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| Wednesday November 15, 2023 |
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CFPB Fines Repeat Offender Enova $15 Million for Violating Order, Deceiving Customers, and Withdrawing Funds Without Consent
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered online lender Enova International Inc. to pay a $15 million penalty for widespread illegal conduct including withdrawing funds from customers’ bank accounts without their permission, making deceptive statements about loans, and cancelling loan extensions.
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FTC Seeks Trades’ Comments on ‘Unfair or Deceptive Fee’ Practices
The Federal Trade Commission has opened comments for its proposed rule on “unfair or deceptive fees,” including questions on hidden or misleading fees and industry-specific practices.
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California Opens Comments on Latest Draft of Licensing Regulations
The state’s financial regulator released a second draft of licensing requirements for debt collectors, creditors and attorneys.
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Key Unions Endorse Durbin, Marshall Credit Card Competition Act
WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, and U.S. Senator Roger Marshall, M.D. (R-KS) today released the following statement applauding key unions’ endorsement of their Credit Card Competition Act, including the International Brotherhood of Teamsters and the Service Employees International Union (SEIU):
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The new CRA: Understanding the final rule and its impact on large, intermediate, and small banks
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 issued a final rule amending their regulations implementing the Community Reinvestment Act (“CRA”) (the “Final Rule”).
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CFPB removes changes regarding discrimination as an unfair practice from UDAAP exam manual but appeals from district court order vacating changes
In September 2023, the CFPB updated its UDAAP Examination Manual to remove the changes it made in March 2022 which provided that unfair acts or practices encompassed discriminatory conduct, even in circumstances to which federal fair lending laws, such as the Equal Credit Opportunity Act, did not apply.
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NCUA Chairman Todd M. Harper’s Written Testimony Before the Senate Banking, Housing, and Urban Affairs Committee
The NCUA insures deposits at federally insured credit unions, protects credit union members, and charters and regulates federal credit unions. The NCUA also protects the safety and soundness of the credit union system by identifying, monitoring, and managing risks to the National Credit Union Share Insurance Fund (Share Insurance Fund).
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Updates to the Safeguards Rule Will Require Non-Banking Financial Institutions to Report Data Security Breaches to the FTC
On October 27, 2023, the Federal Trade FTC (FTC) approved amendments to its version of the Standards for Safeguarding Customer Information Rule (the Safeguards Rule) to require non-banking financial institutions regulated by the FTC, including financial technology companies, mortgage brokers, credit counselors, financial planners, and tax preparers, among others, to report certain data breaches and other security events directly to the FTC.1
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Attorney General Sues to Dissolve Fraudulent LLCs, Alleges ‘Cloning’ Business Identity Theft
LANSING – Michigan Attorney General Dana Nessel has filed suit in the 6th Judicial Circuit Court in Oakland County to dissolve two business entities in response to their purported practice of ‘cloning’ legitimate businesses and procuring their organizations with the Michigan Department of Licensing and Regulatory Affairs (LARA) by fraud.
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FTC Imposes New Data Breach Notification Requirements
On October 27, 2023, the Federal Trade Commission (the “FTC”) adopted a final rule (“Final Rule”) to amend the Standards for Safeguarding Customer Information (the “Safeguards Rule”).
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AI: ‘We’re at the beginning of an industry revolution’
Generative artificial intelligence (AI) is a game changer for the financial services industry. Credit unions that haven’t started looking into yet should do so immediately. That’s according to four leaders who took part in technology sprint sessions Monday during the 2023 CUNA Lending Council Conference in Denver.
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FTC sues FinTech firm for deceiving users and making cancelations difficult
On November 3, the FTC filed suit against a FinTech firm within the U.S. Southern District Court of New York. The FTC alleged the FinTech mobile app misled customers, “violated Section 5 of the FTC Act[,] and made it hard to cancel services in violation of the Restore Online Shoppers’ Confidence Act (ROSCA).”
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District Court grants payday lender’s motion to stay CFPB case pending Supreme Court decision
On November 3, the U.S. District Court of Nevada granted a payday lender’s motion to stay a case brought by the CFPB, pending a SCOTUS’s decision in Community Financial Services Association of America v. Consumer Financial Protection Bureau (see InfoBytes here and here). The CFPB issued a civil investigative demand (CID) in late 2022 to the lender, as part of an investigation into its lending practices.
