FTC Amends Safeguards Rule to Require Non-Banking Financial Institutions to Report Data Security Breaches

The Federal Trade Commission has approved an amendment to the Safeguards Rule that would require non-banking institutions to report certain data breaches and other security events to the agency.

US Serious Mortgage Delinquency Rate Drops to All-Time Low in August, CoreLogic Reports

IRVINE, Calif., October 26, 2023—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for August 2023.

In August 2023, 2.6% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 0.2 percentage point decrease compared with 2.8% in August 2022 and a 0.1 percentage point decrease from July 2023.

ICBA Advocacy Leads to Nationwide Community Bank Relief from 1071 Small-Business Rule

Washington, D.C. (Oct. 26, 2023)—The Independent Community Bankers of America (ICBA), the Independent Bankers Association of Texas (IBAT), and Texas First Bank today announced that the U.S. District Court for the Southern District of Texas has granted their request to expand injunctive relief from the Consumer Financial Protection Bureau’s Section 1071 final rule.

U.S. Bank claims spot in the BNPL space

LAS VEGAS — U.S. Bank stepped into the buy now, pay later space Tuesday with the launch of Avvance, a new point-of-sale lending product.

Redwood Credit Union Donates More than $49,000 to Local Nonprofits for International Credit Union Day

SANTA ROSA, Calif., Oct. 26, 2023 /PRNewswire-PRWeb/ -- On October 19, Redwood Credit Union joined credit unions around the world in celebrating International Credit Union (ICU) Day, a day for credit unions to reflect on their history and commitment to serving their members and communities.

FTC-Wisconsin settlement challenges car dealers’ sales practices, including alleged discrimination against American Indian consumers

In the automotive world they’re called “add-ons.” But for many consumers, they really amount to junk fees on wheels that add to the cost of a car while subtracting from the transparency of the transaction. $1.1 million FTC and State of Wisconsin proposed settlements with Wisconsin dealership group Rhinelander Auto Center, its current and former owners, and its general manager allege the defendants deceptively tacked illegal junk fees onto what consumers had to pay and also discriminated against American Indian customers by charging them higher financing costs and fees.

Bankruptcy Filings Rise 13 Percent

Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023. This continues a moderate rebound after more than a decade of sharply dropping totals. 

Fed wants to lower ‘swipe fees,’ a potential blow to banks and credit card giants

The Federal Reserve Wednesday proposed lowering the fees banks can charge retailers for processing debit-card transactions, a victory for merchants who have long complained these "swipe fees" were too high and harmed consumers.

CUNA-led litigation results in nationwide stay of CFPB’s 1071 rule

Credit unions are now protected by a nationwide injunction preventing implementation of the Consumer Financial Protection Bureau’s Section 1071 rule, thanks to quick legal action by CUNA, Cornerstone League and Rally Credit Union of Corpus Christi, Texas.

Nearly Half of BNPL Consumers Prefer Pay-in-4 Over Credit Cards as They Look for More Choice at Checkout

DISTRIBUTED-WORK-MODEL/SAN FRANCISCO, October 25, 2023–(BUSINESS WIRE)–Today, Afterpay released a report focused on the Economic Impact of Buy Now, Pay Later (BNPL) in the U.S. conducted by Oxford Economics, which highlights the benefits of BNPL on consumers, merchants, and the overall U.S. economy.

Retail credit card interest rates rise to record highs, topping 30% APR

Swipe-happy shoppers beware: Those enticing retail credit cards from your favorite merchants may put a bigger dent in your wallet than ever before.  That's according to Bankrate's annual retail cards survey that shows the annual percentage rate (APR) on retail credit cards this year has hit a record high of 28.93% on average, up from 26.72% in 2022. That's well above the average APR of 21.19% for all credit cards, the survey shows. 

Only 19% of Americans increased their emergency savings in 2023. That ‘puts households in a bind,’ expert says

Largely due to high inflation and rising interest rates, 81% of adults said they did not contribute to their emergency savings this year, and 60% also said they feel behind when it comes to building a cash cushion, according to a new Bankrate report.

Americans falling behind on auto loan payments at record pace

A growing number of Americans are falling behind on their car payments, an ominous sign for the U.S. economy as high auto prices and stubborn inflation strain household budgets.

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.

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.

Used Car Week 2023

Cherokee Media Group

RMAI 2024 Annual Conference

Receivables Management Association International