NCLC

Stay Informed With NACBA’s Latest Washington Update

NACBA’s Krista D’Amelio keeps you updated and informed about significant and relevant activity on the part of Congress, regulatory agencies and interest groups/think tanks.  Take a look at what’s happening in DC in the latest Washington Update.

ON THE HILL On October 11th Rep. John Garamendi (D-CA) and Rep. Brian Fitzpatrick (R-PA) introduced the bipartisan Student Loan Refinancing and Recalculating Act, H.R. 4001, to address the ballooning student loan debt crisis in America that cripples over 40 million Americans and their families. This legislation would allow students to refinance their student loan interest rates, lower future student loan interest rates, eliminate origination fees on student loans, delay student loan interest rate accrual for low-income and middle-class borrowers while they are pursuing their education, and allow for borrowers in medical or dental residencies to defer payments until the completion of their program.

Chief Deputy Whip Patrick McHenry (R-NC), the Vice Chairman of the House Financial Services Committee introduced H.R. 4028, the Promoting Responsible Oversight of Transactions and Examinations of Credit Technology Act of 2017, or the PROTECT Act, on October 12th. Following the data breach at Equifax that exposed the personal data of over 140 million Americans, this bill would require the federal government to create uniform cybersecurity standards for credit bureaus and submit them to onsite examinations. The bill would also create a national framework for credit freezes so that victims of identity theft, active military personnel, people over 65 years of age, and children are protected. Finally, the bill would stop the credit bureaus from using Americans’ Social Security Numbers as a basis for identification by 2020.

IN THE AGENCIES The U.S. Department of Education recently released data on the national student loan FY 2014 cohort default rate. The rate increased slightly from 11.3 percent to 11.5 percent for students who entered repayment between fiscal years 2013 and 2014. During the tracking period for the FY 2014 borrower cohort (Oct. 1, 2013 to Sept. 30, 2016), more than five million borrowers entered repayment, and 580,671 of them—or 11.5 percent—defaulted on their loans. Those borrowers attended 6,173 postsecondary institutions across the nation.

The Consumer Financial Protection Bureau (CFPB) finalized a rule that is aimed at stopping payday debt traps by requiring lenders to determine upfront whether people can afford to repay their loans on October 5th. These strong protections cover loans that require consumers to repay all or most of the debt at once, including payday loans, auto title loans, deposit advance products, and longer-term loans with balloon payments. The Bureau found that many people who take out these loans end up repeatedly paying expensive charges to roll over or refinance the same debt. The rule also curtails lenders’ repeated attempts to debit payments from a borrower’s bank account, a practice that racks up fees and can lead to account closure.

FROM THE INTEREST GROUPS On September 27, 2017 following the U.S. Trustee Program’s (USTP) recently issued guidelines for natural disasters, NACBA and NCLC wrote a joint letter urging for approval of a waiver of credit counseling requirements in the areas of Texas, Florida, and Puerto Rico affected by Hurricanes Harvey, Irma, and Maria. NACBA and NCLC received a response on October 4th from the USTP. Specifically, the response letter calls to light the action of acting US Trustee Guy Gebhardt issuing a temporary waiver of credit counseling and debtor education requirements for the areas in Puerto Rico and US Virgin islands affected by Hurricanes Irma and Maria.

NCLC released findings on October 11th that reveals discretionary pricing and racial disparities in auto add-on products sold by car dealers. Their report:  Auto Add-Ons Add Up: How Dealer Discretion Drives Excessive, Arbitrary, and Discriminatory Pricing, is an analysis of a national data set of three million add-on products sold from September 2009 through June 2015. Key findings include: add-ons lead to unreasonably high and inconsistent pricing, and Hispanics pay higher prices than non-Hispanic customers for the same product.

Feedback should be directed to Krista.DAmelio@NACBA.com

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NACBA’s Latest Washington Update

 

Read the latest update from Washington, designed to keep NACBA members informed about significant and relevant activity on the part of Congress, regulatory agencies and interest groups/think tanks.

ON THE HILL  A vote in Senate on the Consumer Financial Protection Bureau’s arbitration regulation is imminent. Republican leaders are considering whether to bring to the Senate floor a bill that would kill the arbitration regulation finalized by the CFPB this summer using a special legislative tool that allows them to avoid a Democratic filibuster if they act within 60 legislative days of implementation. Senators Johnny Isakson (R-GA) and David Perdue (R-GA) are cosponsors of the legislation in the Senate. The debate comes three weeks after a public outcry compelled the Atlanta-based Equifax to quickly drop so-called forced arbitration language from the terms of service of the free credit monitoring service it was offering its customers after its massive data breach. The House of Representatives already passed a “resolution of disapproval” to revoke the CFPB’s arbitration rule. A total of 23 Senate Republicans filed a resolution at the end of July to rescind the CFPB rule. Senator Sherrod Brown (D-OH), ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, has promised to fight to keep the rule.

