FCC CHAIRWOMAN LAUNCHES EFFORT TO BETTERUNDERSTAND AI’S IMPACT ON ROBOCALLS AND ROBOTEXT

WASHINGTON, October 23, 2023—Federal Communications Commission Chairwoman
Jessica Rosenworcel today announced at an event with AARP that she will be sharing with her
colleagues a proposed inquiry that would take a closer look at how artificial intelligence
impacts illegal and unwanted robocalls and texts.

CFPB proposes rule to accelerate a shift toward open banking

On October 19, the CFPB announced a proposed rule that it said would accelerate a shift toward open banking, would give consumers more control over their financial data, and would offer new protections against companies misusing consumer data.

NCUA Chairman Todd M. Harper’s Remarks at the 2023 REACH Conference

To get us started, I’m eager to report on the industry’s most recent performance metrics. Last month the NCUA released the credit union system’s performance data for the second quarter of 2023. These aggregate statistics provide important insights into the current state of the credit union system. Overall, the metrics indicate that credit unions remain generally well positioned at this time.

CFPB Report Finds Credit Card Companies Charged Consumers Record-High $130 Billion in Interest and Fees in 2022

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released its biennial report to Congress on the consumer credit card market. The report found that in 2022 credit card companies charged consumers more than $105 billion in interest and more than $25 billion in fees. 

FTC and Wisconsin Take Action Against Rhinelander Auto Center for Illegally Discriminating Against American Indian Customers and Charging Unlawful Junk Fees

The Federal Trade Commission and State of Wisconsin are taking action against Wisconsin auto dealer group Rhinelander Auto Center, its current and former owners, and general manager Daniel Towne for deceiving consumers by tacking hundreds or even thousands of dollars in illegal junk fees onto car prices and for discriminating against American Indian customers by charging them higher financing costs and fees.

Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on the Final Rule Implementing the Community Reinvestment Act

Banks are not ordinary businesses. They are critical infrastructure of the economy. This is why we provide them with many public benefits, and in exchange, they have obligations to meet the “convenience and needs” of the communities they serve.

From the Web: California’s New Law Expands Data Broker Requirements

In a recent move to bolster online privacy, California Gov. Gavin Newsom has signed the Delete Act, empowering Californians to regain control over their personal data by allowing them to request its deletion or forbid its sale or sharing with a single, straightforward process, according to an article from The Verge.

Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on the Proposed Rule Regarding Lifetime Banking Bans for Certain Criminal Offenses

One of the biggest challenges that banks face today is recruiting and retaining qualified employees. The Federal Deposit Insurance Act prohibits banks from employing people convicted of certain criminal offenses.¹ Today, the FDIC is proposing rules that implement recently enacted legislation to revise this prohibition by excluding certain offenses, like drug possession.²

Student loans: Early data shows repayments are already taking a toll

The Census Bureau found that 41.2% of adults reported difficulties paying household expenses in its latest household pulse survey that polled respondents from Sept. 20 to Oct. 2. That was up from 37.3% from the previous two-week polling period between Aug. 23 to Sept. 4 and the highest share on record since the survey first began asking that question in August 2020.

California Takes an Aggressive Approach to Regulating Data Brokers

The Delete Act (SB 362), signed into law by California Gov. Gavin Newsom on October 10, imposes additional disclosure and registration requirements on data brokers. It requires data brokers to support deletion requests through a central “deletion mechanism” managed by the California Privacy Protection Agency (CPPA).

Jamie Dimon rips central banks for being ‘100% dead wrong’ on economic forecasts

JPMorgan Chase CEO Jamie Dimon on Tuesday warned about the dangers of locking in an outlook about the economy, particularly considering the poor recent track record of central banks like the Federal Reserve.

5 ways credit unions can elevate their contact centers

In today’s fast-paced world, consumers expect swift, seamless solutions – and patience is in shorter supply in those waiting for answers. The good news is credit unions can leverage innovation to enhance contact center efficiency and member experiences.

California Credit Union League celebrates 90 years

The California Credit Union League transformed from a modest volunteer organization in 1933 with a specific political agenda into a well-established, highly skilled, and professional association over the last 90 years. 

