News

DBA International’s Introductory Survey Course on Debt Buying Available 24/7 Online

April 18, 2014 By admin Leave a Comment

DBA International’s Introductory Survey Course on Debt Buying is now available online. Individuals seeking their Certified Receivables Compliance Professional (CRCP) designation or wanting to gain additional professional education can view the recording from the 2014 DBA Annual Conference via DBA’s website 24/7.

The Introductory Survey Course is required for individuals seeking their CRCP designation through DBA International. The course covers the history of the debt buying industry, the life cycle of a debt, industry regulations, collection issues and responsibilities including state licensing and consumer communications. The course is designed as a general overview of the industry in order to establish a base for best practices. Four (4) education credits will be earned on completion of this course and DBA will mail you a certificate of completion.

The course was taught by renowned industry professionals: Rozanne Andersen, Ontario Systems’ in-house legal and compliance expert; Dennis Hammond, president of The Debt Marketplace, Inc.; Mark Naiman, COO, Absolute Resolutions Corporation; and Tomio Narita, partner with the California law firm, Simmonds & Narita LLP.

Members and nonmembers can register for this course through DBA’s education page at http://www.dbainternational.org/education/education.asp.

More information on the DBA Certification Program is available at http://www.dbainternational.org/certification/certification.asp.

DBA International’s Introductory Survey Course on Debt Buying Available 24/7 Online
http://www.insidearm.com/daily/debt-collection-news/accounts-receivables-management/dba-internationals-introductory-survey-course-on-debt-buying-available-247-online/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Pa. Judge: Consumers Must Know Their Right to Challenge a Debt

April 18, 2014 By admin Leave a Comment

A Pennsylvania federal judge Tuesday denied debt collector North Shore Agency Inc.’s motion to dismiss a putative class action lawsuit. The case alleges that North Shore Agency Inc. obscured language advising consumers of their rights to challenge their debts. In his opinion, U.S. District Judge Gene Pratter noted potential holes in the Fair Debt Collection Practices Act.

“Notwithstanding the remedial aims of the FDCPA, debt collectors…appear to treat the statute, still, as possible to overcome by gamesmanship,” Judge Pratter said in the opinion. ”It seems that no debt collector would want to prominently display a notice of validation rights for concern that doing so would reduce the rate at which less sophisticated consumers simply pay to make the inconvenience (or intimidation) go away, even if the debt is not in fact valid.”

Specifically, Judge Pratter raised concerns with North Shore’s inclusion of a note on the front of the letter encouraging consumers to call customer service because it overshadowed the statutorily required “validation notice,” placed on the rear of the letter, that tells recipients to dispute debts in writing. While both sides initially focused on just the letter’s formatting, Judge Pratter said the letter’s actual content was the key issue; he seemed to agree with the plaintiff’s allegation that other statements in the letter overshadowed the official validation language.

The issue of consumer disclosures is not new in the collection industry, and it’s not going away. In fact, when we developed To the Point: Written and Verbal Communication, we culled the pressing questions and the expert answers from our Ask the Attorney webinars into one user-friendly brief and one of the top questions asked was: Which language goes on which side of the paper when sending notices? Specifically: Are there any disclosures (FDCPA or state law) that should only appear on the front page, and not on a backer? Judge Pratter’s ruling helps to answer the question a bit, but there are still legal mysteries to solve. To the Point: Written and Verbal Communication is a good start.

Pa. Judge: Consumers Must Know Their Right to Challenge a Debt
http://www.insidearm.com/daily/pa-judge-consumers-must-know-their-right-to-challenge-a-debt/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

TECH LOCK, Inc., American Collectors Association of Texas Educational Foundation partner to “Secure” an Education

April 18, 2014 By admin Leave a Comment

TECH LOCK, Inc., a leading compliance and technology consulting company, announced that it will be donating ten percent of TECH LOCK’s gross paid service fee invoices derived from business conducted with American Collectors Association of Texas members to the ACA of Texas Educational Foundation.

