Regulatory Recap: FCC Requests More Authority to Restrict Illegal Robocalls and Robotexts

The Federal Communications Commission has been busy with its call and text regulations. Here are a few of the commission’s updates you should know about this week

Do not call: States sue telecom company over billions of robocalls

PHOENIX -- Attorneys general across the U.S. joined in a lawsuit against a telecommunications company accused of making more than 7.5 billion robocalls to people on the national Do Not Call Registry.

Final FTC Rule on Non-Competes Not Expected Before April 2024

According to Bloomberg, The Federal Trade Commission (“FTC”) is not expected to vote on the final version of a new rule that would ban noncompete clauses in employment contracts until April 2024.

Tennessee Information Protection Act Is Signed Into Law

The Tennessee Information Protection Act (TIPA) passed unanimously through both houses of the Tennessee legislature and was signed by Governor Bill Lee on May 11, 2023

Attorney General Bonta Announces Lawsuit Against Telecommunications Company over Billions of Illegal Robocalls

SACRAMENTO – California Attorney General Rob Bonta today, as part of a bipartisan coalition of 49 attorneys general, announced a lawsuit against Avid Telecom for allegedly initiating and facilitating billions of unlawful robocalls in California and around the country. Those robocalls included Social Security Administration scams, Medicare scams, and employment scams; two robocall examples can be found here and here. Today’s complaint is the result of efforts by the nationwide Anti-Robocall Litigation Task Force, which Attorney General Bonta helped launch last year and is charged with taking legal action against telecommunications companies that perpetuate robocall traffic.

Consumer Finance State Roundup

The pace of legislative activity from this year’s current session can make it hard to stay abreast of new laws.  The Consumer Finance ABStract’s “Consumer Finance State Roundup” is intended to provide a brief overview of recently enacted measures of potential interest. 

Overdraft/NSF revenue down nearly 50% versus pre-pandemic levels

For the past year-and-a-half, CFPB has been closely monitoring trends in overdraft/non-sufficient fund (NSF) fee revenue and practices. With data now available for all four quarters of 2022, we have a fuller picture of reductions in these revenues compared to pre-pandemic levels. Our most recent analysis finds the following:

Apria Healthcare LLC Data Breach Affects Over 1.8 Million Patients

On May 22, 2023, Apria Healthcare LLC filed a notice of data breach with the Maine Attorney General after learning that an unauthorized party accessed files on the company’s computer network containing confidential patient information.

FCC Adopts Expanded Call Blocking Requirements

New rules from the Federal Communications Commission expand call blocking requirements and the scope of voice service providers required to comply. The FCC adopted its 7th report and order on call blocking May 18 as part of its “multi-pronged approach” on the issue.

CFPB Action to Require Citizens Bank to Pay $9 Million Penalty for Unlawful Credit Card Servicing

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) reached a settlement to resolve allegations that Citizens Bank violated consumer financial protection laws and rules that protect individuals when they dispute credit card transactions. The CFPB alleges that Citizens Bank failed to properly manage and respond to customers’ credit card disputes and fraud claims. If entered by the court, the order, among other things, would require Citizens Bank to pay a $9 million civil money penalty.

Citizens Financial Group Comments on CFPB Settlement

PROVIDENCE, R.I.--(BUSINESS WIRE)--Citizens Financial Group, Inc. [NYSE: CFG] today announced a settlement with the Consumer Financial Protection Bureau resolving a complaint related to certain billing errors and related issues that impacted a very small subset of Citizens’ credit card customers nearly eight years ago.

Attorney General James Recoups $550,000 from Erie County Medical Management Company for Failing to Protect Patients’ Data

NEW YORK – New York Attorney General Letitia James recouped $550,000 from a medical management company, Professional Business Systems, Inc. d/b/a Practicefirst Medical Management Solutions and PBS Medcode Corp. (Practicefirst), for failing to protect New Yorkers’ personal information, including health records.

