CFPB: Consumer Financial Protection Circular 2023-01

Unlawful negative option marketing practices

Question: Can persons that engage in negative option marketing practices violate the prohibition on unfair, deceptive, or abusive acts or practices in the Consumer Financial Protection Act (CFPA)? Response, Background and Analysis provided in this CFPB Circular.

Collection Management Training Announced – May 8th – 9th | Four Seasons Las Vegas, NV

Teaching collection managers and supervisors techniques for maximizing performance of collectors - Compliance, Coaching and Accountability.

Taught by Ken Evancic, Coaching for Optimal Collections Performance teaches front-line collection supervisors and managers the fundamentals necessary for working with both experienced and inexperienced collectors - providing the knowledge and tools necessary to coach and develop the team to maximize collection performance. For more details, see: https://resourcemanagement.com/training_coaching.html

California Privacy Protection Agency Board Announces Public Meeting February 3

The California Privacy Protection Agency Board (“Board”) will hold a public meeting at the following date and time via Zoom video and telephone conference:
Date: Friday, February 3, 2023
Time: 10:00 am PST

For Meeting Info and Agenda, see Link. California Privacy Protection Agency Board - MEETING NOTICE & AGENDA - FEBRUARY 17, 2022

ARM Industry Claims Were a Mixed Bag in November

WebRecon’s latest report shows litigation was a mixed bag across the board in November in Telephone Consumer Protection Act, Fair Debt Collection Practices Act and Fair Credit Reporting Act cases.

New TransUnion Study Finds Millions of New-to-Credit Consumers Across the Globe Prove to be Similar, if Not Better, Risks Than Established Credit Use

New-to-credit consumers – those early in their credit journeys – generally perform as well or better than borrowers with established credit and similar risk scores. 

Capital One Card Spending Up 9% as Credit Loss Provisions Triple

Capital One Financial’s latest results show consumers continue to spend, but a modestly worse economic outlook has boosted allowance for credit losses. CEO Richard Fairbank said during the conference call with analysts that “consumer credit metrics remain strong — and they’ve been normalizing steadily through 2022 and are approaching pre-pandemic levels.”

9th Cir. Holds ‘Net Impression’ Test Applies to CFPA Actions for Deceptive Solicitations

The U.S. Court of Appeals for the Ninth Circuit recently affirmed a trial court’s ruling in favor of the Consumer Financial Protection Bureau against a company and its owner that provided fee-based scholarship and financial aid services to prospective and current college students.

CFPB Seeks Public Input on Consumer Credit Card Market

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a request for information today seeking public feedback on how the consumer credit market is functioning as part of a biennial review of the industry. The CFPB is seeking more and current information on various aspects of the consumer experience with credit cards.

Looking for a job? Scammers might be looking for you

Recent layoffs in industries like the tech sector have scammers fine-tuning their approaches to take advantage. They may advertise jobs online, sometimes setting up fake websites, or look for targets on social media — all to try to steal your money and personal information.

FTC Marks Identity Theft Awareness Week for 2023 on January 30-February 3

The Federal Trade Commission will mark its annual Identity Theft Awareness Week with a series of free events January 30-February 3 focused on how identity theft affects people of every community and ways to reduce your risk.

FTC Finalizes Order Requiring Credit Karma to Pay $3 Million and Halt Deceptive ‘Pre-Approved’ Claims

Following a public comment period, the Federal Trade Commission finalized a consent order settling charges that credit services company Credit Karma deployed dark patterns to misrepresent that consumers were “pre-approved” for credit card offers.

CFPB Settles with “Debt Collection Mill”

On January 11, the CFPB and a debt-collection law firm it sued in 2019 for illegal debt-collection practices reached settlement. The CFPB included in its initial complaint against the defendant allegations that the law firm falsely represented to consumers that attorneys were actively engaged in overseeing and filing lawsuits, while in a two year period, such law firm employed less than a dozen attorneys and filed more than 99,000 debt-collection lawsuits with minimal supporting documentation.

CFPB Bites of the Month – 2022 Annual Review – Biggest Fines and Penalties

In this article, we share a list of the biggest fines and penalties from our monthly "bites" for 2022.

FCC Broadband Data Collection Filing Window Closes March 1, 2023

The FCC Broadband Data Task Force announced that the second Broadband Data Collection (BDC) filing window opened on January 3, 2023, and the required data submissions may be made at any time up until the deadline of March 1, 2023. 

Arizona AG Concludes Non-Recourse, No-Interest Earned Wage Access Products Are Not “Consumer Lender Loans” Requiring a License

Arizona Attorney General Mark Brnovich released opinion No. 22-(R22-011), concluding earned wage access (EWA) products that are fully non-recourse and no-interest are not “consumer lender loans” under Arizona law.

Third Circuit Affirms Dismissal of FDCPA Claim Arising from State Court Clerical Error

May a debt collector incur liability under the Fair Debt Collection Practices Act (FDCPA) by seeking to collect a debt under a state court judgment later determined to be void? Not according to the Third Circuit Court of Appeals in a nine-page opinion issued on January 11, 2023 in the case of Barbara Lowe v. FBCS, Inc. et al.

CFPB’s Busy 2023 Has Overdraft Fees, Financial Data on the Agenda

Right out of the gate, the Consumer Financial Protection Bureau (CFPB) has had a busy 2023. The pace won’t slow as the year goes on, with small business lending, nonbank oversight, account fees and more in the crosshairs.

Third Circuit Affirms Dismissal of FDCPA Claim Arising from State Court Clerical Error

May a debt collector incur liability under the Fair Debt Collection Practices Act (FDCPA) by seeking to collect a debt under a state court judgment later determined to be void? Not according to the Third Circuit Court of Appeals in a nine-page opinion issued on January 11, 2023 in the case of Barbara Lowe v. FBCS, Inc. et al. The facts in Lowe are clearly peculiar, but the case offers some reassurance to collections firms facing FDCPA liability due to administrative mishaps in state court collection proceedings.