In recent years, significant awareness to compliance and risk to reputation is on everyone’s mind. Businesses are contracting with companies to secure their business as well as current and future clients. Whether it is CFPB readiness, FISMA, PCI DSS, SSAE16, HIPAA, or Texas H.B.300 to present to your clients, your company dollars go toward compliance, audits, or consultant services. Why not keep the money in the family, support your veterans, and obtain a competitive advantage?

ACA of Texas has a unique opportunity to make a significant breakthrough on behalf of the ACA of Texas Educational Foundation scholarship fund. TECH LOCK, Inc. and the American Collectors Association of Texas Educational Foundation will collaborate to transform compliance and IT consulting to education. Whether it is a compliance audit or IT consulting services, TECH LOCK, Inc. will donate a portion of its gross services fees to the ACA of Texas Educational Foundation for any ACA of Texas member that contracts for and receives any new TECH LOCK services during the period starting on March 1, 2014 and running through Feb 28th, 2015.

“ACA of Texas members have a great opportunity to leverage the ARM Industry’s leading compliance and IT consulting company and assist graduating high school seniors in securing additional monies toward their college education,” said Todd Langusch, TECH LOCK’s President and Chief Executive Officer. “With college tuition on the rise, we are excited to partner with the Educational Foundation and look forward to setting a record breaking year for the 2015
scholarship award(s).”

“TECH LOCK is a unique consulting company whose employees come from the ARM Industry, which means TECH LOCK understands our industry. And as a result, TECH LOCK is an ideal strategic partner for ACA of Texas members who need to test their data infrastructure for security weaknesses, or who need to review and test their infrastructure and related data security policies for regulatory compliance deficiencies”, said Greg Mason, ACA of Texas Past President.” “TECH LOCK is also a HITRUST CSF Assessor, which allows ACA of Texas members engaged in healthcare receivables to offer a Safe Harbor with Texas H.B. 300, since Texas H.B. 300 impacts ANY entity conducting business in Texas if they collect, use, and/or store Protected Health Information (PHI).”

“Two years ago, SAS 70 used to be the de facto audit standard and the proverbial rubber stamp for data security and privacy, says Mike Ryalls, President of RGS Financial and ACA of Texas President. “We entered the TECH LOCK® Certified program to move away from the SAS 70 misuse and obtain a true validation of our technical, physical, and administrative safeguards. SSAE 16 has replaced the SAS 70 but is not structured for security and privacy but rather internal controls over financial reporting. TECH LOCK® Certified provides RGS Financial a competitive differentiator along with a true validation of our commitment to protect our client’s data.”

TECH LOCK, Inc., American Collectors Association of Texas Educational Foundation partner to “Secure” an Education
http://www.insidearm.com/daily/debt-collection-news/accounts-receivables-management/tech-loch-inc-american-collectors-association-of-texas-educational-foundation-partner-to-secure-an-education/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Payday Lenders Gaining Share of Debt Collection Complaints

April 10, 2014 By admin Leave a Comment

In the first quarter of 2014, about 7.5 percent of debt collection complaints filed with the Consumer Financial Protection Bureau were against payday lenders. This past quarter was the first full quarter in which consumers could select payday loans as the debt type leading to the collection complaint.

While 7.5 percent of complaints may seem small, it helps to clarify exactly what types of credit products and companies are most often raising the ire of consumers.

In the first three months of 2014, 877 separate companies were named in 6,647 debt collection complaints filed with the CFPB. The vast majority of the companies were third party debt collection agencies. But many of those companies had only one or two complaints attributable to their name.

In fact, 54 percent of named companies had either one or two complaints.

At the top of the list, though, were 110 companies with at least 10 complaints, and 30 companies with at least 40 complaints. In that list of the top 30 companies, less than half were third party debt collection agencies. The remaining were debt buyers, creditors, and payday lenders.

insideARM.com analyzed the top 200 companies and assigned business types for each. The complaints made against these companies accounted for 79 percent of all complaints filed in Q1 2014.

