At a glanceFriday, November 18, 2022

Collection Industry News At A Glance - November 18, 2022
Friday November 18, 2022
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Articles

 
FTC Explores Changes, Possible Expansion of Its Business Opportunity Rule

The Federal Trade Commission is exploring changes to the Business Opportunity Rule, seeking comment from the public on the rule’s effectiveness and a potential expansion to the rule to cover other types of money-making opportunities, such as coaching or mentoring programs, e-commerce opportunities, or investment opportunities.

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Sen. Markey Introduces Stopping Abuse and Fraud in Electronic (SAFE) Lending Act

WASHINGTON DC – Senator Edward J. Markey (D-Mass.) joined Senator Jeff Merkley (D-Ore.) and Representatives Suzanne Bonamici (D-OR-01) and Pramila Jayapal (D-WA-07) in introducing the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act.

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200,000 student-loan borrowers were just granted $6 billion in debt relief after a federal judge approved a settlement with Biden’s Education Department

Thousands of student-loan borrowers will soon be getting long-awaited debt relief. On Wednesday, federal Judge William Alsup granted final approval of a lawsuit — Sweet v. Cardona — filed in 2019 by student-loan borrowers who accused the Education Department at the time of failing to process their borrower defense to repayment applications. These are forms borrowers can file if they believe they were defrauded by the school they attended. If the department approves their forms, they would qualify to have their student loans discharged.

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Justice Department and Department of Education Announce a Fairer and More Accessible Bankruptcy Discharge Process for Student Loan Borrowers

The Department of Justice, in close coordination with the Department of Education, announced today a new process for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. The new process will help ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings and make it easier to identify cases where discharge is appropriate. The Associate Attorney General distributed guidance outlining the new process to all U.S. Attorneys.

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Enhancing public data on auto lending

Since the start of the pandemic, the cost of automobiles has risen substantially. Over 100 million Americans have an auto loan, and the CFPB estimates that there is currently $1.5 trillion in outstanding auto loan debt, making it the third-largest consumer credit category after mortgages and student loans. At its current trajectory, auto loan balances will surpass outstanding student loans in the first half of 2023.

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Using CFPB complaint data to help cities and counties protect the public

In the aftermath of the 2007-2008 financial crisis, Congress established the Consumer Financial Protection Bureau (CFPB) to regulate consumer financial products and services and protect consumers from unfair, deceptive, or abusive acts or practices. One of the major ways we do this is through collecting, monitoring, and responding to consumer complaints.

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CUNA concerned with ‘flawed interpretation’ of NCUA lending study

NCUA Chairman Todd Harper testified before the House Financial Services Committee Wednesday, a day after his testimony before the Senate Banking, Housing, and Urban Affairs Committee. CUNA submitted a letter for the record of the hearing, addressing several credit union priorities and expressing concerns over a recent NCUA study on credit union mortgage lending.

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Justice Department and Department of Education Announce a Fairer and More Accessible Bankruptcy Discharge Process for Student Loan Borrowers

The Department of Justice, in close coordination with the Department of Education, announced today a new process for handling cases in which individuals seek to discharge their federal student loans in bankruptcy.

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CFPB Takes Action Against Carrington Mortgage for Cheating Homeowners out of CARES Act Rights

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) is taking action against Carrington Mortgage Services for deceptive acts or practices under the Consumer Financial Protection Act in connection with mortgage forbearances. The CFPB found that Carrington failed to implement many protections, provided to borrowers with federally backed mortgage loans who were experiencing financial hardship, during the COVID-19 public health emergency.

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CFPB Supervisory Examinations Find Credit Reporting Failures, Junk Fees, and Mishandling of COVID-19 Protections

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a new Supervisory Highlights report on legal violations identified during the CFPB’s supervisory examinations in the first half of 2022. The report details key findings across consumer financial products and services, including how consumer reporting companies and data furnishers continued to violate the Fair Credit Reporting Act (FCRA) by failing to promptly address and update incorrect information on credit reports. Today’s report also highlights instances where mortgage servicers charged impermissible fees when homeowners went to make their mortgage payments.

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Court forgives $6 billion in debt for 200,000 defrauded student loan borrowers

Approximately 200,000 people who attended schools that defrauded them will have their student loan debts completely wiped, a U.S. district court ruled in a landmark decision Wednesday.

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Cybersecurity Upskilling Is Increasingly Important in Uncertain Economy

COLLEGE PARK, Md., November 17, 2022--(BUSINESS WIRE)--Cybrary, the leading training platform for cybersecurity professionals, today released new findings in "Myths of Training Cyber Professionals," a research report from Omdia that dispels many of the myths associated with training cybersecurity professionals and the role of ongoing training in addressing the increase in security threats.

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Mortgage rates plunge, largest weekly drop since 1981

Mortgage rates dropped sharply last week following a series of economic reports that indicated inflation may finally be easing.

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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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Industry Events

 
RMAi 2023 Annual Conference

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

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