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Wednesday November 16, 2022 |
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FTC Extends Deadline by Six Months for Compliance with Some Changes to Financial Data Security Rule
The Federal Trade Commission today announced it is extending by six months the deadline for companies to comply with some of the changes the agency implemented to strengthen the data security safeguards financial institutions must put in place to protect their customers’ personal information. The deadline for complying with some of the updated requirements of the Safeguards Rule is now June 9, 2023.
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Sharp drop in mortgage rates does little to boost demand
Mortgage application volume rose 2.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made for the Veteran’s Day holiday.
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NCUA Chairman Harper Testifies on State of the Credit Union Industry at Senate Hearing
ALEXANDRIA, Va. (Nov. 15, 2022) – NCUA Chairman Todd M. Harper, along with other financial regulatory agency principals, testified today at a hearing before the U.S. Senate Committee on Banking, Housing, and Urban Affairs.
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Attorney General Bonta Files Brief in Support of CFPB Effort to Hold Student Loan Trust Accountable for Illegal Debt Collection Practices
OAKLAND – California Attorney General Rob Bonta, as part of a bipartisan coalition, filed a brief yesterday in support of the Consumer Financial Protection Bureau’s (CFPB) interpretation that student loan trusts are “covered persons” under the Consumer Financial Protection Act. The brief supports the CFPB in its case against the National Collegiate Student Loan Trusts (Trusts) for engaging in illegal debt collection of student loan
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CFPB lawsuit against All American Check Cashing ends in settlement
The CFPB and All American Check Cashing have agreed to a settlement in the CFPB’s enforcement action filed against All American in 2016 for alleged violations of the CFPA’s UDAAP prohibition in connection with check cashing services and small dollar loans offered by All American.
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The OCC’s “Laser Focus” on Fair Lending
On November 14, Office of the Comptroller of the Currency (OCC) Senior Deputy Comptroller for Bank Supervision Policy Grovetta Gardineer delivered keynote remarks at the 2022 CRA & Fair Lending Colloquium where she discussed the OCC’s commitment to “elevating fairness” and ongoing efforts to ensure its regulated institutions comply with the federal fair lending laws. In her comments, Gardineer explained how the OCC will strategically execute on its commitment to fair lending through the agency’s focus on three strategic goals for 2023-2027: (1) agility and learning; (2) credibility and trust; and (3) leadership in supervision.
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Acting Comptroller Outlines OCC Priorities, Includes Fintech, Crypto in Statement to Senate Banking Committee
The Acting Comptroller of the Currency, Michael J. Hsu, testified in front of the Senate Committee on Banking today. In prepared testimony, the Acting Comptroller outlined his priorities for the bank regulator.
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Florida Middle District Court Finds Receiving Pre-Recorded Voice Messages Insufficient Basis for Standing to Bring Class Action Suit Alleging TCPA Violatio
On November 2, 2022, the U.S. District Court for the Middle District of Florida held, sua sponte, that a plaintiff did not have standing to bring a class action suit alleging a TCPA violation. The February 9, 2022 complaint alleges that the plaintiff received two pre-recorded voice messages on his cell phone from the defendant, a for-profit school, advertising the defendant's services.
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Credit card balances see largest annual jump in more than 20 years
Americans feeling the squeeze from months of persistently high inflation are increasingly leaning on credit cards, according to new data showing balances surged year over year in the third quarter by the highest percentage in over two decades.
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CFPB financial report fiscal year 2022
The financial report provides readers with the summary results of the CFPB’s operational activity, and it is the principal statement of our accountability to the American people, the United States Congress, and the President of the United States.
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CFPB Reports Highlight Problems with Tenant Background Checks
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued two reports on the tenant background check industry. The reports describe how errors in these background checks contribute to higher costs and barriers to quality rental housing. Too often, these background checks – which purport to contain valuable tenant background information – are filled with largely unvalidated information of uncertain accuracy or predictive value. While renters bear the costs of errors and false information in these reports, they have few avenues to make tenant screening companies fix their sloppy procedures. The CFPB’s analysis of more than 24,000 complaints highlighted the renter challenges associated with the industry’s failures to remove wrong, old, or misleading information and to provide adequate investigations of disputed information.
