Servicemembers continue to face major financial challenges

Financial readiness is critical to military readiness. That is why the CFPB is working hard to ensure that servicemembers get the protections they are entitled to under the law. Despite our progress, there is still work to be done. Below, we discuss three major protections that the CFPB is working to secure for all servicemembers.

CFPB Issues Biennial CARD Act Report to Congress

On October 25, 2023, the Consumer Financial Protection Bureau (CFPB) released its sixth consumer credit card market biennial report to Congress as required under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). The report focuses on industry market dynamics, use of credit, cost of credit, availability of credit, and issuer practices.

NCUA, CDFI Fund to host webinar on small dollar lending program

Credit unions interested in the Community Development Financial Institutions (CDFI) Fund Small Dollar Loan Program can get valuable information on a Nov. 8 webinar hosted by CDFI Fund and NCUA. 

Chairman Harper Emphasizes Allyship to Achieve DEI Goals

ALEXANDRIA, Va. (Nov. 1, 2023) – National Credit Union Administration Chairman Todd M. Harper emphasized the power of allyship to achieve diversity, equity, and inclusion goals during his remarks at the NCUA’s 2023 Diversity, Equity, and Inclusion Summit in Washington, D.C.

Personalization Helps Credit Unions Out-Compete Banks on Lending

You can’t have a successful business, no matter the business, if you don’t attract customers. When it comes to today’s world of evolving financial markets and fluctuating interest rates, consumers are becoming more discerning when choosing their financial institutions for credit products.

Commercial Lending: Venture Loans to Companies in an Early, Expansion, or Late Stage of Corporate Development

The Office of the Comptroller of the Currency (OCC) is issuing this bulletin to inform banks¹ about policy guidance that applies to commercial loans to early-, expansion-, and late-stage companies. This bulletin refers to these loans as “venture loans.”

California Holds Next Debt Collection Advisory Committee Meeting

The seven-member committee provides critical feedback to the DFPI as it creates its debt collection licensing program. The committee also advises DFPI Commissioner Clothilde V. Hewlett on matters related to the debt collection business, including proposed fee schedules and other requirements.

At the Direction of President Biden, Department of Commerce to Establish U.S. Artificial Intelligence Safety Institute to Lead Efforts on AI Safety

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce, through the National Institute of Standards and Technology (NIST), will establish the U.S. Artificial Intelligence Safety Institute (USAISI) to lead the U.S. government’s efforts on AI safety and trust, particularly for evaluating the most advanced AI models. USAISI will support the responsibilities assigned to the Department of Commerce under the historic executive order that President Biden signed earlier this week.

Required Rulemaking on Personal Financial Data Rights

The Consumer Financial Protection Bureau (CFPB) is proposing a rule to implement personal financial data rights under the Consumer Financial Protection Act of 2010 (CFPA). The proposed rule would require depository and nondepository entities to make available to consumers and authorized third parties certain data relating to consumers' transactions and accounts; establish obligations for third parties accessing a consumer's data, including important privacy protections for that data; provide basic standards for data access; and promote fair, open, and inclusive industry standards.

FTC and Wisconsin AG enter into settlements with auto dealerships for alleged discriminatory financing practices and deceptive add-on product practices

The Federal Trade Commission and Wisconsin Attorney General have entered into settlements with a group of auto dealerships, their current and former corporate owners, and their general manager for allegedly engaging in unlawful discrimination in connection with financing offered to customers and for allegedly engaging in deceptive practices in connection with the sale of add-on products. 

AG Yost Sues Florida Debt Collector, Alleging Illegal, Abusive Practices in Ohio

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost is suing a Florida man who employed harassing and abusive tactics to try to collect debts from Ohio consumers. “After strong-arming his way to collecting on notes, he himself better be ready to face the music,” Yost said. “Harassment is no way to do business, and it makes this bad actor morally bankrupt.” 

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.

Bank to pay Fed, NYDFS almost $30 million for deficient third-party risk management practices

On October 19, the Fed and NYDFS announced an enforcement action against a New York-based bank for alleged violations of consumer identification rules and deficient third-party risk management practices.

WEBRECON SEPT 2023 STATS: THE PENDULUM…

September saw the consumer complaint pendulum keep on swinging. After August’s big month for lawsuits, most were back down in the month-over-month comparisons. FCRA suits were the exception – while FCRA had been the one consistent growth area in consumer litigation over the last couple of years, they’ve tended to swing with the same volatility as the other statutes in recent months. In September, FCRA was once again the one growth area on our chart with a +6.5% increase over August, while FDCPA (-4.8%) and TCPA (-1.9%) were both down.

