Attorney General James Proposes Nation-Leading Regulations on Cryptocurrency Industry

NEW YORK – New York Attorney General Letitia James today announced landmark legislation to tighten regulations on the cryptocurrency industry to protect investors, consumers, and the broader economy. The multi-billion-dollar industry lacks robust regulations, making it prone to dramatic market fluctuations, and has been used to hide and facilitate criminal conduct and fraud.

CFPB to distribute more than $22 million to consumers harmed by Burlington Financial Group’s debt relief and credit repair scams

This month, 6,523 people who were misled by Burlington Financial Group with false promises that it would eliminate their credit-card debts and improve their credit scores will receive a check in the mail. Burlington Financial Group was a Maryland-based debt-relief and credit-repair company that marketed and sold debt-relief and credit-repair services to people nationwide from January 2016 until at least September 2019 and collected fees from them until at least August 2020.

FDIC plans to hit big banks with fees to refill deposit insurance fund – Bloomberg News

(Reuters) -The U.S. Federal Deposit Insurance Corporation is planning to exempt smaller lenders from kicking in extra money to replenish the government's bedrock deposit insurance fund, and instead saddle the biggest banks with much of the bill, Bloomberg News reported on Thursday, citing people familiar with the matter.

Artificial Intelligence Has a NIST Framework for Cybersecurity Risk

On May 3^rd,  Lina Khan, the Chair of the Federal Trade Commission, made clear that the FTC is well equipped to handle the issues brought to the fore by the A.I. sector, “including collusion, monopolization, mergers, price discrimination and unfair methods of competition.”¹ The increasing use of A.I. has also raised substantial cybersecurity issues. 

New SBA rule changes are coming. See what they mean for you

The U.S. Small Business Administration has long been concerned about small businesses from underserved markets struggling to obtain SBA loans. On May 11 and 12, the SBA is expected to enact a series of changes to the SBA programs that will expand which lenders can get licensed for SBA programs, 

Nearly half of Americans are nervous about their money in the bank, Gallup survey

MIAMI - Nearly half of American adults say they are concerned about the safety of the money they keep in banks, according to a Gallup poll released on Thursday. In the polling, 48% of US adults say they are concerned about the money they have in banks and other financial institutions, including 19% who are "very" worried. Another 29% said they are "moderately" worried.

CFPB Report Highlights Costly Credit Cards and Loans Pushed on Patients

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) published a report on high-cost specialty financial products, such as medical credit cards, that are sold to patients as a way to alleviate the growing costs of medical care. Patients are typically offered these products in a medical provider’s office even when their insurance may cover the procedure or they qualify for a hospital’s reduced or no-cost financial assistance program. The report finds that these specialty products are typically more expensive for patients than other forms of payment.

Mortgage rates remain volatile, tick down after climbing for two weeks

Washington, DC CNN—The only thing consistent about mortgage rates right now is that they are volatile in the wake of mixed economic signals and recent bank failures. Mortgage rates ticked down this week, after climbing for two weeks in a row.

Small business checkup: Recession, inflation, lending top concerns

Fears of an economic slowdown are weighing on the minds of America's small business owners, who cite recession, inflation and a decrease in access to capital as major concerns, according to new data.

OCC Releases CRA Evaluations for 17 National Banks and Federal Savings Associations

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of April 1, 2023, through April 30, 2023. The list contains only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.

U.S. Supreme Court to Review Administrative Law Case

The U.S. Supreme Court has granted a petition to review a case where it could overturn or restrict the Chevron doctrine, a two-step analysis “that generally requires a federal court when reviewing federal agency action to defer to the agency’s reasonable interpretation of an ambiguous statute,” according to an article from ACA International member firm Troutman Pepper.

Millions of Americans now underwater on auto loans

(Stacker) - Early signs of a negative equity surge in the auto loans sector have begun to emerge in the first quarter of 2023. According to data from Edmunds, the average negative equity value of auto trade-ins was $5,341 in Q4 2022, up 29% from the previous year. The number of vehicle sales that involved a trade-in with negative equity also jumped by 17% over the same period.

