CFPB Eyes Consumer Payment Markets for Supervision and Examinations

The CFPB's latest regulatory agenda signals that it is considering rules to define larger participants in markets for consumer payments, to be published in July 2023. This action, if implemented, would represent a sea change for consumer payments providers, and would result in larger providers being subjected to agency supervision and examination.

Barr eyes reverse stress tests, quicker intervention

The Federal Reserve may hire behavioral scientists and experiment with reverse stress testing as part of a focused effort to tweak its bank supervision process throughout the rest of this year, Michael Barr, the central bank’s vice chair for supervision, said at an event Tuesday held by the New York Fed.

FTC alleges Amazon enrolled people in Prime without consent and thwarted members’ attempts to cancel

In the latest action to challenge alleged digital dark patterns, the FTC has sued Amazon for enrolling people in its Prime program without the consumer’s consent. Once consumers were signed up, the complaint also charges that Amazon set up online obstacles that made it difficult for them to cancel their Prime subscription.

It’s official: Student loan payments will restart in October, Education Department says

Over the three-year-long pause on student loan payments, the U.S. Department of Education has repeatedly told borrowers their bills were set to resume, only to take it back and provide them more time.

CFPB Releases Reports on Banking Access and Consumer Finance in Southern States

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued two new reports on the financial opportunities and challenges facing Southern communities. The Southern U.S. is home to diverse populations, including many rural areas.

Banking and Credit Access in the Southern Region of the U.S

This Data Spotlight analyzes banking and credit access in the southern region of the U.S. It seeks to identify gaps, as well as opportunities to increase financial access in the region, particularly branch presence and bank account access, and capital access such as mortgage lending and small business lending.

Private Credit Deep Dives – Leverage Covenants and Auto-Resets

As the private credit industry has relentlessly expanded and the capital available for deployment by private credit asset managers has rapidly grown, those investing at the top end of the market have increasingly had to compete on terms with the financing packages offered by underwriting banks for broadly syndicated deals.

Americans are facing ‘triple trouble’ from credit card debt, with more cards, bigger balances, and higher rates than ever

According to the Federal Reserve Bank of New York, total credit card balance stayed around a record $986 billion between fourth quarter 2022 and first quarter 2023. A January Bankrate survey further found 35% of of American adults carry some credit card debt.

New York could change how medical debt impacts consumers

Credit reporting agencies would be prohibited from collecting medical debt, nor would it be included in a consumer's credit report under legislation that will be heading to Gov. Kathy Hochul's desk. 

Special report from S&P Global Mobility: Auto-finance delinquencies rise past Great Recession peak, but…

SOUTHFIELD, Mich., June 20, 2023 /PRNewswire/ -- With American households battling inflation and rising interest rates, auto lenders are seeing increased occurrences of auto-loan delinquencies - but almost entirely in the subprime segment.…

Worker Surveillance Poses Potential Privacy Harms

The CFPB has heard from the public about the risks to workers’ privacy that arise from automated workplace surveillance technology. For many workers, simply going to work to earn a living means putting vast amounts of their vital and personal information into the hands of their employers or third-party technology firms.

Desert Financial Named a Forbes Best-In-State Credit Union

PHOENIX, June 20, 2023 /PRNewswire/ -- Forbes named Desert Financial Credit Union as a Best-In-State Credit Union in 2023 and the top credit union in Arizona for the fifth year in a row.

Credit Unions Can Win With Crypto via Education, Says PSCU

In the face of ongoing regulatory scrutiny and volatile market swings, the crypto landscape has shown surprising resiliency coming out of a disastrous 2022. “We’re definitely seeing more interest and more activity,” when it comes to credit union members conducting crypto transactions, Lou Grilli, senior innovation strategist at PSCU, tells PYMNTS.

Identity Crisis: Supreme Court Rules on ‘Identity Theft’ Penalty Enhancement

As part of a suite of statutes, Congress made it a crime to “exceed authorization” to access a computer (CFAA, 18 USC 1030) and to traffic in purloined passwords (18 USC 1029) and “‘Fraud and related activity in connection with identification documents, authentication features, and information’”(18 USC 1028). Congress also created an enhancement to other crimes if, in the course of committing that crime, the offender committed “aggravated identity theft;” that is, essentially, if an offender also misused the identity of another person. 

CFPB Report Identifies Issues with Increased Servicemember Use of Digital Payment Apps

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released its annual report on the top financial concerns facing military families. 