IN THE AGENCIES On September 14th, Clifford White, Director of the Executive Office of the U.S. Trustees addressed the National Association of Bankruptcy Trustees at the 35th Annual Convention. He discussed topics that included chapter 7 trustees, guidance on natural disasters, marijuana assets, and stale debt claims—to name a few. Amongst things he noted for natural disaster guidelines were: the US Trustee Program (USTP) will not take enforcement action against debtors who are unable to file or produce documents required by the Code as a result of a natural disaster, if they otherwise are eligible for relief; USTP will not move to dismiss under the “means test” if income loss, increased expenses, or other consequences of a natural disaster constitute “special circumstances” sufficient to rebut the presumption of abuse; and even if conditions do not justify a United States Trustee granted statutory waiver of the credit counseling requirements for a district, USTP will exercise prosecutorial discretion in considering whether to take action to dismiss the case of a debtor who, as a result of a natural disaster, experiences difficulty in obtaining a credit counseling certificate or whose filing was delayed beyond the 180-day period following the debtor’s receipt of credit counseling.

The Federal Trade Commission launched a web page highlighting the work of the agency’s new Military Task Force, which is aimed at identifying the needs of military consumers and developing initiatives to empower servicemembers, veterans, and their families, including through law enforcement actions. The Military Task Force, comprised of a cross-section of agency representatives, is part of the FTC’s ongoing and collaborative effort to provide resources for the military community. Servicemembers, like all consumers, are potential targets for fraudsters. Certain scams are more likely to target the military community because those families may relocate frequently and because many service members are living on their own and earning a paycheck for the first time.

FROM THE INTEREST GROUPS Following the U.S. Trustee Program’s recently issued guidelines for natural disasters mentioned above, NACBA and NCLC wrote a joint letter urging for stronger relief for bankruptcy debtors in Texas, Florida, and Puerto Rico proportionate to the serious problems those hurricane victims are now facing. Specifically, NACBA and NCLC request USTP approve a waiver of credit counseling requirements in the areas of Texas, Florida, and Puerto Rico affected by Hurricanes Harvey, Irma, and Maria.

OTHER A report was recently published that analyzed issues of bankruptcy and race in America. Interested parties can access the report online.

 

Feedback should be directed to Krista.DAmelio@NACBA.com

Bankruptcy News Briefs 9/25

New Week…New Headlines…

CFPB Action Against Equifax Imminent

Overshadowed and Contradicted: Third Circuit Rules Second Demand Letter Violated FDCPA’s “Validation Notice” Requirement

On Anniversary of 7th Amendment, More than 400 Professors in All 50 States Urge Congress Not to Take Away Our Day in Court

Student loan debt doesn’t just hurt students. It hurts the U.S. economy, too

Report: Unaccountable CFPB Regulators Do More Harm than Good for Consumers

House Financial Services says CFPB failed to adequately investigate Wells Fargo in fraud case

Update on The CFPB’s Enforcement Case against Ocwen Financial Corporation

Equitable Mootness Doctrine Persists in Bankruptcy Appeals

Is the CFPB’s Regulatory Power Limited?

NACBA’s 2017 Hill Day!

NACBA is excited for 2017 Hill Day at Home October 16- October 20, 2017. Hill Day at Home allows NACBA members to meet with federal lawmakers, grow and maintain working relationships with Congressional offices, and have a lasting impact on bankruptcy policymaking, all without leaving the comfort of your state. Meetings will be arranged for you, some taking place in local House and Senate district offices and some being held over the phone with bankruptcy staffers in D.C.

NACBA Membership Promotion! 

Renew your NACBA membership this month for a chance to be entered to win not one but 2 amazing resources! Here’s what you can win!

  • NCLC’s Quick Guide to Federal Evidence and Objections(value $35). An essential practice tool for federal (and even state) court litigation, facilitating objection by rule number, and including common objections and motions at every stage of a case.
  • In addition to the Quick Guide to Evidence, winners will also receive the guide inside a NACBA logo portfolio (value $50). This portfolio even includes a protective space for your tablet!

Just renew your membership for a chance at winning!  Two (2) winners will be chosen at random each month.

Register for NACBA’s October Webinar!

Top 10 Ways to Drastically Increase Lead Conversion

DATE: Thursday, October 26th, 3:00 PM – 4:00 PM Eastern
PRESENTED BY: Stephen Fairley, Founder & CEO of The Rainmaker Institute
COST:  Member Benefit – No Cost for NACBA Members
REGISTER: HERE

Save The Date!