GOP Moves Forward on Bill to Force CFPB Transparency

On April 26, the House Financial Services Committee held a markup of 15 bills, including H.R. 2798, the CFPB Transparency and Accountability Reform Act, sponsored by Rep. Andy Barr (R-KY). The bill includes provisions from seven different pieces of legislation:

FTC to Host Virtual Panel Discussion on Cloud Computing, Extends Comment Deadline

The Federal Trade Commission will hold a virtual panel discussion on May 11, 2023 with a diverse set of experts to discuss the business practices of cloud computing providers including issues related to security, competition, and emerging technology issues associated with cloud computing. 

U.S. Consumers Received Just Over 4.5 Billion Robocalls in April, Down 9% from March, According to YouMail Robocall Index

IRVINE, Calif., May 4, 2023 /PRNewswire/ -- U.S. consumers received just over 4.5 billion robocalls in April, back in the range of 4.2 billion to 4.7 billion calls recorded per month from August through February. The April volume marked a welcome 9% decrease from March's volume.

Medical Credit Cards and Financing Plans

Financial institutions and fintech companies are generating a growing number of financing mechanisms for families and individuals struggling to pay their out-of-pocket health care expenses.

Peer to Peer Lending Market to Hit USD 926.55 Billion by 2030 due to Demand for Alternative Sources of Funding and Increasing Adoption of Digitalization | Research by SNS Insider

Pune, May 03, 2023 (GLOBE NEWSWIRE) -- The Peer to Peer Lending Market had a valuation of USD 134.35 billion in 2022, and it is anticipated to attain a value of USD 926.55 billion by 2030, with a projected compound annual growth rate (CAGR) of 27.3% during the forecast period from 2023 to 2030, as reported by SNS Insider.

Mortgage demand drops as bank failures hit jumbo loan rates

Mortgage demand from homebuyers has been erratic to say the least during the usually busy spring housing market. That is likely because today’s buyers are hypersensitive to mortgage rates, which have been fluctuating widely week to week but which are still considerably higher than they were a year ago. Now, several bank failures are starting to make it more difficult even for wealthier buyers.

Washington Robocall Law, Credit Repair Regulations Effective in July

The credit repair regulations were a focus of the Washington Collectors Association’s advocacy this legislative session. The robocall law contains exemptions for collection agencies.

AG HENRY & FTC WORK TOGETHER TO PERMANENTLY BAN DEBT COLLECTORS THAT TARGETED BUSINESSES, NON-PROFITS, FIRST RESPONDERS

HARRISBURG– As a result of action by the Office of Attorney General and the Federal Trade Commission, debt collection company International Credit Recovery, Inc. (ICR), officer Richard Diorio, Jr., and manager Cynthia Powell, have agreed to a permanent ban from the debt collection industry after being charged with engaging in bogus debt collection efforts against businesses and non-profits.

How a Fed Increase Could Affect Credit Card Debt, Auto Loans

NEW YORK (AP) — If, as expected, the Federal Reserve raises interest rates yet again Wednesday in its drive to cool inflation, much of America will be directly affected.

Legislature Poised to Overhaul Florida’s mini-TCPA

The Florida Legislature is moving quickly to pass significant remedial amendments to the Florida Telephone Solicitation Act (“FTSA,” Fla. Stat. § 501.059) before the end of the legislative session this Friday.

Small and Midsize Business Lending Fraud on the Rise, According to New LexisNexis Risk Solutions Study

ATLANTA, May 3, 2023 /PRNewswire/ -- LexisNexis® Risk Solutions released its latest Small and Midsize Business (SMB) Lending Fraud Study. Based on a survey of lenders, SMB lending fraud has increased significantly during the past 12 months, with many smaller banks, credit unions and fintechs expecting fraud levels to worsen over the next year.

Brown Raises Concerns About Tellus’s Handling of Customers’ Money

WASHINGTON, D.C. ­– Today, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Banking, Housing, and Urban Affairs Committee, wrote a letter to Martin Gruenberg, Chairman of the Federal Deposit Insurance Corporation (FDIC), outlining concerns with Tellus, a nonbank “fintech” company that advertises high-interest savings accounts, despite not being insured by the FDIC. In his letter, Brown urged that the FDIC review Tellus’ business practices to ensure that customers are protected from financial fraud and abuse.

