insideARM Weekly Recap – Week of July 1st, 2024

One of insideARM’s top priorities is making sure to inform but not overwhelm. That is why our editorial team only brings you the 3 biggest stories each week. To start the month of July we had a landmark Supreme Court decision, some important things to consider when engaging with consumers, and a new data privacy law that leaves a lot to be desired. Read on below for a rundown of those articles and why we felt you needed to see them!

The week started with a Supreme Court decision that will have ramifications far beyond the ARM industry. In Loper Bright Enterprises v. Riamondo the Supreme Court, by a 6-3 margin, overruled a legal principle called "Chevron Deference". This longstanding doctrine required courts to defer to the statutory interpretations of government agencies (like the CFPB) if the statute itself was ambiguous. While Loper involved commercial fishing, this decision will have an impact on any industry where there is administrative oversight- which is all of them, including the ARM indsutry. One Justice argued that this places statutory interpretation back with the courts where it belongs, another considered the Chevron doctrine a constitutional violation that gave too much power to the executive branch, while one found the Loper decision to be judicial overreach that takes the interpretation of industry-specific statutes away from the industry experts. While it is unclear what the immediate aftermath will be, long term, expect more challenges to government agency actions and more private litigation. Keep this on your radar and we'll keep you updated with pertinent developments. 

On Tuesday, we highlighted an article about engaging with consumers during a year of financial uncertainty for many. 2024 has truly been a roller coaster of emotion for consumers with sentiment about the economy hitting 3-year highs one month followed by nearly 2-year lows the next. With that in mind, the question must be asked: How do you talk to delinquent consumers who may have been hit hardest by post-pandemic inflation? The answer is surprisingly simple. On their terms. When reaching out about collecting on a debt an empathetic message and flexibility with repayment plans is key but, it is just as important to engage these consumers when they are ready to hear the message and through their preferred communication channel. Collectors and agencies should always be prepared to adjust to not only changing technology but also to the changing sentiments of consumers.

We finished the short week with another data privacy law being enacted as Rhode Island passed the “Rhode Island Data Transparency and Privacy Protection Act.” While many of the recent data privacy laws have been seen as reasonable measures taken to give consumers control over their personal data, the language of the Rhode Island law is confusing and, at times, seemingly impossible to adhere to. For example, one section requires companies to list “all third parties to whom [they]…may sell customers’ personally identifiable information,” while also not defining “personally identifiable information.” For those operating in or working with consumers in Rhode Island, this law is certainly one that needs to be analyzed. The chaotic nature of the law may also lead to future amendments to fix the language before its January 1, 2026, effective date.

Thanks again for trusting insideARM to keep you up to date on all that is important in the ARM industry! If you still feel out of the loop, you can see our recap for the week of June 24th here.

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