New CFPB Issue Spotlight Examines High Fees that Chip Away at Public Benefits

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) released a new issue spotlight examining how the financial products used to deliver public benefits, like Social Security and unemployment compensation, affect individuals’ ability to fully access the assistance provided through those programs.

Credit union trade group preemptively blasts Durbin bill

NAFCU said a bill to curb the processing of credit card transactions would reduce credit union members’ revenue from swipe fees and limit loyalty programs, fraud protection and free checking.

Mortgage demand from homebuyers drops to a 28-year low

Mortgage rates moved higher again last week, pushing buyers back to the sidelines just as the spring housing market is supposed to be heating up.

Low-income households are falling behind on car bills

Consumers with low credit scores are falling behind on their auto loans at a record rate.

Fraud cost consumers $8.8 billion last year, Federal Trade Commission says. That’s up 44% from 2021

Scammers are making more money per episode of fraud, new government data suggests. While the number of fraud reports recorded through the Federal Trade Commission’s database fell to 2.4 million in 2022 from 2.9 million, the aggregate loss from those instances reached nearly $8.8 billion. That’s up 44% from the $6.1 billion reported in 2021 to the FTC.

Higher Expenses Weigh Down U.S. Bank Profits in 2022 – FDIC

WASHINGTON (Reuters) -U.S. banks reported a 5.8% decline in profits in 2022 as firms spent more on noninterest items and provision expenses against future losses, the Federal Deposit Insurance Corporation reported Tuesday.

Issue Spotlight: Public Benefits Delivery & Consumer Protection

Cash assistance predominantly flows to low-income families in need or individuals at a precarious time. Given the often-acute needs of the populations who receive and rely on cash assistance, it is critical that beneficiaries have full and timely access to these funds.

8th Cir. Vacates FDCPA Class Action Post-Trial Judgment for Lack of Article III Standing

The U.S. Court of Appeals for the Eighth Circuit recently vacated a trial court’s judgment entered after trial in favor of the named plaintiff and a class of consumers for alleged violations of the federal Fair Debt Collection Practices Act and the Nebraska Consumer Protection Act due to lack of Article III standing.

Supreme Court’s CFPB case potentially impacts anyone with credit card debt or a mortgage

The Consumer Financial Protection Bureau was born out of the 2008 recession and the belief that our government was not adequately protecting us (consumers) from companies engaging in unfair, misleading and illegal behavior.

FTC and CFPB Seek Public Comment on How Background Screening May Shut Renters out of Housing

The Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB) are requesting comment on background screening issues affecting individuals who seek rental housing in the United States, including how the use of criminal and eviction records and algorithms affect tenant screening decisions and may be driving discriminatory outcomes.

Telephone and Texting Compliance News: Regulatory Update — FCC Takes Action Against Repeat Robocaller, Legislators Seek Higher Robocalling Penalties, Twilio Stops Illegal Robocallers

The Federal Communications Commission’s Enforcement Bureau (“Bureau”) took swift action to shut down a repeat robocaller trying to evade enforcement. On February 15, the Bureau issued a cease-and-desist letter to OneEye LLC (“OneEye”) ordering the company to investigate and take steps, including blocking, to mitigate suspected illegal robocalling traffic on its network.

27% of US Consumers Pulled Money From Savings to Manage Credit Card Debt

Rising prices continue to affect consumers’ purchasing power, making it more difficult for those in all income levels to live within their means, put aside savings and manage their debts. Regardless, consumers appear to be settling into the current financial environment by finding ways to adjust their behavior to lessen inflation’s impact. PYMNTS’ research finds that in January 2023, 60% of United States consumers lived paycheck to paycheck, down 4 percentage points from January 2022.

High mortgage rates weaken home prices for sixth straight month

Home prices fell for the sixth straight month in December as high mortgage rates damped buyer demand, according to data released Tuesday.

With inflation high, why are Americans still spending?

U.S. consumers are proving they have money to spend. According to a report by the Commerce Department last Friday, personal spending rose 1.8% in the month of January.

