Last week our editorial team picked out the most relevant news for ARM industry professionals trying to stay on top of the ever-changing debt collection landscape. This included an article warning nonbanks to plan for CFPB oversight, a breakdown of the impacts of the CFPB’s late fee rule, and a notice to compliance professionals regarding consumer complaints. Read on to see a synopsis of everything we highlighted during the week and why our editorial team thinks you should know about it

On Tuesday, we brought you an article from Orrick about a concerning decision from the CFPB. In a recent order the CFPB exerted its authority over a non-consenting nonbank for the first time. This warning also came with key takeaways from the CFPB’s action, which included: an explanation of its authority, what the CFPB considers consumer risk, and the effects (or lack thereof) of refusing to consent to CFPB supervision. Nonbanks should prepare accordingly and expect that this is not a one-time thing from the CFPB.

Wednesday’s news touched on the hottest topic in the Arm industry: the CFPB’s Late Fee rule. The article from Ballard Spahr discussed the expected operational changes that will need to be made if the $8 cap on late fees goes into effect. Disclosure language will have to be altered, and strategic decisions will need to be made regarding interest rates, attempting cost analysis-based late fees, and charge-off procedures. This is a rule that has, and will continue to, shake up the industry for both creditors and consumers alike.

Thursday we highlighted an article from Alston & Bird that provided a reminder to handle consumer complaints promptly and competently. California’s DFPI recently entered into a consent order with a financial services company that it believed violated the CCFPL due to a small number of mistakes regarding the handling of consumer complaints. The consent order included a $2.5 million penalty, major changes to the company’s policies & procedures, and a requirement to report to the DFPI for the next two years. Let this serve as a reminder to review and, if necessary, revise your company’s complaint management policy and procedure.

Thanks for reading this weekly recap. For a recap from the week of March 25th, click here.

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