Within the top 200 companies, 52.6 percent of complaints were made against debt collection agencies, down from 55 percent when we last did a company analysis in the fourth quarter of 2013. Creditors were next on this list accounting for 23 percent of complaints, down from 26 percent. Complaints against debt buyers came in next with nearly 17 percent, down from just over 19 percent in Q4 2014.

All categories that we analyzed in November of last year declined. How is that possible? A new category was added: payday loans. Payday lenders and their collection units accounted for 7.5 percent of complaints made against the top 200 companies.

This is supported by our findings, published yesterday, on the types of debt leading to debt collection complaints. That analysis showed that 7.6 percent of debt collection complaints were made on the Payday Loan sub-product.

It should come as no surprise to the ARM industry that payday loans are becoming more prominent in collection complaints. State attorneys general have been focusing on payday loan collection enforcement for a while. But the CFPB is also getting involved in the market, filing an action late last year against a short-term lender and its collection unit. And the Bureau recently issued a report on payday lending and noted it is very close to issuing new rules for the market.

Payday Lenders Gaining Share of Debt Collection Complaints
http://www.insidearm.com/daily/debt-buying-topics/debt-buying/payday-lenders-gaining-share-of-debt-collection-complaints/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Debt Buyers: The Search to Meet New Requirements in Debt Sales

April 10, 2014 By admin Leave a Comment

Chris Smith

My previous article outlined the thoughts of creditors with respect to the latest challenges within the debt sale market, namely regulatory requirements relating to the depth of audit activity. TDX Group’s intermediary position within the market also affords us detailed insight into the views of debt buyers around the growing requirements being placed upon them by sellers who are looking to satisfy regulators.

The primary theme from our conversations with debt buyers over the past month is that inconsistency in the sellers’ response to current challenges is being translated into an inconsistent set of requirements being put upon buyers. This may well be driven by the current uncertainty around how current guidelines will form detailed regulations, but there is concern that a continued divergence in requirements may place significant overhead on buyers looking to meet the needs of all of creditors. Any example of requirements converging – right down to the detailed level of what and how information is supplied – is welcomed by the market.

There is a consistent theme that ongoing market stability remains the core focus for buyers and that they are willing to provide the information required to ensure that the market remains buoyant. There is, however, some concern around the level of visibility required by sellers and exactly how this data and information will be utilized. One buyer stated, “We will, of course, provide any data required to support audit activity but would be reluctant to share anything that gives away our IP or compromises our position.”

Our view is that greater transparency and visibility will provide wider benefits to buyers; this will not only ensure the continuation of current activity but will also reopen other opportunities such as the secondary sale market. With improved account monitoring and tracking there is no reason that this market cannot return, albeit within tighter guidelines linked directly to the levels of visibility of account treatment. We are also anticipating that new regulations will result in an extension of audit requirements from the current focus on policy and process towards account level monitoring; once again, increased transparency will provide wider benefits by reducing the resource required to manage these new requests.

As with the creditor market, a number of buyers are starting to take a proactive approach and look for tools that can help them better engage with sellers post-sale. This approach enables the immediate demonstration of their ability to support creditors in meeting post-sale monitoring requirements while still positioning the buyer as a market leader in interpreting and responding to regulation.

Debt Buyers: The Search to Meet New Requirements in Debt Sales
http://www.insidearm.com/fresh-insights-in-arm/debt-buyers-the-search-to-meet-new-requirements-in-debt-sales/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

ARM Vets Charity Helps Single Dad Provide for His Daughters

April 10, 2014 By admin Leave a Comment

ARMing Heroes (www.armingheroes.org), the collection industry’s charity for military veterans, today shared the story of United States Navy veteran Rhyan Miller, a single father committed to doing whatever it takes to provide for his family. Rhyan served his country from 1990-1992 during the Persian Gulf War until a service-connected knee injury resulted in his honorable discharge. After his discharge, he returned home to his two young daughters with a disability rating and challenging financial circumstances.