 

  • Save the Date for the 2018 NACBA Annual Convention on April 19-22 at the Sheraton in Downtown Denver!
  • NACBA 2018 Cruise! Get ready to set sail on the Empress of the Sea on November 29th-December 3rd 2018! Visit Havana, Cuba and Nassau, Bahamas while learning with NACBA! Registration is open!

New NACBA Member Promotion!

NEW NACBA MEMBER PROMOTION FROM AUGUST 2017-DECEMBER 2017

Renew Your Membership for a Chance to Win!

Renew your membership this month and be entered to win a copy of NCLC’s Quick Guide to Federal Evidence and Objections (value $35). An essential practice tool for federal (and even state) court litigation, facilitating objection by rule number, and including common objections and motions at every stage of a case.

In addition to the Quick Guide to Evidence, winners will also receive the guide inside a NACBA logo portfolio (value $50). This portfolio even includes a protective space for your tablet!

Just renew your membership for a chance at winning two great items from NACBA. Two (2) winners will be chosen at random each month.

Bankruptcy News Briefs 8/30

Catch Up On Midweek Headlines…

FTC Alleges Extensive FDCPA Violations Against North Carolina Debt Collection Operation

FCC Committee to Consider Recommendation on Blocking Unwanted Calls

Illinois Governor Vetoes ‘Student Loan Servicing Rights Act’

3 Lessons You Should Take From the Latest 1099(c) Letter Case

Court Rules Revocation of Consent for One Creditor Does Not Revoke Consent for Another

ED Updates Court on Debt Collection RFP Status; Requests Extension

Report: States Battle to Restrain High-Cost Installment Loans

Court Gets It Wrong on Exempt Property as Disposable Income

Court Hits Nationstar with $40,000 in Punitive Damages since its Delay in Following Court Orders Caused Debtor to Incur Damages

Consumer claims Premier Recovery Group attempted to collect already settled alleged debt

Student loan balances jump nearly 150 percent in a decade

“Modest” Overstatements of Amount Due and Interest Rate Actionable Under FDCPA, Ninth Circuit Rules

Upcoming Webinar!

DATE: Thursday, September 21, 2017 @ 3:00 PM Eastern to 4:15 PM Eastern
PRESENTED BYEdward C. Boltz, Law Offices of John T. Orcutt, PC; Durham, N.C. and Jody Bledsoe, Chapter 13 Trustee; New Bern, NC
COST: $25 Member / $75 Non Member
REGISTERHERE

 

Hot Off the Press! Read the Summer Edition of the Consumer Bankruptcy Journal!

In today’s Consumer Bankruptcy Journal highlight read, “In re: Kearney (kearney vs Navient Solutions Inc. et. al )Adv. Case  No. 16-3024-Southern District of Ohio Western Division at Dayton,” by Brian Flick, Esq.

Exciting Upcoming Events

Save the Date for the 2018 NACBA Annual Convention on April 19-22 at the Sheraton in Downtown Denver!

NACBA 2018 Cruise! Get ready to set sail on the Empress of the Sea on November 29th-December 3rd 2018! Visit Havana, Cuba and Nassau, Bahamas while learning with NACBA! Registration is open!

Bankruptcy News Briefs 7/24

Monday’s Headlines…

5th Circuit: Funds Held in IRA Lost Exempt Status When Debtor Withdrew Funds but Did Not Complete a Rollover of the Funds into another IRA, as Required by State Law

6th Circuit: Chapter 7 Trustee Could Not Forcefully Evict Debtors from Homestead by Tendering Payment Equal to the Value of their Exemption

After Denying Debtor’s Motion for Sanctions Where Creditor Sold Debtor’s Property at Auction Days After Petition Date, Judge Offers “Best Practices” Advice to Counsel

The CFPB’s Consumer Complaint Database: The Next Battle Between Regulators And Legislators

Court Finds M&T Bank in Contempt for Violating Discharge by Failing to Properly Credit Mortgage Payments Made under Confirmed Plan

Mini-CFPB? Pennsylvania attorney general launches consumer financial protection unit

In a Clear Signal to CFPB and White House, FTC Announces CID Process Improvements

FCC Focuses on Consumer Protection From Robocalling and TCPA Violations

Student loan debt has grown 250% in the last 10 years — here’s where grads owe the most

Don’t celebrate yet: Here’s why that $5 billion in student loan debt won’t be forgiven

Renew Your Membership  For a Chance to Win This Great Resource!

