FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California

WASHINGTON – Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank.

WalletHub Reports: Record $180B Rise in Credit Card Debt in 2022 + Fed Rate Hike to Cost $3.4B & Cities with the Biggest Debt Increase

WalletHub’s Credit Card Debt Study found that consumers racked up a record $180.3 billion in new debt during 2022, and WalletHub’s Fed Rate Hike Report revealed that the interest rate increase expected on March 22 will cost people with credit card debt an extra $3.4 billion over the next 12 months.

‘Big 3′ credit bureaus received most consumer complaints in record-setting year

Consumer complaints about credit reporting companies nearly doubled from 2021 to 2022, according to an analysis released Thursday by the MASSPIRG Education Fund.

New Wyoming Bill Requires Licensure for Debt-Buyers

On February 27, Wyoming Governor Mark Gordon signed into law House Bill 284, which requires debt buyers be licensed as “collection agencies” starting July 1, 2023.

CFPB starting mandated review of mortgage loan originator rules

The mortgage loan originator rules, part of the Truth in Lending Act’s Regulation Z, protect homebuyers from anti-competitive practices, like double-dealing or steering activities, that lead consumers into more expensive loans.

Visa Rule Updates for Collection Agencies and Repayments of Debt or Overdue Receivables

Visa is introducing a new merchant category code and rules for collection agencies. New rules are also being introduced for the repayment of overdue receivables, and existing debt repayment rules will be updated. 

SUPERINTENDENT ADRIENNE A. HARRIS ANNOUNCES DFS SECURES MORE THAN $157.4 MILLION TO CONSUMERS & HEALTH PROVIDERS IN 2022 

Marking National Consumer Protection Week this year, Superintendent of Financial Services Adrienne A. Harris announced the New York State Department of Financial Services (DFS) recovered more than $124.5 million in 2022 for consumers and healthcare providers who filed complaints with the Department, as well as $32.9 million in restitution in addition to penalties collected from DFS enforcement and supervisory actions against financial institutions and service providers.

SoFi Bank sues to block Biden’s student loan payment pause

WASHINGTON — A private bank is trying to force the Biden administration to end its pause on federal student loan payments, arguing the moratorium has no legal basis and has cost the bank, known for its refinancing business, millions of dollars in profits.

DFPI Statement: Silvergate Bank to Begin Voluntary Liquidation

SACRAMENTO – The California Department of Financial Protection and Innovation announced today that Silvergate Bank, a state-chartered bank under the supervision of the DFPI, has voluntarily begun the process of liquidation. Silvergate Bank is based in La Jolla, California.

Attorney General Bonta: California is Heeding President Biden’s Call to End Hidden Fees

SACRAMENTO — California Attorney General Rob Bonta today issued a statement in response to the call from the Biden Administration and the Consumer Financial Protection Bureau for states to better address the nationwide concern of hidden fees. On February 14, 2023, Attorney General Bonta, with Senator Bill Dodd and Senator Nancy Skinner, introduced Senate Bill 478 (SB 478), landmark legislation seeking to prohibit in California the practice of hiding mandatory fees, also known as junk fees. 

FTC Announces Tentative Agenda for March 16 Open Commission Meeting

Today, Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Thursday, March 16, 2023. The open meeting will commence at 11am ET and will begin with time for members of the public to address the Commission.

U.S. CFPB’s bid to curb late credit card fees faces strong opposition

March 06 (Reuters) - A U.S. consumer watchdog's proposal to slash late fees on credit cards is facing a rough road ahead as lenders gear up for what could turn out to be a fierce battle with the agency, industry experts and analysts said.

CFPB Uncovers Illegal Junk Fees on Bank Accounts, Mortgages, and Student and Auto Loans

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a special edition of its Supervisory Highlights that reports on unlawful junk fees uncovered in deposit accounts and in multiple loan servicing markets, including in mortgage, student, and payday lending. These unlawful fees corrode family finances, force up families’ banking and borrowing costs, and are not easily avoided – even by financially savvy consumers. As described in the Supervisory Highlights, the CFPB continues rooting unlawful fees out of consumer financial markets.

Supervisory Highlights Junk Fees Special Edition, Issue 29, Winter 2023

This special edition of Supervisory Highlights focuses on the Consumer Financial Protection
Bureau’s (CFPB or Bureau) recent supervisory work related to violations of law in connection
with fees. 1 As part of its emphasis on fair competition the CFPB has launched an initiative,
consistent with its legal authority, to scrutinize exploitative fees charged by banks and financial
companies, commonly referred to as “junk fees.”

DOJ’s Top Ten Consumer Complaints List of 2022

To kick off National Consumer Protection Week (March 5-11), Attorney General Ellen Rosenblum today released the Oregon Department of Justice’s (DOJ) list of 2022’s top ten consumer complaints.

Attorney General Yost Silences Texas-based Robocallers

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost and seven other attorneys general announced two related judgments effectively shutting down a massive robocall operation that bombarded Americans with billions of illicit robocalls, including more than 69 million to Ohioans. “Stopping annoying robocalls is a lengthy process, but this judgment is a reminder that we can cut them off,” Yost said. “There are enough distractions in life – let’s not let spam callers interrupt our lives anymore.”

Second Circuit Affirms Judgment in Favor of Law Firm in Meaningful-Attorney-Involvement FDCPA Class Action

On February 13, the Second Circuit Court of Appeals affirmed the decision of an Eastern District of New York court and found that the defendant law firm, Mandarich Law Group, LLC (Mandarich), had conducted a meaningful attorney review of the plaintiff debtor’s account prior to mailing her a debt collection letter on the firm’s letterhead. The three-judge panel set forth the decision in a summary order, which does not have precedential effect.