Over the ensuing years and in an effort to improve his family’s quality of life, Miller has continued his education and earned his master’s degree in the hopes of securing a higher-paying job. But during a recent search for employment between jobs, Rhyan was barely able to make ends meet while trying to raise two now-teenage daughters on his own. Looking for any solution to help him through this challenging time, he applied for a grant from ARMing Heroes, asking only for assistance with day-to-day expenses during his job search. In December of last year, Rhyan received the news that his application was approved, and he received a much-needed grant in the form of a grocery store gift card to help with his family’s expenses, just in time for the holidays.

Upon hearing the news of his grant award, Miller expressed his sincere gratitude:

Miller and his daughters

“I wanted to extend a warm thank you and show our appreciation for your generosity. The grant from ARMing Heroes will have an immense impact on my family, which consists of me and my two teenage daughters. Times have been tough, and this grant will relieve a large amount of stress over the next few months while I try to improve my financial situation. In my family, we are used to helping and guiding others with compassion, and now the shoe is on the other foot. This time, we are the ones who are grateful. Thank you from my family for your commitment to America’s veterans and their families.”

Rhyan Miller and his family are just one example of how ARMing Heroes is making a real difference in the lives of America’s military veterans. Hundreds of unemployed, underemployed, and disabled veterans apply each year, all hoping for a grant to help fill the gap between income and expenses, for needs that are largely unmet by government programs or even by other military charities. Stories about grant recipients from the last year alone remind us all how rewarding this program can be.

The charity’s flagship No Debts for Vets Charity Fundraising Drive runs from September 11^th through Veterans Day, November 11^th every year. However, tax-deductible donations are accepted at any time online at www.armingheroes.org and via mail to PO Box 353, Collingswood, NJ 08108, payable to ARMing Heroes. Pledges may be made to info@armingheroes.org. Any amounts pledged or donated now will be applied to the 2014 drive.

About ARMing Heroes

ARMing Heroes was founded and began operating in March, 2009. The organization’s mission is to serve the needs of U.S. military veterans, including their spouse and children. ARMing Heroes fills a charitable niche by linking people identified with employment, credit, and financial counseling needs with the accounts receivable management industry, an industry uniquely poised to help in these areas. Persons interested in volunteering their time and others interested in applying for benefits or pledging other forms of support are encouraged to contact the organization at www.armingheroes.org.

What Can I Do Right Now to Help?

Visit www.armingheroes.org and donate now.
Friend us and post this article to your page on Facebook.
Tweet about this article on Twitter.
Join our group on LinkedIn, the ARMing Heroes Veterans Charity Supporter / Assistance Center.
Comment on this article online and ask us to contact you.
Forward this article via email to your key contacts.
Print this article and fax it to your local congressional office and ask them to post our website on theirs as a resource for vets.

ARM Vets Charity Helps Single Dad Provide for His Daughters
http://www.insidearm.com/daily/debt-buying-topics/debt-buying/arm-vets-charity-helps-single-dad-provide-for-his-daughters/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

FTC Settles FCRA Charges Against Two Consumer Data Brokers

April 10, 2014 By admin Leave a Comment

Two data brokers have agreed to settle Federal Trade Commission charges that they violated the Fair Credit Reporting Act (FCRA) by providing reports about consumers to users such as prospective employers and landlords without taking reasonable steps to make sure that they were accurate, or without making sure their users had a permissible reason to have them.

In separate cases, the two companies – Instant Checkmate, Inc., and InfoTrack Information Services – have agreed to pay civil penalties and will be prohibited from continuing their alleged illegal practices.

Instant Checkmate and InfoTrack sell public record information about consumers. According to the FTC’s complaints, both companies operated as consumer reporting agencies under the law but failed to abide by the FCRA. The FTC charged, among other things, that in many instances InfoTrack provided inaccurate information suggesting that job applicants potentially were registered sex offenders, possibly causing employers to reject their job application. According to the complaint against Instant Checkmate, that company failed to require that users of its reports identify themselves or certify the purpose for which they were seeking consumers’ information.

“Consumers shouldn’t have to worry that they’ll be turned down for a job or an apartment because of false information in a consumer report,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Data brokers that operate as consumer reporting agencies have a responsibility to ensure the accuracy of the information they sell for decisions about whether to hire someone, extend them credit, rent them an apartment, or insure them.”

