Federal Reserve Board launches data collection to gather more information from the banks affected by the large bank capital proposal it announced earlier this year

The Federal Reserve Board on Friday launched a data collection to gather more information from the banks affected by the large bank capital proposal it announced earlier this year. When the proposal was announced, the Board indicated that it would undertake this supplemental data collection.

More than 300,000 student borrowers given wrong repayment information, Education Department says

More than 300,000 people were given incorrect information about their student loan repayments as resumption of debt payments began this month, the Education Department said on Thursday. 

FTC Reports Outline Efforts to Combat Cross-Border Fraud and Ransomware Attacks

The Federal Trade Commission has submitted two reports to Congress detailing the agency’s efforts to combat cross-border fraud through the U.S. SAFE WEB Act and work contributing to the fight against ransomware and other cyber attacks that originate outside the United States.

TransUnion Report Finds More than Half of Consumers Plan to Spend $500+ this Holiday Shopping Season; Shoppers Plan to Increase Spending for Third Consecutive Year

More than half of Americans (51%) plan to spend more than $500 this holiday shopping season, a marked increase from the 36% who planned to do so in 2022. A new TransUnion (NYSE: TRU) report found that three in 10 consumers (29%) plan on spending more on holiday shopping than in the year prior, while only 16% say they will spend less.

Credit card delinquency rates and balances are on the rise

As Americans grapple with high inflation and record debt, many have fallen behind on credit card payments. In fact, 5.08% of credit card balances fell into serious delinquency or were at least 90 days past due in the second quarter of 2023, according to data from the Federal Reserve Bank of New York. That marked an increase from 3.35% in the second quarter of 2022. 

Oakland County launches new program to help residents erase medical debt

(CBS DETROIT) - Thousands of residents in Oakland County could have their medical debt erased under a new program using federal funding, officials announced Thursday.

Oakland County has partnered with RIP Medical Debt, a national nonprofit organization that acquires and erases medical debt for individuals going through financial hardship, to implement the program.

Board Issues Proposals on Fair Hiring in Banking; Simplification of Share Insurance

ALEXANDRIA, Va. (Oct. 19, 2023) – The National Credit Union Administration Board held its ninth open meeting of 2023, where it unanimously approved a proposed rule incorporating its Second Chance Interpretive Ruling and Policy Statement and the Fair Hiring in Banking Act into its regulations. The NCUA Board also approved a proposed rule that would simplify share insurance regulations by establishing a “trust accounts” category.

NY Federal Court Rules CFPB Vicarious Liability Suit Can Proceed

In August, a New York federal district court denied a motion to dismiss a CFPB lawsuit against three affiliated companies engaged in the business of purchasing distressed consumer debt and several of the companies’ owners and officers. The CFPB’s lawsuit involves claims against the defendants for violations of the Consumer Financial Protection Act (“CFPA”) and Fair Debt Collection Practices Act (“FDCPA”) based on a theory of vicarious liability as a result of conduct of the companies’ third-party debt collection vendors.

Attorney General James Sues Cryptocurrency Companies Gemini, Genesis, and DCG for Defrauding Investors

NEW YORK – New York Attorney General Letitia James today filed a sweeping lawsuit against cryptocurrency companies Gemini Trust Company (Gemini), Genesis Global Capital, LLC and its affiliates (Genesis), and Digital Currency Group, Inc. (DCG) for defrauding more than 230,000 investors, including at least 29,000 New Yorkers, of more than $1 billion. An investigation by the Office of the Attorney General (OAG) found that Gemini lied to investors about an investment program it ran with Genesis called Gemini EarnN.

CFPB Proposes Rule to Jumpstart Competition and Accelerate Shift to Open Banking

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would accelerate a shift toward open banking, where consumers would have control over data about their financial lives and would gain new protections against companies misusing their data.

Prepared Remarks of CFPB Director Rohit Chopra on the Proposed Personal Financial Data Rights Rule

In the last few decades, sectors across the economy have become more concentrated and centralized. A key priority for the Consumer Financial Protection Bureau is to ensure that consumer finance markets are fair, transparent, and competitive.

