Last week, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final regulations that significantly impact the reporting requirements for brokers involved in digital asset transactions. The stated aim of the new rules, which are part of the Biden-Harris Administration’s implementation of the bipartisan Infrastructure Investment and Jobs Act, is to streamline tax reporting and ensure compliance within the decentralized finance (DeFi) sector. The regulations will become effective 60 days after their publication in the Federal Register.
Have you ever bought a toy in a big, impressive box, thinking it’s ready to go, only to open it and find a million tiny pieces and overly complicated instructions? My approach? Grab some superglue, glance at the pictures, and call it a day. My husband, on the other hand, reads every single word of the directions, studies the diagrams, and meticulously checks if all the parts are accounted for. It’s a classic case of two minds tackling the same task differently. This isn’t too far off from what happens when people interpret contracts with collection agencies and repossession forwarders or agents. Different perspectives can lead to vastly different understandings of what’s required, and that’s where the fun—and sometimes the frustration—begins!
Understanding consumer preferences is crucial for shaping effective collections strategies. For executives at banks, lenders, collection agencies, and debt buyers, aligning collections approaches with consumer expectations can significantly enhance recovery rates and foster positive customer relationships. As the industry shifts towards a more consumer-centric approach, it becomes imperative to adopt strategies that not only address the needs of the organization but also resonate with the consumers themselves.
The Consumer Financial Protection Bureau (CFPB) is working to prevent unlawful debt collection targeting consumers at their workplace. The regulator said in a Thursday (Jan. 2) blog post that it continues to crack down on companies that harass consumers, pointing to actions it took in 2014 and 2018 against debt collectors that contacted borrowers or their employers at work.
On April 4, 2024, Kentucky Governor Andy Beshear (D) signed the Kentucky Consumer Data Protection Act (“KCDPA”) into law, with a slow roll to the date it takes effect on January 1, 2026. Though similar to many other recent state data privacy laws, the KCDPA goes a bit easier on businesses and (1) does not impose a requirement to provide a universal opt-out mechanism, and (2) has a permanent cure provision that will afford violators ongoing opportunities to rectify alleged violations of the law.
.jpg)
.jpg)