Mortgage demand recovers slightly, despite rising interest rates

After dropping to a 28-year low the previous week, mortgage demand recovered slightly, even though interest rates marched higher. Total mortgage application volume rose 7.4% last week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The rise of art-backed loans is spectacular—here’s how they work

There was a time when art, while hopefully pleasurable to own, was a non-performing asset financially. No longer. As the worlds of art and finance increasingly converge, leveraging art collections to unlock liquidity has become a healthily growing sector, according to its participants.

BREAKING DOWN THE FTC’S PROPOSED BAN ON NON-COMPETE AGREEMENT

We previously reported on the Federal Trade Commission’s (FTC) Proposed Rule that has sparked quite a stir. The Proposed Rule aims to ban companies from forcing employees to sign non-compete agreements. These agreements prohibit workers from taking jobs with competitors for a certain period of time after leaving their current employer. The new rule wouldn’t just ban standard non-competes, though. It would also prohibit other restrictive contracts like non-disclosure agreements that prevent employees from sharing trade secrets and employment contracts that require workers to pay back training costs if they leave too soon.

CFPB and NLRB Announce Information Sharing Agreement to Protect American Consumers and Workers from Illegal Practices

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the National Labor Relations Board (NLRB) today signed an information sharing agreement, creating a formal partnership between the two agencies to better protect American families and to address practices that harm workers in the “gig economy” and other labor markets.

PCI DSS Requirements: What Your Business Needs to Know

In a fast-evolving digital economy, there’s no time to waste when protecting data and ensuring robust information security. In fact, did you know that a cyber attack occurs somewhere on the web every 39 seconds? So let’s cut to the chase and get to the nitty-gritty.

Medical debt affects millions, and advocates push IRS, consumer agency for relief

Dozens of advocates for patients and consumers, citing widespread harm caused by medical debt, are pushing the Biden administration to take more aggressive steps to protect Americans from medical bills and debt collectors.

Attorney General James Releases Top 10 Consumer Complaints of 2022

NEW YORK – New York Attorney General Letitia James kicked off National Consumer Protection Week by releasing a list of the top 10 consumer complaints received by the Office of the Attorney General (OAG) in 2022. The top complaints range from price gouging of infant formula and children’s medication, flight cancellations, and the dramatic increase in gasoline prices.

FTC Extends Public Comment Period on Its Proposed Rule to Ban Noncompete Clauses Until April 19

The Federal Trade Commission voted to extend the public comment period for its proposed new rule to ban employers from imposing noncompetes on their workers. With the extension, the FTC will now be accepting comments on the proposed rule until April 19. Originally, the  deadline for submitting comments was March 20.

Consumers keep spending. That might not be good news for them or the Fed

Minneapolis CNN—US consumers kept spending last year despite historically high inflation, not only shelling out for necessities but also splurging on restaurants, travel and other experiences impeded by the pandemic.

Attorney General Todd Rokita shuts down massive robocall operation

INDIANAPOLIS — Millions of Hoosiers may now get fewer robocalls after a massive robocall operation was shut down, Attorney General Todd Rokita announced Monday.

FTC Sends Nearly $2.4 Million to Raging Bull Customers After the Company Agrees to Settle Charges of Bogus Earnings Claims

The Federal Trade Commission is sending payments totaling nearly $2.4 million to consumers who paid subscription fees to the online stock trading site RagingBull.com, a company the FTC says used bogus earnings claims to trick consumers.

Older mortgage applicants are more likely to be rejected, study finds

The older you get, the weaker your chances are at getting approved for a mortgage or refinance, according to a new study. Rejection rates spiked the most after borrowers crossed 70 and were most common among men, according to a brief from the Center for Retirement Research at Boston College that summarized a Federal Reserve Bank of Philadelphia study analyzing 5 million single-borrower loan applications from 2018-2020.

Banks Hike Rates as Deposits See Historic Drop

Banks are raising their deposit rates to woo back consumers from higher-yield alternatives. A move to things like Treasury bills and money market funds has seen commercial bank deposits fall for the first time since 1948, Bloomberg News reported Monday (March 6), citing data from the Federal Deposit Insurance Corp. (FDIC).

On the heels of the pandemic, borrowers with low credit are falling behind on car loans

Borrowers with low credit scores are falling behind on their car loan payments as inflation eats away at consumer spending power.

Ohio bill would require hospitals to post prices and limit collections if they don’t

A federal law says hospitals should be posting prices for some key services so patients can compare costs. But some Ohio lawmakers say that's not happening in most Ohio hospitals. And those legislators are sponsoring a bill that would make an Ohio law requiring hospitals to share that information publicly.

Robocall Growth Slows, Spam Texts Explode According to Robokiller 2022 Phone Scam Insights Report

NEW YORK, March 6, 2023 /PRNewswire/ -- Americans received a whopping 225 billion robotexts, a 157% increase from 2021 and the most significant increase on record, according to Robokiller's annual phone scam report released today. Scammers haven't shifted too far away from robocalls yet, as those reached 78 billion in 2022, a modest 8% increase from the year prior.

You won’t believe how much money hackers get from stealing your data

Hackers are constantly figuring out ways to steal your data, and it's almost always about one thing - the money. In fact, the price paid for this stolen information is astounding. We typically talk about how these data breaches happen and what their impact is after the fact.

Justice Department Sues Jacksonville, North Carolina-based Goines Towing Company For Violating Rights of Servicemembers

The Justice Department today filed a lawsuit in the Eastern District of North Carolina alleging that Billy Joe Goines, the owner and operator of Goines Towing & Recovery (Goines), auctioned off, sold or otherwise disposed of motor vehicles owned by servicemembers using court judgments obtained without filing proper military affidavits, in violation of federal law.

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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