Congress Begins Review of Labor Department’s Proposed Overtime Rule

A House committee last week examined the proposed overtime rule changes from the U.S. Department of Labor (DOL)—a topic not unfamiliar to Congress, regulators and the industry.

Utah State Court Rejects Claim Based on Debt Collector’s Alleged Failure to Register Under Collection Agency Act

The Utah court of appeals has recently affirmed the dismissal of a plaintiff’s suit against a debt buyer based on its alleged failure to register as a collection agency prior to filing collection lawsuits. The court’s decision in Meneses v. Salander Enterprises LLC, not only holds that a violation of the Utah Collection Agency Act (UCAA) is not a deceptive or unconscionable act under state law, but also calls into question whether the UCAA ever even applied to debt buyers. 

Credit union loans outstanding increased 0.8% in August

Credit union loans outstanding increased 0.8% in August, compared to a 0.7% increase in July of 2023 and a 1.7% increase in August of 2022, according to CUNA's latest Monthly Credit Union Estimates.

CFPB Issues Proposed Rule to Regulate Personal Financial Data Rights

On October 19, the CFPB proposed a rule that would require depository and nondepository entities to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts (see our previous post on this rulemaking here and here). 

CFPB Issues Advisory Opinion on Consumer Requests for Information

The CFPB recently issued an Advisory Opinion that provides guidance on Section 1034(c) of the CFPA, which generally requires large banks and credit unions with over $10 billion in assets to comply in a timely manner with consumer requests for information, including supporting written documentation, concerning their accounts for financial products and services. 

DFPI Continues Yearlong Effort Targeting Unlawful, Deceptive Debt Collectors with Four New Actions

SACRAMENTO – In a continuation of a yearlong crackdown on unscrupulous debt collectors, the California Department of Financial Protection and Innovation (DFPI) announced today that it has issued enforcement actions against four entities for unlicensed debt collection activity under the Debt Collection Licensing Act (DCLA) and unfair, deceptive, or abusive acts or practices (UDAAP) in violation of the California Consumer Financial Protection Law (CCFPL) and related federal laws and regulations.

1 in 4 Consumers Spend Indulgently on Streaming Services

For the September installment of the series “New Reality Check: The Paycheck-to-Paycheck Report,” created in collaboration with LendingClub, “The Nonessential Spending Deep Dive Edition,” PYMNTS Intelligence surveyed more than 3,400 U.S. consumers about their spending on nice-to-haves.

Robocalling is already an issue for Americans. AI is making it worse

• The use of generative artificial intelligence can mimic the voice of someone you know and communicate with you in real time. Roughly 52% of Americans share their voice online, according to McAfee, providing a way for scammers to replicate it.

CFPB, FTC, California Make Significant Moves on “Junk Fees”

CFPB – On Oct. 11, the CFPB issued an advisory opinion which generally prohibits banks and credit unions from imposing unreasonable obstacles on customers, such as charging excessive fees, for basic information about their own accounts, stating that such obstacles will violate Section 1034(c) of the Dodd-Frank Act. Section 1034(c) of the CFPA requires large financial institutions to comply with consumer requests for information concerning their accounts in a timely manner. 

Congress to SBA: Go After the Deadbeats

The agency is being pressed by some Republican members of Congress to fully pursue deliquent, pandemic-era loans handed to small borrowers. The SBA says it isn't cost effective.

Report of the CFPB Education Loan Ombudsman

This report analyzes the 9,284 student loan complaints submitted by consumers from September 1, 2022, through August 31, 2023.1 Complaints submitted to the CFPB suggest that across the federal and private student loan markets, failures on the part of industry participants are excluding some borrowers from protections and benefits intended for them under law.  

Banks Say CFPB Needs to Beef Up Security in Open Banking Plan

• CFPB proposal would allow consumers to freely share data
• Banks concerned they may be on the hook for fraud

The Consumer Financial Protection Bureau faced a key challenge in its long-awaited open banking proposal: allowing the free sharing of customers’ financial data while boosting security. Banks say the agency came up short. The open banking proposal the agency released Oct. 19 calls for banks and credit unions to allow customers to easily share their financial information with third-party fintech apps like Wealthfront or Venmo. Typically, that’s done through data aggregators such as Plaid and MX that serve as a bridge between financial institutions and fintechs.

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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