FTC Takes Action Against Bill Payment Company Doxo for Misleading Consumers, Tacking on Millions in Junk Fees

The Federal Trade Commission is taking action against bill payment company Doxo and two of its co-founders, charging that the company uses misleading search ads to impersonate consumers’ billers and deceptive design practices to mislead consumers about millions of dollars in junk fees they tacked on to consumers’ bills.

CFPB Head Says FDIC Should Review More Changes in Bank Control

The Federal Deposit Insurance Corp. (FDIC) should change its rules to ensure that it reviews any “suspicious changes” in bank control, FDIC board member Rohit Chopra said Thursday (April 25). Chopra, who is also director of the Consumer Financial Protection Bureau (CFPB), said during an FDIC board meeting that changes to the Bank Control Act are needed because bank takeovers can currently evade FDIC oversight.

DOE Releases Update on Student Loan Repayment – ACA International

More borrowers made payments on their loans in January and February of this year than in any previous month since data collection began in 2018.

25 States With the Highest Credit Card Debt in the US

In this piece, we will take a look at the 25 states with the highest credit card debt in the US. If you want to skip our overview of US consumer spending and recent economic trends that should worry consumers, analysts, and policy makers, you can take a look at the 10 States With the Highest Credit Card Debt in the US.

Missouri Federal Court Finds Plaintiff Lacks Standing to Challenge Compliance Condition Code on Consumer Report

A U.S. District Court in the Eastern District of Missouri recently granted a defendant’s summary judgment motion in a Fair Debt Collection Practices Act (FDCPA) case, holding that the plaintiff lacked standing because she did not show an injury in fact traceable to the defendant’s alleged consumer reporting.

Save the Date: CFPB and DOT to Hold Joint Hearing on Airline and Credit Card Rewards Programs

On Thursday, May 9, 2024, at 10:00 am ET, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs. Members of the public will hear from CFPB Director Rohit Chopra and Secretary of Transportation Pete Buttigieg, who will moderate a discussion with industry representatives, labor leaders, and consumer advocates about competition issues and challenges that consumers are experiencing with airline and credit card rewards programs.

From the Web: Rising Inflation, Debt Call for Adaptable Collection Approaches

A recent TrueAccord blog post reviewing industry insights from the first quarter of 2024 found that high inflation and mounting debt burdens may have an impact on the most effective consumer communication strategies in the months ahead.

FTC is sued by business groups over its ban on noncompete agreements, which may delay enforcement

New YorkCNN — 

Less than 24 hours after the Federal Trade Commission issued a final rule this week banning employers from using noncompete agreements in the United States, the US Chamber of Commerce and the Business Roundtable filed a lawsuit against the agency in federal court in the Eastern District of Texas.

Nationstar Mortgage Convenience Fee Settlement

A $3,587,254 Settlement has been reached in a class action lawsuit alleging that Nationstar Mortgage, LLC d/b/a Mr. Cooper (“Nationstar”) improperly charged fees to borrowers who made mortgage payments by telephone or IVR (“Convenience Fees” or “Fees”). Nationstar denies any wrongdoing. The Court has not decided who is right.

Americans are falling behind on their payments

Chicago Federal Reserve President Austan Goolsbee said Friday that while consumer debt levels aren’t yet “especially” high, the Fed is concerned about the rate of consumer delinquencies, or missed or late payments on expenses such as auto loans, credit card bills and rent.

Attorney General Bonta Announces $4.5 Million Settlement with University of Phoenix for Unlawful Military Student Recruitment Tactics

OAKLAND — California Attorney General Rob Bonta today announced a settlement with the University of Phoenix, and its parent company Apollo Education Group, Inc (Apollo), resolving an investigation into the University of Phoenix’s use of aggressive and unlawful military student recruitment tactics from 2012 through 2015. These recruitment tactics violated California’s Unfair Competition Law (UCL) and False Advertising Law (FAL). Under the settlement, the University of Phoenix must pay $4.5 million in penalties and other monetary relief and comply with strong injunctive terms.

Consumer Facing Applications: A Quote Book from the Tech Summit on AI

The FTC’s Tech Summit on AI¹ convened three panels that highlighted different layers of the AI tech stack: hardware and infrastructure, data and models, and consumer-facing applications. This third Quote Book is focused on consumer-facing applications. This post outlines the purpose of the quote book, a summary of the panel, and relevant topics and actions raised by the FTC.

Virginia Legislative Updates Impacting Collection Agencies: A Closer Look

Virginia’s legislative session resumed this week, representing an important moment for collection agencies as they navigate amendments proposed by Governor Glenn Youngkin. One of the significant changes under scrutiny is the reevaluation of HB 34 concerning the statute of limitations for medical debt. 

California Attorney General Warns California-Chartered Banks and Credit Unions On Surprise Overdraft Fees and Returned Deposited Item Fees

On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code, § 17200 et seq., and the federal Consumer Financial Protection Act (CFPA), 15 U.S.C., § 5536.

