CFPB Picks (Just) One Representative of Collection Industry to Join Advisory Board

Last Friday the Consumer Financial Protection Bureau (CFPB) announced a new slate of advisory board members, including one single representative of the debt collection community, to replace Joann Needleman, attorney with ClarkHill and past president of NARCA, who just completed a three year term on the board.

The Dodd-Frank Wall Street Reform and Consumer Protection Act charges the CFPB with establishing a Consumer Advisory Board to advise and consult with the Bureau’s Director on a variety of consumer financial issues. At the behest of the Director, the Bureau also created a Community Bank Advisory Council, a Credit Union Advisory Council and an Academic Research Council. In January 2016, the CFPB issued a Federal Register Notice outlining the responsibilities of the advisory groups, as well as the duties of its members, and solicited applications for appointment.

The following are those who have been selected to join the respective boards:

Consumer Advisory Board Members (to serve 3-year terms):

• Randi Adelstein, Assistant General Counsel for Regulatory Affairs, MasterCard International Incorporated, Purchase, N.Y.

• Patricia L. Arvielo, President and Co-Founder, New American Funding, Tustin, Calif

• Julie Kalkowski, Executive Director, Financial Hope Collaborative, Creighton University, Omaha, Neb.

• Brent A. Neiser, Senior Director, National Endowment for Financial Education, Denver, Colo.

• Ohad Samet, CEO, One True Holding Company, San Francisco, Calif.

• Dr. Howard B. Slaughter, Jr., President and Chief Executive Officer, Habitat for Humanity of Greater Pittsburgh, Pittsburgh, Pa. 

Community Bank Advisory Council Members (to serve 2-year terms):

• Richard H. Harvey, Jr., Senior Vice President and Chief Compliance Officer, Colonial Savings F.A., Fort Worth, Texas

• Max S. Yates, Senior Executive Vice President and Chief Risk Officer, Bank Plus, Ridgeland, Miss.

Credit Union Advisory Council Members (to serve 2-year terms):

• Kayce Bell, Chief Development Officer, Alabama Credit Union, Tuscaloosa, Ala.

• Jack Fallis, President and CEO, Global Credit Union, Spokane, Wash.

• Luis Peralta,  Chief Administrative Officer, Kinecta Federal Credit Union, Manhattan Beach, Calif.

• David Tuyo, Senior Executive Vice President and Chief Financial and Operations Officer, Power Financial Credit Union, Pembroke Pines, Fla.

Academic Research Council (to serve 3-year terms):

• Dr. John G. Lynch, Senior Associate Dean for Faculty and Research, Leeds School of Business, University of Colorado Boulder, Boulder, Colo.

More information on the Bureau’s advisory groups can be found at www.consumerfinance.gov/advisory-groups/

insideARM Perspective

For those who don't recognize the name, Ohad Samet of One True Holding Company is the new member who was selected to represent the ARM industry on the Consumer Advisory Board. This is an interesting choice. Founded in 2013, his debt collection firm, TrueAccord, is based on a primarily digital collection model, which is currently considered to be unconventional for the industry. A newcomer to collections, TrueAccord is not hampered with legacy systems or processes, or evidently with clients who are too conservative to pursue the strategy. To get a sense of the firm's philosophy, read this article by Ohad, which we also published today.

We reached out to Ohad for comment on the appointment. He said this,

"I’m honored and excited to have been appointed to the CFPB’s Consumer Advisory Board. With this appointment, the CFPB is sending a strong message about how it views technology’s role in shaping the future of consumer finance in general, and debt collection in particular. I’m proud to be able to represent the industry’s point of view while making sure we usher in a new era of great user experience and technology innovation."

Indeed. It will be interesting to see whether the CFPB is sending such a message. New rules for the collection industry have been 3+ years in the making, and a next step in that process has been promised in the forseeable future (though the spring schedule update has yet to be released). Many will be watching to see whether the bureau issues a proposed rule that provides specific guidelines for the use of communication methods other than landline telephones and sending mail through the postal service.