CFPB Issues Guidance on Credit Denials by Lenders Using Artificial Intelligence

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued guidance about certain legal requirements that lenders must adhere to when using artificial intelligence and other complex models.

Kentucky Federal Court Grants Preliminary Injunction Enjoining CFPB’s Enforcement of its Section 1071 Rule Until After U.S. Supreme Court Decision

On September 14, a federal district court in the Eastern District of Kentucky became the second court to issue an order granting, in part, a plaintiffs’ motion for a preliminary injunction enjoining the Consumer Financial Protection Bureau’s (CFPB or Bureau) from enforcing its final rule under § 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Final Rule) against the plaintiffs and their members.

CUNA, NAFCU, DCUC oppose credit card cap amendment to ‘minibus’

CUNA, NAFCU, and the Defense Credit Union Council (DCUC) urged Senate leaders to oppose an amendment to the “minibus” appropriations bill that would cap credit card annual percentage rates at 18%. The organizations note it would make credit more expensive and less available.

The Dilemma Facing Lenders Subject to the 1071 Small Business Data Collection and Reporting Rule

We recently reported that a federal district court in Kentucky enjoined the CFPB from implementing the small business data collection and reporting rule, also referred to as the 1071 rule based on the Dodd-Frank section requiring the rule (the “Rule”)

California Expands UDAAP Prohibitions to Commercial Financing

Commercial financing in California will be subject to a new rule prohibiting unfair, deceptive, and abusive acts and practices (UDAAPs) effective October 1, 2023. The prohibition extends federal UDAAP restrictions to small business financing.

Attorney General James Leads Multistate Coalition to Support DOJ and FTC’s Revised Merger Guidelines

NEW YORK – New York Attorney General Letitia James led two multistate coalitions in submitting comments to support the U.S. Department of Justice (DOJ) and the Federal Trade Commission’s (FTC) proposed revisions to strengthen the Merger Guidelines, which are the standards that DOJ and FTC use when determining whether corporate mergers and acquisitions violate antitrust laws.

TEACHERS FEDERAL CREDIT UNION MAKES HOMEOWNERSHIP MORE AFFORDABLE FOR ACTIVE-DUTY SERVICEMEMBERS AND VETERANS

HAUPPAUGE, N.Y., Sept. 20, 2023 /PRNewswire/ -- Teachers Federal Credit Union, one of the largest credit unions in the United States with $9.7 billion assets and more than 460,000 members, is proud to now offer VA Loans to help active-duty military, veterans, and surviving spouses maximize their benefits, minimize costs, and find the home they deserve.*

Attorney General Bonta Co-Leads Multistate Coalition in Expressing Support for DOJ and FTC’s Revised Merger Guidelines

OAKLAND — California Attorney General Rob Bonta today announced co-leading a coalition of 19 attorneys general in submitting a comment letter to the United States Department of Justice (DOJ) and the Federal Trade Commission (FTC) regarding the agencies’ proposed revisions to the Merger Guidelines. Merger Guidelines describe the standards used by DOJ and FTC to determine whether mergers and acquisitions comply with federal antitrust law.

Baby Boomers and Gen Xers Wound Down Their Nonmortgage Debt Over the Past 2 Years, While Gen Zers and Millennials Increased Their Burdens

Debt knows no generational bounds, yet the strain of financial obligations resonates differently among each age group. When it comes to debt burdens, though, Gen Xers stand out. In fact, Gen Xers have the highest average nonmortgage and mortgage debt of any generation — and their nonmortgage debt is growing.

CFPB Updates Small Business Lending Rule FAQs

On Sept. 14, 2023, the CFPB issued updates to its FAQs to assist small business lenders and finance companies with complying with the final Small Business Lending Rule (the Rule) mandated by section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The FAQs to the Rule cover the following topics: institutional coverage; covered credit transactions; definition of a small business; firewall; record retention.

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses that would permit consumers to choose between arbitration and litigation only after a dispute has arisen.

ACA Joins Coalition Supporting Workforce Development Legislation

ACA International joined the Tomorrow’s Workforce Coalition along with 600 other associations, nonprofits and businesses to help pass beneficial, bipartisan workforce development legislation: The Freedom to Invest in Tomorrow’s Workforce Act (PDF) (S. 722 / H.R. 1477).

Wescom Credit Union Expands Field of Membership to Serve More Californians

PASADENA, Calif.--(BUSINESS WIRE)--Wescom Credit Union, on the heels of its Central Coast Federal Credit Union (CCFCU) merger news, has today announced that in addition to the eight Southern California Counties it currently serves, the Credit Union will now serve an additional thirteen counties in California.

Truth in Lending (Regulation Z) Annual Threshold Adjustments (Credit Cards, HOEPA, and Qualified Mortgages)

The Consumer Financial Protection Bureau (Bureau) is issuing this final rule amending the official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises dollar amounts for certain provisions implementing TILA and amendments to TILA.

FTC Warns Tax Preparation Companies About Misuse of Consumer Data

The Federal Trade Commission is warning five tax preparation companies that they could face civil penalties if they use or disclose confidential data collected from consumers for the purpose of preparing their taxes for other unrelated purposes, such as advertising, without first obtaining consumers’ consent.

Attorney General James Scores Major Victory for Small Businesses Harmed by Predatory Lender

New York – New York Attorney General Letitia James secured a major court victory against three merchant cash advance companies, Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding (the Richmond companies) and their principals, Jonathan Braun, Tzvi Reich, Robert Giardina, and Michelle Gregg, for harming small businesses through high-interest loans and undisclosed fees.

