Law and regulation

The U.S. House of Representatives this morning passed H.R. 3506 by voice vote, a move ACA International has supported to eliminate unnecessary paperwork requirements under the Gramm-Leach-Bliley Act (GLBA).

National Enterprise Systems (NES) Inc., a collection agency based in Solon, Ohio, agreed to pay an estimated $400,000 to settle charges brought in a lawsuit by Ohio Attorney General Richard Cordray's office.

The principal of several New York collection agencies, imprisoned this month after a conviction on gun charges, was released from custody late yesterday on a $250,000 appeal bond.

The New York Attorney General’s office has shut down a Brockport, N.Y.-based process server company that falsely claimed in legal affidavits that its employees had made proper service of legal documents to thousands of consumers.

The FBI last week announced the arrest of eight men, charged with fraudulently using other consumers' credit card information to buy as much as a million dollars in merchandise from stores in Northeast Ohio - including Home Depot, Staples, Best Buy, Lowe's, Macy's, Nordstrom, Saks Fifth Avenue, hhgregg and Sears.

Consumers in March filed more than 1,000 lawsuits citing violations of consumer statutes, the bulk of which listed Fair Debt Collection Practices Act offenses. A total of 938 of 1,038 lawsuits filed cited act violations, according to data from U.S. District Court complaint dockets.

With state attorneys general pursuing a growing number of cases against debt collectors and creditors, many collection industry insiders wonder whether they’ll ever get a fair shake.

The Federal Trade Commission announced Friday that it has issued its annual report on the Fair Debt Collection Practices Act to Congress.

The Credit Card Accountability, Responsibility and Disclosure (CARD) Act has given banks less room to maneuver as they search for profits in their card portfolios. Not only are they being pinched by new regulations, their card profits are facing pressure from changing consumer behavior. Cardholders in good standing are paying down balances while delinquency rates among riskier customers rise.

A marketing company that solicits customers for automobile dealers has agreed to settle Federal Trade Commission charges that it falsely told low-income and “credit-challenged” consumers that they were pre-approved for auto loans and improperly obtained their names from a consumer reporting agency.

Speakers at a recent Internal Revenue Service hearing on proposed transaction-reporting requirements that take effect next January largely focused on the potentially detrimental effects their companies may experience from a foreign-merchant rule contained within the law, according to comments from the hearing.

Limits on issuers’ ability to manage risk represent the most substantial impact from a recent credit card regulation affecting United Kingdom card issuers and cardholders, Auriemma Consulting Group UK Ltd. concludes in a recent report. The UK Department for Business, Innovation and Skills enacted the regulation to provide consumers with more control over their credit cards.

New York Attorney General Andrew Cuomo has filed lawsuits against two loan modification companies for engaging in nationwide foreclosure rescue scams.

The Federal Reserve Board March 23 announced final rules that limit the fees and expiration dates for certain prepaid products, primarily open and closed-loop gift cards. The final rules take effect Aug. 22.

One of the new credit card law's lesser-known provisions is funneling distressed borrowers to credit counselors, an industry once tarred as predatory. In an ironic twist, that outcome pleases consumer advocates more than it does some bankers.

The operators of a mortgage foreclosure rescue company are banned from selling mortgage relief services under a settlement with the Federal Trade Commission and the states of California and Missouri, which sued them in 2009 as part of a federal-state crackdown on mortgage loan modification and foreclosure relief scams.

One of the new credit card law's lesser-known provisions is funneling distressed borrowers to credit counselors, an industry once tarred as predatory. In an ironic twist, that outcome pleases consumer advocates more than it does some bankers.

Australia’s central bank is likely to continue regulating payment card interchange fees indefinitely, at least one analyst predicts.

The four organizations representing the nation’s accounts receivables management industry are calling on Congress to keep the Federal Trade Commission as the exclusive regulator of debt purchasers and collectors. The unprecedented action by the trade groups to come together is a response to proposed legislation that would strip the FTC of its powers and place the industry under a new authority.

Banking executive Charles J. Antonucci Sr., the former president and CEO at Park Avenue Bank of New York, was arrested Monday on charges including allegations that he defrauded regulators.