Housing market: Mortgage rates expected to decline

National Mortgage News Editor-in-Chief Heidi Patalano joins Yahoo Finance Live to discuss the state of the housing market, including mortgage rates, pricing, and challenges for first-time homebuyers.

Canvas Credit Union Selects Total Expert to Power Member Experience and Engagement

MINNEAPOLIS--(BUSINESS WIRE)--Canvas Credit Union, a growing community-oriented financial cooperative, has partnered with Total Expert to enhance member experience, improve communication across their 33 locations, and streamline loan officer workflows. Canvas Credit Union joins a growing list of financial institutions tapping the power of Total Expert, the platform that powered nearly 40% of all U.S. home loan transactions in 2022.

FCC says more action is on the way after shutting down company behind millions of illegal robocalls

NASHVILLE, Tenn. (WTVF) — The Federal Communications Commission has shut down a company behind millions of illegal robocalls. Consumer Investigator Jennifer Kraus says the head of the FCC said more action is on the way.

Pennsylvania Attorney General Settles $11 Million Dollar Lawsuit with Lender

​On May 15, 2023, the Pennsylvania Attorney General (PA AG) announced ​that it reached a $11.4 million settlement with a rent-to-own lender and its affiliates.

Fed’s Kashkari Argues for Much Higher Capital to Bolster Banks

(Bloomberg) -- Federal Reserve Bank of Minneapolis President Neel Kashkari said bank capital requirements should be lifted significantly to help backstop financial institutions against distress.

Corporate bankruptcies are on the rise — and the pain won’t end for a while

New York CNN — From Vice Media to Bed Bath & Beyond, bankruptcies are picking up again. Last week, corporate America had its worst. 

From the Web: Student Loan Forgiveness Update

The U.S. Supreme Court is set to rule soon on two cases that aim to halt the Biden administration’s plan to forgive up to $20,000 in federal student loans for borrowers, according to an article in The Hill.

Members First Credit Union receives $1.5M grant from state of Michigan

MIDLAND, Mich.— Members First Credit Union has been awarded a $1.5 million Community Development Financial Institution (CDFI) grant. This grant will enable Members First to further its mission of supporting underserved communities and driving economic opportunity for its members.

PYMNTS Intelligence: The Best Lending Product Wins in Retention and Enrollment

RICHARDSON, Texas, May 22, 2023 /PRNewswire/ -- Texans Credit Union (Texans), a leading credit union in North Texas, announced today Ian Beirnes joins as Vice President of IT Systems. Beirnes will be responsible for managing the credit union's technology infrastructure and operations department.

Texans Credit Union Expands Senior Leadership Team

RICHARDSON, Texas, May 22, 2023 /PRNewswire/ -- Texans Credit Union (Texans), a leading credit union in North Texas, announced today Ian Beirnes joins as Vice President of IT Systems. Beirnes will be responsible for managing the credit union's technology infrastructure and operations department.

Regulatory Interest in Fair Lending Spikes

Although always a significant focus of consumer lending, recent regulatory actions and pronouncements illustrate the sharp focus fair lending issues are receiving by both federal financial regulators and research bureaus.

FTC Files Brief in Jones v. Google in Support of Appeals Court Ruling that COPPA Does Not Preempt Plaintiffs’ State Privacy Claims

The Federal Trade Commission filed a brief arguing that the Children’s Online Privacy Protection Act (COPPA) does not preempt state privacy laws that are consistent with COPPA. The brief was filed in support of a federal appeals court’s ruling in Jones v. Google, a case in which a group of children allege that Google collected data and surreptitiously tracked their online activity in violation of state laws.

FCC says more action on the way to stop illegal robocalls

MIAMI - Americans received 4.5 billion robocalls in April, according to the call block app company YouMail. And if you're tired of receiving them, you are not alone. "These calls are so annoying, and it's the number one consumer complaint at the Federal Communications Commission," says Jessica Rosenworcel, Chairwoman of the Federal Communications Commission.