CUNA, NAFCU, Va. League file brief supporting credit union in appeals court

CUNA, NAFCU, and the Virgnia Credit Union League filed a joint amicus brief in support of 1^st Advantage Credit Union Tuesday, in the lawsuit Studco Building Systems, LLC, v. 1^st Advantage Federal Credit Union. The lawsuit involves a credit union member who transmitted fraudulent emails to the plaintiff, and the plaintiff then transmitted several high-value ACH payments to the credit union, which were eventually withdrawn by the member.

The Federal Trade Commission and Artificial Intelligence

Artificial intelligence (AI) burst into the public consciousness less than one year ago, with OpenAI’s highly successful public release of ChatGPT. Since then, AI-enabled products and services have proliferated throughout the economy.

AG Platkin: For-Profit School and its Owner Agree to $4.6 Million Settlement to Resolve Allegations of Deceptive Business Practices, Unlawful Education Loans

TRENTON – Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) today announced a $4.6 million settlement with a Middlesex County for-profit school and its founder and president that resolves allegations that the school used false and misleading job advertisements to funnel students into its high-cost information technology (“IT”) programs and falsely claimed that Income Share Agreements (“ISAs”) requiring students to pledge a portion of their future income in exchange for upfront money to pay for the programs were not loans and would not create debt.

Preliminary Injunction Entered in Justice Department Suit to Stop Fraudulent Debt Collection Scheme that Harmed Veterans

The U.S. District Court for the Northern District of Oklahoma has issued a preliminary injunction enjoining three individuals and two companies from continuing their fraudulent debt collection scheme. The order was issued after the department filed a civil complaint against Assured Collections LLC, Assured Financial LLC, Christopher Parks, Christopher Noah Parks and Stephen Miller.

US regional banks earn more on loans but warn on rising deposit costs

NEW YORK (Reuters) -Several U.S. regional banks beat analysts third-quarter profit expectations on Wednesday as higher interest rates allowed them to charge more for loans, although rising loan loss provisions and deposit retention costs crimped margins.

Government Efforts on Mitigating ‘Junk Fees’ Advance

A series of actions on “junk fees” came together last week at the federal level and with a new state law in California.

Senate passes resolution of disapproval for CFPB’s 1071 rule

The Senate passed a joint resolution of disapproval Wednesday on the Consumer Financial Protection Bureau’s section 1071 rule. CUNA wrote in support of the resolution, which would void the rule through the Congressional Review Act.

CFPB, DOJ Issue Confusing, but Ominous, Warning to Creditors Who Deny Aliens Credit

On October 18, the Consumer Financial Protection Bureau (CFPB) published a “joint statement” with DOJ in the Federal Register “to assist creditors and borrowers in understanding the potential civil rights implications of a creditor's consideration of an individual's immigration status under the Equal Credit Opportunity Act (ECOA)”.

Big banks are quietly cutting thousands of employees, and more layoffs are coming

The largest American banks have been quietly laying off workers all year — and some of the deepest cuts are yet to come.

Senate votes to overturn CFPB small-business lending rule

The Senate voted 53-44 Wednesday to overturn a Consumer Financial Protection Bureau rule requiring personal information on small-business borrowers, including race and sex, from the financial institutions that lend to them.

NJ Appellate Division Finds No Private Right of Action for Debt Purchaser’s Alleged Failure to Obtain State License

Recently, the New Jersey appellate division held that a debt purchaser is not liable under the New Jersey Consumer Fraud Act (NJ Fraud Act) for failing to obtain a license under the New Jersey Consumer Finance Licensing Act (NJ Licensing Act). Although the decision is unpublished, it is still a welcome relief for purchasers of defaulted debt.

FTC and CFPB Seek Settlement on Reported FCRA Violations by TransUnion

TransUnion and its rental screening subsidiary reportedly provided inaccurate reports on consumers’ rental history when conducting tenant background reports. The regulators seek a fine and revised procedures from TransUnion.

CFPB Advises Large Banks on Compliance with CFPA § 1034(c)

On October 11, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion regarding § 1034(c) of the Consumer Financial Protection Act (CFPA), which requires large banks and credit unions to comply in a timely manner with consumer requests for information concerning their accounts.

Third Circuit Holds That Furnisher Who Receives Notice of an Indirect Dispute Has Absolute Duty to Investigate Under FCRA

News accounts of instances of stolen identity in which identity thieves incur debts in the names of innocent consumers are common.  Given the structure of the consumer credit industry, it is difficult for consumers to know where to turn to try to fix the problem.