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Attorney General Bonta Files Brief in Support of CFPB Effort to Hold Student Loan Trust Accountable for Illegal Debt Collection Practices
OAKLAND – California Attorney General Rob Bonta, as part of a bipartisan coalition, filed a brief yesterday in support of the Consumer Financial Protection Bureau’s (CFPB) interpretation that student loan trusts are “covered persons” under the Consumer Financial Protection Act. The brief supports the CFPB in its case against the National Collegiate Student Loan Trusts (Trusts) for engaging in illegal debt collection of student loans.
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FCC authorizes telecom companies to cut off likely source of student loan scam robocall campaigns
WASHINGTON, November 10, 2022—The FCC’s Robocall Response Team announced new actions to cut off a flood of scam robocalls related to student loan debts. The FCC’s Enforcement Bureau believes upwards of 40 percent of student loan debt robocalls generated last month originated from one voice service provider: Urth Access, LLC. The Bureau told the service provider that it must cease carrying this illegal traffic and ordered all voice service providers to look for this traffic. Also, FCC Chairwoman Jessica Rosenworcel confirmed that the Bureau has opened a formal case and is investigating these calls for possible further legal action.
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Tenant Background Checks Market Report
This report is based on analysis of data from industry research, legal cases, academic research, the CFPB’s market monitoring, and other third-party sources. In our research, we focused on publicly available information from a sample of 17 tenant screening companies that offer services to landlords across the country.1 These companies were selected based on their perceived prevalence in sources such as: public-facing websites, analyses by industry observers, academic research, consumer complaints submitted to the CFPB, and recent lawsuits.
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GAO Report on Pentagon Cybersecurity Incidents
The Department of Defense (DOD) and our nation’s defense industrial base (DIB)—which includes entities outside the federal government that provide goods or services critical to meeting U.S. military requirements—are dependent on information systems to carry out their operations. These systems continue to be the target of cyber attacks, as DOD has experienced over 12,000 cyber incidents since 2015 (see figure).To combat these incidents, DOD has established two processes for managing cyber incidents—one for all incidents and one for critical incidents. However, DOD has not fully implemented either of these processes.
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FTC Returns More Than $9.8 Million To Consumers Harmed by Napleton Auto’s Junk Fees and Discriminatory Practices
The Federal Trade Commission is sending payments totaling more than $9.8 million to consumers who were harmed by Illinois-based Napleton Automotive Group’s junk fees and discriminatory practices.
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Supreme Court to Address Preemptive Lawsuits Against Financial Regulators
On Monday, November 7, the Supreme Court heard arguments in two cases addressing when targets of enforcement actions can preempt agencies in federal court. If the justices’ questions are any indication, the Court appears prepared to recognize an expansive right to challenge the legality of a potential enforcement action.
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New York Department of Financial Services Rule Will Require Banks to Collect Demographic Data with Commercial Credit Applications
The NYDFS issued a proposed rule that will require New York banks to collect demographic and financial data with business credit applications.
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New York State Private Student Loan Refinancing Task Force
Chapter 774 of the Laws of 2021, signed into law in 2022, established a Private Student Loan Refinancing Task Force (the “Task Force”) tasked with “study[ing] and analyz[ing] ways lending institutions that offer non-federal student loans to students of New York institutions of higher education can be incentivized and encouraged to create student loan refinance programs.”
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Creating a strong ‘complaint’ culture
Banks interact with customers today through a variety of channels: in person at branches and remotely with online banking, mobile applications and an old-fashioned phone call. And no matter how stellar a financial institution’s service may be, many of those customer interactions inevitably deal with product or service complaints.