CFPB Backs Connecticut and California Bills to Prohibit Medical Debt Reporting

Recently, the Consumer Financial Protection Bureau (CFPB or Bureau) submitted letters to senators in Connecticut and California supporting their proposals to prohibit medical debt reporting.

ARM Industry Claims a Mixed Bag in February – ACA International

FDCPA and TCPA cases fell, while FCRA and CFPB complaints increased in February, according to the latest report from WebRecon.

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:

DFPI Takes Action Against MOHELA to Protect California Student Loan Borrowers

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) announced today it has entered into a consent order with Higher Education Loan Authority of the State of Missouri (MOHELA) for failing to timely provide contact information for Californians with older student loans, whose last chance to qualify for debt relief ends on April 30. As part of the settlement, MOHELA agreed to pay administrative penalties of $27,500.

Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on Reviewing Investments in and Takeovers of Banks

Thank you, Mr. Chairman, for holding this meeting today. It is particularly timely. This is our first board meeting since Sam Bankman-Fried was sentenced to twenty-five years in prison. Bankman-Fried was convicted on seven counts of fraud and conspiracy in a multibillion-dollar scheme involving FTX and an investment fund known as Alameda Research. During the sentencing process, the court heard compelling stories from victims who suffered enormous losses. It’s critical we make sure we truly understand the implications for the FDIC from this massive fraud and take appropriate action.

CFPB Takes Action to Stop Illegal Junk Fees in Mortgage Servicing

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today published an edition of Supervisory Highlights describing the agency’s actions to combat junk fees charged by mortgage servicers, as well as other illegal practices. CFPB examinations found servicers charging illegal junk fees, such as prohibited property inspection fees; sending deceptive notices to homeowners; and violating loss mitigation rules that help struggling borrowers stay in their homes. In response to the CFPB’s findings, financial institutions refunded junk fees to borrowers and stopped their illegal practices.

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.

Minnesota House Passes Key Provisions of Debt Fairness Act

On April 15, the Minnesota House of Representatives passed the Commerce Policy Omnibus bill, which includes key provisions of the Minnesota Debt Fairness Act. Minnesota AG Keith Ellison supports this bill and celebrated its passage.

CFPB Hits Back on Trade Groups Challenge to Small Business Lending Rule (Section 1071)

On April 12, 2024, the Consumer Financial Protection Bureau (CFPB) and its director Rohit Chopra asked U.S. District Judge Randy Crane to grant summary judgment and dispense with an industry-backed challenge to the requirement that small business lenders collect and report loan data.

Attorney General Ellison sues used-car dealer for deceptive sales

AG’s Office investigated after receiving consumer complaints: uncovered Midwest Car Search engaged in pattern and practice of deceptive sales, specifically targeting and exploiting Spanish speakers and people with low credit scores.

Acceptable Performance – 50% of a Top Performer?

Consider this scenario: You hire a landscaper to mow your lawn for $100, but upon returning home, you realize the backyard has not been touched. Subsequently, you receive a bill for the full $100. How would you handle this situation? Now, let us parallel this with collection teams. Is it fair for a collector to only deliver 50% of what the best performer achieves and still be deemed as meeting expectations? It is common to observe collectors consistently falling short, sometimes delivering less than even 50% of the best performer’s results.

Payday lending rates are sky high, but not optimism for R.I. Senate to pass reform this year

Community advocates, voters and lawmakers have spent years trying to bring payday loan reform to Rhode Island. And every year, it fails, with legislative leaders unwilling or uninterested in advancing the proposals to their respective chambers for a vote.

Visa CEO: ‘Long Runway’ Ahead as Digital Payments, Credentials Displace Cash and Checks 

Visa is seeing continued momentum in Tap to Pay and digital credential issuance, as consumers continue to spend on their debit and credit cards.

Protect Yourself from Imposter Scams

The DFPI has recently updated its most popular consumer education booklet, Protect Yourself from Fraud. This highly valued consumer resource includes critical information on how to spot, prevent, and report financial fraud, with lots of useful tips, links, and resources. Coming soon in Spanish and other languages. 

FTC Sends Refunds to Ring Customers Stemming from 2023 Settlement over Charges the Company Failed to Block Employees and Hackers from Accessing Consumer Videos

The Federal Trade Commission is sending refunds totaling more than $5.6 million to consumers as the result of a settlement with Ring over charges the company allowed employees and contractors to access consumers’ private videos and failed to implement security protections, enabling hackers to take control of consumers’ accounts, cameras, and videos.

Did a celebrity really endorse THAT? Maybe not

Before you spend money on that celebrity-endorsed premium cookware, weight loss product, or can’t-miss money-making opportunity, pause. Take a breath. Are you sure a celebrity or influencer is really endorsing that product or program? Maybe a scammer is behind that online ad.

