of several other states have pending consumer privacy laws as well. The National Conference of State Legislatures has a chart outlining what’s going on in each state.

2. CFPB Final Debt Collection Rules

The wait for the Consumer Financial Protection Bureau’s (CFPB) final rules for debt collection will finally be over. After a lot of research, several delays, congressional hearings, and busy comment periods to both the Advance Notice of Proposed Rulemaking (ANPRM) and the Notice of Proposed Rulemaking (NPRM), the final rules are set to be released in 2020. 

What will the final rules look like? Nobody but the CFPB knows for sure, but it’s predicted that they will largely resemble the NPRM. So what is the “new normal” under the new rules? 

• Debt collectors will have ground rules for communicating with consumers through digital channels.
• Strong consent management procedures will be required to take advantage of the rule’s digital communication allowance.
• Call caps will likely be a thing.
• Debt collectors will have some form of a safe harbor validation notice to use.

What’s left to be seen is how the courts will respond to the new rules. Courts are supposed to pay deference to regulatory rules under the Chevron doctrine, but there is some uncertainty. In a court decision last year, the U.S. Supreme Court upheld its prior decisions that held judicial deference should be given to regulatory agency interpretations of its own regulations but also stated that such deference is “sometimes appropriate and sometimes not.” Will courts consider portions of the rules ambiguous? Will oddball courts—such as the Third Circuit, which tends to go against the grain on many issues—find something to dig their teeth into? While all of this remains uncertain, the CFPB has probably thoroughly reviewed its rules to withstand such challenges.

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3. CFPB Time-Barred Debt Disclosure Supplemental NPRM

The CFPB hinted that we will see a supplemental NPRM for time-barred debt disclosures sometime early this year. Not only was a portion of the time-barred debt section of the NPRM left blank, but the CFPB has also conducted consumer surveys on such disclosures. Director Kathleen Kraninger said that the supplemental NPRM is coming “very early” in 2020, so that is probably right around the corner. 

4. Pending Pivotal Court Decisions

2020 will be the year that the industry sees some pivotal court decisions, and it’s going to be important to track what’s going on in the courts—iA’s Case Law Tracker is a great tool for this.

The U.S. Supreme Court is set to hear arguments (calendared for March 3, 2020) and issue a decision on the question of whether the CFPB’s structure is constitutional. The Seila case will specifically look at whether there is a violation of the separation of powers in the CFPB’s independent single-director agency structure and the for-cause only removal of the director. 

The Third Circuit Court of Appeals is likewise set to hear arguments and provide a decision on the written dispute requirement issue that plagued the debt collection industry. The Third Circuit said it will conduct an en banc review of Riccio v. Sentry Credit, Inc., as it is “controlled by a prior decision of the court which warrants reconsideration.” That prior decision is the Graziano v. Harrison, where the court arguably made the determination that all disputes under 1692g must be in writing. The en banc hearing is scheduled for February 19, 2020.

Editor’s Note: An en banc review is where a case is heard before all of the judges in the circuit court, rather than by a three-judge panel.

5. The Tide is Turning: Courts are Calling Out FDCPA Abuse by Consumers and Their Counsel

It also appears that the tide is turning in the courts on Fair Debt Collection Practices Act (FDCPA) cases as more and more judges begin to notice and call out plaintiffs’ and their counsel’s misuse of the FDCPA. Whether to defend an FDCPA case is a tough decision, especially considering that the one-sided attorney fees provision bars a debt collector’s recuperation of its defense fees and costs even if it prevails in the case. However, as more debt collectors choose to defend cases rather than settle right off the bat, more judges see just how hyper-technical and voluminous these lawsuits are. Some courts have flat-out said that the FDCPA is being misused as a debt evasion statute and to profit a cottage industry of plaintiffs attorneys. Examples from across the country include:

• Miller v. Trident Asset Mgmt. (D. Md. Dec 4, 2019)
• Campagna v. Client Services (E.D.N.Y. Dec. 3, 2019)
• Irvin v. National Credit & Collection (N.D. Ill. Sept. 17, 2019)
• Vougas v. Suttell and Hammer, PS (E.D. Wash. Sept 3, 2019)
• Garcia v. Miramed Revenue Grp, LLC (N.D. Ill. Aug. 16, 2019)

These are just a few examples of many other court decisions from the last couple of years that held similarly. 