It’s a new month and that means when you renew your membership in July you are automatically entered to win a copy of NCLC Consumer Bankruptcy Law and Practice Volume I & II, Eleventh Edition (Value $130). Two winners will be selected at random each month.

Introduce a New Member to NACBA & Receive a $25 Amazon Gift Card! 

In honor of NACBA’s 25th Anniversary, we want to reward you with a $25 Amazon Gift Card! Introduce a new member to NACBA and we will send you $25 Amazon Gift Card. Not only will YOU receive a $25 Amazon Gift Card but the NEW MEMBER will also receive a $25 Amazon Gift Card! Check out the requirements and start referring today!

Register for NACBA’s August Webinar

Did you enjoy yesterday’s webinar? Well, get ready for another stellar webinar in August! Register Today!

 

Exciting Upcoming Events!

Save the Date for the 2018 NACBA Annual Convention on April 19-22 at the Sheraton in Downtown Denver!

NACBA 2018 Cruise! Get ready to set sail on the Empress of the Sea on November 29th-December 3rd 2018! Visit Havan, Cuba and Nassau, Bahamas while learning with NACBA! Registration is open!

NACBA’s Washington Update

Krista D’Amelio, NACBA’s Director of Government Affairs & Communication gives you the lastest and  most significant and relevant activity on the part of Congress, regulatory agencies and interest groups/think tanks in this week’s Washington Update.

On The Hill On June 8 the House Subcommittee on Regulatory Reform, Commercial and Antitrust Law held a hearing titled “A Time to Reform: Oversight of the Activities of the Justice Department’s Civil, Tax and Environment and Natural Resources Divisions and the U.S. Trustee Program”. The hearing hear testimony from two witness panels. The first witness panel included: Clifford White III, Director of the U.S. Trustee Program, David Hubbert, Acting Assistant Attorney General Tax Division, Jeffrey Wood, Acting Assistant Attorney General Environment and Natural Resources Division, and Chad Readler, Acting Assistant Attorney General Civil Division. The second witness panel included President of Public Citizen Robert Weissman, Esq., Partner of Baker & Hostetler LLP Andrew Grossman, Esq., Partner of Foley and Lardner LLP Cleta Mitchell, Esq., and Manager of Election Law Reform Initiative, Senior Legal Fellow at the Heritage Foundation Hans von Spakovsky, Esq. In his testimony, Director Clifford White provided the Subcommittee an update on the facts and observations of the Trustee Program and highlighted matters of special importance to the bankruptcy system. Members of NACBA’s Legislative Committee submitted questions to the Subcommittee at the request of the House Judiciary Committee.

Senator Jack Reed (D-RI) and Senator Sherrod Brown (D-OH) reintroduced the Military Consumer Enforcement Act, S. 1389, on June 21st. The bill would allow the Bureau of Consumer Financial Protection to provide greater protection to servicemembers.The bill’s other co-sponsors include: Sens. Jon Tester (D-MT), Richard Blumenthal (D-CT), Tim Kaine (D-VA), Tammy Duckworth (D-IL.), Elizabeth Warren (D-MA), Tammy Baldwin (D-WI), Al Franken (D-MN), Amy Klobuchar (D-MN), Chris Van Hollen (D-MD) and Catherine Cortez-Masto (D-NV).

IN THE AGENCIES On Tuesday, June 20th U.S. Secretary of Education Betsy DeVos appointed A. Wayne Johnson, a former executive in the financial-services industry, to run the $1.3 trillion federal student loan portfolio. The position of chief operating officer of federal student aid has been vacant since May when James W. Runcie resigned, saying he couldn’t in “good conscience” lead the agency while it was facing rising scrutiny from the Trump administration about its management of the lending programs. Dr. Johnson worked in senior management at Visa and Deloitte before starting his own company, which captures credit-card transactions in real time and alerts card holders to better manage their accounts.

FROM THE INTEREST GROUPS Americans for Financial Reform and National Consumer Law Center issued separate statements on June 14th that condemns the decision of Education Secretary Betsy DeVos to abandon the victims of predatory colleges by delaying the update to the Borrower Defense rule, and creating two new negotiated rulemakings to re-do and likely dismantle both the Borrower Defense and Gainful Employment rules.

OTHER A recent Consumer Report analysis found the Affordable Care Act (ACA) to be a major reason for the decline in personal bankruptcy filings. The report reveals that since 2010, personal bankruptcy filings have dropped by about 50%. Experts say some of that is due to an improved economy and laws passed in 2005 that make it harder to declare bankruptcy. CR’s reporting found that the ACA’s provisions for mandatory coverage of pre-existing conditions and against annual and lifetime payout caps has helped consumers —especially Americans with serious medical issues— avoid bankruptcy.

Stay Updated With NACBA!