The new rules of venture debt are already being written

The collapse of Silicon Valley Bank (SVB) was not the end of venture debt, but it was likely the end of companies raising venture debt with the same ease that many were accustomed to. TechCrunch+ recently spoke to five different VCs about the state of venture debt in the wake of SVB and then First Republic Bank’s collapse, and all of them said they don’t think the recent bank failures signaled the end of venture debt. Rather, they expect the process of raising this kind of debt will start to look a lot different.

Lenders are still losing money on each home loan

Mortgage lenders again lost money on each loan originated in the first quarter of the year, after recording record losses in the last quarter of 2022, according to data from the Mortgage Bankers Association (MBA).

Pennsylvania AG Settles With Snap for $11.4 Million: The Importance of Compliance for Consumer Finance Companies Operating in the Virtual Marketplace

On May 15, Pennsylvania Attorney General Michelle Henry (AG Henry) announced an $11.4 million settlement against Snap Finance LLC and its affiliates (Snap RTO LLC, Snap Second Look LLC, and Snap Finance Holdings, LLC) (Snap) for alleged violations of Pennsylvania consumer protection laws relating to personal property lease-purchase (aka "rent-to-own") transactions.

US senator introduces bill to create a federal agency to regulate AI

Days after OpenAI CEO Sam Altman testified in front of Congress and proposed creating a new federal agency to regulate artificial intelligence, a US senator has introduced a bill to do just that.

Maryland Moves to Eliminate Branch License Requirements for Non-Depository Institutions

As of July 1, 2023, Maryland will no longer require consumer finance company licensees to license their branch locations. Maryland House Bill 686 was signed into law by Governor Wes Moore on May 8, 2023 to effectuate the regulatory change.

Consumer experiences with overdraft programs

The CFPB held interviews and focus groups with low- and moderate-income consumers during the summer of 2022 to better understand their experiences with overdraft programs. For this engagement, 36 participants—14 in individual interviews and 22 across four focus groups—were asked about their use of deposit accounts and debit cards, their understanding of overdraft, specific incidents they experienced resulting in being charged an overdraft or NSF fee, their perceptions of ways to avoid such fees, and other related topics.

Health Breach Notification Rule: FTC wants your insights into proposed changes

The Health Breach Notification Rule has been in place since 2009. Given the pace of innovation, that seems like a century in tech years. Since then, we’ve seen an explosion in the popularity of health apps, fitness trackers, and other health-related monitors.

FTC Warns About Misuses of Biometric Information and Harm to Consumers

The Federal Trade Commission today issued a warning that the increasing use of consumers’ biometric information and related technologies, including those powered by machine learning, raises significant consumer privacy and data security concerns and the potential for bias and discrimination.

CFPB Issues Advisory Opinion on Collection of Time-Barred Debt

The CFPB recently issued an Advisory Opinion affirming that a covered debt collector who brings or threatens to bring a state court foreclosure action to collect a time-barred debt may violate the Fair Debt Collection Practices Act (FDCPA) and its implementing regulation (Regulation F).  The Advisory Opinion is effective May 1, 2023.

Board Determines Amendment to Wisconsin Member Business Loan Rule Is Permissible

ALEXANDRIA, Va. (May 19, 2023) – The National Credit Union Administration Board unanimously determined, by notation vote, that an amendment(opens new window) to section DFI-CU 72.02 of the Wisconsin Member Business Loan rule, which defines a “member business loan,” is no less restrictive than the NCUA’s definition of the same, as required by Section 723.10(a) of the NCUA’s Member Business Loan and Commercial Lending rule. This change aligns Wisconsin’s definition of “member business loan” with the NCUA’s definition of the same.

Global debt nears record highs as rate hikes trigger ‘crisis of adaptation,’ top trade body says

The global debt pile grew by $8.3 trillion in the first quarter to a near-record high of $305 trillion as the global economy faced a “crisis of adaptation” to rapid monetary policy tightening by central banks, according to a closely-watched report from the Institute of International Finance.

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. All Cease and Desist Orders, Civil Money Penalty Orders, and Removal/Prohibition Orders are issued with the consent of the parties, unless otherwise indicated.

