U.S. Supreme Court won’t halt $6 billion student debt settlement

WASHINGTON (Reuters) -The U.S. Supreme Court on Thursday refused to halt a legal settlement that would erase more than $6 billion in debt owed by former students of colleges - many of them for-profit institutions - who have said they were misled by schools about academics and job prospects.

Treasury awards $1.73 billion to improve access to capital and financial services in underserved communities

On April 10, Vice President Kamala Harris and Deputy Secretary of the Treasury Wally Adeyemo announced that the U.S. Treasury Department’s Community Development Financial Institutions (CDFIs) Fund has awarded more than $1.73 billion in grants to 603 CDFIs to help low- and moderate-income communities recover from the Covid-19 pandemic.

CFPB Wins Big in California Federal Court: CashCall Fined $167 Million for CFPA Violations

As discussed here, in 2016 the Central District of California granted judgment in favor of the Consumer Financial Protection Bureau (CFPB) in its long-running challenge to CashCall, Inc.’s tribal-lending operation.

CFPB Announces Revised Methodology for Determining Average Prime Offer Rates

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced a revised version of its “Methodology for Determining Average Prime Offer Rates.” The revised methodology describes the calculations used to determine average prime offer rates (APOR) for purposes of federal mortgage rules. APORs are annual percentage rates derived from average interest rates, points, and other loan pricing terms currently offered to consumers by a representative sample of creditors for mortgage loans that have low-risk pricing characteristics.

Save the Date! CFPB Field Hearing with Director Rohit Chopra in Brooklyn, NY on April 26, 2023

On Wednesday, April 26, 2023, the Consumer Financial Protection Bureau (CFPB) will visit Brooklyn, New York, where Director Rohit Chopra will host a discussion with local community organizations, advocates, leaders, and members of the public about “zombie” second mortgages — debts that consumers thought were satisfied long ago by loan modifications or bankruptcy proceedings or that were written off by lenders as uncollectable — and other debt collection issues.

Testimony of CFPB Senior Advisor Brian Shearer on Junk Fees Before the Pennsylvania House of Representatives Consumer Protection, Technology, and Utilities Committee

Thank you, Chair Matzie, Chair Member Marshall, Representative Pisciottano, and committee members for inviting me to speak today about the important issue of junk fees in the US economy. My name is Brian Shearer, and I serve as a Senior Advisor to the Director of the federal Consumer Financial Protection Bureau (CFPB), Rohit Chopra. I oversee the CFPB’s work on regulations, guidance, bulletins, and policy statements on a number of federal consumer financial protection laws.

FY 2022 Office of Minority and Women Inclusion (OMWI) Annual Report to Congress

The FY 2022 OMWI annual report to Congress provides detailed information about the diversity, equity, inclusion, and accessibility (DEIA) work of the Consumer Financial Protection Bureau from Oct. 1, 2021 through Sept. 30, 2022. 

US Credit and Debit Card Spending Slows to Weakest Pace in Two Years, BofA Says

(Bloomberg) -- Spending on credit and debit cards rose at the smallest pace in more than two years, dragged down by slower wages, fewer tax refunds and the end of pandemic-era benefits, according to a report by Bank of America Institute.

SBA to open flagship lending program to fintechs

The Small Business Administration is ending a 40-year moratorium on admitting new nonbank lenders to its 7(a) loan program, a move that opens up the agency’s flagship lending vehicle to fintech participation. 

Banks’ Lending Squeeze May Hit Small Businesses Hardest

Driven by interest rates that, at least for the near future, the Fed hints will continue to rise, banks have reported the market value of issued loans are currently less than their balance sheet at the end of 2022. These declining loan values could put pressure on bank liquidity, leading to a further pullback of business lending that in February had already dipped to just below 15%, a 10-month low

California AG Supports New Victim’s Compensation Fund Bill

On April 7, California Attorney General Rob Bonta and Assembly member Brian Maienschein announced new legislative bill AB 1366, which creates a state Treasury Victims of Consumer Fraud Restitution Fund (VCFRF) to benefit victims of consumer fraud. 

Report Shows Steep Rise in Consumer Complaints to CFPB: Consumer Reporting Leads the List While Debt Collection Declines

The U.S. PIRG Education Fund (PIRG) released a report analyzing consumer complaints submitted to the Consumer Financial Protection Bureau (CFPB) in 2021 and 2022. The report noted that consumer complaint totals set a new record in 2021 (496,000), only to have that record broken by a considerable margin in 2022 (800,394).

Ads for fake AI and other software spread malicious software

There’s a lot of hype around artificial intelligence (AI) these days. And cybercriminals are taking advantage of people’s interest in AI to spread harmful malware through online ads.

Minor Procedural Missteps” in Collection Litigation Do Not Violate the FDCPA, District Court Holds

In Ingersoll v. Brandsness, the suit arose out of an effort by a collection agency and its counsel to obtain a judgment on unpaid medical bills. After the filing of the complaint, and the consumer’s filing an answer, the matter was referred to arbitration. Then, counsel for the collection agency moved for entry of default, which was denied in light of the consumer’s answer.

