CFPB Issues Findings on Recent Changes in Medical Collections on Consumer Reports

Earlier this week, the Consumer Financial Protection Bureau (CFPB or Bureau) released its second report detailing changes in the credit reporting of medical debts made by the three national consumer reporting agencies (CRAs) to reduce the number of medical bills on credit reports.

Auditing Policy and Procedures of Collection Service Providers

The Consumer Financial Protection Bureau (CFPB) emphasizes the importance of institutions managing relationships with service providers to ensure compliance with Federal consumer laws. Verification of an established Compliance Management System (CMS) is crucial, as it serves as the framework for compliance oversight at the service provider. A robust CMS relies on effective policy and procedure management to guide all employees on adhering to the service provider’s processes.  Let us look at why reviewing your service providers policy and procedures is important. 

Trades weigh in on BOI data collection, credit union tax exemptions

Financial trade organizations have their sights trained on several pressing regulatory issues that were not as widely publicized as others but are still critical to their operations. In this roundup, we examine what some of the largest associations representing banks and credit unions have to say about potential rulemaking activities and pending legislative matters that could affect their members’ businesses, detailed below:

Simple Credit Rewards Work for Older Generations, but Not Gen Z

More than 80% of credit card users now receive reward offers from their card issuers and, on average, 72% of those rewards get used within 90 days. Meanwhile, 71% of consumers tell PYMNTS Intelligence that they are highly satisfied with the rewards that their primary card issuers offer them. 

New Safeguards Rule Requirement on Data Breach Reporting Coming Soon

A new data breach disclosure requirement under the Federal Trade Commission’s Safeguards Rule goes into effect May 13, 2024. The amendment requires non-bank covered entities to report breaches involving the information of at least 500 consumers to the FTC within 30 days of the event.

As Consumers’ Debt Burdens Rise, Government Agencies Have Opportunities to Better Assist Them with Key Services

U.S. consumers’ median minimum monthly debt payments grew by 32% between 2020 and 2023 – surpassing the rate of inflation (18%) during the same time. As consumer debt obligations continue to rise, a new TransUnion (NYSE: TRU) public sector study explores ways government agencies can better assist their constituents.

CFPB Finds For-Profit Coding School Misrepresented Nature of Its Lending Products and Job Placement Rates

The Consumer Financial Protection Bureau continues to expand its presence into different businesses, including for-profit colleges. On April 17, 2024, the CFPB issued a consent order against a for-profit college for computer programming.

Colorado rate exportation litigation: Why Colorado and the FDIC are wrong about where a loan is made for purposes of DIDMCA Section 525

Last week, we blogged about arguments by Colorado and the FDIC in their briefs opposing a motion for preliminary injunction that would enjoin application of Colorado’s opt-out statute with respect to loans by FDIC-insured state banks located outside of Colorado.

Governor DeSantis Signs Legislation to Strengthen Florida’s Protections Against the Agenda of the Global Elite

JACKSONVILLE, Fla.—Today, Governor Ron DeSantis signed legislation to further strengthen Florida’s protections for consumers, teachers, and employees from being forced to adopt ideologies or reflect a preferred political behavior.

No Funds Available for Additional Chapter 7 Trustee Payments

The Department of Justice (DOJ) has advised the Administrative Office of the U.S. Courts that it has no funds available to transfer to the Judiciary to make additional payments to eligible chapter 7 bankruptcy trustees for fiscal year 2023. Trustees interested in receiving the additional payments for fiscal year 2024 should still file payment eligibility certifications.

Bankruptcies Rise 16 Percent Over Previous Year

Bankruptcy filings rose 16 percent during the 12-month period ending March 31, 2024. That is a similar rate of acceleration as in the Dec. 31, 2023, quarterly report, but new bankruptcy cases remain significantly lower than before the start of the coronavirus (COVID-19) pandemic.

House OKs Bill To Block Some Residents’ Medical Debt From Credit Agencies

HARTFORD, CT – The House Thursday passed a bill to prohibit healthcare providers from reporting some patients’ medical debt to credit agencies after debate over whether elective procedures should be covered.

