December 15, 2022: Capital One to Pay $2 Million to Settle Debt Collection Lawsuit

Los Angeles County District Attorney George Gascón announced today that Capital One, N.A., will pay $2 million to settle a civil lawsuit alleging the company made unreasonably excessive calls to collect past due accounts.

23K student loan borrowers could benefit from $19 million settlement

About 23,000 student loan borrowers could get a monetary benefit from a $19 million settlement with five student loan companies, according to the Consumer Financial Protection Bureau (CFPB).

State AGs, Federal Regulators Gather to Discuss Tech Competition, ESG, Privacy, and More

Last week, the National Association of Attorneys General (NAAG) held its annual Capital Forum in Washington, DC, which provided AGs, AG staff, and private sector attendees the opportunity to engage with each other as well as federal officials, to discuss important policy issues and learn about the latest state and federal legal developments.

51 AGs Show Support for FCC Proposal Requiring Wireless Providers to Block Spam Texts

The National Association of Attorneys General (NAAG) sent a letter on behalf of a coalition of 51 AGs supporting an FCC proposal meant to cut down on the number of unwanted text messages received by consumers. The letter was sent in response to an FCC request for comment on the proposal, which would require mobile wireless providers to block likely fraudulent text messages at the network level.

Crypto Bank Silvergate Hit With Class Action Lawsuit Over FTX, Alameda Dealings

Silvergate is liable for its role in “furthering FTX’s investment fraud” and breaches of fiduciary duty, alleges a new class action suit.

Notice of Availability of Revised Consumer Information Publication

The Consumer Financial Protection Bureau (Bureau or CFPB) announces the availability of an updated consumer publication, “What You Should Know about Home Equity Lines of Credit,” also known as the HELOC booklet, required by the Truth in Lending Act (TILA), as implemented by Regulation Z. This version of the HELOC booklet is updated to align with the Bureau's educational efforts, to be more concise, and to improve readability and usability.

FTC Action Leads to Permanent Ban for Scammers Behind ‘The Credit Game’ Credit Repair Scheme

As a result of a Federal Trade Commission lawsuit, the operators of “The Credit Game,” a credit repair scheme that cost consumers millions of dollars, face a lifetime banfrom the credit repair industry in proposed court orders filed today.

OCC Reports Improvement in Overall Mortgage Performance

WASHINGTON—The Office of the Comptroller of the Currency (OCC) reported that the performance of first-lien mortgages in the federal banking system improved during the third quarter of 2022. The OCC Mortgage Metrics Report, Third Quarter 2022 showed that 97.2 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 95.6 percent a year earlier.

Michigan credit union to acquire Florida bank in year’s 13th such tie-up

Grand Blanc, Michigan-based Dort Financial Credit Union has agreed to acquire West Palm Beach, Florida-based Flagler Bank, the companies announced Monday.

Consumers harmed by prison financial services company JPay to receive compensation

In October 2021, the CFPB penalized the prison financial services company JPay for violating the Consumer Financial Protection Act (CFPA) by charging consumers fees to access their own money on prepaid debit cards that consumers were forced to use.

Attorney General Bonta Files Friend-of-the-Court Brief in Defense of CFPB Funding Structure, Enforcement Authority

OAKLAND – California Attorney General Rob Bonta, as part of a coalition of 22 attorneys general, filed an amicus brief in the U.S. Supreme Court in support of the Consumer Financial Protection Bureau’s (CFPB) petition for review of a Fifth Circuit decision finding that the agency’s funding mechanism is unconstitutional.

U.S. consumer loan delinquencies seen surging to 13-year high in 2023 – study

NEW YORK, Dec 14 (Reuters) - U.S. consumers will fall behind on their personal loan and credit card payments next year at the highest rates since 2010, according to forecasts from TransUnion, a major consumer credit rating agency.

CFPB Proposed Rule Aims to Publicly Identify Companies Facing Enforcement Actions

The Consumer Financial Protection Bureau has added a proposed rule to its list for 2022 that would require certain nonbank covered entities, including debt collectors, to register with the bureau “when they become subject to certain local, state, or federal consumer protection agency or court orders.”

New Legislation Protects New Yorkers with Medical Debt

New York Governor Kathy Hochul recently signed legislation designed to prevent New York hospitals and medical providers from employing certain collection practices against patients with medical debt. This protection became effective immediately upon the Governor’s signing.

Mortgage rates drop for fifth week in a row

Washington, DC CNN — Mortgage rates fell once again this week, dipping for the fifth straight week.