Ninth Circuit Vacates and Remands $8 Million CFPB Judgment in Lawsuit Against Mortgage Services Company

The Ninth Circuit Court of Appeals recently issued an Order vacating a nearly $8 million judgment won by the Consumer Financial Protection Bureau (CFPB) in its lawsuit against Nationwide Biweekly Administration, Inc. (Nationwide), an Ohio mortgage services company.

Seeking public input: new proposal for alternative mortgage disclosures for construction loans

In the past, under the guise of promoting innovation, individual firms privately lobbied the Consumer Financial Protection Bureau to obtain special regulatory treatment. If they were successful, a firm receiving special treatment could then attract investors and customers by wrongly implying that their business model and practices were endorsed by the government. In other situations, companies that were able to successfully lobby for special treatment did not follow through on their end of the bargain.

Tell us about your experiences with rental background checks and fees

The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) want to hear about your experiences with background checks used to screen potential tenants for rental housing.

Ahead of U.S. Supreme Court Oral Arguments, Attorney General Bonta Issues Statement in Support of Biden Administration’s Historic Student Loan Debt Relief Plan

OAKLAND – California Attorney General Rob Bonta today issued a statement in support of President Biden’s ongoing efforts to provide relief for student borrowers. The statement of support comes ahead of oral arguments before the United States Supreme Court in a legal challenge to the Biden Administration’s plan to discharge between $10,000 and $20,000 in federal student loan debt for certain lower-income borrowers. This historic one-time program will provide student loan debt relief to approximately 40 million Americans, including more than 3.5 million Californians.

FTC warns tech: ‘Keep your AI claims in check’

The FTC, fresh off announcing a whole new division taking on “snake oil” in tech, has sent another shot across the bows of the over-eager industry with a sassy warning to “keep your AI claims in check.”

Attorney General Bonta to U.S. Supreme Court: CFPB Is Constitutional, Too Much at Stake for Consumers

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the U.S. Supreme Court's decision to grant the Consumer Protection Financial Bureau’s (CFPB) request that the court review a decision by the Fifth Circuit finding that CFPB’s funding scheme violates the Apportionment Clause:

CFPB Shuts Down Mortgage Loan Business of RMK Financial for Repeat Offenses Against Military Families

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) permanently banned RMK Financial Corporation, which does business as Majestic Home Loans, from the mortgage lending industry by prohibiting RMK from engaging in any mortgage lending activities or receiving remuneration from mortgage lending. In 2015, the CFPB issued an agency order against RMK for, among other things, sending advertisements to military families that led the recipients to believe the company was affiliated with the United States government.

Mortgage Rates for Feb. 27, 2023: Rates Increase

A number of closely followed mortgage rates rose over the last seven days. The average 15-year fixed and 30-year fixed mortgage rates both climbed higher. The average rate of the most common type of variable-rate mortgage, the 5/1 adjustable-rate mortgage, also floated higher.

Supreme Court to hear challenge to consumer agency

WASHINGTON -- The Supreme Court said Monday it will take up a Republican-led challenge to the Consumer Financial Protection Bureau, a case that could threaten how the consumer watchdog agency functions. It is the second time in three years that the justices will be examining the federal agency, which was created in the wake of the 2008 financial crisis.

A federal judge just ruled $6 billion in student-debt cancellation can move forward for 200,000 defrauded borrowers, saying the decision will ‘allow them to not only to move on, but also to move up, elevating others in the process’

On Friday evening, federal Judge William Alsup ruled that a settlement he had already approved last year resulting from a lawsuit — Sweet v. Cardona — can move forward, which would give 200,000 borrowers defrauded by the schools they attended $6 billion in debt relief. 

U.S. Supreme Court to hear fight over consumer watchdog agency’s funding

WASHINGTON, Feb 27 (Reuters) - The U.S. Supreme Court on Monday agreed to decide whether the Consumer Financial Protection Bureau's funding structure established by Congress violates the U.S. Constitution in a case that President Joe Biden's administration has said threatens the agency's ability to function and risks market disruption.