Credit reporting problems spark the biggest portion of CFPB consumer complaints, study says

Consumer complaints tied to credit reporting issues made to the Consumer Financial Protection Bureau (CFPB) have nearly doubled in the past year, a recent report said.

Texas Data Privacy and Security Act Moving Forward

The Texas House of Representatives on April 4 voted unanimously in favor of Texas House Bill 4, the Texas Data Privacy and Security Act.  The Texas legislature remains in session through May 29, so there is ample time for the legislation to continue its course.

Why reporting an incident only makes the cybersecurity community stronger

Reporting an incident to the correct authorities or vulnerability clearinghouses can be an experience fraught with frustration. You pour time, energy, and resources into fighting an intrusion, all while keeping company officials and stakeholders up to date and preventing sensitive information from getting into the wild.

Cracking down on robocalls: FCC takes action against company for violating new rules

WASHINGTON (7News) — The Federal Communications Commission (FCC) announced it is taking action against a company it accuses of violating new rules against illegal robocalls.

Interest Rate Risk: Interest Rate Risk Statistics Report

The Office of the Comptroller of the Currency (OCC) today published the spring 2023 edition of the Interest Rate Risk Statistics Report. The report presents interest rate risk data gathered during examinations of OCC-supervised midsize and community banks and federal savings associations (collectively, banks). The statistics are for informational purposes only and do not represent OCC-suggested limits or exposures.

Big Banks Projected to Report $100 Billion in Withdrawals

America’s banking giants are expected to reveal a huge outflow of cash in the days ahead. As the Financial Times (FT) reported Tuesday (April 11), analysts project that depositors looking for high returns from money market funds and other alternatives withdrew nearly $100 billion from JPMorgan, Bank of America, Citi and Wells Fargo during the first quarter of the year.

Homebuyer mortgage demand jumps after interest rates drop to two-month low

Today’s housing market is so pricey that homebuyers are highly sensitive to any distinct moves in mortgage rates. And that’s what happened last week. Rates dropped, and buyers dove in.

Recent Bank Failures and the Path Ahead by Travis Hill, Vice Chairman Federal Deposit Insurance Corporation

They say that central banks raise rates until something breaks, and that monetary policy works less like a scalpel and more like a sledgehammer.¹  It has been a common story over the past century – for example, recently, in 2006, when the U.S. housing bubble popped after 17 consecutive rate increases.  Each time, what breaks is a little different from the last time, but often with echoes of the past.

BayPort Credit Union Announces New Executive Risk Management Position and Promotion

NEWPORT NEWS, Va., April 11, 2023 /PRNewswire/ -- BayPort Credit Union has added a new position to its executive team and is pleased to announce the promotion of Dan Elston to Vice President of Risk Management. In this role, Elston will oversee BayPort's risk management program and work to enhance the credit union's safety and security infrastructure. 

SVB Collapse Creates Question Mark for Venture Debt

What does the downfall of Silicon Valley Bank mean for the venture debt sector? It’s a question asked by a Monday (April 10) report in The Wall Street Journal (WSJ) report, which noted that SVB had helped pioneer the crucial-for-startups venture debt field.

NEW POLL: MAJORITY OF AMERICANS BELIEVE CREDIT CARD LATE FEES ARE LEGITIMATE

A new survey released today found 57% of Americans believe credit card late fees are legitimate and not so-called “junk,” as some have suggested, compared to fees found in other sectors of the economy, which only between 12% to 18% of Americans found to be legitimate.

Thousands of Katrina Survivors Were Freed From Debt to the State. Those Who Already Paid Are Out of Luck.

Amid outcry, the state said it was no longer suing residents who had improperly used hurricane recovery money. That doesn’t change anything for the 425 who already paid a total of $6.8 million back to the state.

Equifax, Experian and TransUnion Remove Medical Collections Debt Under $500 From U.S. Credit Reports

ATLANTA and COSTA MESA, Calif. and CHICAGO, April 11, 2023 /PRNewswire/ -- Equifax® (NYSE: EFX), Experian (LON:EXPN), and TransUnion (NYSE:TRU) are jointly announcing that medical collection debt with an initial reported balance of under $500 has been removed from U.S. consumer credit reports. With this change, now nearly 70 percent of the total medical collection debt tradelines reported to the Nationwide Credit Reporting Agencies (NCRAs) are removed from consumer credit files. This change reflects a commitment made by the NCRAs last year.

OCC Opens Registration for Community Bank Director and Senior Management Workshops

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today opened registration for its 2023 schedule of workshops for board directors and senior management of national community banks and federal savings associations.