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Texas Federal Court Issues Stay Pending Fifth Circuit Mandate
On October 31, a Texas federal court ordered a stay in a Consumer Financial Protection Bureau (CFPB) enforcement action, pending the issuance of the Fifth Circuit mandate in Community Financial Services Association of America Ltd. v. CFPB, which declared the CFPB funding mechanism unconstitutional. In the enforcement action CFPB v. Populus Financial Group, Inc., the parties requested the stay since the mandate will control the resolution of key issues presented in the defendant’s pending motion to dismiss.
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Study: Auto Lenders Find Customer Retention is Key to Driving New Loans
According to the J.D. Power 2022 U.S. Consumer Financing Satisfaction Study, released today, rising interest rates, slowing loan and lease volumes, and increased competition are causing auto lenders to realize their most valuable future customers are the ones they already have.
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Fund to Give $15M of Fixed-Rate Loans
The California Rebuilding Fund, a loan program designed to target certain small businesses throughout the state, is taking applications through Nov. 15 in its effort to dole out $15 million.
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loanDepot forms council to “dispel myths” about VA loans
loanDepot has formed a VA council to help military veterans and active-duty personnel overcome common misconceptions about achieving homeownership.
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AG’s Office Reaches Settlement with Payment Processing Company Over Claims of Unlawful Fee Practices
BOSTON — Massachusetts Attorney General Maura Healey today announced a settlement with a payment processing company over claims it assisted with the unlawful business practices of a debt settlement company that charged vulnerable consumers premature and inflated fees in violation of state and federal law.
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Global Peer-to-peer Lending Market to Reach $220.3 Billion by 2027
New York, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Peer-to-peer Lending Industry" - https://www.reportlinker.com/p05900042/?utm_source=GNW
Traditional P2P Model, one of the segments analyzed in the report, is projected to record 17.7% CAGR and reach US$99.3 Billion by the end of the analysis period. Taking into account the ongoing post pandemic recovery, growth in the Marketplace Lending Model segment is readjusted to a revised 29.3% CAGR for the next 7-year period.
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The NC Supreme Court splits 3-3 in a closely watched debt collection case
The North Carolina Supreme Court, however, left untouched a pro-consumer decision in a case involving one of the country’s largest debt buyersit did so in a way that will have little impact on future litigation.
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FCC Opens Use of Portal for Private Entities to Report Caller ID Violations
The Federal Communications Commission has finalized a rule under the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act to implement a streamlined process for private entities to report calls that may be unlawful and callers who are using legitimate businesses’ phone numbers.
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Permanent Version of DC’s Protecting Consumers From Unjust Debt Collection Practices Amendment Act Takes Effect January 1, 2023
As we previously discussed here, in March 2022, the D.C. Council of the District of Columbia Committee of the Whole met in a full hearing, in part to hear amendments introduced to B24-0357, known as the Protecting Consumers From Unjust Debt Collection Practices Amendment Act (Act).
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Protections Against Employment Discrimination for Service Members and Veterans
Service members and veterans have made great sacrifices to guarantee the freedoms and liberties that all Americans enjoy. And service members and veterans themselves are also guaranteed rights, such as the right to be free from discrimination in civilian employment. This document helps explain where to get help if you are a service member or veteran and you feel that you have been discriminated against in employment because of your military status, veteran status, or another protected basis.
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Veteran-owned businesses
Devoted exclusively to promoting veteran entrepreneurship, the OVBD facilitates the use of all U.S. Small Business Administration (SBA) programs by veterans, service-disabled veterans, reservists, active-duty service members, transitioning service members, and their dependents or survivors.
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Proposition 209: Arizona voters back lowering maximum interest rates on medical debt
The measure has been touted as a way to protect Arizonans with medical debt from bankruptcy and poverty. Opponents from the business community say it's too broad and will have the unintended consequence of making it more difficult for working Arizonans to get loans.