Fifth Circuit: Barton Doctrine Precluded Litigation by Chapter 7 Debtor Against Bankruptcy Trustee and Counsel

To shield bankruptcy trustees and certain other entities from litigation arising from actions taken in their official capacity, the "Barton doctrine"—now more than a century old—provides that such litigation may be commenced only with the authority of the appointing court.

ODOT: 3.5 million Oregonians may be impacted by DMV data hack

PORTLAND Ore. (KPTV) - A massive global data breach has exposed the personal information of millions of Oregonians who have a DMV-issued identification card. Airlines, banks, universities, foreign governments, other state-level agencies, and more, were all also impacted by the attack.

Student Loans: 14 Million Americans Will Face New Complications As Payments Resume

The federal student loan payment pause that has been in effect for more than three years will soon come to an end regardless of how the U.S. Supreme Court rules on the Biden administration’s loan forgiveness plan. When payments resume, you can expect plenty of complications — and delinquencies.

Report: Credit Card Delinquencies Rise as Consumers Drain Savings

Your card bill might read “2023,” but for credit card delinquency rates, it’s 2019. As Seeking Alpha noted in a report Monday (June 19), those rates now exceed pre-pandemic levels for at least three card companies: Capital One, Discover and Bread Financial.

CFPB Action Dismissed for Bureau Going Out of Bounds on Discovery in District Court Case

The 11th Circuit Court of Appeals has upheld a lower court’s decision that the Consumer Financial Protection Bureau did not follow the discovery process in a civil case.

Seventh Circuit rules $3.95 in postage spent by plaintiff to respond to second validation notice sufficient to establish FDCPA standing

The U.S. Court of Appeals for the Seventh Circuit has ruled that a plaintiff in a putative class action had standing to assert FDCPA claims against the purchaser of her debt and the purchaser’s servicer based on the $3.95 she paid in postage to respond to a second validation letter after she had already responded to the first validation notice.

Text Carriers Announce New Requirements

Several text message carriers will require companies using 10-digit telephone numbers (10 DLC) for SMS and MMS messages to U.S. consumers to register to an approved campaign under their brand effective July 5, 2023.

OCC Report Identifies Key Risks Facing Federal Banking System

The Office of the Comptroller of the Currency (OCC) today reported the key issues facing the federal banking system in its Semiannual Risk Perspective for Spring 2023.

Alabama ONE Named Credit Union of the Year

Tuscaloosa, AL: Alabama ONE has been named the 2022 Credit Union of the Year among credit unions with more than $500 million in assets by the League of Southeastern Credit Unions (LSCU). The LSCU Awards Committee awards Credit Union of the Year Awards for Alabama, Florida, and Georgia. Recognized as the best Alabama credit union with $500 million and over in total assets, Alabama ONE received the 2018 Credit Union of the Year Award and is now a recipient of this award for the second time.

CFPB and Federal Banking Agencies Propose Quality Control Standards on Automated Valuation Models Used in Underwriting Mortgage Loans

On June 1, 2023, the Consumer Financial Protection Bureau along with Federal Reserve, OCC, FDIC, NCUA and FHFA (collectively, the “Agencies”) issued a Notice of Proposed Rulemaking seeking comment on rules to implement quality control standards for automated valuation models (AVMs) used by residential mortgage originators and secondary market issuers in determining the collateral worth of a mortgage loan that is secured by a consumer’s principal dwelling.

DFPI Reports Continuing Success in Implementation of California Consumer Financial Protection Law

SACRAMENTO – The Department of Financial Protection and Innovation (DFPI) announced today it has made significant progress growing its reach and impact in key areas affecting California consumers, two years into implementing one of the most expansive consumer financial protection laws in the nation.

District Court puts hold on CFPB’s $2.7 billion request in telemarketer case

On June 7, the U.S District Court for the District of Utah denied the CFPB’s motion for an award of monetary and injunctive relief, assessment of civil money penalties, and final judgment in an action taken against a group of Utah-based credit repair telemarketers and their affiliates (collectively, “defendants”).

CFPB Action Dismissed for Bureau Going Out of Bounds on Discovery in District Court Case

The 11th Circuit Court of Appeals has upheld a lower court’s decision that the Consumer Financial Protection Bureau did not follow the discovery process in a civil case.

Consumer Rights: Weighing the Pros and Cons of Chargebacks as a First Line of Defense Against Merchant Disputes

TAMPA BAY, Fla., June 19, 2023 /PRNewswire-PRWeb/ -- In 2022, 60% of adults in the U.S. were living paycheck to paycheck, and with inflation at a 40-year high,(1) consumers are pulling out their credit cards more often to keep up. 

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.

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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