Author Archives: Carguy
Alabama House to mull dealer finance charge disclosure
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CBA urges CFPB to exempt lenders from FDCPA
The Consumer Bankers Association has become the latest financial organization to submit formal comments to the Consumer Financial Protection Bureau regarding the Fair Debt Collection Practices Act.
In the letter, the trade group urges the CFPB to add language that explicitly exempts creditors and first-party servicers from the bureau’s final ruling. “Although the [notice of proposed rulemaking] states that the proposed rules are intended to apply only to third-party ‘debt collectors’ as that term is defined in the FDCPA, there are several aspects of the [proposed rule] that are likely to create confusion about whether some provisions may be applied to creditors and other parties not covered by the FDCPA,” the organization wrote.
The CBA goes on to note that lenders and servicers may still be liable for compliance infractions under the unfair, deceptive or abusive acts or practices statute of the Dodd-Frank Act and implores the CFPB to address “several ambiguous statements” that could make lenders and servicers liable for third-party debt collectors’ actions.
In addition, the CBA requests that the bureau add language to exempt lenders from call frequency limits and calls for harassment to be evaluated on a case-by-case basis rather than a “one-size-fits-all frequency limit.” The organization would also like to put the burden on the consumer of determining what days and times are inconvenient for contact, instead of having those decisions defined by the bureau.
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
Court favors Ford Credit with $53m payout from Reagor-Dykes CEO
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1 of 10 consumers bring preapprovals to the dealership, survey finds
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Fair joins RouteOne
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Daimler-owned Car2Go to shut down service in 5 markets
Car2Go, a free-floating carshare service and subsidiary of Daimler AG, is shutting down its service in five North American markets by yearend, the company announced on its website.
Car2Go has plans to halt operations in Austin; Calgary, Alberta; Denver; and Portland, Ore. on Oct. 31. The carsharing service will also cease service in Chicago on Dec. 31. The five markets represent half of Car2Go’s footprint in the U.S. and Canada.
Operations will continue in New York City; Washington D.C.; Montreal; Vancouver, British Columbia; and Seattle, where the company will “refocus [its] efforts and resources that represent the clearest path toward free-floating carshare success,” the company noted.
“[Rideshare] is a complex transportation market that requires a significant investment on the part of any mobility provider wanting to enter the city and unfortunately, we are unable to continue doing so in a manner that’s sustainable for our business,” the company wrote to its members in an e-mail, adding that the company will thin its fleet as the stop-service date approaches.
Car2Go first launched its services in North America in 2009. The German-based mobility company also has operations in Austria, France, Germany, Italy, the Netherlands, and Spain.
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
Toyota Financial Services revamps onboarding with digital-first mindset
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TFS to add second revolving securitization
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Stiffer regs hamper skiptracing efforts
DALLAS – Advancements in skiptracing technology have prompted state and federal regulators to step up oversight, and new and proposed legislation are top of mind for recovery and repossession executives, panelists said at the ALS Resolvion Innovations in Recovery conference Thursday.
On a federal level, recent developments include the Consumer Financial Protection Bureau’s proposed Rule of Seven (which would limit call frequency rules for debt collection) and uncertainty surrounding the Fair Debt Collection Practices Act. The proposed changes to the federal legislation increases the hurdles for collectors in an unprecedented way.
“Those of you who have skiptraced – and know how many accounts you might be working – already have in the back of your head how difficult rules like this can be,” said Bryan Geist, a training specialist at Masterqueue, a web-based software solution that automates the skiptracing and collection process. “The amount of time that gets wasted on that far exceeds anything we would have seen in the past,” he said.
And that’s just federal legislation. State regulators, too, have stepped up skiptracing enforcement, which presents another hurdle for collectors, since legislation varies from state to state, Geist said. Below is a list of state-specific call regulations:
Massachusetts
- 2 call attempts per week to debtor/co-signor
- 2 calls per 7 days to home address of persons living with the debtor who are not the debtor or co-signor
- 3 calls per year to persons living in Massachusetts who are not the debtor/co-signor and who do not live with the debtor/co-signor
New Hampshire
- 1 call per 30 days to a spouse
West Virginia
- 30 calls per week to any phone number
- 10 contacts maximum per week
Washington
- 3 contacts per week / 2 contacts on mobile device
Geist advised skiptracers and collectors to review the regulations regularly. “Figure out, ‘Are we keeping track of these,’ and ‘Does compliance care?’” Geist advised. “What happens if we violate these — the other side being you just get slapped with a multi-million dollar fine if you ever get audited.”