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New NACHA Limits Drive ACH Return Payments off a Cliff (Sponsored)

September 26, 2016 By admin Leave a Comment

Archery is an exact sport. Competitors must hit a 122-centimeter (4-foot) target from a distance of 70 meters or 230 feet. That’s the distance of one and half Olympic size swimming pools or hitting the field goal posts from the 20-yard line on your opponent’s side of the football field. Hitting the bulls-eye is even more challenging at only 12.2 centimeters or 4.8 inches, from that same distance. Debt Collection Agencies face similar challenges. They must find customers, get them to agree to payments, and then collect on those payments over time. All from customers who traditionally don’t pay their bills.

New NACHA ACH Return Payments Changes

Now, as of August 26, 2016, NACHA announced that, as of August 26 they are cutting the 4.8-inch bullseye in half. Instead of allowing for a 1% return in unauthorized debits, the number will be cut to 0.5 % of all transactions. They have also reduced the acceptable occurrences of returned administrative debits due to closed or invalid accounts to 3%, and overall debit returns to 15%.

The goal of NACHA’s changes is to improve ACH networks, but in the effort, they are driving the debt collection industry toward remotely created checks (RCCs) to bypass the new, tighter standards, due to fewer tracking restrictions for remotely cleared payments. When almost 100% of your clients struggle to hit the target at all, shrinking the size of the bulls-eye, hurts everyone involved. Consumers with late payments have money going out of their accounts faster than they are earning. Naturally creating a higher percentage of returned payments. Tighter scrutiny with regard to returns will make it harder for consumers to make payments and much harder for the collection industry to remain compliant.

When the FTC banned RCCs in the Telemarketing industry last fall it opened the door for a broader sweep of regulation potentially eliminating this payment arm in debt collections, just as agencies have an increased need for more RCC transactions, due to changes in NACHA regulations.

Collection agencies are facing a double-edged sword with tighter scrutiny in payment methods and new regulations reducing the acceptable ratio regarding the occurrence of returns, which are very common among this client class. It is like punishing an archery supply company for carrying arrows. If your clients could easily pay their bills, they would not be clients. Regulators have lost sight of the important role debt servicing companies play in the lending industry. When financial institutions are unable to collect payments, they stop lending to that class of consumer due to the profitability profile.

PDCflow can help you hit the compliance bulls-eye with our suite of products designed to drive inbound payments and keep you compliant all in one easy work flow. Download our ACH Authorization Requirement Guideline HERE or Contact PDCflow today to learn more. 877-732-4814

New NACHA Limits Drive ACH Return Payments off a Cliff (Sponsored)
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ACI Completes Buildout of Corporate Offices, Adds Capacity to Support Growth

September 26, 2016 By admin Leave a Comment

ACI’s redesigned office space supports current and future growth for collections, customer service, quality assurance and client servicing departments.

AMHERST, N.Y. — American Coradius International LLC (www.acillc.us), a leader in 1^st and 3^rd party debt collection services, has announced that they have completed a total redesign and build out in their corporate offices in Amherst, NY. ACI partnered with Buffalo based Millington Lockwood Business Interiors to build out 200 work stations; increasing operating capacity by 15%. The build out increased capacity for all areas of operations including collections, client services and quality assurance.

“ACI’s redesigned office space will allow us to increase our servicing capabilities in key areas that align with our current and future growth plans. The new space will allow us to expand our core teams to support the ongoing growth that we are experiencing; while giving us dedicated areas to host team meetings and client audit staff.” said Robert Duggan, VP and Chief Operating Officer for ACI. “Our team is excited about the growth; and this move represents a continued commitment to build on the successes of our team. We are very proud of our updated office space and hope our clients and employees will share in our excitement.”

About American Coradius International LLC

Founded in 1989, American Coradius International is an Amherst, NY based leader in 1^st and 3^rd party account receivable management and customer service. ACI services a number of the country’s largest national and regional banks, auto lenders and finance companies. ACI has operations at its corporate offices in Amherst, NY and a satellite office in Hamburg, NY.

About Millington Lockwood

Founded in 1884, Millington Lockwood has the distinction of being one of Buffalo’s oldest companies. Millington Lockwood is a distributor of commercial furnishings and architectural products for business, education, healthcare, and government markets. In addition, they provide a menu of facility support services that include interior design, space planning, project management, delivery & installation, pre-owned furniture, and much more.

ACI Completes Buildout of Corporate Offices, Adds Capacity to Support Growth
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House Committee Approves Dodd-Frank Replacement Bill

September 26, 2016 By admin Leave a Comment

This article previously appeared on Ballard Spahr’s CFPB Monitor and is re-published here with permission.

