Supreme Court Rejects Government’s Broad Use of the Aggravated Identity Theft Statute to Impose Two-Year Mandatory Minimum Sentences in Fraud Cases

The aggravated identity theft statute, 18 U.S.C. §1028A, imposes a mandatory two-year sentencing enhancement upon a defendant who “uses” without lawful authority another’s means of identification “during and in relation to” an enumerated predicate felony.

FTC’s Proposed Non-Compete Ban Timeline Set Back After Thousands Submit Public Comments

Earlier this year, the Federal Trade Commission (FTC) proposed a rule that would, with limited exceptions, bar employers from using employee non-compete agreements and require rescission of existing non-compete agreements.

FTC Seeks Public Comment on Collaboration With States Regarding Consumer Protection

The Federal Trade Commission (FTC) announced on June 7 that it is seeking public comments and suggestions on ways it can work more effectively with state attorneys general nationwide to help educate consumers about and protect them from potential fraud.

Attorney General Mayes Urges Federal Agency to Prioritize Transparent, Risk-Based Approach to AI Governance

PHOENIX–Attorney General Mayes this week joined 22 other attorneys general in urging the National Telecommunications and Information Administration to advance artificial intelligence governance polices that prioritize robust transparency, reliable testing and assessment requirements, and allow for government oversight and enforcement for high-risk uses.

Is Your AI Intelligent Enough? The CFPB Says it Will Actively Police the Use of Chatbots and Warns of Risks

In June, the Consumer Financial Protection Bureau (CFPB) issued a report (Report) summarizing its research into the use of artificial intelligence (AI) in consumer finance. The Report focused on the shift away from "human support" to "algorithmic support" in the banking and consumer finance industry. The CFPB provided analysis of the use of chatbots and outlined risks associated with the technology. In addition to confirming that it will take an active role in monitoring compliance in the context of AI, CFPB made clear that chatbot technology should only be deployed if it can:

Revival of Time-Barred Zombie Mortgages May Come Back to Haunt Debt Collectors

Last month, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion on the attempted enforcement of time-barred alleged debt collection rights as to second mortgage loans. It is a violation of the Fair Debt Collection Practices Act (FDCPA) and its implementing Regulation F to sue or threaten to sue on a time-barred debt, including mortgage loans.

Attorney General Bonta Submits Comment Letter Calling for Greater AI Transparency and Accountability

OAKLAND — California Attorney General Rob Bonta today announced that he has joined a bipartisan coalition of 23 attorneys general in submitting a comment letter to the National Telecommunications and Information Administration (NTIA) that underscores the need for transparency and accountability in Artificial Intelligence (AI) policies.

The CFPB intends to identify ways to simplify and streamline the existing mortgage servicing rules

Borrowing to buy a home is one of the biggest financial decisions a family will make. Mortgage servicers are the companies responsible for processing payments and managing mortgage accounts, and they play a critical role in assisting homeowners with repayment. Borrowers don’t choose these companies – servicers are chosen by the lender or investor that owns the mortgage.

Credit repair companies file for Chapter 11 bankruptcy relief in response to potential $3 billion CFPB judgment

Recently, PGX Holdings, Inc. (PGX), one of the nation’s largest consumer credit repair companies, and twelve affiliates have entered into Chapter 11 bankruptcy under pressure from a potential $3 billion CFPB judgment for violations of federal consumer protection laws.

CFPB Spring 2023 rulemaking agenda includes proposed larger participant rule for nonbanks in consumer payments market

The CFPB has released its Spring 2023 rulemaking agenda as part of the Spring 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions.  The agenda’s preamble indicates that “[t]he Bureau reasonably anticipates having the regulatory matters identified [in the agenda] under consideration during the period from June 1, 2023 to May 31, 2024.”

Senators, CFPB’s Chopra spar over proposed credit card fee limit

Consumer Financial Protection Bureau Director Rohit Chopra on Tuesday defended the agency’s proposal to lower credit card late fees against criticism from Republicans at a Senate Banking hearing.

FTC Sends More than $3.3 Million to Consumers Harmed by Student Loan Debt Relief Scam

The Federal Trade Commission is sending payments totaling more than $3.3 million to consumers who were harmed by Arete Financial Group, a student loan debt relief operation that tricked consumers into making illegal upfront payments by pretending to be affiliated with the U.S. Department of Education and falsely promising student loan debt relief. In reality, the scammers pocketed customers’ payments and never provided the promised relief.

Why the Country’s Second Largest Credit Union Is Finally Going ‘All In’ on Digital 

Consumers now have more options for getting loans, making deposits and transacting across digital channels. And they also have higher expectations based on the type of digital experiences they receive from their preferred brands, including travel, fitness, payment and social media. 

New York Department of Financial Services Proposes Heightened Standards for Character and Fitness of Executives

On May 9, New York State Department of Financial Services (DFS or the Department) Superintendent Adrienne A. Harris issued proposed guidance to clarify the DFS’s updated expectations regarding the review and assessment of the character and fitness of directors and senior officers (Proposed Guidance).¹

Senators, CFPB’s Chopra spar over proposed credit card fee limit

Consumer Financial Protection Bureau Director Rohit Chopra on Tuesday defended the agency’s proposal to lower credit card late fees against criticism from Republicans at a Senate Banking hearing.