The court orders impose a fine of $525,000 against Instant Checkmate and $1 million against InfoTrack and its owner. All but $60,000 of the penalty imposed on InfoTrack and its owner are suspended, based on their inability to pay.

Instant Checkmate, Inc., headquartered in San Diego, California, runs InstantCheckmate.com, a website that allows users to search public records for information about anyone, including a person’s current and previous address, arrest and conviction records, and birth, marriage and divorce records. On its website and in online ads, Instant Checkmate marketed its service to landlords and employers. For example, the website enticed landlords to “check out tenants before they rent” and advertised that the website’s background checks “are especially useful when employers are seeking candidates that require high security or a position of trust.”

According to the FTC, by providing background reports that it expected would be used for the purpose of determining eligibility for housing and employment, Instant Checkmate qualifies as a “consumer reporting agency” and is subject to the FCRA. The complaint alleges that Instant Checkmate violated the FCRA by failing to maintain reasonable procedures to ensure that those using its reports had permissible purposes for accessing them; furnishing reports to users that it did not have reason to believe had permissible purposes to access them; failing to follow reasonable procedures to assure that its reports were as accurate as possible; and failing to provide FCRA-mandated “User Notices” outlining several important consumer protections.

The court order against Instant Checkmate prohibits the company from violating the FCRA by:

furnishing consumer reports to anyone who does not have an FCRA-defined permissible purpose;
failing to maintain reasonable procedures to limit the furnishing of reports to people with permissible purposes;
failing to maintain reasonable procedures to assure the maximum possible accuracy of the reports; and
failing to provide User Notices.

InfoTrack Information Services, Inc. – Based in Deerfield, Illinois, InfoTrack provides background screening reports to hundreds of employers nationwide about prospective and current employees. The reports include driving records, employment and education history, and criminal records, including sex offender records.

According to the FTC’s complaint, InfoTrack and its owner, Steve Kaplan, violated the FCRA by failing to use reasonable procedures to assure maximum possible accuracy of consumer report information obtained from sex offender registry records; failing to provide FCRA-required notices; and failing to provide written notices to consumers of the fact that InfoTrack reported public record information to prospective employers, when that information was likely to adversely affect consumers’ ability to obtain employment.

The court order against InfoTrack and Kaplan requires the defendants to comply with the FCRA by:

maintaining reasonable procedures to assure the maximum possible accuracy of consumer report information;
providing required FCRA notices; and
notifying consumers when InfoTrack has provided public record information about them that is likely to have an adverse effect upon their ability to obtain employment.

FTC Settles FCRA Charges Against Two Consumer Data Brokers
http://www.insidearm.com/daily/collection-laws-regulations/collection-laws-and-regulations/ftc-settles-fcra-charges-against-two-consumer-data-brokers/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Encore Capital Group Earns Certified Debt Buyer Designation from DBA International

April 10, 2014 By admin Leave a Comment

Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, announced that it has earned the designation of Certified Professional Receivables Company (CPRC) after completing the prescribed requirements of DBA International’s rigorous Debt Buyer Certification Program. Additionally, DBA International has elected Encore’s Senior Vice President of Business Development Amy Anuk as chair of its Certification Council.

DBA’s Debt Buyer Certification Program consists of a company-based designation and an individual-based designation for those who meet prescribed continuing education and background criteria. Company certifications are granted to organizations that comply with 20 uniform standards based on industry best practices. These standards address account documentation, chain of title, consumer complaint and dispute resolution, statute of limitation compliance, vendor management, credit bureau reporting, resale, and other relevant operational procedures. Compliance with the standards will be monitored through independent third-party audits as well as through a structured self-compliance audit process.

“DBA certification is the gold standard for our industry,” said Anuk. “It not only strengthens Encore’s global leadership position, but it also recognizes our longstanding commitment to operating ethically and treating consumers with respect.”