An Industry Insider on Balancing Security With Seamlessness

The perennial problem of fraud is becoming more significant. With the rise of digital banking, criminals no longer need to be present to scam FIs and their customers — and the risk of fraud is growing as a result. In an interview with PYMNTS, Seth Ruden, senior director of fraud operations for First Tech Federal Credit Union, discussed how his CU is responding to the challenge. 

Student Loan Cases Head to Supreme Court Tuesday

The U.S. Supreme Court will hear oral arguments in two cases Feb. 28 that hinge on challenges to the Biden administration’s student debt relief plan.

TransUnion In “Active Settlement Discussions” with CFPB and FTC Over Tenant Screening

On February 14, TransUnion filed its annual 10-K report pursuant to the Securities and Exchange Act. Under the section entitled “Risks Related to Laws, Regulations and Government Oversight,” the company disclosed that it was in “active settlement discussions” with the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) over the alleged Fair Credit Reporting Act compliance lapses related to tenant screening.

Student loan forgiveness: Supreme Court to hear challenges to Biden plan on Tuesday

The U.S. Supreme Court will hear two cases Tuesday that challenge President Joe Biden’s student loan forgiveness plan.

Ninth Circuit Upholds Dismissal of Autorenewal Lawsuit, Finds Disclosure, Consent, and Acknowledgment Sufficient

In January, the Ninth Circuit agreed with a California district court's finding that a software company's autorenewal practices did not violate California's autorenewal law. The decision reflects a win for companies offering automatic renewal services despite the onslaught of lawsuits and challenges by the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) on negative option offers due to so-called dark patterns.

FTC and DOJ File Complaint Against “Web of VoIP Service Providers” for Allegedly Making Illegal Robocalls Using Ringless Voicemails

On February 16, the Department of Justice (DOJ), on behalf of the Federal Trade Commission (FTC), filed a complaint against multiple entities and individuals, including outbound calling service provider Stratics Networks Inc. (Stratics) for allegedly providing outbound calling services that enabled certain individuals and entities to route millions of ringless voicemail (RVM) robocalls in violation of the Telemarketing Sales Rule (TSR).

FCC & Illinois Attorney General Sign Robocall Enforcement Partnership

The FCC's Enforcement Bureau and Illinois Attorney General's office signed a Memorandum of Understanding to establish critical information sharing and cooperation structures to investigate spoofing and robocalls scam campaigns.

Joint Statement on Liquidity Risks to Banking Organizations Resulting from Crypto-Asset Market Vulnerabilities

The Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency (collectively, the agencies) are issuing this statement on the liquidity risks to banking organizations presented by certain sources of funding from crypto-asset related entities.

Our auto finance data pilot

The auto finance market has seen significant change over the past two years. Car prices have risen substantially, leading to larger loan amounts and higher monthly payments. These more expensive loans are beginning to have an impact on consumer and household financial stability.

Lawsuit says Henderson councilman’s business charged 700 percent interest

A Henderson City councilman’s payday loan business is under scrutiny in federal court, after two class action lawsuits alleged its lending license through a Native American tribe helped it offer loans with interest rates above 700 percent, recent court records show.

Policies and Procedures as Privacy and Security Controls: Why It Is Time They Are Replaced by Something Live and Interactive

Policies and procedures have been with us as long as privacy and security or arguably even much longer. From US to EU, from Australia and Singapore to Canada, whenever privacy and security is discussed and needs to be implemented they are always mentioned as the most basic and the most prominent controls. Almost every framework or guideline, be it from US National Institute of Standards and Technology (NIST), EU European Data Protection Board (EDPB) or European Union Agency for Cybersecurity (ENISA), inevitably mentions policies and procedures as being necessary to implement a desired privacy and security program and to successfully put it into motion.

What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is legislation passed in 1974 that prohibits creditors from discriminating against an applicant due reasons related to race, color, religion, national origin, sex, marital status, age or participation in public assistance programs. Criteria that creditors can use in their decisions are financially based, like your income, debt, recurring expenses and credit history.

Consumer spending posts biggest gain in almost two years. Don’t expect it to last

The numbers: Consumer spending rose 1.8% in January to mark the biggest increase in almost two years, but the surge was powered by unusually strong auto sales and is unlikely to last.