Barbara Mishkin

By a vote of 30-26 last week, the House Financial Services Committee approved the “The Financial CHOICE Act of 2016” (H.R. 5983), the bill released in July 2016 by Committee Chairman Jeb Hensarling to replace the Dodd-Frank Act. All Democrats on the Committee voted against the bill as did one Republican member. No amendments were offered by Democratic members.

The sections of the bill dealing with the CFPB are found in Title III, entitled “Empowering Americans to Achieve Financial Independence.” Subtitles A and B entitled, respectively, “Separation of Powers and Liberty Enhancements” and “Administrative Enhancements,” contain provisions that would change the CFPB’s structure, funding, and operation. For example, such provisions would change the CFPB’s name to the “Consumer Financial Opportunity Commission,” replace the current single director with a bipartisan, five-member commission, fund the commission through the appropriations process, require the commission to verify consumer complaint information before making it publicly available, and require the commission to establish a procedure for issuing written advisory opinions.

Subtitle C, entitled “Policy Enhancements,” contains provisions directed at the CFPB’s regulatory authority. For example, such provisions would repeal the CFPB’s authority to prohibit consumer financial services or products it deems “abusive” and to prohibit the use of arbitration agreements, repeal the CFPB’s indirect auto lending guidance and require use of the notice and comment process for any new proposed guidance, and authorize the commission to grant a 5-year waiver from a payday lending rule to any state or federally-recognized Indian tribe that requests such a waiver.

While the bill is not expected to be passed by Congress this year, depending on the outcome of the Presidential election, it could serve as a roadmap for future legislative change.

House Committee Approves Dodd-Frank Replacement Bill
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California Amends Requirements for Debt Collectors Responding to Consumer Claims of Identity Theft

September 26, 2016 By admin Leave a Comment

The State of California legislature has amended its requirements for debt collectors who receive consumer claims of identity theft.

The law, labeled the Identity Theft Resolution Act, was signed by the Governor on September 16, 2016. The law becomes effective on Jan. 1, 2017. A complete copy of the final text of the bill can be seen here.

Current Law

Current law requires a debt collector to cease collection of a debt upon receipt of a police report filed by a consumer and a written statement alleging identity theft regarding the debt at issue. However, the current law had no time frame for when a debt collector must investigate a consumer’s claim of ID theft, or when it was required to notify the claim of identity theft to the creditor associated with the account or any Consumer Credit Reporting Agency (CCRA) to which the debt has been reported.

Newly Amended Law

Under the newly amended law, a specific time frame for reviewing claims of identity theft has been specified. Once the debt collector receives the aforementioned police report, written statement, and other information required under the law, it will have 10 business days to start an investigation of the dispute.

The amended law also requires specific affirmative action by the debt collector if the debt collector had previously furnished information about the debt to a CCRA. In that event the debt collector must also notify the CCRA of the dispute within 10 days.

After concluding its review, the debt collector must send the results of its investigation to the consumer within 10 business days. There is no specific time frame for how quickly the debt collector must complete its review.

Per the new law:

“The debt collector may recommence debt collection activities only upon making a good faith determination that the information does not establish that the debtor is not responsible for the specific debt in question. The debt collector’s determination shall be made in a manner consistent with the provisions of subsection (1) of Section 1692 of Title 15 of the United States Code, as incorporated by Section 1788.17 of this code. The debt collector shall notify the debtor in writing of that determination and the basis for that determination before proceeding with any further collection activities. The debt collector’s determination shall be based on all of the information provided by the debtor and other information available to the debt collector in its file or from the creditor.”

insideARM Perspective

insideARM recommends that all ARM companies immediately modify existing policies and procedures in their Compliance Management Systems to reflect the new law in California. Though the law does not become effective until January 1, 2017, it makes sense to implement the change immediately.

Though the section above on recommencing debt collection activities (which includes a double negative) would make my 8^th grade English teacher cringe, the intent seems clear – you may only recommence collection activities if the information provided does not confirm the consumer’s claim of identity theft.

California Amends Requirements for Debt Collectors Responding to Consumer Claims of Identity Theft
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NACS Employees Work to Stop Soldier Suicide

September 26, 2016 By admin Leave a Comment

CHATTANOOGA, Tenn. – North American Credit Services is working to Stop Soldier Suicide, as part of a national campaign. “Sometimes our service men and women come home wounded inside and out,” said CEO Dallas Bunton. “Possibly while in other countries America’s heroes have lost wives, families and their sense of being a part of life. Too many times these brave service members become drained of the will to live and turn to suicide.”

