NACARA Annual Conference Industry Perspectives Panel September 29,2014 Boise, Idaho Andy Madden Director State Government Affairs ACA International

Education, Advocacy & Member Service Education, Advocacy & Member Service Offices in Minneapolis and Washington, D.C. Offices in Minneapolis and Washington, D.C. 3,400 members / 300,000 employees 3,400 members / 300,000 employees 40 State Units (50 states) 40 State Units (50 states) One International Unit (60+ countries) 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 ; 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 , 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. §§ et seq.; 16.Truth in Lending Act, 15 U.S.C. §§ 1601 et seq.; 17.Regulation E, 12 C.F.R. § et seq.; 18.Regulation J, 12 C.F.R. § et seq.; 19.Regulation M, 12 C.F.R. §§ 213 et seq.; and 20.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 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). represents the platform of lowest submission with 4 complaints.

© 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 Madden Director of State Government Affairs (202) ACAInternational.org Thank You ! 20