ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
November 5, 2020
The Gateway For Payroll Data
CFPB final rule lets debt collectors use email, text
  • The Consumer Financial Protection Bureau (CFPB) on Friday expanded the methods debt collectors can use to contact borrowers to include voicemail, email and text messages, but restricted to seven the number of times a collector can call a consumer about a particular debt over seven consecutive days.
  • The 653-page final rule requires debt collectors to offer consumers a "reasonable and simple method" to opt out of communications sent to a specific phone number or email address, the bureau said. If the debt collector uses electronic communications to reach out, a consumer can use that same mode of contact to send a "cease communication" request or inform the collector they refuse to pay, the CFPB said.
  • The CFPB's rule, however, gives collectors an out, establishing a type of communication — a limited-content message — they can use that won't count toward the limit. That description applies to a voicemail that does not contain information subject to the restrictions of the Fair Debt Collection Practices Act, which passed in 1977.

Paving the Payments Future
Consumer Financial Protection Bureau Issues Final Rule to Implement the Fair Debt Collection Practices Act
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. The rule focuses on debt collection communications and gives consumers more control over how often and through what means debt collectors can communicate with them regarding their debts. The rule also clarifies how the protections of the Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, apply to newer communication technologies, such as email and text messages.

The rule is the result of a deliberative, thoughtful process spanning more than seven years and reflects engagement with consumer advocates, debt collectors, and other stakeholders. Further, in developing the final rule, the Bureau considered the more than 14,000 comments received during the public comment and rulemaking process. As a result of this feedback, for example, the rule establishes a presumption on the number of calls debt collectors may place to reach consumers on a weekly basis. A debt collector is presumed to violate federal law if the debt collector places telephone calls to a particular person in connection with the collection of a particular debt more than seven times within seven consecutive days or within seven consecutive days of having had a telephone conversation about the debt.

Lending as a Service
Federal Trade Commission Releases FY 2020 National Do Not Call Registry Data Book
Imposter calls once again top list of complaint topics in the past year

The Federal Trade Commission today issued the National Do Not Call Registry Data Book for Fiscal Year 2020. The FTC’s National Do Not Call (DNC) Registry lets consumers choose not to receive most legal telemarketing calls. The data show that the number of active registrations on the DNC Registry increased by two million over the past year, while the total number of consumer complaints decreased for the third year in a row.

Now in its twelfth year of publication, the Data Book contains information about the DNC Registry for FY 2020 (from October 1, 2019 to September 30, 2020). The Data Book provides the most recent fiscal year information available on robocall complaints, the types of calls consumers reported to the FTC, and a complete state-by-state analysis.

UPDATE!

IRS extends Economic Impact Payment deadline to November 21 to help non-filers

WASHINGTON — The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline.

States seek more federal funds as Medicaid enrollment grows
Record unemployment levels have shifted individuals from employer-sponsored or other insurance coverage

The number of Americans on Medicaid continues to rise as people lose their insurance during the economic downturn, but policy experts disagree on how much additional funding states facing higher costs may need. 

National enrollment in Medicaid and the Children’s Health Insurance Program jumped by 4 million between February and June, an increase of almost 6 percent, according to Centers for Medicare and Medicaid Services data released recently.

Record unemployment levels have shifted individuals from employer-sponsored or other coverage to Medicaid, the nation’s program for low-income individuals. 

Fed lowers Main Street loan threshold to $100K
  • The Federal Reserve on Friday lowered for a third time — to $100,000 — the minimum threshold of loans available through the Main Street Lending Program.
  • The central bank is waiving the 1% fee it collects from borrowers on loans of less than $250,000, but it will allow banks to double — to 2% — the origination fees they can charge borrowers of loans that size, according to The Wall Street Journal.
  • Borrowers calculating their eligibility to apply for the Main Street program can exclude from their debt Paycheck Protection Program (PPP) loans of less than $2 million, as long as they're expected to be forgiven, the Fed clarified Friday.

Capital One to let most US call-center workers stay remote after pandemic
  • Most employees at Capital One's U.S. call centers for cards will work from home after the coronavirus pandemic ends, the McLean, Virginia-based bank said in a memo seen Thursday by Bloomberg.
  • The bank extended the remote-work option for the rest of its employees until the end of March, the memo said.
  • The directive comes about a week after fellow card titan Synchrony Financial announced it would let all of its U.S. employees work from home permanently.

Wells Fargo fires up to 125 employees over misuse of EIDL aid
  • Wells Fargo has fired between 100 and 125 employees who made false representations when applying for coronavirus aid through the Economic Injury Disaster Loan (EIDL) program, Bloomberg, The Wall Street Journal and Reuters reported Wednesday, citing an anonymous source.
  • In a memo seen Wednesday by The New York Times, Wells Fargo said employees created fake profiles to file for money available through the program.
  • The firings come a month after fellow banking titan JPMorgan Chase launched an internal investigation that found more than 500 of its employees accessed EIDL funds, though dozens shouldn't have. The bank fired several of its workers — but gave no concrete number — and sent a company-wide memo warning that it has "seen conduct that does not live up to our business and ethical principles — and may even be illegal."

Ocasio-Cortez, Tlaib-backed bill would create federally chartered public banking system
  • Reps. Alexandria Ocasio-Cortez, D-NY, and Rashida Tlaib, D-MI, introduced a bill Friday that would help create a national federally chartered public banking system in the U.S.
  • The Public Banking Act would establish a grant program administered by the secretary of the Treasury and the Federal Reserve Board, which would provide grants for the formation, chartering and capitalization of public banks. The bill would also codify that public banks may be members of the Federal Reserve. 
  • The creation of public banks would expand financial services to underbanked communities and help fund public infrastructure projects, the lawmakers said.

Conviction and 10-year sentence upheld in payday loan scam
NEW YORK — An appeals court on Tuesday upheld the conviction and 10-year sentence for a man who ran a $220 million predatory payday lending operation that cheated over a half-million people nationwide.

The ruling by the 2nd U.S. Circuit Court of Appeals in Manhattan kept intact the 2018 sentencing of Richard Moseley Sr., of Kansas City, Missouri.

The appeals court said Moseley's arguments were "unpersuasive."

Moseley, 76, was convicted in 2017 of racketeering, fraud and identity theft for crimes committed while he ran the company from 2004 to 2014.

ALTERNATIVE FINANCIAL SERVICE PROVIDERS ASSOCIATION
Alternative Financial Service Providers Association
757.737.4088
315 Tuscarora St., Lewiston, NY 14092