At a glanceFriday, April 12, 2024

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Friday April 12, 2024
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Inflation Takes Its Toll as Consumer Loan Delinquencies Rise

While the strong labor market remains the key pillar supporting the finances of resilient US consumers, major nonmortgage consumer loans have seen delinquencies increase as inflation has taken a toll on wallets, and more profoundly on lower-income segments.

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California Proposes Amending State FDCPA to Cover Small Business Debt

The California Senate Banking and Financial Institutions Committee is currently considering Senate Bill (SB) 1286, which would expand the scope of the Rosenthal Fair Debt Collection Practices Act (RFDCPA) to also prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of small business debts.

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Consumers Make Minimum Credit Card Payments as Inflation Takes a Bite

In signs of continued pressure in the paycheck-to-paycheck economy, more consumers are making only the minimum payments on their credit cards. And the debt on those cards is rising.

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CFPB and EU Eye Consumer Risks of BNPL, AI and Digital Payments

Consumer protection officials for the United States and the European Commission have met to discuss three shared priorities: buy now, pay later (BNPL), digital payments and artificial intelligence (AI).

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Collection Agency Financial Transaction Audits for Non-Financial Individuals

The term “financial transaction audit” might sound like a daunting phrase, particularly to those without a background in finance.  Trust me, I understand. I am not a CPA, nor do I hold a finance degree. However, through my experiences and research, I have come to realize that delving into financial transaction audits is not reserved solely for the financially savvy. In fact, non-financial individuals like me can navigate these audits with confidence and proficiency.

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U.S. Foreclosure Activity Increases Quarterly in Q1 2024

IRVINE, Calif. — April 11, 2024 ATTOM, a leading curator of land, property, and real estate data, today released its Q1 2024 U.S. Foreclosure Market Report, which shows a total of 95,349 U.S. properties with a foreclosure filing during the first quarter of 2024, up 3 percent from the previous quarter but down less than 1 percent from a year ago.

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Bipartisan Lawmakers Announce Draft Federal Data Privacy Bill

Is a national data privacy law on the horizon? Lawmakers are considering a bill that would override state laws and give consumers a private right of action.

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California Privacy Protection Agency Issues First-Ever Enforcement Advisory

On April 2, the California Privacy Protection Agency (CPPA or “the Agency”) issued the Agency’s first-ever enforcement advisory. The advisory (“Applying Data Minimization to Consumer Requests”) reaffirms data minimization as a core principle of the California Consumer Privacy Act (CCPA) and stresses, in particular, that this principle applies to businesses’ processing of CCPA data subject requests, such as the right to delete or right to opt-out.

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Prepared Remarks of Seth Frotman, General Counsel and Senior Advisor to the Director Consumer Financial Protection Bureau, at the National Consumer Law Center/National Association of Consumer Advocates Spring Training

At the CFPB, we are paying attention to what you might call the growing financialization of nearly every sector of the economy. From employer-provided loans for workers whose paychecks doesn’t cover their expenses to employer-originated debts to cover workers’ on-the-job “training,” to doctors’ visits that leave people with a new credit card or an exotic payment plan, to being required to download a new app just to pay rent – it increasingly feels that every interaction is turning into a consumer financial transaction, often with debt collection and credit reporting implications

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New report shows Nevada has some of the fewest consumer debt protections in the country

RENO, Nev. (KOLO) - A new report from the National Center for Access to Justice at Fordham Law School finds that Nevada offers fewer protections on consumer debt than most other states.

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Ensuring servicemembers can protect themselves from unlawful financial practices

The Servicemembers Civil Relief Act was passed by Congress to enable servicemembers to devote themselves to the defense of the Nation by providing them key protections. This law’s important provisions include the right to reduced interest on certain loans and shielding servicemembers from foreclosure while they are serving the nation.

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VA announces new program to help more than 40,000 Veterans stay in their homes

Wilmington , DE — On May 31, 2024, the Department of Veterans Affairs will launch a new program — the Veterans Affairs Servicing Purchase (VASP) program — to help more than 40,000 Veterans experiencing severe financial hardship avoid foreclosure and stay in their homes.

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FDIC finds banks violated RESPA on mortgage brokerage payments

Mortgage brokers’ compensation is in the spotlight after a recent Federal Deposit Insurance Corporation (FDIC) test concluded that some financial institutions failed to prove that payments were “reasonably related” to the value of services provided.

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CFPB Could Block Lenders From Charging for Title Insurance

America’s leading consumer watchdog is reportedly weighing a sweeping change to the title insurance industry. As Bloomberg News reported Wednesday (April 10), the Consumer Financial Protection Bureau (CFPB) is considering whether to forbid mortgage bankers from charging homeowners for title insurance, ending a long-held practice.

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Credit-Card Delinquency Rates Were Worst on Record in Fed Study

(Bloomberg) -- US credit-card delinquency rates were the highest on record in the fourth quarter, according to a Federal Reserve Bank of Philadelphia report.