Issue Spotlight: Health Savings Accounts

A health savings account (HSA) is a type of tax-advantaged savings account available to consumers enrolled in High Deductible Health Plans (HDHPs) to use for certain healthcare expenses. The prevalence of HSAs among consumers has surged in recent years, with approximately 36 million HSAs reported in 2023.

New Safeguards Rule Requirement on Data Breach Reporting Coming Soon

A new data breach disclosure requirement under the Federal Trade Commission’s Safeguards Rule goes into effect May 13, 2024. The amendment requires non-bank covered entities to report breaches involving the information of at least 500 consumers to the FTC within 30 days of the event.

Aqua Finance’s sales, financing, and FCRA practices land company in hot water

Aqua Finance provided financing for water treatment equipment sold door-to-door by dealers. But according to the FTC, the company filtered out the truth and left a sediment of deceptive and unfair financing practices that put many consumers in unexpected debt and made it more difficult for some of them to sell their homes. 

FTC to Host Compliance Webinar on Rule Banning Noncompetes

The Federal Trade Commission will host an online compliance webinar on May 14, 2024, at 11a.m. ET to provide an overview of the FTC’s final rule banning noncompetes, which will include information on how to comply with the rule after its effective date.

More competition and less complexity: How the CFPB is working to lower prices in the credit card market

Consumers are faced with making complex decisions around pricing across a multitude of markets. Americans see this as they look to plan summer trips. From flights to rental cars to amusement park tickets, it can feel like there's too much fine print and too many junk fees not included in the upfront price. Some argue that a wide array of pricing options gives consumers more choice, but recent research from the CFPB suggests that complex pricing leads consumers to fare worse and pay higher prices.

A third of Americans could have had data stolen in big health care hack

CNN - A third of Americans may have had their personal data swept up in a February ransomware attack on a UnitedHealth Group subsidiary that disrupted pharmacies across the US, UnitedHealth CEO Andrew Witty estimated in testimony to Congress on Wednesday.

Navy Federal Credit Union Honors Servicemembers and Military Families Who Go Above and Beyond for Military Appreciation Month

VIENNA, Va.--(BUSINESS WIRE)--Navy Federal Credit Union is launching celebratory activities and member deals to honor Active Duty servicemembers, Veterans and their families for Military Appreciation Month. During the month of May and year-round, members can enjoy exclusive offers such as:

Fifth Circuit directs Texas federal court to rule by May 10 on plaintiffs’ preliminary injunction motion in lawsuit challenging CFPB credit card late fee final rule

A surprising development took place yesterday in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule).  The Fifth Circuit entered an order vacating the district court’s order denying the plaintiffs’ motion for expedited consideration of their preliminary injunction motion and remanding the case to the district court with instructions to rule on the plaintiffs’ preliminary injunction motion by May 10, 2024.  The Rule becomes effective on May 14, 2024.

Consumers Demand Anti-Fraud Tools From eCommerce Merchants

The PYMNTS Intelligence study “Fraud Management, False Declines and Improved Profitability,” created in collaboration with Nuvei, draws on insights from a survey last summer of 300 executives from eCommerce firms generating annual revenues of more than $100 million who have deep knowledge of their company’s payments systems.

ALLIANT CREDIT UNION RECOGNIZED WITH DOUBLE GOLD STATUS AT THE 2024 AMERICAN BUSINESS AWARDS

CHICAGO, May 2, 2024 /PRNewswire/ -- Alliant Credit Union, a leader in digital banking and one of the largest credit unions in the nation, received Gold Status Stevie Awards at the 2024 American Business Awards. Alliant earned top honors in two categories, Company of the Year – Banking and Mobile App – Financial Services/Banking.

BlueSnap complaint alleges unfair payment processing and credit card laundering: Don’t lather, don’t rinse, and definitely don’t repeat

According to Aesop, you’re known by the company you keep. Put in the FTC context, you’re known by the companies you keep as clients.

WebRecon Mar 2024 Stats: Mixed March, YTD Complaints Still Historically High

Quick analysis: Mixed March, YTD Numbers Still Riding High It has been a robust Q1 in the world of consumer complaints. Similar to February, the consumer complaint/litigation numbers are mixed for March (TCPA +1.5%, FDCPA -13.1%, FCRA -30.6%), but the year to date numbers are all still way up in the double digits over the same period last year (TCPA +26.6%, FDCPA +12.9%, FCRA +28.4%). CFPB complaints were up both in March (+36%) and YTD (a dramatic +60.4%).