CFPB Orders TitleMax to Pay a $10 Million Penalty for Unlawful Title Loans and Overcharging Military Families

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) took action against a web of corporate entities operating under TMX Finance, broadly known as TitleMax, for violating the financial rights of military families and other consumers in providing auto title loans.

Wells Fargo lays off mortgage bankers days after rewarding some with California retreat

Wells Fargo laid off hundreds of mortgage bankers this week as part of a sweeping round of cuts triggered by the bank’s recent strategic shift, CNBC has learned.

District Court Dismisses CFPB Redlining Action Against Nonbank, Limits ECOA’s Reach

On February 3, the U.S. District Court for the Northern District of Illinois issued an opinion and order dismissing with prejudice the CFPB’s complaint for violations of the ECOA against a mortgage lender and its owner violated for engaging in discriminatory marketing and applicant outreach practices.

FTC crunches the 2022 numbers. See where scammers continue to crunch consumers.

There are prime numbers, irrational numbers, and Fibonacci’s numbers – but from a consumer protection perspective, no number is quite as sobering as the dollar amount that people reported losing to fraud in 2022. According to new data from the FTC, that number is almost $8.8 billion and it’s up 30% over the year before.

Cross River and Senator Monique Limón Bring Together Leading Bank and Fintech Experts to Discuss Consumer Lending and Responsible Bank Partnerships

SACRAMENTO, Calif.--(BUSINESS WIRE)--Cross River Bank (“Cross River”), a leading technology infrastructure provider that offers embedded financial solutions, yesterday joined with California State Senator Monique Limón (D-CA), Assemblyman Tim Grayson (D-Concord), the Department of Financial Protection and Innovation (DFPI) and Tom Curran, Chief Risk and Compliance Officer at one of Cross River’s innovative partners, Upgrade, to discuss California’s consumer lending landscape, how AB539 sets the parameters for responsible lending, and how responsible bank-fintech partnership model propels innovation, protects consumers, and expands access to credit and financial inclusion.

Telecom Regulators Issue Sweep of Illegal Robocall Enforcements

The FTC and FCC issued robocall enforcements, including notices to voice service providers. The FCC also expanded its robocall enforcement partnership with the states.

Home Lenders Hunt for Ways to Make 6% Mortgages More Attractive

Homebuyers and lenders adjusting to a doubling of US mortgage rates in the past year are finding workarounds to ease the financing pain.

FTC Sues Stratics and Debt Relief Companies That Hired Robocallers

The Federal Trade Commission (FTC) is taking action against Stratics Networks, a company that allegedly provided the technology for telemarketers to make tens of millions of illegal robocalls. The company's services were used to promote offers for credit card and student debt relief, home buying, health insurance, cable TV discounts, and for telemarketers playing on concerns about the COVID-19 pandemic.

Hackers Using Trojanized macOS Apps to Deploy Evasive Cryptocurrency Mining Malware

Trojanized versions of legitimate applications are being used to deploy evasive cryptocurrency mining malware on macOS systems.

Supreme Court rules 9-0 that bankruptcy filers can’t avoid debt incurred by another’s fraud

The Supreme Court in a unanimous decision Wednesday ruled that a California woman could not use U.S. bankruptcy code protection to avoid paying a $200,000 debt that resulted from fraud by her partner.

Mark your calendar for these upcoming NCPW events

National Consumer Protection Week (NCPW) 2023 is coming up in two weeks, and we hope you’ll attend some of the virtual and in-person events. NCPW is a time when the FTC partners with organizations and individuals across the country to bring you information and advice on scams, identity theft, and other consumer protection issues.

How cybersecurity executives make the case for continued tech investments in a tough economy

Cybersecurity executives have enjoyed a nice run of receiving the financial resources they need to keep their organizations protected against attacks. But given the current economic uncertainty, many will likely need to rethink their approach to investments in tools and services.

What Happens if You Never Pay Your Overdraft Fees?

Overdraft fees are never fun, but unfortunately, they’re something many bank customers have dealt with. We all know it’s best to pay them back as soon as possible, but what happens if they keep piling up and you never deal with them?

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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