SUPERINTENDENT ADRIENNE A. HARRIS RELEASES VIRTUAL CURRENCY GUIDANCE FOR BANKING ORGANIZATIONS

Today, New York Department of Financial Services (DFS) Superintendent Adrienne A. Harris released Guidance to banking organizations that wish to engage in virtual currency-related activities. The Guidance is applicable to all New York regulated banking organizations, as well as branches and agencies of foreign banking organizations licensed by the Department (“Covered Institutions”).

Here’s what the Federal Reserve’s half-point rate hike means for you

The Federal Reserve raised its target federal funds rate by 0.5 percentage points at the end of its two-day meeting Wednesday in a continued effort to cool inflation.

The Education Department ‘failed to protect some of the most vulnerable student-loan borrowers’ who had their wages stripped from them illegally during the pandemic, Elizabeth Warren says of a new ‘alarming report’

On Thursday, the Student Borrower Protection Center released a report that found, via a Freedom of Information Act (FOIA) request submitted by advocacy group Student Defense, that the Education Department continued to garnish student-loan borrowers' wages after Congress required the department to cease those collection tactics when the pandemic began in March 2020.

Retail sales have dropped significantly

Minneapolis CNN — Black Friday may have been back in fashion this year, but the strong turnout at the start of the holiday shopping season last month wasn’t enough to counter a broader consumer pullback in spending.

Prepared Statement of Director Rohit Chopra before the House Committee on Financial Services

Our economy and our consumer finance markets are truly in transition, out of a pandemic and further into the digital era. I will offer some observations about the state of the economy today, as well as what the CFPB is doing to prepare for the future, especially as we confront the challenges of Big Tech in banking. I will also highlight a number of opportunities for bipartisan reforms.

Credit Unions Gain Top Share Of Auto Lending In U.S. For First Time Ever

In the third quarter of 2022, credit unions earned the largest share of automotive financing in the U.S., surpassing banks and other lenders in the amount of auto loans and leases produced, according to Experian.

You have one new message: FCC finds ringless voicemails are subject to the TCPA

In a unanimous Declaratory Ruling and Order (Order) issued on November 21, 2022, the Federal Communications Commission (FCC) found that a “ringless voicemail,” which delivers a message directly to a consumer’s voicemail, constitutes a “call” under the Telephone Consumer Protection Act (TCPA).¹ 

Connecticut Department of Banking Fines Law Firm $100,000 for Collecting Without a License

On December 1, the Connecticut Department of Banking issued a cease and desist order to the Law Offices of David M. Katz mandating the law firm cease conducting collection activities in the state without a license. The law firm was also fined $100,000, the maximum allowed by law.

CARDINAL CREDIT UNION RANKED 2ND NATIONALLY IN AWARD FROM CREDIT UNION NATIONAL ASSOCIATION

MENTOR, Ohio, Dec. 14, 2022 /PRNewswire/ -- The Cardinal Credit Union, a member-owned, not-for-profit financial cooperative serving the community through high performance banking products and services, announced today it has been recognized by the Credit Union National Association (CUNA) with the second overall national ranking for the 2022 Desjardins Youth Award in the category of $250MM to $1B in assets. Cardinal Credit Union is the only credit union in Ohio and one of just 10 nationally to receive this honor.

ACA Urges Congress to Consider Concerns with CFPB Actions During Chopra’s Testimony This Week

Consumer Financial Protection Bureau Director Rohit Chopra will testify in two hearings on Capitol Hill this week, starting with the House Financial Services Committee (HFSC).

CFPB to issue $95 million in redress to consumers harmed by Premier Student Loan Center

The CFPB will distribute over $95 million in redress to over 87,000 consumers harmed by Consumer Advocacy Center Inc., d/b/a Premier Student Loan Center, and related companies (Premier). Premier operated its student loan debt relief enterprise through multiple corporate entities and under multiple names, including co-defendants True Count Staffing Inc., d/b/a SL Account Management; and Prime Consulting LLC, d/b/a Financial Preparation Services.

CBA: Most consumers want more oversight for crypto, fintech firms

Nearly 90% of Americans are concerned that crypto and fintech companies aren’t held to the same regulatory standards as traditional banks, according to a Consumer Bankers Association (CBA) survey released Tuesday.

America’s Household Income Continues Three-Quarter Slide

U.S. household income declined this summer for the third straight quarter as stock prices fell. That's according to the Federal Reserve's latest Financial Accounts of the United States report, which showed that the net worth of the country's households and non-profits dropped to $143.3 trillion in this year's third quarter.

Inflation cooled more than expected in November

Tuesday brought some encouraging news on the stubbornly high prices that have weighed down Americans: Inflation as measured by the Consumer Price Index cooled considerably in November and is at its lowest level in nearly a year.