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Proposed California Law Could Cap CU Overdraft Fees

California state lawmakers are considering legislation that would limit the number of overdraft fees credit unions (CUs) can charge their members. Under SB-1075, the 100+ CUs now doing business in the Golden State would be prohibited from charging their customers more than three overdraft fees per month. 

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Joint Statement by Rohit Chopra, Director of the United States Consumer Financial Protection Bureau, and Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission

WASHINGTON, D.C. — In July 2023, Rohit Chopra, Director of the United States Consumer Financial Protection Bureau, and Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission, announced the start of an informal dialogue between the CFPB and the European Commission on a range of critical financial consumer protection issues

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EU-US Hold Fourth Joint Technology Competition Policy Dialogue

Today, Federal Trade Commission Chair Lina Khan, the Justice Department’s Antitrust Division (DOJ) Assistant Attorney General Jonathan Kanter, and European Commission Executive Vice-President Margrethe Vestager met in Washington for the fourth meeting of the EU-US Joint Technology Competition Policy Dialogue (TCPD) to continue work on cooperation in ensuring and promoting fair competition in the digital economy.

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Senators Introduce Resolution of Disapproval on CFPB Credit Card Late Penalty Final Rule

WASHINGTON – At the beginning of March, the Consumer Financial Protection Bureau (CFPB) announced its final rule to restrict credit card penalties, capping late fees at $8, down from $32. The rule, which is expected to go into effect on May 14, 2024, fails to consider how the proposal would harm American consumers, resulting in lower credit scores and reduced credit availability. 

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OCC Extends Comment Period for Proposed Rulemaking and Policy Statement on Bank Mergers

WASHINGTON—The Office of the Comptroller of the Currency (OCC) announced today that it will extend until June 15, 2024, the comment period on its proposal to update its rules for business combinations to allow interested parties more time to provide comments.

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The Importance of Auditing Third-Party Collection Agencies and Closed Accounts

In the landscape of financial management, one often encounters a critical yet frequently overlooked aspect: auditing closed accounts managed by third-party collection agencies. While this task may not be immediately captivating or urgent, neglecting it could potentially bring consequences if not handled properly. 

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FTC Issues Report to Congress on Collaboration with State Attorneys General

The Federal Trade Commission today issued a report to Congress detailing the FTC’s law enforcement cooperation with state attorneys general (AGs) nationwide and presenting best practices to ensure continued effective collaboration.

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CFPB Comment to Illinois Joint Committee on Administrative Rules on the State’s Proposed Community Reinvestment Act Rules

On behalf of the Consumer Financial Protection Bureau (CFPB), I am pleased to submit this comment regarding the Illinois Department of Financial and Professional Regulation’s (IDFPR’s) proposed rules for the state’s Community Reinvestment Act (CRA).

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Virginia Governor Amends Statute of Limitations Bill; Approves Medical Debt Credit Reporting Measure

The medical debt credit reporting law will take effect July 1, while the legislature will revisit the statute of limitations amendments next week.

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Biden-Harris Administration Announces New Plans to Deliver Debt Relief to Tens of Millions of Americans

The Biden-Harris Administration today released initial details of a new set of plans that would provide student debt relief for tens of millions of borrowers across the country.

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If someone you care about paid a scammer, here’s how to help

Sharing a scam experience with someone you know takes courage. If someone trusts you enough to share their scam story, especially if the scammer is still in touch with them, here’s some advice to help guide you.

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FTC Sends $1.2 Million in Refunds to Consumers Harmed by Deceptive Investment Claims

The Federal Trade Commission is sending $1.2 million in refunds to consumers who paid for the advice of supposed experts based on deceptive claims of substantial investment profits.

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California regulator advises businesses to only collect needed data under CCPA

On April 2, The California Privacy Protection Agency issued Enforcement Advisory No. 2024-01 reminding businesses that data minimization is a foundational principle the California Consumer Privacy Act.

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Alliant Credit Union Recognized for Finance Industry & Workplace Achievements in TITAN Business Awards

CHICAGO, April 9, 2024 /PRNewswire/ -- Alliant Credit Union, one of the largest credit unions in the nation, has earned the highest honors in this year's 2024 TITAN Business Awards, recognizing its leadership and exceptional performance in finance and workplace culture. The international TITAN awards celebrate business excellence worldwide and individuals and organizations for their innovation, leadership and outstanding achievements.

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February 2024 Consumer Litigation Filings: Mixed Bag for New Filings

According to a recent report by WebRecon, court filings under the Fair Debt Collection Practices Act (FDCPA) and Telephone Consumer Protection Act (TCPA) were down for the month of February while court filings under the Fair Credit Reporting Act (FCRA) and complaints filed with the Consumer Financial Protection Bureau (CFPB) were up. Year-to-date everything is still up by double digits compared to 2023.

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California Attorney General Sponsors Bill Banning Credit Reporting of Medical Debt

On April 2, the California Senate Judicial Committee passed Senate Bill 1061. The bill seeks to prevent health care providers and contracted collection agencies from providing information about patients’ medical debt to credit reporting agencies.

