PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Five Credit Card Collection Legal Events to Watch in 2020

By Brian Riley
January 7, 2020
in Analysts Coverage, Credit
0
4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
redit Card Debt consumer debt

Revolving Credit Card Debt: Is $1 Trillion the Max We Can Handle?

Credit card operations should be aware of five regulatory issues as the new decade unfolds, according to InsideARM, a collection trade journal.  The following are its rankings and Mercator’s comments:

California Consumer Privacy Act (CCPA)

In many ways, CCPA resembles Europe’s General Data Protection Act because it codifies consumer privacy and the use of personal data.  Although the law intends explicitly to protect residents of the Golden State, almost 1 of every 3 Americans live in California, which requires nationally inclined credit card issuers to ensure they pass muster. Wirewheel provides a good comparison of GDPA and CCPA here.  Suffice to say, if you do business in California, compliance is a must-do.  Here is a listing to 2019 state legislations on privacy, compiled by the National Conference of State Legislatures.

CFPB final rulings

Mercator Advisory Group covered upcoming changes in third party collections in a recent report titled Credit Card Charge-Off Collections Takes Brains not Brawn and noted actions by the CFPB to harness collection practices.  Expect to see final rulings on debt collection communications, digital contact, call frequency, and velocity.

Time-barred debt

CFPB is also expected to comment on disclosures for consumer debt and the statute of limitations.  Out-of-statute debt standards vary by state, ranging from 2 years in California to 10 years in Rhode Island.  Consumers will find that unpaid debts for more than the statute limit are outlawed from collection.  Creditors may still pursue in the hopes that the consumer does not place an affirmative defense on the statute.  Pending changes may require creditors to advise the consumer of their right to use the statute of limitations as a defense.  This will have an adverse effect on debt buying firms.

Pivotal court decisions

We believe the CFPB adds value and integrity to the U.S. consumer credit function; a U.S. Supreme Court case is docketed for March 3, 2020 to understand if the CFPB structure is constitutional and falls within the requirements of separation of powers because of the single-director agency structure.

Turning tides on the FDCPA

In man-bites-dog cases, several courts react to consumer abuse of the Fair Debt Collection Practices Act (FDCPA).    Five cases are cited, where courts are considering whether consumers use the FDCPA as a shield against debt collectors.

  • Miller v. Trident Asset Mgmt. (D. Md. Dec 4, 2019)
  • Campagna v. Client Services (E.D.N.Y. Dec. 3, 2019)
  • Irvin v. National Credit & Collection (N.D. Ill. Sept. 17, 2019)
  • Vougas v. Suttell and Hammer, PS (E.D. Wash. Sept. 3, 2019)
  • Garcia v. Miramed Revenue Grp, LLC (N.D. Ill. Aug. 16, 2019)

Watch for Mercator’s upcoming review of collection technology vendors, including ACI Worldwide, CGI, EdgeVerve (Infosys), and FICO. These top platforms help credit card issuers avoid FDCPA issues with timing and velocity call controls.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

4
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: ACI WorldwideCGICredit CardsDebtFICOinfosys

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result