Conclusion

2020 will be a busy year for the debt collection industry, but it will be one of progress. insideARM will continue to monitor all of the above items and keep you informed of many updates. 

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Want a tool that helps you keep up with all of the relevant industry case law? The iA Case Law Tracker can help you conduct incisive and quick legal research in less time than it takes to pour your morning cup of coffee.

GENESEO, N.Y. — Coast Professional, Inc. (Coast) recently promoted Tyler Copeland to Senior Director of Operations. He will remain working at the corporate headquarters in Geneseo, NY. Tyler’s promotion is a direct result of his work ethic and exemplary success, as well as the company’s significant growth over the past year. 

Tyler joined Coast in 2011 as a Collection Supervisor and quickly advanced his career to Collection Manager. In 2016, he was promoted to Director of Operations where he was responsible for managing the activities of consumer care employees by ensuring daily functions were efficiently performed in a quality-oriented environment that appropriately reflected company values. In his new position as Senior Director of Operations, Tyler will be responsible for overseeing the company’s subcontractors and will manage its training and development. 

“Tyler’s promotion is a result of his dedication to this company and his commitment to uphold Coast’s core values,” said Jonathan Prince, Coast Chief Operating Officer. “We are experiencing tremendous company growth and it’s important to have leaders who are focused on achieving new goals and providing exceptional customer service to our clients. Tyler is that leader and I’d like to congratulate him on this well-deserved promotion.” 

Tyler is a 2010 graduate of Letchworth Central School and currently resides in Warsaw, NY. 

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About Coast Professional, Inc.:

Coast Professional, Inc. is an accounts receivable management company, dedicated to the respectful and ethical collection of higher education and government debt. Coast provides professional collection services to over 200 campus-based colleges, universities, and government clients. Coast is a six-time honoree on the Inc. 5000 list for American’s Fastest-Growing Private Companies provided by Inc. Magazine and in 2019, was recognized for the fourth time as one of the “Best Places to Work In Collections” by insideARM.com and Best Companies Group. Since 1976, Coast has worked closely with clients to increase recoveries by assisting consumers in resolving their financial obligations. Coast’s success is exemplified by exceptional recoveries, superior service, and dedication to the highest levels of compliance. More information about Coast can be found at www.coastprofessional.com

The Pallone-Thune TRACED Act is now the law of the land. President Trump signed the bill yesterday. Enactment triggers a number of obligations under the statute regarding rulemakings and reports by the Federal Communications Commission (FCC).

The President’s Press Secretary issued the following statement in conjunction with the signing:

This historic legislation will provide American consumers with even greater protection against annoying unsolicited robocalls. American families deserve control over their communications, and this legislation will update our laws and regulations to stiffen penalties, increase transparency, and enhance government collaboration to stop unwanted solicitation. President Donald J. Trump is proud to have worked with Congress to get this bipartisan legislation to his desk, and even prouder to sign it into law today.

FCC Chairman Pai also issued a supportive statement, lauding, in particular, the extension of the statute of limitations and removal of citation requirements.

TCPAWorld’s summary of the TRACED Act can be found here.

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Editor’s note: This article is provided through a partnership between insideARM and Squire Patton Boggs LLP, which provides a steady stream of timely, insightful and entertaining takes on TCPAWorld.com of the ever-evolving, never-a-dull-moment Telephone Consumer Protection Act. Squire Patton Boggs LLP—and all insideARM articles—are protected by copyright. All rights are reserved.

GENESEO, N.Y. — Coast Professional, Inc. (Coast) recently hired Debbie Blanc as Business Project Manager. A key contributor to achieving major initiatives across the organization, the Business Project Manager helps to manage costs, meet deadlines, and evaluate risks. Debbie will be working in the company’s Geneseo, NY office. This hire is a direct result of the company’s significant growth over the past year. 

Debbie specializes in business development, product research, recruiting initiatives, data analysis, and customer relationship management. She will be responsible for providing oversight and management of Coast’s large-scale corporate initiatives, including developing formalized project plans and contracts. 