CFPB and FHFA Publish Updated Data from the National Survey of Mortgage Originations for Public Use

 – The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) today published updated loan-level data for public use collected through the National Survey of Mortgage Originations (NSMO). The data also provide updated mortgage performance and credit information for a nationally representative sample of mortgage borrowers from 2013 to 2020.

Consumers harmed by fraudulent student loan debt-relief services will receive payments

If you were one of the more than 23,000 people who were charged unlawful advance fees by five student loan debt-relief companies—Docu Prep Center d/b/a Certified Document Center, Certified Doc Prep Services, Assure Direct Services, Direct Document Solutions, and Secure Preparation Services—that were associated with Monster Loans and Lend Tech Loans, you may receive a check in the mail starting December 12, 2022. Payments will be sent from Epiq Systems.

Arizona State Court Issues Show Cause Order: Will Review Constitutionality of Arizona Protection from Predatory Debt Collection Act

On December 5, an Arizona Superior Court for Maricopa County issued an Order to Show Cause to the state of Arizona and scheduled an expedited evidentiary hearing in a suit challenging the newly passed Arizona Protection from Predatory Debt Collection Act (the Act), also known as Proposition 209. Arizona voters passed the Act in the November midterm elections and it became effective on December 5, the same day the suit and show cause order were filed.

Attorney General Cameron Urges FCC to Reduce Unwanted Text Messages from Fraudulent Numbers

FRANKFORT, Ky. (December 12, 2022) – Attorney General Cameron today joined a bipartisan coalition of 51 attorneys general in urging the Federal Communications Commission (FCC) to continue its efforts to reduce unwanted text messages from fraudulent numbers.

Another Big Bank Gets Into Small-Dollar Loans

Wells Fargo, which operates more than 4,700 branches throughout the U.S., has rolled out a small-dollar loan program that offers instant, automated loans received in minutes and with a fraction of the fees typically attached to payday loans.

Veros Credit Files Notice of Data Breach Affecting Consumers’ Social Security Numbers

On December 8, 2022, Veros Credit reported a data breach with the Texas Attorney General’s office after the company learned that an unauthorized party was able to access confidential consumer information that had been entrusted to the company. According to Veros, the breach resulted in affected consumers’ names, addresses, Social Security numbers, driver’s license numbers, financial account information, insurance information and medical information being compromised.

Teleperformance USA Notifies Consumers of Leaked Social Security Numbers Following Recent Data Breach

On December 8, 2022, Teleperformance USA reported a data breach with the Texas Attorney General after learning that an unauthorized party had accessed confidential consumer information that was entrusted to the company. According to Teleperformance USA, the breach resulted in the names, addresses and Social Security numbers being compromised.

CFPB Proposes Registry to Detect Repeat Offenders

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) proposed requiring certain nonbank financial firms to register with the CFPB when they become subject to certain local, state, or federal consumer financial protection agency or court orders. The CFPB has further proposed to publish the orders and company information via an online registry. 

CFPB Intends to Clear Way for New State Laws Requiring Cost Disclosures in Commercial Transactions

On December 7, the Consumer Financial Protection Bureau (CFPB) published a notice of intent to make a preemption determination on whether the Truth in Lending Act (TILA) preempts a New York commercial financing law. The CFPB has made a preliminary conclusion that the law is not preempted by TILA, and is also considering whether to make a preemption determination regarding similar state laws in California, Utah, and Virginia.

CFPB makes preliminary determinations that Truth in Lending Act does not preempt New York, California, Utah, and Virginia commercial financing disclosure laws

In a notice of “Intent to Make Preemption Determination under the Truth in Lending Act (Regulation Z),” the CFPB announced that it is seeking comments on its preliminary determinations that the Truth in Lending Act (TILA) does not preempt certain provisions of the New York Commercial Finance Disclosure Law (CFDL) or the commercial financing laws of California, Utah, and Virginia. 

LexisNexis Risk Solutions State of Fraud, Identity Report Reveals Surge in Fraudulent Activities

LexisNexis Risk Solutions released the results of its first Global State of Fraud and Identity Report, exploring research and insights from industry experts “on recent statistics and trends from [their] industry-recognized studies on the Global True Cost of Fraud and transaction data from over 39B transactions from the LexisNexis Digital Identity Network® from January 2022 to June 2022.”

Reg F Question of the Week: How Long is a Consumer’s Direct Prior Consent Valid?

The Consumer Financial Protection Bureau has published Debt Collection Rule FAQs for Regulation F, containing questions and answers that pertain to compliance with the rule. The FAQs cover limited-content messages, call frequency issues and more.

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RMAi 2023 Annual Conference

Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference. Registration opens October 3, 2022.