Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32For more information, please visit or 23 key 2015 Trends Courts and regulators are looking closely at collection practices of various financial services entities, from servicers to credit card companies, to ensure the companies are complying with existing consumer laws. In particular, regulatory agencies and governments are working together and pooling resources to conduct their investigations of target companies, as evidenced by various joint actions. Specifically, the CFPB focused its enforcement energies on national banks and on practices by debt collectors and settlement agencies of providing false or unverified information to credit reporting agencies, attempting to collect unverified debts, and using unlawful collection practices like harassing phone calls and threats of legal action. Enforcement agencies also focused on national banks trying to collect debts owed by military servicemembers. The OCC secured multiple consent judgments against national banks, which allegedly violated the Servicemembers Civil Relief Act (SCRA) by filing false affidavits stating that the consumer is not a military servicemember. The CFPB focused similarly on debt collection practices affecting the military, filing actions against a military payroll deduction processor and a national automobile finance company. State agencies heavily policed unfair or unlawful debt settlement practices, including bringing actions where companies charged up-front fees for settlement services, misrepresented the nature of services provided, and failed to provide promised services. some 2015 Highlights Servicers Are Subject to the FDCPA. In Hart v. FCI Lender Services, Inc., the Second Circuit ruled that, depending on the wording of the correspondence, the transfer of servicing communication to borrowers can be consid- ered a debt collection “initial communication” letter that triggers disclosure obligations under the FDCPA, 15 U.S.C. § 1692g. Prior Express Consent to Collect Debts. On August 21, 2015, the Sixth Circuit issued its widely anticipated decision in Hill v. Homeward Residential, Inc., which af- firmed a jury verdict finding that Homeward Residential, Inc. had the consumer’s prior express consent to call him. The court held that the consumer granted express 0 2015 AMOUNTS SECURED BY AGENCY IN DEBT COLLECTION & DEBT SERVICING ENFORCEMENT ACTIONS CFPB $134,736,166 Other State Attorneys General $106,934,673 California Attorney General $100,000,000 OCC $60,000,000 FTC $33,382,137 FEBRUARY 4, 2015: NYDFS Superintendent Lawsky sends letter urging “strong national rules” MARCH 26, 2015: Director Cordray announces rulemaking proposals at Richmond Field Hearing APRIL 29, 2015: Small Business Regulatory Enforcement Fairness Act Panel meets regarding proposals MAY 22, 2015: CFPB Rulemaking Agenda notes NPR to be issued in 2015 JUNE 4, 2015: Thirty-two Senate Democrats write letter urging “strongest possible rules” SEPTEMBER 29, 2015: Director Cordray testifies before House Committee on Financial Services about forthcoming new rules NOVEMBER 20, 2015: CFPB Rulemaking Agenda notes NPR to be issued in first quarter of 2016 CFPB PAYDAY LENDING