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insideARM Weekly Recap- Week of April 22nd, 2024

The insideARM team aims to bring you only the information ARM industry professionals need to know each week in order to stay up to date in the volatile world of debt collection. The most important news from last week involved emails and the FDCPA, the CFPB’s continued attempts to expand the scope of its supervision, and the NCLC’s influence on legislation. Continue reading for a summary of these articles and why we published them for you.

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NCLC's Influence on State Law Policy: 3 Things You Should Know

When it comes to debt collection, state legislatures have been busy lately. ARM industry professionals have noticed it, the CFPB has encouraged it (see here, here, and here), and it may feel as if the industry is under pressure from all sides with some of the recent legislation and regulations. You might be wondering where some of these ideas are coming from and why it feels like there’s an uptick. One possible explanation, is the actions, rhetoric, and push for this type of legislation from the National Consumer Law Center (NCLC). Recently, NCLC provided a debt collection State Policy Resource that offers model legislation along with data, research, and consumer friendly studies. Here are the top three things you need to know about it:

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CFPB Updates Risk-Based Nonbank Supervision Designation Process

On April 16, 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a procedural rule streamlining the designation proceedings for nonbank supervision based on a particular entity posing “risks to consumers.” As discussed in "Troutman's Take" below, the changes are designed to encourage nonbanks to volunteer to be supervised, while making it easier for the CFPB to impose supervisory oversight when companies do not consent.

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Landmark Strategy Group Aims to Tackle Food Insecurity with FeedMore WNY Support

WEST SENECA, N.Y. -- Landmark Strategy Group, a nationally licensed and bonded receivables management firm located in West Seneca, NY, has spent the last decade involved with dozens of Western New York (WNY) community groups, tackling issues from food insecurity to homelessness. To support its community, Landmark has spent the early part of 2024 volunteering at the FeedMore WNY Warehouse and supporting their Backpack Pack-Out Program, which assists children facing food insecurity over the weekends.

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Forget About It: FDCPA Class Action Asserting Emails Sent at Inconvenient Time Will Fail

Consumer attorneys are filing new class action lawsuits asserting that debt collector emails are being sent before 8 a.m. or after 9 p.m. in violation of the FDCPA. While debt collectors must adhere to the time restrictions for sending debt collection emails, it will be impossible for the consumer attorneys to certify any FDCPA class action asserting that a debt collector sent emails at an inconvenient time because email providers routinely delay the delivery of emails. As discussed below, this delay between when a debt collector sends an email and when the consumer receives the email necessitates an “individualized inquiry” to establish standing for each potential class member which will defeat any class action.

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Huntington Debt Holding Commits to Monthly Support of Community Charities

TONAWANDA, N.Y. -- Huntington Debt Holding, a nationally licensed receivables management firm located in Tonawanda, New York, has supported dozens of charitable organizations since its inception. As a way to continue support on a monthly basis, Huntington Debt Holding will be donating to FeedMore WNY, Tunnel to Towers, and St. Jude’s Hospital each month.

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