‘Unprecedented’ demand: $300 million set aside for home loan assistance program gone in 11 days

Only days after California launched a first-of-its-kind home loan assistance program, the $300 million allocated for it in the 2022-2023 budget was entirely reserved for applicants currently under contract to buy their first homes.

Most Americans are using tax refunds to boost savings or pay off debt, CNBC survey finds

Most Americans will use their tax refund to bolster their finances amid economic uncertainty, stock market volatility and lingering inflation. More than one-third of Americans are saving their tax refund this season and 44% have earmarked the funds to pay off debt or bills, according to the CNBC Your Money Financial Confidence Survey, conducted in partnership with Momentive.

With pandemic savings long gone, Americans carrying record debt loads in February

Americans are carrying more debt than ever before, with COVID-19 savings long gone and as rising interest rates and ongoing inflation continue to eat into household budgets.

FTC Ramps Up Fight to Close the Door on Illegal Robocalls Originating from Overseas Scammers and Imposters

As the menace of unwanted illegal robocalls continues, U.S. consumers are bombarded by millions of these calls each month, both to their landlines and cell phones. Data show that a significant proportion, if not the majority, of illegal robocalls originate from overseas.

CFPB Issues Guidance to Address Abusive Conduct in Consumer Financial Markets

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a policy statement that explains the legal prohibition on abusive conduct in consumer financial markets and summarizes over a decade of precedent. The CFPB leads enforcement and supervision efforts to identify and end abusive conduct against consumers. In 2010, in response to the financial crisis, Congress passed the Consumer Financial Protection Act, and created the prohibition on abusive conduct

Credit Acceptance and National Trade Associations Challenge the CFPB and NY AG’s Attempt to Disregard TILA and Regulate the Indirect Auto Finance Industry Through Litigation

On January 4, the Consumer Financial Protection Bureau (CFPB) and New York Attorney General (NY AG) filed a joint complaint in the U.S. District Court for the Southern District of New York against Credit Acceptance Corporation (Credit Acceptance), a major subprime indirect auto finance company.

Attorney General Bonta, Assemblymember Maienschein Announce Bill to Compensate Victims of Consumer Protection Violations

SAN DIEGO — California Attorney General Rob Bonta, and Assemblymember Brian Maienschein (D-San Diego), today announced new legislation, Assembly Bill 1366 (AB 1366) to protect victims of predatory businesses found to have violated California consumer protection laws. While current state law allows victims to be eligible for restitution after a judgment has been reached, in many cases of successful prosecutions by the Attorney General, these businesses collapse or become insolvent, leaving no resources to compensate victims for their losses.

Today’s mortgage rates are all under 6% | April 10, 2023

Based on data compiled by Credible, mortgage rates for home purchases are mixed with two key terms rising and two falling since last Thursday.

New bill proposes to eliminate ‘predatory’ payday loan lenders in Alaska

JUNEAU — New legislation filed in the Alaska House of Representatives by Rep. Stanley Wright, R-Anchorage, proposes to significantly restrict the interest rates and fees that can be charged by payday loan companies in Alaska.

Analysis: Debt crunch looms for weaker economies with a wall of bond maturities ahead

WASHINGTON, April 10 (Reuters) - A combination of sticky high interest rates and lacklustre global growth could push a number of emerging economies that are facing soaring refinancing needs into debt difficulties next year.

The Role of Open Banking in SME Lending: Benefits, Risks, and Challenges

Small and medium-sized businesses (SMEs) are critical to the global economy, accounting for a large portion of job creation and economic growth. Access to financing, however, continues to be a major challenge for many SMEs, especially in developing countries.

Small Banks and Credit Unions May Need Innovation to Stem Deposit Exodus

Small and regional banks are experiencing major fallout from the SVB meltdown as well as chasing higher rates on savings, as detailed last month by The Wall Street Journal. While the 25 largest U.S. banks captured $120 billion in deposits in the days following the West Coast bank’s collapse, all banks smaller than those huge financial institutions lost $108 billion. Additionally, money market funds have gained over $220 billion over this span.

RMAI Response to Proposed CFPB Rule

RMAI submitted Comments to the Consumer Financial Protection Bureau (CFPB or Bureau) in response to the CFPB’s request for comments concerning a proposed rule to require certain nonbank entities to register with the Bureau when subject to a public written order (such as a consent order) or a judgment. The online registry and the contents of the written orders would be publicly accessible. RMAI indicated its opposition to the proposed rule for several reasons.

PaymentVision to Host Webinar on Visa Rule Updates for Collection Agencies and Debt Repayment on April 15th, 2023

JACKSONVILLE, Fla., April 4, 2023 /PRNewswire/ -- PaymentVision, a leading provider of payment processing solutions, is pleased to announce an upcoming webinar titled "Visa Rule Updates for Collection Agencies and Repayments of Debt or Overdue Receivables" on April 15th, 2023.

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Collection and Recovery Solutions 2023

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

RMAi 2023 Executive Summit

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CA Credit Union Collectors Council – 36th Annual Conference

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