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New Jersey, New Hampshire and Kentucky Enact Data Privacy Legislation

In the ever-evolving landscape of data privacy, states across the U.S. are taking bold steps to protect consumer rights and regulate the handling of personal data. New Jersey, New Hampshire and Kentucky recently signed comprehensive privacy laws—the first three in 2024 to do so.

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CFPB report focuses on ‘discount points,’ but paints an incomplete picture

The Consumer Financial Protection Bureau (CFPB) on Friday issued a report indicating that it is taking a closer look at the impact of “discount points” on mortgage transactions, noting that use of the practice has picked up over the past two years with undetermined value for mortgage borrowers.

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Utah Becomes First State To Enact AI-Centric Consumer Protection Law

On March 13, 2024, Utah enacted the Utah Artificial Intelligence Policy Act (UAIP), which imposes certain disclosure requirements on entities using generative AI tools with their customers, and limits an entity’s ability to “blame” generative AI for statements or acts that constitute consumer protection violations.

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CFPB Announces Potential FCRA Expansion Targeting Brokers of Consumer Data

On April 2, at an event at the White House on Data Protection and National Security, CFPB Director Rohit Chopra’s articulated potential changes to the data security regulation landscape and noted that the Bureau is considering rules to amend the Fair Credit Report Acting, tightening the regulation of data brokers that trade in sensitive consumer data.

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CFPB, FTC submit amicus brief in FCRA case

On March 29, the CFPB and the FTC filed an amicus brief in the U.S. Court of Appeals for the Eleventh Circuit, arguing that the FCRA mandated consumer reporting agencies (CRAs) when a consumer challenged the “completeness or accuracy of any item or information” in their file, must perform a “reasonable reinvestigation.

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Scott Works to Overturn CFPB’s Credit Card Fee Rule

Washington, D.C. – Today, Ranking Member Tim Scott (R-S.C.) introduced a measure to overturn the Consumer Financial Protection Bureau’s (CFPB) rule capping credit card late penalties. 

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AG Nessel Continues Recognition of Financial Literacy Month with Re-Issue of Cryptocurrency Alert

LANSING – In her quest to ensure that Michigan consumers are as informed as possible, Attorney General Dana Nessel has re-issued her alert, Cryptocurrency! What is it? What are the Risks? to highlight this speculative asset during Financial Literacy Month. 

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Indiana appellate court finds debt company violated FDCPA and Indiana’s deceptive consumer sales act

Recently, the U.S. Court of Appeals of Indiana affirmed a state trial court’s decision concluding that the defendant was a debt collector under both the Indiana Deceptive Consumer Sales Act and the FDCPA when it purchased and collected defaulted debt.

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FBI: More Than $12 Billion Lost to Online Fraud in 2023

American consumers and business owners lost a record $12.5 billion last year to online scammers, marking a 22% spike in cybercrime over 2022, according to the FBI.   

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College students are targeted with jobs scams, too

Getting hired might feel like the ultimate high. But finding out it was just a scammer trying to steal your money will bring you — and your bank balance — right back down. Many college students look for virtual jobs they can do while going to school, but if a new employer mails your first paycheck before you even start working, that’s your cue to stop — it’s a scam.

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Banks are building more branches for the first time in a decade

US banks added more net new branches in 2023 for the first time in a decade. That bet on new brick-and-mortar locations isn't letting up so far in 2024.

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Persisting Regulatory Uncertainty: Federal Regulators Delay New Community Lending Rules

On March 21, the FDICFed, and OCC jointly issued an interim final rule to extend the applicability date of certain provisions of the Community Reinvestment Act (CRA) final rule and requested comments on the extension.

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The CPPA, FCC, FTC Are Collaborating

The California Privacy Protection Agency, the California Attorney General’s Office, the FCC, the Federal Trade Commission, and more are embracing a collaborative approach. They all talk with each other.

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US court rejects transfer of credit card fees rule case amid focus on ‘judge shopping’

(Reuters) - A federal appeals court ruled on Friday that a Texas judge wrongly transferred to another court in Washington, D.C., an industry-backed lawsuit challenging an agency rule on credit card late fees, highlighting the debate over "judge shopping" in the U.S.

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CFPB FY 2023 Office of Minority and Women Inclusion (OMWI) Report to Congress

The FY 2023 OMWI annual report to Congress provides detailed information about the diversity, equity, inclusion, and accessibility (DEIA) work of the Consumer Financial Protection Bureau from Oct. 1, 2022 through Sept. 30, 2023.

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Supervisory Highlights, Issue 32 (Spring 2024)

This is the 32nd edition of Supervisory Highlights. The findings in this report cover select examinations in connection with credit reporting and furnishing that were completed from April 1, 2023, through December 31, 2023.

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Industry Events

Collection and Recovery Solutions 2024


Four Seasons Hotel
Las Vegas, Nevada ,
May 08 - 10 , 2024

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

WEBINAR 2:00 pm - NACTT Academy

May 16 - 16 , 2024
RMAI 2024 Executive Summit


Hyatt Regency Tamaya - Registration Opens April 1, 2024
Santa Ana Pueblo , New Mexico
August 06 - 08 , 2024