As chair of the 11-member Certification Council, Anuk will be responsible for the administration of DBA’s Debt Buyer Certification Program. She previously served on the inaugural task force responsible for the creation and launch of the Debt Buyer Certification Program and as chair of the Standards Committee on the Certification Council. Anuk brings over 12 years of experience in the financial services industry to her role. At Encore, she oversees the acquisition of consumer debt portfolios and manages the company’s partnerships with major financial institutions. Under her direction, Encore has invested over $2.6 billion in portfolio purchases.

DBA President Bryan Faliero congratulated Encore, saying, “By becoming a Certified Debt Buyer, Encore has demonstrated that it is committed to operating with the highest ethical standards, and will abide by the program’s standards of excellence.”

For more information about DBA’s Debt Buyer Certification Program, or to download an application, please visit DBA’s website at www.dbainternational.org/certification/certification.asp.

Encore Capital Group, an international specialty finance company with operations spanning seven countries, provides debt recovery solutions for consumers and property owners across a broad range of assets. Through its subsidiaries, the Company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers, and partners with individuals as they repay their obligations and work toward financial recovery. Through its Propel Financial Services subsidiary, the Company assists property owners who are delinquent on their property taxes by structuring affordable monthly payment plans and purchases delinquent tax liens directly from select taxing authorities. Through its subsidiaries in the United Kingdom, Cabot Credit Management and Marlin Financial Services, the Company is a market-leading acquirer and manager of consumer debt in the United Kingdom and Ireland. Through its Refinancia subsidiary, the Company services distressed consumer debt in Colombia and Peru. Encore’s success and future growth are driven by its sophisticated and widespread use of analytics, its broad investments in data and behavioral science, the significant cost advantages provided by its highly efficient operating model and proven investment strategy, and the Company’s demonstrated commitment to conducting business ethically and in ways that support its consumers’ financial recovery. More information about the Company can be found at www.encorecapital.com. More information about the Company’s Cabot Credit Management subsidiary can be found at www.cabotcm.com.

DBA International is the nonprofit trade association that represents the interests of companies that purchase performing and nonperforming receivables on the secondary market. DBA provides its members with networking, educational, and legislative advocacy opportunities through an annual conference, an executive summit, regional seminars, state and regional committees, newsletters, webinars, teleconferences, and other media. DBA promotes uniform industry standards of best practices through the Debt Buyer Certification Program and a code of conduct. Adherence to both are required for DBA membership. DBA is headquartered in Sacramento, California.

Encore Capital Group Earns Certified Debt Buyer Designation from DBA International
http://www.insidearm.com/daily/debt-buying-topics/debt-buying/encore-capital-group-earns-certified-debt-buyer-designation-from-dba-international/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

State AG Files Five Lawsuits Against Payday Lenders

April 10, 2014 By admin Leave a Comment

Illinois Attorney General Lisa Madigan today filed five lawsuits in a sweep cracking down on unlicensed, online payday lenders and a loan lead generator promoted by talk show host Montel Williams for illegally offering expensive, predatory loans that trap Illinois borrowers in excessive, cyclical debt loads.

Madigan filed lawsuits this week in Cook County Circuit Court on behalf of the Illinois Department of Financial and Professional Regulation (IDFPR) against four out-of-state payday lenders that are operating exclusively online, selling payday loans racked with fees that are double the amount allowed under state law. The lawsuits allege BD PDL Services LLC, Mountain Top Services I LLC, Red Leaf Ventures LLC and VIP PDL Services LLC charged Illinois borrowers $30 for every $100 loaned and allowed borrowers to take out multiple loans at once.

The Payday Loan Reform Act limits the fees a payday lender can charge a consumer to no more than $15.50 per $100 loaned. Payday lenders cannot issue a loan to a consumer if the loan would result in their being in debt to one or more payday lender for more than 45 consecutive days, and they cannot issue a loan to a consumer who already carries balances on two loans. Lenders must also wait seven days before issuing a loan to a repeat customer, once their loans are paid off.