Ocwen Financial Comments on U.S. District Court’s Favorable Decision in CFPB Matter

WEST PALM BEACH, Fla., May 02, 2023 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and originator, today issued the following statement in response to rulings entered on May 2, 2023 by the United States District Court for the Southern District of Florida in the Company’s pending litigation with the Consumer Financial Protection Bureau (“CFPB”).

Millions poised to get a better credit score after medical debt dropped from reports

Millions of Americans could see their credit scores increase by 25 points on average after the major credit bureaus eliminated unpaid medical collections under $500 from their credit reports.

First Republic Bank seized, sold in fire sale to JPMorgan

NEW YORK (AP) — Regulators seized troubled First Republic Bank early Monday, making it the second-largest bank failure in U.S. history, and promptly sold all of its deposits and most of its assets to JPMorgan Chase in a bid to end the turmoil that has raised questions about the health of the U.S. banking system.

Comprehensive CFPB Reform Legislation Advances in House Committee

The House Financial Services Committee advanced a bill package on Consumer Financial Protection Bureau reform Wednesday for consideration on the House floor. The bill package (PDF), H.R. 2798, brings together several proposals on CFPB reform into one piece of legislation focused on changing the funding and leadership structure of the bureau and requiring all proposed rules to consider the impact on small businesses, among other items.

Consumer tip: Which robocalls are legal

If you answer the phone and hear a recorded message instead of a live person, it’s a robocall. A robocall trying to sell something is illegal without written permission.

CFPB Proposes New Consumer Protections for Homeowners Seeking Clean Energy Financing

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) proposed a rule to implement a Congressional mandate to establish consumer protections for residential Property Assessed Clean Energy (PACE) loans. PACE loans, secured by a property tax lien on the borrower’s home, are often promoted as a way to finance clean energy improvements such as solar panels. 

Attorney General James Takes Action to Protect New Yorkers’ Homes and Combat Deed Theft

NEW YORK – New York Attorney General Letitia James, State Senator Brian Kavanagh, State Senator Zellnor Myrie, and Assemblymember Helene Weinstein today announced new legislation to strengthen protections and remedies for victims of deed theft and bolster the Office of the Attorney General’s (OAG) ability to prosecute these crimes.

56% of Credit Union Execs Wary of Crypto, Data Shows

While the European Union (EU) is embracing crypto, credit union (CU) executives largely aren’t. This, as data in the April 2023 PYMNTS report, “Credit Union Innovation: Bridging the Cryptocurrency Divide,” a collaboration with PSCU, finds that more than half of credit union leaders (56%) say they are less than gung-ho about providing cryptocurrency products for their members.

WEBRECON MARCH 2023 STATS: INCREASED COMPLAINTS ACROSS THE BOARD

In March, some ground was made up against February’s much lower-than-normal numbers with FDCPA (+9.5%), FCRA (+20.9%) and FCRA (+27.1%) all way up over the previous month, and CFPB complaints even got in on the action with a +15% increase as well.

FTC Lawsuit Leads to Permanent Ban from Debt Relief, Telemarketing for Operators of Debt Relief Scam

As a result of a Federal Trade Commission lawsuit, the operators of an alleged credit card debt relief scheme based in Tennessee have agreed to court orders that would permanently ban them from telemarketing and selling debt relief products or services.

CFPB Deems Merchant Cash Advances to Be “Credit” Under ECOA

The Consumer Financial Protection Bureau’s adopting release for its small business data collection and reporting rule goes beyond that rule by including a discussion deeming merchant cash advances to be “credit” more generally for purposes of the Equal Credit Opportunity Act.

Colorado Supreme Court Confirms Bankruptcy Discharge Does Not Trigger Statute of Limitations to Recover Debt

Colorado just became the latest state to recognize that a borrower’s bankruptcy discharge does not accelerate secured installment debt or trigger the final statute of limitations period to recover the debt.

US regulators seize First Republic and sell ‘substantially all assets’ to JPMorgan in largest bank failure since 2008 crisis

Regulators seized First Republic (FRC) early on Monday and sold the bulk of the bank's operations to JPMorgan Chase (JPM) in the largest bank failure since the 2008 financial crisis.

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