State Law Roundup: Licensing in Maryland, Data Privacy in Texas and More

New branch licensing requirements take effect in Maryland July 1, plus several more states enact data privacy laws, bringing the total to 10.

CFPB announces consent order with third-party collector of medical debt

The CFPB announced at the end of last week that it had entered into a consent order with Phoenix Financial Services, LLC (Phoenix), a third-party debt collector that collects primarily past-due medical debts and furnishes information to consumer reporting agencies (CRAs), to settle alleged violations by Phoenix of the Fair Credit Reporting Act and its implementing Regulation V, the Fair Debt Collection Practices Act, and the Consumer Financial Protection Act.

Acting Comptroller Issues Statement on Key Risks Facing Federal Banking System

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement on the publication of the Office of the Comptroller of the Currency’s (OCC) Semiannual Risk Perspective Spring 2023 report.

Credit Unions Gear Up to Build Instant Payments Ecosystems as FedNow Looms

July 2023 will mark the second time in six years that a new real-time payments rail will go live in the United States. And with it comes a lot of uncertainty about whether the Federal Reserve will move as “fast” in adapting these rails to the use cases that matter for credit union members. But forward-thinking CUs can leverage members’ trust to forge new instant payments ecosystems.

FCC Assesses Over $5M Forfeiture for Unlawful Robocalls

FCC assesses over $5M in fines against John M. Burkman, Jacob Alexander Wohl, and J.M. Burkman & Associates LLC for making 1,141 unlawful robocalls to wireless numbers.

CFPB’s Latest Rulemaking Inquiry Focuses on Data Brokers and the FCRA

The Consumer Financial Protection Bureau is seeking public and market input on the activities of data brokers as part of plans to issue a rulemaking under the Fair Credit Reporting Act.

CFPB aims to give ‘open banking’ rule teeth in 2024

The bureau’s chief, Rohit Chopra, laid out a timeline on a rule change meant to make it easier for consumers to break up with their banks.

Carr: Biden Administration Must Immediately Rescind Burdensome Credit Reporting Rule for Small Businesses

ATLANTA, GA – Attorney General Chris Carr today wrote to the Biden administration’s Consumer Financial Protection Bureau (CFPB) to request it immediately rescind its final rule requiring financial institutions to unnecessarily collect and report data regarding applications for credit for small businesses. 

Is this “Good-Bye” to the Two Year Mandatory Minimum in Healthcare Fraud Cases?

On June 8, 2023, the Supreme Court issued a unanimous decision holding that the aggravated identity theft statute –and its mandatory minimum of two years – is not triggered merely because someone else’s identification facilitates or furthers the offense in some way.

FTC Comment Request Signals Joint Enforcement With State AGs Will Continue Increasing

On June 7, the Federal Trade Commission (FTC) announced a request for information (RFI) to gain additional insight into how it can optimize joint enforcement with state attorneys general (state AGs) to protect consumers from fraud.

Supreme Court Unanimously Reins in the Government’s Use of the Aggravated Identify Theft Statute

In an extremely consequential decision issued last week, the United States Supreme Court reined in what the Court termed the government’s “boundless interpretation” of the aggravated identity theft statute, 18 U.S.C. § 1028A. Section 1028A provides for a mandatory two-year prison sentence for “any person who, during and in relation to any predicate offense knowingly transfers, possesses, or uses, without lawful authority, a means of identification of another person.”

New York Legislature and Enforcement Agencies Remain Active on the Data Privacy and Security Fronts

At the start of 2023, the New York State legislature introduced several privacy-related bills.  One of those bills, S365, appears to be gaining momentum.

Colorado Passes Legislation Seeking to Stop State-Chartered Banks from Preempting Colorado’s Usury Limit

As discussed here, in April 2023, Colorado introduced HB 1229 that proposed to limit certain charges on consumer loans and simultaneously opt Colorado out of sections 521-523 of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA).

Laying the foundation for open banking in the United States

New digital banking technologies have the power to expand and open market access for American consumers and emerging businesses. In a more competitive market, Americans will be able to earn higher rates on their savings, pay lower rates on their loans, and more efficiently manage their finances.

If your bank texts you to warn you of a fraudulent charge, that’s likely a scammer, FTC warns

Nearly all of us have had gotten messages from our banks telling us that a recent transition looks suspiciously fraudulent. But it can be dangerous to respond to them, as scammers are increasingly using these messages to commit fraud.

More Borrowers at Risk of Defaulting

More student loan borrowers are behind on their credit card bills and loans than before the pandemic, and they are paying more because of rising interest rates, a new report from the Consumer Financial Protection Bureau found.

3 Keys to Understand the Cyber Security Skills Gap (and Deal with it)

You don’t have to go far to find cyber security professionals complaining about skills shortages, but the problem has several dimensions which have to be understood and mapped out, before we can start to figure out possible solutions.

Semi-Annual Report of the Consumer Financial Protection Bureau

The Bureau of Consumer Financial Protection is pleased to present our Semi-Annual Report to Congress for the period beginning April 1, 2022 and ending September 30, 2022.

$120,000,000

RMAi 2023 Executive Summit

RMAi

Debt Connection Symposium & Expo 2023 – DCS2023

Debt Connection Symposium & Expo has returned for 2023! We are headed back to Las Vegas, September 27th - 29th to network and connect with clients, service providers, product suppliers, agencies, and attorneys - at a whole new level.

CA Credit Union Collectors Council – 36th Annual Conference

CCUCC