CFPB Highlights the Hidden Costs of Health Savings Accounts

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report detailing the complex costs and fees that many consumers with health savings accounts are forced to pay. There were approximately 36 million health savings accounts in 2023 – holding more than $116 billion.

Plaintiffs file brief in support of preliminary injunction and response to petition for panel rehearing in credit card late fee challenge

On April 26, 2024, Plaintiffs filed their response to the CFPB’s Petition for a Panel Rehearing with the Fifth Circuit in the lawsuit challenging the CFPB’s credit card penalty fees rule (Rule). On the same date, the Plaintiffs also filed their brief in support of their motion for a preliminary injunction with the Fifth Circuit.

FTC, DOJ, and HHS Extend Comment Period on Cross-Government Inquiry on Impact of Corporate Greed in Health Care

The Federal Trade Commission, the Department of Justice’s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services (HHS) are extending the deadline by 30 days for the public to comment on a tri-agency Request for Information (RFI) examining private-equity and other corporations’ increasing control over health care markets. The new deadline is now June 5, 2024.

FTC Finalizes Order with InMarket Prohibiting It from Selling or Sharing Precise Location Data | Federal Trade Commission

The Federal Trade Commission finalized a settlement with digital marketing and data aggregator InMarket Media over allegations the company unlawfully collected and used consumers’ location data for advertising and marketing.

The true cost of unpreparedness

Disasters and interruptions can strike at any time, and credit unions that are unprepared can pay a high price. From cyberattacks to natural disasters, the threats are real and the potential consequences severe. 

Biden-Harris Administration Approves $6.1 Billion Group Student Loan Discharge for 317,000 Borrowers Who Attended The Art Institutes

The Biden-Harris Administration today announced the approval of more than $6.1 billion in automatic student loan relief to nearly 317,000 borrowers who enrolled at any Art Institute campus on or after Jan. 1, 2004, through Oct. 16, 2017. The U.S. Department of Education (Department) found that The Art Institutes and its parent company, Education Management Corporation (EDMC), made pervasive and substantial misrepresentations to prospective students about postgraduation employment rates, salaries, and career services during that time.

Elder fraud tops $3.4 billion as schemes targeting people over 60 rise

CNN — People over the age of 60 in the US reportedly lost more than $3.4 billion in fraud schemes in 2023, a nearly 11% increase from the year before, according to a report from the FBI released Tuesday.

The Florida Consumer Collection Practices Act and What It Could Mean for All Self-Storage Operators

In mid-2023, the Florida legislature amended the state’s Consumer Collection Practices Act. One of the changes it made was to prohibit any debt-collection communication between the hours of 9 p.m. and 8 a.m.  

34% of Gen Z Consumers Say Splurging Contributes to Financial Distress

Spoiler alert: The title of PYMNTS Intelligence’s new report, “Why 60% of Gen Z’s Live Paycheck to Paycheck” gives away a key finding. Six in 10 Generation Z consumers say it’s a challenge to make ends meet. The report, which was based on surveys with 3,405 U.S. consumers, found that many Gen Z consumers (those born between 1997 and 2006) appear to be having a tough time in the current economy.

FTC Sued to Overturn Ban on Noncompetes

The United States Chamber of Commerce and other trade groups sued the Federal Trade Commission in the United States District Court for the Eastern District of Texas on April 24, in Chamber Of Commerce Of The United States Of America et al v. Federal Trade Commission et al, Case No. 6:24cv148. 

NJ Multi-Language Requirement Stands in Part for CRAs, Judge Rules

A federal district court partially vacated a New Jersey law requiring national credit reporting agencies (CRAs) to translate credit file disclosures into at least 10 foreign languages other than Spanish. CRAs are required to offer disclosures in English and Spanish, U.S. District Judge Georgette Castner decided.