The employees and executive management at NACS and Medical Services in Chattanooga supported the mission of the Stop Soldier Suicide (SSS) Foundation, in empowering veterans for life, with multiple fund-raising activities last week. NACS owners Dallas S. Bunton, Sr. and Beverly J. Bunton committed to match dollar-for- dollar, plus a company donation of $3,000 over and above what was raised for a grand 2016 total of $5,800.

According to a 2012 Department of Veterans Affairs report, it’s estimated that 22 soldiers take their lives each day. There are nearly 23 million Veterans of war in the U.S. and 1.5 million active duty military men and women. Also reported in 2014 by the Center for Public Integrity, the suicide rate for Veterans far exceeds that of the civilian population. Additionally, the Stop Soldier Suicide Foundation estimates that over 400,000 Veterans suffer from Post-Traumatic Stress (PTS) along with 40% from Traumatic Brain Injury (TBI), both being reported as leading indicators of military suicide. “For way to long these heroes that have served our country and kept us safe, have often lost everything for themselves in the process,” states Mr. Bunton, a Veteran having served in Korea during the Pueblo Crisis with the 7th Infantry Division on the DMZ.

Wounded warrior Andrew Smith was a special guest along with his father Todd at Friday’s benefit luncheon, held in NACS employee pavilion as shown in photo with Dallas S. Bunton, Sr. Both Sgt. Smith and Mr. Bunton were able to share their personal testimonials in support of the cause, thanks to the local NBC-TV affiliate. You can see the video here: www.wrcbtv.com/story/33115386/chattanoogas-nacs-employees-work-to-stop-soldier-suicide

All campaign donations will directly benefit the Stop Solider Suicide Foundation, www.stopsoldiersuicide.org/.

NACS Employees Work to Stop Soldier Suicide
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TopLine Employees and Members Donate Nearly 1,100 School Supply Items

September 26, 2016 By admin Leave a Comment

MAPLE GROVE, Minn., Sept. 21, 2016 (GLOBE NEWSWIRE) — During the months of July and August, the Community Emergency Assistance Programs (CEAP) and Keystone Community Services benefited by receiving donations from TopLine Federal Credit Union’s 13^th Annual Back-to-School Supply Drive. TopLine employees and members donated over 1,100 items and nearly $1,000 to help students start the school year.

CEAP distributed school supplies to over 800 children in grades K-8 in northwestern Hennepin and all of Anoka counties. Keystone Community Services collected and distributed brand-new backpacks filled with school supplies to more than 415 youth in the St. Paul area. The supplies in greatest need were backpacks, notebooks, pocket folders, pencils, pens, crayons, pencil boxes, glue, markers, watercolors, rulers and scissors.

TopLine employees were recognized for their charitable back-to-school donations by being able to wear jeans to work on specific days during the four-week program.

“TopLine’s school supply drive is an example of the generosity shown by our employees and members each year by helping families in need send their kids back to school with the much needed supplies for a successful year,” says Tom Smith, TopLine President and CEO. “Our donations benefit our local non-profit partner organizations CEAP and Keystone.”

Since 2002, TopLine Federal Credit Union employees and members have been involved in several programs each year to benefit CEAP and Keystone, including drives for food and household supplies, children’s back-to-school supplies, adult and children’s clothing, helping with holiday donations to families in need, volunteering to assist elderly individuals with yard work and involvement with Meals on Wheels.

CEAP (Community Emergency Assistance Program), serving Hennepin and Anoka Counties, is a community-based, non-profit agency that partners with other resources to assist people in need. The mission of CEAP is to stabilize individuals and families in financial distress and to maximize their ability to live independently and with dignity. Learn more at www.ceap.org.

Keystone Community Services, named for the strong connecting stone at the center of an arch, is a nonprofit organization that provides high-quality human services and programs in the community and in neighborhood gathering places to support and strengthen individuals, families and communities. Keystone serves more than 25,000 people at seven community locations with the help of more than 2,000 dedicated volunteers. Learn more at www.keystoneservices.org.

TopLine Federal Credit Union, a Twin Cities-based credit union, is Minnesota’s 13^th largest, with assets of more than $385 million. Established in 1935, the not-for-profit cooperative offers a complete line of financial services, as well as auto and home insurance, from its five branch locations — in Bloomington, Brooklyn Park, Maple Grove, Plymouth and in St. Paul’s Como Park — as well as by phone, mobile app and online at www.TopLinecu.com. Membership is available to anyone who lives, works, worships, attends school or volunteers in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott or Washington Counties and their immediate family members.