Western Union Remission Fund Distributes Approximately $40M to Victims in the United States and Abroad

The Justice Department today announced that the Western Union Remission Fund began a distribution of approximately $40 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 25,000 victims located in the United States and abroad. These victims stand to recover the full amount of their losses.

9th Circuit Explains What Sort of Litigation Actions by Debt Collector Can Trigger New FDCPA Statute of Limitations Period

The Ninth Circuit issued an Opinion reversing dismissal of a borrower’s Fair Debt Collection Practices Act (FDCPA) claim as time-barred by the FDCPA’s one-year statute of limitations where actions by the debt collector in underlying collections lawsuits triggered a new limitations period.

States with the highest credit card debt

Californians are racking up the most credit card debt, according to recent data from personal finance website WalletHub. Currently, consumers across the nation hold $1 trillion in credit card debt.

Report: Robocalls Are Back on the Rise

Reversing a recent down trend, robocalls increased by 5% in August to 5.4 billion, according to Robokiller Insights. The worst offenders, the report said, were robocalls related to financial services, debt collection, medical scams, and loans. It’s not just the scam calls that are a problem; robotexts are a problem, too.  Even with a 4% decrease in robotexts, Americans still received 11.3 billion robotexts in August.

Student loan borrowers at risk of scams as payments restart, says FTC

Student loan payments are restarting in October after a pause of more than three years — and scammers are trying to take advantage, the Federal Trade Commission warned. Fraudsters may try mislead borrowers by offering assistance and asking them to pay for it, Ari Lazarus, consumer education specialist at the FTC, wrote in a consumer alert Thursday. Those fake offers might include lowering borrowers’ monthly payments, avoiding repayment or getting their loans forgiven.

Wandering through the Consumer Health Data Privacy & Security Forest? There is a guide for that…..

If you are in the consumer health space, you have (or at least we hope you have...) figured out by now that there are health-related privacy and security laws and regulations that apply to your business. The Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) are the cops on the block, taking that role seriously.   

CFPB Report Sheds Light on Tuition Payment Plans

n a recent report, the Consumer Financial Protection Bureau highlighted the risks faced by students using the tuition payment plans offered by colleges and universities across the U.S., according to a recent press release.

FTC Settles With Background Report Companies for FCRA Violations and Deceptive Acts

The Federal Trade Commission (“FTC”) on September 11, 2023, settled a claim against a group of affiliated entities operating a background reporting business, Instant Checkmate, LLC, TruthFinder, LLC, The Control Group Media Company, LLC, Intelicare Direct, LLC, and PubRec LLC (“background report companies” or “companies”) for alleged misrepresentations that deceived consumers about whether they had criminal records and for operating as a consumer reporting agency without following the requirements of the Fair Credit Reporting Act (“FCRA”).

US banks say regulators broke law as fight over proposed capital rules escalates

WASHINGTON (Reuters) - U.S. bank groups on Tuesday accused the Federal Reserve and other regulators of violating federal laws with a sweeping proposal to raise capital requirements, escalating an assault on the draft rules that were also blasted by bank executives.

‘Americans are being crushed’: Sen. Josh Hawley wants to cap credit card APR at 18% — here’s his plan to help ‘working people’

Senator Josh Hawley has introduced new legislation that would cap credit card interest rates at 18% in a move he hopes is “fair, common-sense, and gives the working class a chance.”

California lawmakers pass bill to make it easier to delete online personal data

California lawmakers on Thursday passed a bill known as the Delete Act that would allow consumers, with a single request, to have every data broker delete their personal information.

Attorney General Bonta Announces $93 Million Settlement Regarding Google’s Location-Privacy Practices

OAKLAND — California Attorney General Rob Bonta today announced a $93 million settlement with Google resolving allegations that its location-privacy practices violated California consumer protection laws.

Delawareans with medical debt now have more protections

Senate Substitute 2 for Senate Bill 8 is the third iteration of a bill aimed at protecting patients from unfair debt collection practices for medical debt.

The CFPB’s Summer 2023 Supervisory Highlights

The Consumer Financial Protection Bureau’s (CFPB or Bureau) Summer 2023 Supervisory Highlights, which discusses key examination findings between July 2022 and March 2023, underscores the Bureau’s continuing aggressive interpretations of its authority.

California ranks top 10 in this national study — for debt. Here’s how much households owe

Consumers in the U.S. have racked up more than $1.2 trillion in credit card debt, but some states — such as California — have larger increases and per-household debt than others.

CFPB Report Finds College Tuition Payment Plans Can Put Student Borrowers at Risk

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a new report finding that students face risk when entering into agreements with colleges to spread the upfront cost of tuition into several, interest-free loan payments. The report, which looks at tuition payment plans offered by nearly 450 institutions, finds that many plans have inconsistent disclosures and confusing repayment terms, putting students at risk of missing payments, incurring late fees, and accumulating debt. The report also finds that many institutions withhold transcripts from students as a debt collection tool, a potentially illegal practice that can have severe consequences for students trying to begin their careers or finish their education.

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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 - California Credit Union Collectors Councils 36th Annual Collections and Lending Conference is the place to be. We are seeing consumer debt especially credit card debt at an all time high. There is no other place to help you prepare for what’s to come. Join the growing number of credit union professionals attending this event!

Used Car Week 2023

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