Statement of CFPB Director Rohit Chopra on Medical Financial Products

In recent years, there are signs of increased involvement by financial institutions in the American health care system. Many medical procedures can be financed by Buy Now, Pay Later loans, medical credit cards, and other medical loans offered in conjunction with health care providers and facilities.

Use Pass It On to talk about fraud this Older Americans Month

This month, we join the nation to celebrate Older Americans Month. It’s also the 10^th anniversary of Pass It On, the FTC’s fraud education campaign for older adults.

FCC FINES AT&T, SPRINT, T-MOBILE, AND VERIZON NEARLY$200 MILLION FOR ILLEGALLY SHARING ACCESS TOCUSTOMERS’ LOCATION DATA

WASHINGTON, April 29, 2024—Today, the Federal Communications Commission fined the nation’s largest wireless carriers for illegally sharing access to customers’ location information without consent and without taking reasonable measures to protect that information against unauthorized disclosure. Sprint and T-Mobile – which have merged since the investigation began – face fines of more than $12 million and $80 million, respectively. AT&T is fined more than $57 million, and Verizon is fined almost $47 million.

Acting Comptroller Issues Statement on the FDIC’s Proposals Related to Change in Bank Control Act

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement at the Federal Deposit Insurance Corporation’s (FDIC) board meeting concerning the FDIC memorandum and resolution for proposals related to Change in Bank Control Act:

Price Complexity in Laboratory Markets

This paper provides new insights on how price complexity may affect markets for consumer goods. We report on two laboratory experiments that investigated the effects of price complexity on market outcomes. The experiments had human participants interact in basic markets.

Update for MOHELA student loan borrowers

The U.S. Department of Education, including its office of Federal Student Aid (FSA), is constantly working to improve the student loan borrower experience. FSA has worked tirelessly to give borrowers the information and support they need to take advantage of all of the benefits of the student loan repayment program.

CFPB Publishes Research Finding Higher Price Complexity Leads Consumers to Pay More

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a new report that suggests consumers tend to pay more for products that have more complex pricing structures. The report is based on experiments with multiple rounds of buyers and sellers interacting in simple markets, and found that participants tended to pay more when prices were broken into sub-parts and were harder to understand. 

Financial Business and Consumer Solutions Announces Data Breach Affecting Over 1.9 Million Consumers’ SSNs

On April 26, 2024, Financial Business and Consumer Solutions, Inc. (“FBCS”) filed a notice of data breach with the Attorney General of Maine after discovering unauthorized access to certain systems in its network.

FTC Issues Rule Banning Employee Non-Compete Agreements

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 in favor of issuing a final rule that will essentially ban employers’ use of non-compete agreements in the workplace.

Maryland Legislature Passes Comprehensive Data Privacy Bill

On April 6, 2024, Maryland's legislature passed a comprehensive privacy bill, the Maryland Online Data Privacy Act (MODPA), and sent it to the state's governor for signature. If enacted, the law would take effect on October 1, 2025, and become one of the strictest to date compared to other recently passed privacy laws.

Financial Business and Consumer Solutions Announces Data Breach Affecting Over 1.9 Million Consumers’ SSNs

On April 26, 2024, Financial Business and Consumer Solutions, Inc. (“FBCS”) filed a notice of data breach with the Attorney General of Maine after discovering unauthorized access to certain systems in its network

Two Supervisory Highlights for Spring 2024

The Consumer Financial Protection Bureau (CFPB) has released two Supervisory Highlights for Spring 2024, covering Fair Credit Reporting Act (FCRA) Compliance, Supervision, Credit Reports, Scores and Identity Theft and Mortgage Servicing, Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs), Deceptive Practices, and Mortgages. These Supervisory Highlights identify various issues and offer guidance to organizations on ensuring compliance with federal regulations concerning credit reporting and mortgage loan operations.  If your focus is on mortgage servicing or credit reporting, these two CFPB Supervisory Highlights are for you. 

Kansas Becomes Fourth State to Enact Earned Wage Access Legislation

On April 19, Kansas Governor Laura Kelly signed House Bill (HB) 2560 to regulate earned wage access (EWA) products and services. HB 2560 enacts the Earned Wage Access Services Act that requires EWA providers to be licensed by the state bank commissioner and comply with certain disclosure rules. Kansas follows Nevada, Missouri, and Wisconsin in enacting EWA legislation.