“These online, unlicensed predatory lenders are putting Illinois consumers into unregulated, unprotected payday loans,” Madigan said. “None of these payday lenders is complying with the consumer protection we fought for over a decade to put into place to keep borrowers from being trapped in loans with excessive interest rates and fees.”

Madigan filed a fifth lawsuit against online broker MoneyMutual LLC for its role generating customer leads on payday loans with unlicensed lenders in violation of state law. The Attorney General’s lawsuit alleges the company was able to attract borrowers to its website in large part due to the profile of its celebrity spokesman Montel Williams.

Madigan also expressed concerns about the company’s data collection practices in light of the recent wave of major data security breaches. MoneyMutual requires potential borrowers to share their personal banking information, Social Security number, date of birth, driver’s license information, private address and employment records, all of which can be shared with third parties, putting borrowers at significant risk of identity theft.

Madigan’s lawsuits follow several cease and desist orders issued to the lenders and Money Mutual by IDFPR.

“Out-of-state lenders who ignore Illinois laws to take advantage of vulnerable consumers deserve to face the full weight of our laws,” said Manuel Flores, Acting Secretary of Financial and Professional Regulation. “It is gratifying that the Attorney General is backing up our cease and desist orders with demands for full restitution for the unwary borrowers.”

Madigan’s lawsuits ask the court to permanently ban the defendants from the payday loan business in Illinois, cancel pending payday loan contracts with Illinois consumers and require full restitution. The lawsuits also seek to impose on the defendants an array of civil penalties for violations of the Payday Loan Reform Act of 2005 and the Illinois Consumer Fraud and Deceptive Business Practice Act.

State AG Files Five Lawsuits Against Payday Lenders
http://www.insidearm.com/daily/collection-laws-regulations/collection-laws-and-regulations/state-ag-files-five-lawsuits-against-payday-lenders/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

InterSystems Honors Ontario Systems for Easing Regulatory Compliance in Collection Industry

April 3, 2014 By admin Leave a Comment

Ontario Systems, a leading receivables management technology and services provider, is easing the regulatory burden for its customers in the third-party collection industry. Utilizing advanced software technologies from InterSystems, Ontario Systems developers rapidly designed and built a cloud-based Complaint Tracker application and delivered it to early users – in less than six weeks. Because of the solution’s potential to raise the competitive bar in the collection industry, InterSystems is honoring Ontario Systems with a Breakthrough Application Award, which recognizes innovation in application development among InterSystems software partners.

“The Consumer Financial Protection Bureau (CFPB) sent shock waves through our customer base with the announcement last year that third-party collection agencies were under CFPB jurisdiction,” said Chris Cochran, Product Director, Ontario Systems. Per the CFPB, third-party collectors are now responsible for monitoring consumer complaints, putting in place a formal process to take appropriate action, and responding to the consumer that the complaint has been resolved. Collection agencies are required to capture the complaint, regardless of how it comes in, investigate within the organization to identify any possible process breakdown, perform a root cause analysis of breakdown cause, and respond to the consumer within a reasonable time, Cochran explained.

Recognizing the new compliance burden placed on collection agencies, a major segment of Ontario Systems’ customer base, Rozanne Andersen, Chief Compliance Officer of Ontario Systems and an industry thought leader in the area of compliance, researched the new CFPB rules. Building on that insight, the company created Complaint Tracker in record time.

“We’ve been InterSystems partners for 30 years and have complete confidence in their technology platform,” Cochran said. “Building on InterSystems technologies, we went from initial concept to delivering a functional product in just 35 days.”

Complaint Tracker is built on the InterSystems Ensemble® platform for rapid development of connected applications, as well as the InterSystems Caché® high-performance database and InterSystems DeepSee®, powerful analytics technology that can be embedded in transactional systems.

Innovative Cloud Strategy Enables Fast Response, Market Expansion

In contrast with its history of delivering enterprise-scale applications deployed within the customer’s environment, Ontario Systems opted to fast-track Complaint Tracker in the cloud. “We built a prototype that was reviewed by 25 customers, applied changes, performed the production build, and deployed it in our cloud data center. The application is immediately available to any customer on a subscription basis,” according to Cochran.