U.S. Department of Education Announces Withholding of Payment to Student Loan Servicer as Part of Accountability Measures for Harmed Borrowers

U.S. Secretary of Education Miguel Cardona and Federal Student Aid (FSA) Chief Operating Officer Rich Cordray issued the following statements on actions taken by the U.S. Department of Education (Department) after student loan servicer errors were found by the Department.

CFPB report reveals high credit card costs, growing debt, digital shift

On October 25, the CFPB released a report on credit card interest rates and fees in 2022 highlighting the impact of the cost to consumers. The report found that credit card companies charged consumers more than $105 billion in interest and $25 billion in fees, with the bulk of the fees being late fees

Nonbank Fintech Settles with CFPB to Resolve EFTA and CFPA Claims

The CFPB recently entered into a consent order with a nonbank fintech company to resolve claims of EFTA and CFPA violations.  As part of the settlement the company will pay nearly $1.5 million in consumer restitution and another $1.5 million in civil penalties.

Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence

     By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:  Section 1.  Purpose.  Artificial intelligence (AI) holds extraordinary potential for both promise and peril.  Responsible AI use has the potential to help solve urgent challenges while making our world more prosperous, productive, innovative, and secure.

Utah Court of Appeals affirms ruling for debt buyer engaged in unlicensed collection efforts

The Utah Court of Appeals affirmed a lower court’s ruling against a debt buyer that acquired a portfolio of bad debts from borrowers all over the country, including residents of Utah. 

FTC Case Leads to Permanent Ban Against Merchant Cash Advance Owner for Deceiving Small Businesses, Seizing Personal and Business Assets

As a result of a Federal Trade Commission lawsuit, Jonathan Braun, who controlled small-business funding company RCG Advances, will face a permanent ban from the merchant cash advance and debt collection industries. A federal court issued summary judgment in favor of the FTC in the case along with a permanent injunctionagainst Braun.

Final Rule Updating the Community Reinvestment Act Issued by Bank Regulators

On October 24, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (together, the “Agencies”) issued a final rule designed to modernize and fine tune the Community Reinvestment Act’s (“CRA”) implementing regulations. The Agencies believe that the final rule, which will mostly become applicable between January 1, 2026 and January 1, 2027, is designed to achieve four primary goals:

Groups Supporting Economic Growth Urge Withdrawal of CFPB’s Proposed Rule on Credit Card Late Fees

A coalition of groups supporting consumers and economic growth are asking the Biden administration and Consumer Financial Protection Bureau to halt a proposed rule from the bureau to cap credit card late fees.

FTC Sends Nearly $100 Million in Refunds to Vonage Consumers Who Were Trapped in Subscriptions By Dark Patterns and Junk Fees

The Federal Trade Commission is sending nearly $100 million in refunds to consumers who lost money as a result of internet phone service provider Vonage imposing junk fees and creating obstacles to those who try to cancel their service. 

Court pauses CFPB small-biz data collection rule nationwide

A Texas federal judge Thursday put the Consumer Financial Protection Bureau’s small-business data collection rule on hold nationwide, asserting an earlier injunction he issued — covering only certain banks — allows for a double standard.

AG Ferguson: Court shuts down websites of companies that targeted small businesses with deceptive messages

SEATTLE — Attorney General Bob Ferguson announced today he won a court order to shut down the websites and suspend the internet domains of two businesses and their owner that sent hundreds of thousands of deceptive texts and emails targeting Washington businesses and nonprofits

FCC Proposes Probe into AI in Robocalls

Federal Communications Commission Chair Jessica Ronsenworcel recently announced a proposed directive to focus the FCC on AI’s burgeoning role in scam calls, particularly those targeting the elderly. The proposal will be presented at the November 15 commission meeting and would direct research into the strengths and weaknesses of generative AI, the role that AI plays in scamming consumers, and the role that AI may play in enforcing the Telephone Consumer Protection Act (TCPA).

CFPB Issues Biennial CARD Act Report to Congress

On October 25, 2023, the Consumer Financial Protection Bureau (CFPB) released its sixth consumer credit card market biennial report to Congress as required under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). The report focuses on industry market dynamics, use of credit, cost of credit, availability of credit, and issuer practices.

Prepared Remarks of Eric Halperin, CFPB Enforcement Director, at the NCLC Consumer Rights Litigation Conference

The last two years have been exciting ones for CFPB Enforcement, even as we’ve faced down a challenge to the constitutionality of the CFPB’s funding and authority, and, fundamentally, to our mission. Of course, this is not the first time the CFPB has faced such challenges. But those challenges have never deterred us.

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.

Used Car Week 2023

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