TopLine Employees and Members Donate Nearly 1,100 School Supply Items
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Senate and Congressional Hearings – Lots of Noise, but What Impact?

September 26, 2016 By admin Leave a Comment

Senate and Congressional hearings provide great headlines and terrific soundbites for media coverage. However, often the hearings have little actual impact. Today, insideARM discusses two examples of upcoming hearings.

Well Fargo CEO to Testify Before the Senate Banking Committee

Today Wells Fargo & Co. CEO John Stumpf appears before the Senate Banking Committee to testify about the bank’s $185 million settlement with the Consumer Financial Protection Bureau (CFPB), the Los Angeles City Attorney, and the Office of the Comptroller of the Currency (OCC) for creating accounts for unwitting customers. The CFPB alleged that the activity was caused by Wells Fargo employees secretly opening unauthorized accounts to hit sales targets and receive bonuses. See the insideARM September 9, 2016 story on the settlement.

The settlement has received significant press coverage over the past 11 days including this article published online by Fortune on September 12, 2016. The article indicates that a Wells Fargo senior executive (Carrie Tolstedt) who was in charge of the unit where Wells Fargo employees opened more than 2 million largely unauthorized customer accounts, will leave the bank with an enormous pay day—$124.6 million. Per the article:

“When Tolstedt leaves Wells Fargo later this year, on top of the $1.7 million in salary she has received over the past few years, she will be walking away with $124.6 million in stock, options, and restricted Wells Fargo shares. Some of that hasn’t vested yet.”

You can be certain that members of the Banking Committee will grill Mr. Stumpf on that payout and on bonuses paid to other employees based upon the conduct that led to the settlement. Senators will be clamoring for a “clawback” of those bonuses.

For additional insight on this hearing please see this article, detailing a former regulator’s thoughts on the hearing and its import.

House Subcommittee to Hold Hearing to Discuss TCPA

The U.S. House of Representatives Energy and Commerce Committee’s Subcommittee on Communications and Technology will discuss the Telephone Consumer Protection Act during a hearing at 11 a.m. (EST) on Thursday, Sept. 22. The hearing is entitled: “Modernizing the Telephone Consumer Protection Act.”

Per the Press Release announcing the hearing:

“The subcommittee will examine the impact the Telephone Consumer Protection Act (TCPA) has had on consumers and the legitimate businesses that are trying to contact them. Technology has changed dramatically in the years since its enactment in 1991 and so has the technology for making unwanted calls. As a result, the TCPA is both failing to keep consumers from receiving unwanted robocalls and making it more difficult to legitimately contact people for reasons of health, safety, employment, and education.

“As technology evolves, so too should our laws. The TCPA should be ensuring Americans receive the calls they want without being harassed by calls they don’t. Instead, it’s a prime example of an outdated law that lags behind modern communications technology and consumer preferences,” said Chairman Greg Walden (R-OR). “Next week, we will focus on the impact the law is having on folks and examine ways in which we can modernize this law for 21st century.”

The Majority Memorandum, a witness list, and witness testimony will be available here as they are posted.”

While the ARM industry would love to see the TCPA modernized it is unlikely that any such legislation could pass both the House and Senate in the immediate future. Consumer groups and the FCC have made the term “Robocalls” radioactive. Calls by debt collectors have been lumped into the broader group of “Robocalls”. Consumer rights groups and Trial Lawyers have banded together and will fight to preserve the lucrative consumer litigation under the TCPA. November election results could impact potential legislative activity, but as of this time, significant, pro-business change to the TCPA appears unlikely.

insideARM Perspective

insideARM will monitor both of these hearings and provide additional coverage as appropriate. However, as we noted in our initial paragraph, these two hearings may have little practical impact to the ARM industry.

Senate and Congressional Hearings – Lots of Noise, but What Impact?
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Executive Change: Ontario Systems Appoints Jason Harrington as Senior Vice President & Chief Revenue Officer

September 19, 2016 By admin Leave a Comment

New capacity enables leadership, coordination, and guidance to deliver enhanced products and support for evolving customer needs

MUNCIE, Ind. – Ontario Systems, a leading accounts receivable management (ARM) and healthcare revenue cycle management (RCM) software and services provider, has appointed Jason Harrington Senior Vice President & Chief Revenue Officer to help guide, coordinate and lead day-to-day organizational activities in pursuit of products better-aligned to customer needs. Harrington formerly served as the company’s Vice President of Sales, after several years in leadership roles related to both product development and professional services.

