Daily Digest – June 13. Panelists At CFPB Hearing Split Over Payday Lending Proposal; Medicaid Expansion Reducing Amount of Bad Medical Debt

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PANELISTS AT CFPB ADVISORY BOARD MEETING SPLIT OVER PAYDAY LENDING PROPOSAL

• Panelists at a Consumer Financial Protection Board Consumer Advisory Board meeting last week in Little Rock, Ark., were split in favor and opposed to a proposed rule that would dramatically overhaul the payday lending and title lending industries. Those in favor of the proposed rule are excited that the CFPB is taking action against what many consider to be “predatory” products because of high interest rates and a tendency for individuals to take out new payday loans to pay off the old ones, leading to what the CFPB calls a “spiral of debt.” Those against the proposal are concerned that those who need small dollar, short-term loans will be forced to look at other, possibly illegal, types of financing.

MEDICAID EXPANSION UNDER AFFORDABLE CARE ACT REDUCING AMOUNT OF UNPAID MEDICAL DEBT: STUDY

• The expansion of Medicaid under the Affordable Care Act has reduced the amount of uncollected medical debt, according to a new study. Uncollected debt has dropped by more than $100 per person in counties that have expanded Medicaid coverage, compared to those who have not. The research indicates this is a “sizable” decrease because the average amount of uncollected debt is $280. There is also some evidence that Medicaid expansion has reduced the amount of credit card debt, as well.

INDUSTRY REP PENS OPEN LETTER TO JOHN OLIVER THANKING HIM FOR DEBT-BUYING SEGMENT

• A collection industry representative has penned an open letter to John Oliver, host of HBO’s “Last Week Tonight,” explaining the benefits that the collections and debt-buying industry provides, including lowering the cost of credit, and how individuals are often coached by plaintiffs attorneys so that lawsuits can be filed against collectors and debt buyers.

WORTH NOTING: Delinquencies are rising at credit unions, to the point where the agency in charge of supervising the financial institutions issued a warning … The fallacy of learning from your mistakes … More on the tragedy in Orlando, where 50 people were killed early Sunday morning … The suspected shooter had ties to terrorism but was still able to purchase his guns legally … I guess “Hamilton” is a pretty good musical … Why Sears is imploding … The majority of the world can’t see the stars because there is too much artificial light … 10 things never to say in an email message … Why car sales may fall off a cliff … Habits of the most productive remote workers … How to increase productivity by working fewer hours.

John Oliver on retirement plans

The psychology of solitude

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The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide.