FTC Issues Guidance on Claims About AI-Powered Products

As lawmakers race to catch up on AI technology, the FTC has issued guidance warning marketers not to make false or unsubstantiated claims about AI-powered products.

NCUA: What it is and how it keeps your money at credit unions safe

The collapses of Silicon Valley Bank and Signature Bank have left consumers wondering what happens if their banks fail. The Federal Deposit Insurance Corp. (FDIC) is the agency that insures deposits at member banks, but the National Credit Union Administration (NCUA) is the government agency that protects credit union members’ share accounts.

Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY-Mellon, PNC Bank, State Street, Truist and U.S. Bank to make uninsured deposits totaling $30 billion into First Republic Bank

Action by the largest U.S. banks reflects their confidence in the country’s banking system and helps ensure First Republic has the liquidity to continue serving its customers.

Mortgage rates drop in wake of bank failures

Washington, DC (CNN)--Mortgage rates dropped this week in the wake of several bank failures, reversing course after rising half a percentage point over the past month. But longer-term uncertainty is expected to hamper many homebuyers and keep the cost of buying unaffordable for many.

Consumer Watchdog Issues Warning to Private Loan Servicers

The Consumer Financial Protection Bureau is warning loan servicers to stop collecting private student loans that were discharged by bankruptcy courts, the agency announced Thursday.

Bank Collapses Highlight Alternative Structure of Credit Unions

The collapse of two banks has put the U.S. financial sector into focus this week. Some are considering the alternative structures of institutions like credit unions. Troy Stang is the president and CEO of the GoWest Credit Union Association, which represents more than 300 credit unions in Oregon and five other states.

ChatGPT Powered Polymorphic Malware Bypasses Endpoint Detection Filters

The number of monthly users of ChatGPT exceeded 100 million at the end of January, which sets a new record for the fastest-growing app since it was launched at the end of 2022. Jeff Sims, who works at the HYAS Institute, has created a polymorphic keylogger using artificial intelligence called “Blackmamba,” which uses Python to tweak its program randomly based entirely on the input that has been taken from the user.

Pax­ton Secures Major Vic­to­ry to Shut Down Texas Robo­callers that Made Bil­lions of Ille­gal Calls

Attorney General Paxton won judgments shutting down a massive robocall operation involving John Caldwell Spiller II and his business partner, Jakob Mears. Spiller and Mears owned the Texas-based Rising Eagle Capital Group LLC, JSquared Telecom LLC, and Rising Eagle Capital Group–Cayman.

OCC Enforcement Actions and Terminations

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

Appeals Court Approves Settlement of Visa and Mastercard Antitrust Suit

A federal appeals court has approved a settlement of a class-action lawsuit brought against Visa and Mastercard. The settlement, in which the payment card networks agreed to pay a total of $5.6 billion to 12 million merchants who brought an antitrust case against them, was approved Wednesday (March 15).

FTC Launches Inquiry into Small Business Credit Reports

The Federal Trade Commission has launched an inquiry into the small business credit reporting industry, ordering five firms in that industry to provide the Commission with detailed information about their products and processes. The orders will be issued to Dun & Bradstreet, Experian Information Solutions, Equifax, Ansonia Credit Data, and Creditsafe USA.

The unexpected American shopping spree seems to have cooled

An unexpected spending spree by U.S. shoppers seems to have calmed. Retail spending declined 0.4% in February compared to January, the Commerce Department said on Wednesday. That's after a surprise start-of-the-year shopping spree that contradicted the Federal Reserve's goal of cooling down the economy to fight high prices.

A recession could come sooner on cooling bank lending

Plummeting bond yields, steep drops in oil and stock prices, and a sharp jump in volatility are all signaling that investors fear a recession is now on the near horizon.

Average long-term US mortgage rates come back down to 6.6%

The average long-term U.S. mortgage inched back down this week after five straight weeks of increases, good news for homebuyers as the housing market’s all-important spring buying season gets underway

FCC Adopts Its First Rules Focused on Scam Texting

The Federal Communications Commission today adopted its first regulations specifically targeting the increasing problem of scam text messages sent to consumers.

Bread, Discover and JPMorgan Chase Report Higher Credit Card Delinquencies

Three companies saw their higher credit card delinquency and charge-off rates rise in February. Bread Financial, Discover Financial and JPMorgan Chase reported in recent press releases and Securities and Exchange Commission (SEC) filings that these figures for February were higher than those for both the month before and a year earlier.

FDIC Prefers Banks Over Other Entities as Silicon Valley Bank Bidders

The pool of potential buyers of Silicon Valley Bank may be narrower than previously thought. The Federal Deposit Insurance Corporation (FDIC), which took over the failed bank Friday (March 10) and created a “bridge bank” to replace it, will probably only sell it to another bank, The Information reported Wednesday (March 15), citing unnamed sources.

Sterling Bancorp, Inc. to Plead Guilty to $69M Securities Fraud

 A Southfield, Michigan-headquartered bank holding company has agreed to plead guilty to securities fraud for filing false securities statements relating to its 2017 initial public offering (IPO) and its 2018 and 2019 annual filings.

The FDIC’s Security Controls Over Microsoft Windows Active Directory

The Office of Inspector General of the Federal Deposit Insurance Corporation (FDIC) has issued its report on The FDIC's Security Controls Over Microsoft Windows Active Directory.

CFPB Heightens Scrutiny of Unlawful Collection of Payments on Discharged Student Loans

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released a bulletin warning servicers of their obligation to halt unlawful conduct with respect to private student loans that have been discharged by bankruptcy courts.

2022 Financial Literacy Annual Report

The 2022 Financial Literacy Annual Report of the Consumer Financial Protection Bureau (CFPB) is required under Section 1013 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. It details the CFPB’s financial literacy strategy and activities to improve the financial literacy of consumers. 

Consumer issues affecting American Indian and Alaska Native communities

Scammers and dishonest businesses can target people in unique ways, so it’s important to understand how communities are affected — and at times, differently affected — by consumer protection issues. A new FTC report focuses on the agency's recent efforts to identify frauds, scams, and bad business practices that impact American Indian and Alaska Native (AI/AN) communities.

OCC Issues Prohibition Order, Fines Former Wells Fargo Executive $17 Million in Settlement

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced the issuance of a prohibition order and a $17 million civil money penalty by consent against Carrie Tolstedt, former head of Wells Fargo Bank, N.A.’s Community Bank, for her role in systemic sales practices misconduct.

Financial Institutions are Required to Meet Contractual Obligations with Bridge Banks

In recent days, the FDIC has established two bridge banks, Silicon Valley Bridge Bank, N.A. and Signature Bridge Bank, N.A., to assume the deposits and obligations of two failing banks. All contracts entered into with banks before they failed, and their counterparties were transferred into the bridge bank by the FDIC as receiver.

CFPB Reports on Illegal Fees Levied by Mortgage Servicers

The Consumer Financial Protection Bureau (CFPB) has released a special edition of its Supervisory Highlights that reports on unlawful junk fees uncovered in the mortgage servicing space, student loans, payday lending, and in financial institutions via deposit accounts. As described in the Supervisory Highlights, the CFPB continues rooting unlawful fees out of consumer financial markets.

“Life takes Visa” but debt collectors don’t? New debt repayment rules are coming for collection agencies on April 15, 2023

Move over, Tax Day!  This year, April 15 falls on a Saturday so the IRS moved the tax filing deadline to April 18.  What will you do with all that extra time?  Don’t worry, Visa’s got you covered.

CFPB Launches Inquiry Into the Business Practices of Data Brokers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) has launched an inquiry into companies that track and collect information on people’s personal lives. In issuing this new Request for Information, the CFPB wants to understand the full scope and breadth of data brokers and their business practices, their impact on the daily lives of consumers, and whether they are all playing by the same rules

Education Department Announces Use of Secret Shopping to Protect Students, Crack Down on Institutions that Lure Students with Lies  

The U.S. Department of Education (Department) announced today that the Enforcement Office of Federal Student Aid (FSA) will use secret shoppers as an additional tool to monitor postsecondary institutions’ compliance with the laws and regulations governing their participation in the federal student aid programs.

Most medical debt in America is owed to hospitals

When Americans have medical debt, it's typically to a hospital, according to new research. The Urban Institute found that more than 15% of non-elderly adults in the United States have past-due medical debt. Nearly 73% owe some or all of that money to hospitals.

Oregon Legislature Considers Wage Garnishment Bill

The Oregon Legislature is considering a wage garnishment bill that had its first hearing in a House committee this month, including testimony from ACA International CEO Scott Purcell and Oregon Collectors Association Lobbyist Matt Markee, president of Markee & Associates.

FTC and CFPB Investigating Background Screening Issues Affecting Rental Housing Tenants

On February 28, 2023, the Federal Trade Commission (“FTC”) and Consumer Financial Protection Bureau (“CFPB”) issued a Request for Information (“RFI”) seeking public comment on background screening issues affecting rental housing applicants and tenants in the United States.

House Republicans Consider Proposals to Reform CFPB; Criticize Agency’s War on Fees

On March 9, the U.S. House Financial Institutions and Monetary Policy Subcommittee held a hearing entitled “Consumer Financial Protection Bureau [CFPB]: Ripe for Reform.” The memorandum released in advance stated the hearing would “examine the leadership structure, funding, budget, and operations of the CFPB and areas in which reforms are needed.”

Silicon Valley Bank, Signature Bank collapses explained, live updates on new developments

It's been a tumultuous few days for banks since the now-shuttered Silicon Valley Bank announced Wednesday it had suffered a $1.8 billion after-tax loss and urgently needed to raise more capital to quell depositors' concerns.

Bringing tech enforcers together to protect consumers

Regulators across the country are working to ensure that new technologies meaningfully help consumers in their financial lives. Large-scale technology companies often produce new technologies that want to reshape the consumer financial marketplace to benefit their growth and market share instead of to benefit consumers.

Litigation Practice Group’s Credit Repair Practices Violate Federal Law, Class Action Alleges

The Litigation Practice Group, PC (LPG) has violated the federal Credit Repair Organizations Act (CROA) and the Georgia Debt Adjustment Act (GDAA) in the course of providing credit repair services, a proposed class action alleges.

FTC Finalizes Order Requiring Fortnite maker Epic Games to Pay $245 Million for Tricking Users into Making Unwanted Charges

The Federal Trade Commission has finalized an order requiring Epic Games, the maker of the Fortnite video game, to pay $245 million to consumers to settle charges that the company used dark patterns to trick players into making unwanted purchases and let children rack up unauthorized charges without any parental involvement.

Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination Case

The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. 

Housing market could see relief from shock move in Treasury market after SVB collapse

Mortgage rates tumbled Monday in the wake of Silicon Valley Bank’s collapse that has rattled markets. The average 30-year mortgage rate dropped to 6.57% on Monday, according to the latest Mortgage News Daily quote.

Debt collectors starting to become more lenient on unpaid medical bills

PHOENIX (3TV/CBS 5) - Unexpected, large medical bills are the number one reason why some people are forced to file for bankruptcy. But it turns out some collection agencies are becoming more lenient when it comes to asking you to pay a medical debt.

Third Bank Failure Prompts Fed To Launch Emergency Lending Program

The federal government launched an emergency rescue of the U.S banking system on Sunday evening, in an effort to halt contagion from the rapid collapse of Silicon Valley Bank last week.

FTC Submits Annual Budget Request to Congress

The Federal Trade Commission submitted to Congress its Fiscal Year 2024 budget request, in support of the President’s FY 2024 budget for the federal government. The budget request also includes the Performance Plan for FY 2023 and FY 2024 and Performance Report for FY 2022, as required under the GPRA Modernization Act of 2010.

Protecting homeowners from discriminatory home appraisals

Homeownership is one of the best paths to building intergenerational wealth, especially within communities historically shut out from fair access to the housing market. For families of all races and income levels to prosper and successfully pursue the American dream of homeownership, home appraisals must be accurate and free of bias.

Achieving PCI DSS Compliance Through Penetration Testing

If you’re reading this blog post, chances are you already know what PCI DSS and penetration testing is. But don’t worry – if you don’t, we’re breaking it down for you!

Attorney General releases list of top 10 consumer complaints

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.

Mortgage Rates Climb Further Past 7%

The 30-year fixed mortgage rate increased for the fifth week in a row, now averaging 7.16%. Adjustable mortgage rates also ticked up.

Signature Bank becomes next casualty of banking turmoil after SVB

March 12 (Reuters) - State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits.

CFPB Supervisory Highlights Report Covers ‘Junk Fees’

The Consumer Financial Protection Bureau has released a special edition of its Supervisory Highlights report, an overview of the agency’s findings on fees in the areas of deposits, auto servicing, mortgage servicing, payday and small-dollar lending, and student loan servicing, completed between July 1, 2022, and Feb. 1, 2023.

CHSPSC, Inc. Files Notice of Data Breach Following Cybersecurity Event at Cybersecurity Company Fortra

On March 8, 2023, Community Health Systems Professional Services Company (“CHSPSC, Inc.”) filed a notice of data breach with the Maine Attorney General's Office after the organization learned that a cybersecurity event at one of the company’s vendors subjected patient information to unauthorized access.

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