Jason Harrington

“Jason’s leadership skills, business development experience in our verticals, and depth of finance knowledge make him an obvious choice for this role as our organization continues to grow and thrive,” says Ontario Systems CEO & Co-Founder Ron Fauquher. “He is a trusted leader for our customers, as well as his team, our community, and the company as a whole. Together, those attributes help deliver the tools our board and executive suite need to continue evolving our organization to the benefit of both our associates and our clients.”

Harrington has nearly two decades of experience in the ARM and RCM markets, with nearly 18 of those years spent with Ontario Systems. In his role as Vice President of Sales, he was responsible for leading a team of ARM and RCM professionals who helped make Ontario Systems a recognized industry authority in technology, innovation, compliance and operations. He assumes the leadership of day-to-day company operating activities, while Fauquher focuses on long-term strategy, as well as delivering growth through innovation and partnership opportunities.

“I am humbled by the opportunity to serve Ontario Systems in this capacity,” says Harrington, who is now Senior Vice President, Chief Revenue Officer. “There are exciting shifts and new challenges at Ontario Systems and in the industries we serve. As the market leader in three industry segments, our clients expect products and services that enable their success. Our results will follow our clients’ ability to grow and prosper as we innovate products and services that profitably solve their biggest challenges.”

In June, Ontario Systems announced it had acquired Columbia Ultimate Business Systems (CUBS™) of Vancouver, Wash. Joining together two ARM market software and services experts, the acquisition increases overall product offerings and an even broader set of compliance consulting services. Ontario Systems holds distinct market leadership positions in the verticals it serves. It provides RCM software and services to the healthcare market, counting five of the 15 largest and three of the top six best health systems in the U.S. as customers, actively managing more than $40 billion in receivables with its products. With 35 years in the government sector, it serves more than 100 state and municipal government customers in 27 states.

About Ontario Systems

Ontario Systems, LLC is a leading provider of revenue cycle management (RCM) and accounts receivable management (ARM) software, services and solutions to the ARM, healthcare and government industries. Established in 1980 and headquartered in Muncie, Ind., Ontario Systems also has a location in Vancouver, Wash., and employees in 27 states. Ontario Systems offers a full portfolio of software, services and business process expertise, including product brands such as Artiva RM™, Artiva HC™, Contact Savvy®, Columbia Ultimate and RevQ. Ontario Systems customers include eight of the 10 largest ARM companies and five of the 15 largest hospital networks in the U.S. With Ontario Systems’ solutions, hospital network customers actively manage over $40 billion in receivables collectively.

Executive Change: Ontario Systems Appoints Jason Harrington as Senior Vice President & Chief Revenue Officer

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Executive Change: Ontario Systems Appoints Jason Harrington as Senior Vice President & Chief Revenue Officer

September 19, 2016 By admin Leave a Comment

New capacity enables leadership, coordination, and guidance to deliver enhanced products and support for evolving customer needs

Jason Harrington

About Ontario Systems

Executive Change: Ontario Systems Appoints Jason Harrington as Senior Vice President & Chief Revenue Officer

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New York Proposes Extensive Data Security Regs for Financial Services Companies, Begins 45-Day Comment Period

September 19, 2016 By admin Leave a Comment

New York State has released new proposed Cybersecurity Requirements for Financial Services Companies. You can read the full proposal here.

According to the document, “the regulation is designed to promote the protection of customer information as well as the information technology systems of regulated entities…Senior management must take this issue seriously and be responsible for the organization’s cybersecurity program and file an annual certification confirming compliance with these regulations.”

Among the requirements are written policies and procedures that are regularly approved by the company’s Board, and cover the following:

Information security
Data governance and classification
Access controls and identity management
Business continuity and disaster recovery planning and resources
Capacity and performance planning
Systems operations and availability concerns
Systems and network security
Systems and network monitoring
Systems and application development and quality assurance
Physical security and environmental controls
Customer data privacy
Vendor and third-party service provider management
Risk assessment
Incident response

Other requirements include:

the designation of a qualified Chief Information Security Officer
annual penetration testing
quarterly vulnerability assessments
maintenance of an audit trail
management of access privileges
annual review of application development security procedures
annual risk assessments
regular training of all cybersecurity personnel
policies and procedures addressing third party information security
a process requiring multi-factor authentication to access systems or data
policies and procedures for timely destruction of particular data

The proposal states that it would become effective in January 1, 2017, with the requirement for all Covered Entities to submit an annual Certification of Compliance with the New York State Department of Financial Services Cybersecurity Regulations starting January 15, 2018. There would be a 180 day transitional period from the effective date for Covered Entities to comply.

There is a 45-day comment period on the proposal.

New York Proposes Extensive Data Security Regs for Financial Services Companies, Begins 45-Day Comment Period
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