House Republicans Float Sweeping CFPB Overhaul, Seek Industry Feedback
- Attorneys excluded from the definition of “debt collector.” Complaint narratives pulled from public view. Penalty caps slashed and a 180-day window to cure self-identified violations. A new discussion draft from the House Financial Services Committee touches nearly every pain point the industry has with the CFPB, and lawmakers want to hear from you by August 21. What else is buried in the five-title draft, and what would it mean for your operation?
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State Appeals Court Affirms Dismissal of FDCPA Class Action Over Use of Letter Vendor
- A plaintiff argued that sending her information to a letter vendor violated the FDCPA’s third-party communication ban, backed by federal appellate decisions supporting her theory. A New Jersey Appeals Court called her reading of the statute “wooden,” compared the vendor to a telephone operator, and pointed out something federal circuit rulings can’t do in state court. See why this ruling matters for anyone using outside vendors to generate consumer communications.
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Judge Grants Motion to Compel Arbitration in Case Against Bank, Debt Buyer
- The plaintiffs claimed the arbitration clause was buried, too expensive, waived, and unenforceable by companies that never signed it. A federal judge in Arkansas took each argument apart, including one plaintiff’s own admission at the hearing that undercut the cost claim. See how the ruling handles the question every debt buyer wants answered: whether a non-signatory can enforce arbitration at all.
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New Standard Asks One Question of AI: Is It Actually Working for the Consumer?
- Consumer Reports has released what it calls the first consumer-centered AI standard for financial services, and it treats a chatbot telling people what they want to hear as an “honesty failure” on par with manipulation. The framework is voluntary, but the survey numbers behind it describe a public primed for new oversight, and its escalation requirements map directly onto the agent-assist tools already common in collections. Find out where your AI deployment stands before an examiner asks.
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Before Building That Venmo Option, Read This: Millennials Still Paying Mostly With Plastic
- The generation that made digital commerce routine is still reaching for debit and credit cards at rates that may surprise anyone budgeting for new payment rails. New data reveals the gap between payment interest and payment behavior, and the two findings that matter most for collection strategies aimed at this cohort.
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State Appeals Court Sides with Debtor Who Proved He Answered Discovery
- A state Court of Appeals in Texas has reversed a trial court order appointing a post-judgment receiver to collect on a credit card judgment, ruling that the plaintiff offered no evidence to support its motion.
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Compliance Digest – July 27
- A New Jersey appellate reversal that faults a court order for describing a hearing that never happened, the CFPB’s September timeline for revisiting the larger participant rule, a bill that would cut the credit reporting window to four years, New York’s proposed BNPL regime, and more. Ten of the industry’s sharpest compliance minds — John Culhane, Virginia Bell Flynn, Julia Stiner, Mitch Williamson, Ari Derman, Stephanie Strickler, Chuck Dodge, Heath Morgan, Laurie Nelson, and Jeff Turner — break down what this week’s biggest developments actually mean for your business.
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- This series is sponsored by Frost Echols
WORTH NOTING: Seven ways in which anyone can build wealth … A published report details how officials at the Federal Communications Commission accepted gifts from a company seeking a billion-dollar merger … Buy Now, Pay Later usage is close to reaching an all-time high … Millions of Americans are waiting longer to start claiming Social Security benefits … How what’s going on in your mouth could hold the secrets to living a longer and healthier life … A handful of skills to help you de-escalate stressful situations … A former child star reveals how much she makes in residuals, 20 years after she was on TV … How to make Google Maps and Apple Maps show you the fastest route, every time.
Music Monday, part I
Music Monday, part II
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