nacara annual conference industry perspectives panel september 29,2014 boise, idaho andy madden...

NACARA Annual Conference Industry Perspectives Panel

September 29,2014Boise, Idaho

Andy MaddenDirector State Government Affairs

ACA International

• Education, Advocacy & Member Service

• Offices in Minneapolis and Washington, D.C.

• 3,400 members / 300,000 employees

• 40 State Units (50 states)

• One International Unit (60+ countries)

© 2014 ACA International. All Rights Reserved.

ACA International

• FTC, CFPB, FCC, Congress

• 50 State AG’s, Regulators and Financial Departments

• 50 State Legislatures, Licensing, Statutes of Limitations

• U.S. Judicial System

• Growing Number of Local Rules and Regulations

Industry wants uniformity and clarity!

© 2014 ACA International. All Rights Reserved.

A Highly Regulated Industry

Additional federal laws regulating third party debt collectors:

1. The Higher Education Act of 1971, Pub. L. No. 89-329;2. The Bank Holding Company Act, 12 U.S.C. §§ 1841 et seq.; 3. The Consumer Leasing Act, 15 U.S.C. §§ 1667 et seq.;4. The Electronic Fund Transfer Act, 12 U.S.C. §§ 222 et seq.; 5. The Equal Credit Opportunity Act,15 U.S.C. §§ 1691 et seq.; 6. The Fair Credit Billing Act, 15 U.S.C. §§ 1666 et seq.;7. The Fair Credit and Charge Card Disclosure Act, 15 U.S.C. §§ 1601 et seq.;8. The Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq.; 9. The Federal Bankruptcy Code, 11 U.S.C. §§ 101 et seq.;10. The Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq.;11. The Health Insurance Portability and Accountability Act, 42 U.S.C. § 1320d-2 et seq., including the Security Rule, Privacy

Rule, and Transaction and Code Set Standards promulgated by the Department of Health and Human Services; 12. The Home Equity Loan Consumer Protection Act, 15 U.S.C. §§ 1637 et seq.; 13. The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act,

P.L. 107-56, 115 Stat. 272; 14. The Right to Financial Privacy Act, 12 U.S.C. §§ 3401 et seq.;15. Telemarketing Sales Rule, 16 C.F.R. §§ 310.1 et seq.; 16. Truth in Lending Act, 15 U.S.C. §§ 1601 et seq.; 17. Regulation E, 12 C.F.R. § 205.1 et seq.;18. Regulation J, 12 C.F.R. § 210.1 et seq.; 19. Regulation M, 12 C.F.R. §§ 213 et seq.; and20. Regulation Z, 12 C.F.R. § 226 et seq.

Taking Complaints Seriously

• ACA International Research Department collected a sample of 35,573 complaints received by the CFPB between July 2013 and August 2014.

• The highest number of identifiable complaints was for credit card debts with 7,886 in the analyzed timeframe.

• The most reported consumer concern was being contacted about “a debt they did not believe they owed.”

• Of the 35,573 complaints analyzed, 95.90% were “closed,” “closed with non-monetary relief” or “closed with explanation.”

• The majority of complaints are received via web (in total 27,138). E-mail represents the platform of lowest submission with 4 complaints.

http://www.acainternational.org/economicimpact.aspx

© 2014 ACA International. All Rights Reserved.

New Economic Impact Study

• Conducted by Ernst and Young

• Surveys the Impact of Third-Party Debt Collection

• Get Your State and National Data

New Economic Impact Study

© 2014 ACA International. All Rights Reserved.

• Recognize complexities of the debt collection market

• Appropriately tailor requirements to specific circumstances

• Address outdated, unnecessary or burdensome legal requirements

• Strive for maximum clarity to ensure “safe harbors”

Response to CFPB ANPR

Proposed rule anticipated in Fall 2014

TCPA Petition with FCC

• Confirm that all dialers aren’t categorically ATDS

• Confirm that “capacity” under TCPA means present ability

• Clarify express consent attaches to the debt, not the phone

• Establish a safe harbor for non-telemarketing wrong numbers

35 organizations submitted comments in support

© 2014 ACA International. All Rights Reserved.

Currently monitoring 330+ bills impacting debt collection

2014 Trends

Caller ID Call Centers

Do-Not Call Documentation

Limit / Prohibit Autodialers Credit Reporting

Identity Theft Legal Fees

Data Security / Breach Licensing

Garnishment Trust Exemptions

© 2014 ACA International. All Rights Reserved.

State Priorities

© 2014 ACA International. All Rights Reserved.

ACA has Partnered with U.S. Chamber of Commerce

Hiring Our Heroes

hiringourheroes.org

U.S. CHAMBER OF COMMERCE FOUNDATION

© 2014 ACA International. All Rights Reserved.

Minneapolis ■ Washington, D.C.

Andy MaddenDirector of State Government

Affairs(202) 547-2670

madden@acainternational.org

ACAInternational.org

Thank You !

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