CFPB and DOT Hosting Joint Hearing on Credit Card and Airline Rewards Programs

In furtherance of the Biden Administration’s “junk fee” agenda, on Thursday, May 9, 2024, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs.

Here’s how much credit card debt the average American has (and how to pay it off)

The current high interest rate environment is putting a strain on many Americans' finances. After years of keeping rates near zero to stimulate the economy during the pandemic, the Federal Reserve aggressively increased rates starting in early 2022 to cool stubbornly high inflation. While the Fed has kept rate hikes paused for the last several meetings, the federal funds rate currently stands at its highest level in 23 years.

Nebraska Enacts Comprehensive Data Privacy Law

On 17 April, 2024, Nebraska Governor Jim Pillen signed into law omnibus Legislative Bill 1074, which includes the Nebraska Data Privacy Act, making Nebraska the seventeenth state to adopt comprehensive data privacy legislation.

doxo Responds to U.S. Federal Trade Commission’s Misguided Litigation

SEATTLE, April 26, 2024 /PRNewswire/ -- Yesterday, the U.S Federal Trade Commission filed a lawsuit against doxo, a company working to deliver a better bill-paying experience for consumers and billers, with a complaint that indicates a fundamental misunderstanding of the existing bill-pay market and the structural inefficiencies that work against consumers. 

CFPB Files Cross-Motion for Summary Judgment in Texas Small Business Lending Rule Lawsuit

The CFPB (or “Bureau”) filed a cross-motion for summary judgment in the lawsuit regarding the small business lending data collection and reporting rule, also known as the 1071 rule based on the Dodd-Frank section that requires the CFPB to adopt the rule (the “Rule”).

Colorado lawmakers consider landmark artificial intelligence regulations

Colorado could be one of the first states to broadly regulate generative artificial intelligence, as lawmakers consider the balance between setting guardrails on a potentially-harmful technology and stifling innovation and entrepreneurship.

CFPB Supervisory Highlights Reflect Continued Emphasis on “Junk Fees”

On April 24, 2024, the Consumer Financial Protection Bureau (CFPB) released the latest edition of its Supervisory Highlights, this time targeting so-called “junk fees” in the mortgage servicing industry. According to the CFPB, its examiners found that mortgage servicers continued to assess junk fees in a wide array of activities, including unnecessary property inspection fees and improper late fees

New York Broadly Revises Hospital Financial Assistance, Medical Debt Collection and Related Requirements

Effective October 20, 2024, New York hospitals must have in place State-mandated changes to their financial assistance (“FA”) programs (including FA eligibility criteria and debt collection practices) and their practices related to consent forms, and patient use of credit cards and medical financial products.

Recent Changes in Medical Collections on Consumer Credit Records

Medical collections on consumer credit reports have been an area of focus for CFPB research in recent years. In addition to studying trends in medical debt as a whole, CFPB reports have documented the burden of medical debt on older Americans, and the incidence of medical collections in rural counties in Appalachia and the Deep South region.

Attorney General James Secures More than $700,000 from Pathward Bank for Illegally Freezing Bank Accounts and Turning Over Consumer Funds to Debt Collectors

NEW YORK – New York Attorney General Letitia James today secured more than $700,000 from Pathward, National Association (Pathward), a national bank formerly known as MetaBank, for unlawfully freezing customer accounts and illegally transferring money to debt collectors.

CFPB Finds 15 Million Americans Have Medical Bills on Their Credit Reports

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released research showing that 15 million Americans still have medical bills on their credit reports despite changes by Equifax, Experian, and TransUnion.

Pay your bills, not impersonators

If you’re paying a medical, utility, or other bill online, you probably expect to wind up on the that company’s website. What might you not expect? An impersonator tricking you into paying them instead. But that’s what the FTC says a company called Doxo did. Here’s what you need to know.

Collection and Recovery Solutions 2024

CRS2024

Webinar – Bankruptcy Filings: The New Normal or the Calm Before the Storm?

WEBINAR 2:00 pm - NACTT Academy

RMAI 2024 Executive Summit