ATTORNEY GENERAL BONTA ANNOUNCES $10 MILLION SETTLEMENT OVER ATTEMPTED UNAUTHORIZED WITHDRAWALS BY PAYMENT PROCESSING COMPANY

OAKLAND – California Attorney General Rob Bonta today joined a coalition of 48 states, the District of Columbia, and Puerto Rico in announcing a $10 million settlement with payment processor ACI Worldwide and its subsidiary, ACI Payments, over a testing error that led to the attempted unauthorized withdrawal of $2.3 billion from the accounts of mortgage-holders. ACI processes mortgage payments for a variety of third-party clients, including mortgage servicer Nationstar Mortgage, which is also known publicly as “Mr. Cooper.” 

New TransUnion Analysis Examines Repercussions of FHFA’s Proposed Move from Tri-Merge to Bi-Merge

The Federal Housing Finance Agency’s (FHFA) proposed change to utilize two instead of three credit reports during the mortgage application process could result in unintended consequences for consumers while doing little to achieve the organization’s stated goal of reducing mortgage borrower costs. TransUnion (NYSE: TRU) released these findings today at the Mortgage Bankers Association’s MBA Annual Convention & Expo.

Mayor Adams Releases First-of-Its-Kind Plan For Responsible Artificial Intelligence Use In NYC Gover | City of New York

NEW YORK – New York City Mayor Eric Adams and Chief Technology Officer Matthew Fraser today released the Adams administration’s comprehensive “New York City Artificial Intelligence Action Plan,” taking a major step to cement New York City’s position as a leader in the responsible use of innovative artificial intelligence (AI) technology. 

AG Yost Announces Data Breach Settlement with Health-Care Clearinghouse

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost and 32 of his counterparts announced today that a settlement has been reached with Inmediata over the three-year exposure of the protected health information of 1.5 million consumers.

Challenging environment exists for CDFI CUs looking to serve | CUNA News

Community Development Financial Institution-certified credit unions are key to achieving the mission of the CDFI movement, CUNA wrote to the Senate Banking, Housing, and Urban Affairs Committee Tuesday. The committee conducted a hearing on how CDFIs promote housing and economic opportunities

CFPB planning significant staff increases; number of full-time enforcement attorneys to increase by 50% | Consumer Finance Monitor

American Banker recently reported that the CFPB is planning to substantially increase the size of its staff, particularly its Enforcement Division staff. 

CFPB Takes Action Against Operator of Sendwave App for Illegally Cheating People on International Money Transfers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Chime Inc. for deceiving consumers about the speed and cost of remittance transfers through its mobile app, Sendwave.

California Finalizes Student Loan Servicer Regulations

The California Department of Financial Protection and Innovation (DFPI) has issued final regulations to implement the Student Loan Servicing Act and the Student Loans Borrower Rights Law that will take effect Jan. 1, 2024

US Consumer Inflation Expectations Jump to a Five-Month High

Americans expect prices will climb at a 3.8% rate over the next year, the highest in five months and up from the 3.2% expected in September, according to the preliminary October reading from the University of Michigan. They see costs rising 3% over the next five to 10 years, compared to last month’s 2.8%.

California’s new law makes it easier for consumers to request the deletion of their data

California is officially the first state to pass a law streamlining personal data removal. On October 10, Governor Gavin Newsom signed SB 362, known as the Delete Act, into law, requiring the California Privacy Protection Agency (CPPA) to create and roll out a tool allowing state residents to request that all data brokers delete their information. There are nearly 500 registered data brokers in California.

New Jersey Appellate Division Affirms Dismissal of Consumer Fraud Class Action Against Debt Collector under the New Jersey Consumer Fraud Act

The Superior Court of New Jersey, Appellate Division in Jennifer Woo-Padva v. Midland Funding, LLC, recently affirmed the dismissal of consumer fraud claims brought against a debt collector pursuant to the New Jersey Consumer Finance Licensing Act (CFLA), holding that a debt purchaser is not liable under the New Jersey Consumer Fraud Act (NJCFA) for failing to obtain a state license under the CFLA.

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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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RMAI 2024 Annual Conference

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