Acting Comptroller of the Currency Testifies on Bank Supervision

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today testified on bank supervision before the Committee on Banking, Housing, and Urban Affairs of the U.S. Senate. In his testimony, Mr. Hsu shared his observations on recent bank failures and discussed the resiliency of the federal banking system. He also discussed the Office of the Comptroller of the Currency’s efforts in support of agency priorities to guard against complacency by banks, reduce inequality, adapt to digitalization, and manage climate-related financial risk.

FCC Further Expands Its Robocall Blocking Rules

FCC Adopts Expanded Robocall Rules That Require One-Day Traceback Support from All Voice Service Providers and Expand Traffic Blocking Obligations for Originating Providers

Attorney General Mayes Urges U.S. Supreme Court to Preserve Consumer Protection Watchdog

PHOENIX–Attorney General Mayes joined a multistate coalition in submitting an amicus brief to the Supreme Court, urging the Court to overturn a decision of the U.S. Court of Appeals for the Fifth Circuit that threatens the future operation of the Consumer Financial Protection Bureau (CFPB) and the viability of more than ten years of the agency’s regulatory and enforcement actions

EEOC Releases New Resource on Artificial Intelligence and Title VII

WASHINGTON – Today the Equal Employment Opportunity Commission (EEOC) released a technical assistance document, “Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in Employment Selection Procedures Under Title VII of the Civil Rights Act of 1964,” which is focused on preventing discrimination against job seekers and workers. 

SVB’s ‘Twitter-Fueled’ Collapse Makes Banks Reassess Social Media

Banks around the country have begun coming up with plans to counter online threats — including internet rumors about the health of their institutions — Reuters reported Thursday (May 18), citing interviews with industry executives and analysts.

Heads of Failed Banks Mostly Blame Social Media, Not Themselves

(Bloomberg) -- Facing a second day of grilling from US lawmakers, the once top executives at recently failed banks coalesced around a culprit for their firms’ spectacular collapses: social media.

Many Americans eye buy now, pay later to gain more financial flexibility: Survey

Most Americans want financial flexibility when it comes to financing major life milestones and many are considering buy now, pay later (BNPL) installment loans to help finance big purchases, a recent survey said. 

ACA International Files Amicus Brief in 11th Circuit TCPA Case

On May 15, ACA International filed an amicus brief supporting GoDaddy.com, LLC in an 11th Circuit case on issues of Article III standing under the Telephone Consumer Protection Act.

Americans continue to pile up credit card debt, edging close to $1 trillion

Americans continue to bury themselves in credit card debt this year, with the latest total balance inching close to $1 trillion. U.S. consumers now owe $986 billion on their charge cards, according to Federal Reserve Bank of New York data released Monday.

Washington Federal Court Rejects Hunstein; Holds Article III Standing Exists in FDCPA Letter-Vendor Claim

Nearly two years after the Supreme Court’s 2021 decision in Transunion v. Ramirez, courts and litigants continue to grapple with standing issues in Fair Debt Collection Practices Act (FDCPA) cases brought by plaintiffs alleging intangible harms to reputation and privacy interests.

CFPB’s Small Business Lending Rules Headed for More Scrutiny on Capitol Hill 

Small business lending’s new data-driven approach may be headed for more scrutiny on Capitol Hill. To that end, Rep. Maxine Waters (California), the top Democrat ranking member on the House Financial Services Committee, and Rep. Nydia Velázquez (D-New York), ranking member on the House Small Business Committee, weighed in on the latest changes in a letter to Consumer Financial Protection Bureau Director Rohit Chopra asking for a briefing among House Democrats.

ARM Industry Claim Numbers Rose in March

WebRecon’s latest report shows litigation made some ground in March in Fair Debt Collection Practices Act, Telephone Consumer Protection Act and Fair Credit Reporting Act claims, compared to the much lower numbers in February.

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RMAi 2023 Executive Summit

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CA Credit Union Collectors Council – 36th Annual Conference

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