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Statement from Secretary of Education Miguel Cardona on District Court Ruling on the Biden-Harris Administration Student Debt Relief Program
U.S. Secretary of Education Miguel Cardona issued the following statement regarding today’s district court ruling on student debt relief: "We believe strongly that the Biden-Harris Student Debt Relief Plan is lawful and necessary to give borrowers and working families breathing room as they recover from the pandemic and to ensure they succeed when repayment restarts.
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New York DFS Announces Updated Cybersecurity Regulation
Superintendent of Financial Services Adrienne A. Harris announced in a press release this week that the New York State Department of Financial Services (DFS) proposed an updated cybersecurity regulation.
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BECU Announces Beverly Anderson as Next President and Chief Executive Officer
SEATTLE, Nov. 10, 2022 /PRNewswire/ -- BECU, the country's largest community credit union with over 1.3 million members and $30.2 billion in assets, today announced the selection of Beverly Anderson as its next president and chief executive officer (CEO).
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CFPB Issues Guidance to Address Shoddy Investigation Practices by Consumer Reporting Companies
Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a circular to affirm that neither consumer reporting companies nor information furnishers can skirt dispute investigation requirements. The circular outlines how federal and state consumer protection enforcers, including regulators and attorneys general, can bring claims against companies that fail to investigate and resolve consumer report disputes.
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California Court of Appeal Ruling Limits Application of Default Interest
The California Court of Appeal recently ruled that California law treats default interest measured against the unpaid principal balance of a loan as an unenforceable penalty. In Honchariw v. FJM Private Mortgage Fund, LLC (see link), the court held that under section 1671 of the California Civil Code, a default interest charge must bear a "reasonable relationship" to the lender's actual damages from the breach to be enforceable.
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More And More Americans Are Struggling To Pay Their Auto Loans
The percentage of automotive loans that are at least 60 days delinquent hit 1.65 percent in the third quarter of 2022. That’s the highest rate of delinquencies in more than a decade, which indicates that vehicle owners are increasingly struggling to make payments on their vehicles.
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CFPB Begins Rulemaking on Data Access and Portability
The Consumer Financial Protection Bureau (CFPB) on October 27, 2022 took the long-anticipated first step to issue a regulation implementing Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.1 This followed a preview by CFPB Director Rohit Chopra at the Money 20/20 conference on October 25 in which he outlined the “CFPB’s new approach to regulation,” which is designed to create “catalysts for more competition.” With respect to Section 1033, Director Chopra said that the CFPB is “exploring safeguards to prevent excessive control or monopolization by one, or even a handful of, firms”2 and will be working toward avoiding regulations that could be “rigged in favor of some players over others.”3 Director Chopra’s focus on competition as an essential element of consumer protection has been a hallmark of his directorship.4
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Complaint Bulletin: An analysis of consumer complaints related to crypto-assets
Crypto-assets are increasingly offered and marketed to consumers, including being incorporated into other products. Even large financial firms have begun offering and marketing crypto-asset custodial services to certain customers. As these offerings have increased, so too have consumers’ complaints to the Consumer Financial Protection Bureau
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The CFPB finalizes rule to increase transparency regarding key nonbank supervision tool
Today, we finalized changes to our nonbank supervision procedural rule. The changes will provide transparency to the public about how we are using an important supervisory tool to keep pace with fast-moving consumer finance markets.
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Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, at the FDIC Systemic Resolution Advisory Committee
Our markets are far different than they were the last time this committee met in person. We look forward to hearing your advice on how the FDIC can be best prepared to resolve institutions whose failure may pose risk to the stability of the financial system.
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NCUA Charters New York Episcopal Federal Credit
ALEXANDRIA, Va. (Nov. 10, 2022) – The National Credit Union Administration has granted a federal charter and Share Insurance Fund coverage to New York Episcopal Federal Credit Union in the Bronx, New York.
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Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference. Registration opens October 3, 2022.
Las Vegas , Nevada
February 06 -
09 ,
2023 916 462 2462
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