Reg F Question of the Week: Can a Person Limit Debt Collector Communications?

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 call frequency issues, electronic communications, opt-out requirements and more.

As Auto Leasing Continues to Slow, Increasingly Targeted Marketing May Play Key Role in Maintaining Brand Loyalty

The auto lease market continued to slow down for much of 2022 causing some automakers to lose traditionally loyal customers. A new TransUnion (NYSE: TRU) study found that the auto lease market was down almost half from 31% in January 2020 to 17% in July 2022, more than twice the decrease in auto financing over the same period.  

Nissan data breach exposed clients’ full names and dates of birth

Nissan disclosed a data breach that affected close to 18k of the company’s clients. According to the notice of data breach Nissan sent to affected customers, user data leaked via a third-party vendor that provided software development services to the automaker. According to the company, the leaked data included the company’s users’ names, dates of birth, and Nissan Motor Acceptance Company (NMAC) number.

Is now a good time to refinance your mortgage?

When it comes to financial decisions, timing can be critical. This is especially true for homeowners looking to refinance. If you wait too long or act too quickly it could potentially cost you thousands of dollars. The timing has to be just right to make it worthwhile.

Healthcare Bankruptcies Grew by 84% in 2022, Returning to 2020 Levels

January 19, 2023 - The number of healthcare bankruptcies increased by 84 percent from 2021 to 2022, driven by rising costs, workforce shortages, and high interest rates, according to a report from Gibbins Advisors.

For many struggling mortgage borrowers with home equity, selling their home could be an alternative to foreclosure

Mortgage servicers are often the first to communicate with struggling homeowners about options available to them to avoid foreclosure. In today’s market, many homeowners, including those potentially facing foreclosure, have sufficient equity in their homes that a traditional sale could be a better alternative to foreclosure.

CFPB Issues Guidance to Root Out Tactics Which Charge People Fees for Subscriptions They Don’t Want

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a new circular affirming that companies offering “negative option” subscription services must comply with federal consumer financial protection law.

CFPB Proposes Big Brother Tactics for Consumer Contracts

On Jan. 11, 2023, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule that would require nonbanks under its supervisory authority, subject to limited exceptions, to annually register information about their use of certain terms and conditions in nonnegotiable form contracts that seek to waive or limit consumer rights and legal protections.

Mortgage rates fall to levels last seen in September

Washington CNN—Mortgage rates fell this week as economic data showed inflation is fading. The 30-year fixed-rate mortgage averaged 6.15% in the week ending January 19, down from 6.33% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate was 3.56%.

5 Cyber Trends To Watch As We Move Into 2023

Legend has it that in 390 BC, the Romans were forewarned of the Gaul’s impending attack by a simple, highly sophisticated protection system—honking geese. Today, amid the dizzying speed of digitization, our world has grown infinitely more complex. With every innovation and digital transformation effort, there are equally skilled and well-capitalized adversaries looking to exploit those advancements to make an easy buck.

The FCC is Cracking Down on Robocall Scammers

Over the last few years, the FCC has been targeting robocallers who are trying to scam Americans. Most recently, the FCC is going after scammers who are using robocalls to trick Americans into giving up personal information or pay a fee to get student loan debt relief.

FACT SHEET: FINTECH, CRYPTO, THE BANKING INDUSTRY AND REGULATION

The recent rapid and spectacular collapse of the crypto company FTX has clearly shown—again—the fiction and lawlessness of the crypto industry, as did other dramatic crypto-related events this year, including:

For-profit schools appeal student loan cancelation settlement for 200,000 borrowers

Three for-profit colleges appealed to block a settlement that would cancel more than $6 billion in student loans for 200,000 borrowers who applied for a debt discharge because they believed their schools misled them or engaged in other misconduct.

CFPB Report Reveals Increase in Servicemember Identity Theft

Identity theft that results in damaging information on a credit report can cause problems for anybody, but for servicemembers it can result in the loss of a security clearance or even discharge, according to a new report from the Consumer Financial Protection Bureau.

Third Circuit Finds Vacatur of Default Judgment Does Not Make Collection Activity Retroactively Unlawful

On January 11, 2023, the Third Circuit held that attempting to collect on a default judgment did not constitute using "'false, deceptive, or misleading' representations in connection with collecting the judgment" if the default judgment was later vacated. Lowe v. FBCS, Inc., No. 21-3307, 2023 WL 154970, at *1 (3rd Cir. Jan. 11, 2023).

Rhode Island Federal Court Concludes FDCPA Lawsuit is Barred by the Doctrine of Claim-Splitting

In Laccinole v. MRS BPO, LLC, the United States District Court for the District of Rhode Island denied a frequent pro se plaintiff’s multiple lawsuit attempt at pursuing relief against the same company under the Fair Debt Collection Practices Act (FDCPA).

FTC Proposes Expansive Ban on Non-Compete Agreements

A new proposed rule from the Federal Trade Commission seeks to ban employers’ noncompete agreements and rescind existing agreements in an effort to increase wages and expand career opportunities for workers in the U.S.

RMAi 2023 Annual Conference

Join us in Las Vegas, February 6-9, for the 2023 RMAI Annual Conference.

Optimal Collection Performance – Training for Collection Managers & Supervisors

Teaching collection managers and supervisors techniques for maximizing performance of collectors - Compliance, Coaching and Accountability. Instructor: Ken Evancic

Collection and Recovery Solutions 2023

An invitation-only event for senior level Collection and Recovery Professionals