“InterSystems’ technology allows us to rapidly build and deploy secure, scalable applications in record time. Their technology enables us to quickly deliver innovations like real-time analytics with minimal additional investment. InterSystems technology and our partnership is a foundational part of our platform that we leverage to serve the needs of a growing and varied marketplace,” said Ken Couch, Chief Enterprise Architect, Ontario Systems.

Early Complaint Tracker adopters began running the application in the third quarter of 2013, and the user base now includes 30 customers with expectations that the base will double by mid-2014. One-third of the users are new to Ontario Systems, a strong indicator that the cloud-based application is opening doors for market expansion. Seven of the new customers are running collection systems from other providers, and the remaining three firms operate completely outside of the collection industry vertical while still being subject to CFPB compliance.

Complaint Tracker is the first product resulting from the company’s breakthrough software as a service (SaaS) strategy focused on cloud-based offerings, according to Cochran. Plans are to launch a portal in June 2014, which will host any new product built on the cloud subscription model. “We feel this is our best approach for ongoing innovation,” Cochran added.

Benefits of running in the cloud are readily apparent to Complaint Tracker customers. First, the application is conveniently available in any location and environment. In addition, Ontario Systems is able to provide customers with competitive benchmarks, which is critical to success in the challenging third-party collections market.

“Through Complaint Tracker reporting, each customer can easily determine where it stands in relation to its competitors,” Cochran explained. “Since this is a multitenant environment, we are able to gather outcomes data, de-identify it by stripping out consumer and company information, and then deliver feedback to our customers.”

For example, Cochran continued, “Suppose 40 percent of an agency’s consumer complaints are streaming in from the CFPB web site, and its competitors are receiving an average of just 18 percent from the same source. Immediately, questions are raised about why the agency is so far out of alignment with industry peers. Are there problems with the agency’s website? Is more information needed on emails or on the site itself? Complaint Tracker, which includes virtually real-time information dashboards based on InterSystems DeepSee, makes it possible to ask the right questions and stay competitive in a very tough market.”

“Our partnership with InterSystems has enabled us to deliver breakthrough solutions to our clients, and Complaint Tracker is only the latest example,” said Michael Wolfe, Vice President and Chief Technology Officer for Ontario Systems. “We are pleased to receive this recognition from InterSystems on behalf of our clients.”

“Ontario Systems is recognized for its ability to serve its receivables management clients with a focus on innovation, strategy, legal compliance, and efficiency,” said Paul Grabscheid, InterSystems Vice President of Strategic Planning. “Ontario Systems’ innovative use of InterSystems technology with cloud deployment enables new customer requirements to be addressed in weeks, rather than the multi-year timeframes associated with traditional software development and implementation cycles. The result is a real competitive advantage for Ontario Systems and its customers.”

InterSystems is a global software leader with headquarters in Cambridge, Massachusetts, and offices in 25 countries. InterSystems provides advanced technologies for breakthrough applications. InterSystems Caché® is an extremely fast and massively scalable database system. InterSystems Ensemble® is a platform for rapid integration and the development of connectable applications. InterSystems DeepSee® and InterSystems iKnowTM are technologies for conducting real-time active analytics with structured and unstructured data. For more information, visit InterSystems.com.

Ontario Systems, LLC is a leading provider of accounts receivable and strategic receivables management solutions for the collections and healthcare industries. Offering a full portfolio of software, services, and business process expertise, Ontario Systems customers include nine of the 10 largest collections agencies, and three of the five biggest health systems in the U.S., with 55,000 representatives in more than 500 locations.

To learn more about how Ontario Systems can help power up your receivables, visit OntarioSystems.com, or email info@ontariosystems.com.

InterSystems Honors Ontario Systems for Easing Regulatory Compliance in Collection Industry
http://www.insidearm.com/daily/debt-collection-news/debt-collection/intersystems-honors-ontario-systems-for-easing-regulatory-compliance-in-collection-industry/
http://www.insidearm.com/feed
insideARM

Accounts Receivable Management

Filed Under: News

Meta