House Subcommittee Chair: ‘Rogue’ CFPB Needs Guardrails from Congress

While the U.S. Supreme Court’s decision on the constitutionality of the Consumer Financial Protection Bureau’s funding structure is pending, members of Congress discussed the topic in an agency audit hearing, “Reviewing CFPB Financial Reporting and Transparency.”

AG Campbell Issues Advisory Providing Guidance On How State Consumer Protection And Other Laws Apply To Artificial Intelligence

BOSTON — Amidst a widespread increase in businesses’ use of artificial intelligence and algorithmic decision-making systems (“AI”), including in consumer-facing contexts, Attorney General Andrea Joy Campbell today issued an advisory to provide guidance to developers, suppliers, and users of AI regarding their obligations under state consumer protection, anti-discrimination, and data security laws. 

CFPB finalizes rule to change its supervision designation procedures for nonbanks

On April 16, the CFPB issued a procedural rule to change how the Bureau will designate nonbanks for supervision. Under the CFPA, the CFPB was authorized to supervise a nonbank covered person if the Bureau had reasonable cause to determine if the nonbank covered person was engaged in financial services-related conduct that posed a risk to consumers.

Utah AI Laws Require Consumer-Facing Disclosures Starting May 1

Two laws take effect in Utah on May 1 that impose legal requirements on a broad range of generative AI uses. The laws:

CFPB Letter to Connecticut State Legislature on Barring Medical Bills on Credit Reports

I write on behalf of the Consumer Financial Protection Bureau (CFPB) regarding Senate Bill 395 as amended (SB395), which would prohibit health care providers in Connecticut from reporting medical debt to consumer reporting agencies for use in a consumer report.

CFPB’s Frotman speaks on medical debt collections and rental financial products

On April 11, the General Counsel of the CFPB, Seth Frotman, delivered a speech at the National Consumer Law Center/National Association of Consumer Advocates Spring Training, highlighting how the FDCPA and the FCRA cover often-overlooked sectors of consumer finance, including medical collections and landlord-tenant debts.

Skip the scams as you look for options to avoid foreclosure

Are you having a hard time paying your mortgage? Even if you’ve missed payments or you’re already facing foreclosure, you still might have options. You really do, but that’s the same thing scammers will tell you.

Banks Leverage FinTech Partnerships to Ride Digital Transformation Wave

The digital transformation of banking continues to reshape how financial institutions (FIs) are meeting the evolving expectations of consumers. And central to this evolution are partnerships, which play a pivotal role in enhancing customer experiences and streamlining financial processes.

Daily Decision Recap: Cease Communication Request, CRAs and More

Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Here’s a rundown of recent top FCRA, TCPA and FDCPA cases we’ve covered.

Nearly Half of Credit Unions Have No Plans for BNPL, Despite Member Demand

Credit unions (CUs) are continuing to win over members, with roughly 1 in 5 current CU members telling PYMNTS Intelligence they’ve changed primary banks last year.

Top 10 States with the Highest Number of Commercial Foreclosure in March 2024

According to ATTOM’s newly released U.S. Commercial Foreclosure Report, there is a persistent uptrend in commercial foreclosures over the years, starting from a minimum of 141 in May 2020 and reaching 625 in March 2024. This signifies a consistent rise over the entire period.

AG Campbell Issues Advisory Providing Guidance On How State Consumer Protection And Other Laws Apply To Artificial Intelligence

BOSTON — Amidst a widespread increase in businesses’ use of artificial intelligence and algorithmic decision-making systems (“AI”), including in consumer-facing contexts, Attorney General Andrea Joy Campbell today issued an advisory to provide guidance to developers, suppliers, and users of AI regarding their obligations under state consumer protection, anti-discrimination, and data security laws.

Attorney General Knudsen Demands Action From Bank Of America To Correct Debanking Practices

HELENA – Montana Attorney General Austin Knudsen joined a coalition of 15 attorneys general in demanding action from Bank of America to correct the company’s debanking policies and discriminatory behavior toward conservative and religious Americans.

Congress Proposes New Comprehensive Privacy Legislation: The American Privacy Rights Act

On April 7, 2024, Representative Cathy McMorris Rogers (R-WA) and Senator Maria Cantwell (D-WA) announced that Congress will once again consider a comprehensive federal data privacy bill that, if passed, would dramatically alter the privacy landscape across the United States.

AG Ferguson: Court orders repeat scammer Labor Law Poster Service to stop contacting and accepting payments from Washington businesses

SEATTLE — Attorney General Bob Ferguson won a court order today in his consumer protection lawsuit against Labor Law Poster Service and its Michigan-based owners, blocking the company from deceiving Washington businesses.

Shoppers May Ditch Preferred Merchants If Credit Card Surcharges Expand

With consumers struggling under ongoing financial challenges, many may find credit card surcharges to be the proverbial straw that breaks the camel’s back, leading them to be less loyal to favorite merchants.

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