“Debbie is bringing over 25 years of leadership and experience to our Coast team,” said Michele Malczewski, Chief Human Resources Officer. “She is an expert in developing high-performing teams and her skills align perfectly with Coast’s strategic goals. Debbie will bring immense value and knowledge to Coast and I’m excited to welcome her to our ever-growing team.” 

Debbie received her bachelor’s degree in engineering, industrial & operations research from Syracuse University. 

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About Coast Professional, Inc.

Coast Professional, Inc. is an accounts receivable management company, dedicated to the respectful and ethical collection of higher education and government debt. Coast provides professional collection services to over 200 campus-based colleges, universities, and government clients. Coast is a six-time honoree on the Inc. 5000 list for American’s Fastest-Growing Private Companies provided by Inc. Magazine and in 2019, was recognized for the fourth time as one of the “Best Places to Work In Collections” by insideARM.com and Best Companies Group. Since 1976, Coast has worked closely with clients to increase recoveries by assisting consumers in resolving their financial obligations. Coast’s success is exemplified by exceptional recoveries, superior service, and dedication to the highest levels of compliance. More information about Coast can be found at www.coastprofessional.com

On December 10, 2019, the Consumer Financial Protection Bureau’s (CFPB) Director Kathleen Kraninger spoke at the National Association of Attorney Generals Captial Forum. In her remarks, Kraninger referenced the CFPB’s rulemaking in debt collection and offered a view of the near future: a Supplemental Notice of Proposed Rulemaking (SNPRM) for time-barred debt disclosures is coming “very early in 2020.” 

Kraninger mentioned that the CFPB’s testing of these disclosures is completed. The survey was first announced in February 2019. For guidance on time-barred debt disclosures, Kraninger states that the CFPB looked to relevant state laws and enforcement actions. The Director mentions:

These disclosures are inextricably linked to state law. Reconciling these disclosures could help consumers receive the benefits of federal and state disclosures, while at the same time reducing uncertainty and compliance burdens for debt collectors.  

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insideARM Perspective

There were enough hints that a supplemental NPRM for time-barred debt disclosures was coming, so this news is not too surprising. Other than the consumer survey, the most obvious hint was the big ol’ placeholder in the statute of limitations/time-barred debt section of the proposed rules.

As with the NPRM, we can expect the SNPRM to have a comment period once it is published in the Federal Register, so those in the industry who have input on this matter should ready themselves to prepare and submit a response. Time-barred debts are sensitive, and industry members who regularly interact with consumers on this type of debt have unique insights that should be shared with the CFPB, e.g., how real consumers react to these disclosures in-market versus through a controlled survey.

On December 10, 2019, the Consumer Financial Protection Bureau’s (CFPB) Director Kathleen Kraninger spoke at the National Association of Attorney Generals Captial Forum. In her remarks, Kraninger referenced the CFPB’s rulemaking in debt collection and offered a view of the near future: a Supplemental Notice of Proposed Rulemaking (SNPRM) for time-barred debt disclosures is coming “very early in 2020.” 

Kraninger mentioned that the CFPB’s testing of these disclosures is completed. The survey was first announced in February 2019. For guidance on time-barred debt disclosures, Kraninger states that the CFPB looked to relevant state laws and enforcement actions. The Director mentions:

These disclosures are inextricably linked to state law. Reconciling these disclosures could help consumers receive the benefits of federal and state disclosures, while at the same time reducing uncertainty and compliance burdens for debt collectors.  

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insideARM Perspective

There were enough hints that a supplemental NPRM for time-barred debt disclosures was coming, so this news is not too surprising. Other than the consumer survey, the most obvious hint was the big ol’ placeholder in the statute of limitations/time-barred debt section of the proposed rules.

As with the NPRM, we can expect the SNPRM to have a comment period once it is published in the Federal Register, so those in the industry who have input on this matter should ready themselves to prepare and submit a response. Time-barred debts are sensitive, and industry members who regularly interact with consumers on this type of debt have unique insights that should be shared with the CFPB, e.g., how real consumers react to these disclosures in-market versus through a controlled survey.