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.

US foreclosure filings jump 22%, and repossessions hit highest level in 3 years

US foreclosure filings in the first quarter climbed 22% from a year ago, and repossessions rose by 6%, according to data from analytics company ATTOM.

Nearly Half of US Consumers Earning $100K+ Live Paycheck to Paycheck

According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually. In other words, higher incomes do not necessarily protect people from the financial stress that comes from living from one paycheck to the next. 

Committee on judicial codes of conduct concludes recusal of Fifth Circuit judge not required in lawsuit challenging final CFPB credit card late fee rul

The Committee on Codes of Conduct of the Judicial Conference of the United States (Committee) has unanimously concluded that Fifth Circuit Judge Willett is not required to recuse in the trade group plaintiffs’ appeal in their lawsuit challenging the CFPB’s final credit card late fee rule (Rule).

Virginia Legislature Approves Amendments to Statute of Limitations Bill

The amendments from Gov. Glenn Youngkin update the statute of limitations to be within three years of the due date on the final invoice for a health care service, not the first invoice.

NCUA Board Approves Advance Notice of Proposed Rulemaking on Records Retention

ALEXANDRIA, Va. (April 18, 2024) – The National Credit Union Administration Board held its third open meeting of 2024 and unanimously approved an advance notice of proposed rulemaking(Opens new window) that solicits stakeholder comments on ways the agency can improve and update its records preservation program regulations and accompanying guidelines in Part 749 and other parts of the NCUA’s rules and regulations.

Washington State Collection Agency Board Seeks General Public Member

The Washington State Collection Agency Board is currently accepting applications for a general public member to join the board. Members of the public may apply for a board or commission at any time, regardless of whether there is a current or upcoming vacancy, as vacancies occur periodically throughout the year.

Western District of Washington | New York pair indicted for $1.4 million bank fraud scheme that victimized customers across the U.S. | United States Department of Justice

Seattle – A couple from New York state are in custody tonight following their indictment for a nationwide bank fraud scheme, some of which was executed in Seattle, announced U.S. Attorney Tessa M. Gorman. Amber Towndrow, 35, and Darby Canfield, 34, were indicted by a Seattle federal grand jury on April 3, 2024. 

CFPB Levels Up: Consumer Risks in Gaming Draws Regulatory Scrutiny

If you thought virtual reality was free from real-world regulations, think again. On April 4, 2024, the CFPB released an Issue Spotlight that dives deeply into a realm the agency had not previously traversed—video games and virtual worlds. 

Adapting to Oregon’s New Wage Garnishment Law: Insights for Collection Agencies

As a collection agency operating in Oregon, staying informed about legislative changes is important for navigating the evolving landscape of debt collection practices. Governor Tina Kotek’s recent signing of SB 1595 introduces multiple amendments to wage garnishment regulations, impacting how collection agencies operate within the state. Here’s why paying attention to this bill is essential and how it will affect collection agencies. 

Brown, Reed Push Big Banks to Protect Consumers from Wire Fraud

WASHINGTON, D.C. – Today, U.S. Senators Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and Jack Reed (D-RI), a senior member of the Senate Banking and Housing Committee, are pushing the nation’s four largest banks to protect consumers from costly and damaging wire fraud.

CHARGES: WESTERN PA. TOW TRUCK OPERATOR INFLATED COSTS, CHARGED 27 VEHICLE OWNERS NEARLY $300K FOR SHORT-TRIP TOWS

HARRISBURG — Attorney General Michelle Henry, along with the Allegheny County Police Department, announced charges against the owner of a Pittsburgh-based towing company for inflating tow costs by charging “accident services” fees and other deceptive practices.

Troutman Pepper Weekly Consumer Financial Services Newsletter – April 2024 #3

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week:

CRA to Pay $5.695M in FCRA Class-Action Settlement

CoreLogic Credco was accused of listing consumers as dead on credit reports despite them still being very much alive. 

ATR Supports Fight Against CFPB’s Credit Card Late Fee Rule

Without any direction from Congress, the Consumer Financial Protection Bureau (CFPB) finalized a  rule that (1) changes the safe harbor dollar amount for late fees from $30, or $41 for subsequent late payment violations, to a strict threshold of $8 while prohibiting any higher amount for future delinquencies; and (2) removes the safe harbor late fee adjustment to account for inflation.

CFPB Updates Supervision Designation Procedures for Nonbanks Posing Risks

On April 16, 2024, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued a rule to update its procedures for designating nonbank covered persons for supervision.

Wiley Consumer Protection Download (April 16, 2024)

Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC).

Mystery shopping, (fake) checks, and gift cards

If you’re looking for a new job, getting paid to shop might sound like a dream. Companies hire mystery shoppers to try products or services and share experiences about things like buying or returning something, or their overall customer experience. But while some mystery shopping jobs are legitimate, many aren’t. So how do you spot the scams?

CFPB Takes Action Against Coding Boot Camp BloomTech and CEO Austen Allred for Deceiving Students and Hiding Loan Costs

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an order against BloomTech and its CEO, Austen Allred, for deceiving students about the cost of loans and making false claims about graduates’ hiring rates. The CFPB found that BloomTech and Allred falsely told students the school’s “income share” agreement contracts were not loans, when in fact the agreements were loans carrying an average finance charge of around $4,000. 

Collection and Recovery Solutions 2024

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