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New York City Department of Consumer and Worker Protection Issues Proposed Amendments to its Rules Relating to Debt Collectors
In September, the New York City Department of Consumer and Worker Protection (DCWP) requested comment on proposed amendments to its rules relating to debt collectors, which could significantly change the requirements and procedures concerning debt collection with New York City consumers. DCWP had previously proposed amendments in November 2022, which were not finalized.
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Agencies Announce Dollar Thresholds for Smaller Loan Exemption from Appraisal Requirements for Higher-priced Mortgage Loans
WASHINGTON, D.C. – The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2024 threshold for whether higher-priced mortgage loans are subject to special appraisal requirements will increase from $31,000 to $32,400.
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Agencies Announce Dollar Thresholds for Applicability of Truth in Lending and Consumer Leasing Rules for Consumer Credit and Lease Transaction
WASHINGTON, D.C. – The Federal Reserve Board and the Consumer Financial Protection Bureau today announced the dollar thresholds used to determine whether certain consumer credit and lease transactions in 2024 are subject to certain Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) requirements
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CFPB to distribute more than $240,000 to consumers harmed by student loan debt-relief scam
This month, 845 former Student Aid Institute (SAI) consumers will receive checks in the mail in response to a lawsuit filed against Frank Ronald Gebase Jr., the founder, owner, and operator of Processingstudentloans, a student loan debt-relief company that illegally withdrew hundreds of thousands of dollars from the bank accounts of former SAI consumers without their authorization. The total distribution amount is $240,994.00, and the money will come from the CFPB’s victims relief fund .
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New York City Department of Consumer and Worker Protection Issues Proposed Amendments to its Rules Relating to Debt Collectors
In September, the New York City Department of Consumer and Worker Protection (DCWP) requested comment on proposed amendments to its rules relating to debt collectors, which could significantly change the requirements and procedures concerning debt collection with New York City consumers. DCWP had previously proposed amendments in November 2022, which were not finalized.
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Courts Have Ordered Trial Courts To Grant TCPA Motions To Dismiss Based On No-Contest Clause Claims
The Texas Legislature created a statute to protect parties’ rights to freedom of speech and to petition the courts: the Texas Citizen’s Participation Act (TCPA). See Tex. Civ. Prac. & Rem. Code Ann. §§ 27.001-.011. The TCPA’s purpose is “to encourage and safeguard the constitutional rights of persons to petition, speak freely, associate freely, and otherwise participate in government to the maximum extent permitted by law and, at the same time, protect the rights of a person to file meritorious lawsuits for demonstrable injury.”
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CFPB Takes on Big Tech in Larger Participant Rulemaking on Digital Wallets and Payment Apps
On November 7, 2023, the Consumer Financial Protection Bureau (“CFPB”) announced a new proposed rule wherein providers of digital wallets and payment apps would be defined as “Larger Participants” and would become subject to supervision by the CFPB, as well as need to comply with consumer financial services laws and regulations. Comments to this Larger Participant rulemaking are due by January 8, 2024.
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File online comments about FTC’s proposal to ban junk fees
Junk fees – those hidden and bogus charges that have found their way into a wide variety of transactions – are on consumers’ minds. Based on what they’ve told us, junk fees are on their last nerve, too. After receiving more than 12,000 comments about how those fees impact consumer spending and affect honest businesses, the FTC announced on October 11, 2023, a proposed Rule on Unfair or Deceptive Fees.
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CFPB releases report on state community reinvestment acts
On November 2, the CFPB issued a report on several states’ community reinvestment laws. The report focused on how much outstanding mortgage debt banks hold in the residential mortgage market: in 1977, “banks held 74% of outstanding mortgage debt. By 2007, this share had declined to just 28%.”
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CFPB’s Funding Mechanism Undergoes Constitutional Scrutiny at U.S. Supreme Court Argument
On October 3, 2023, the U.S. Supreme Court held oral argument in Community Financial Services Association of America Ltd. v. Consumer Financial Protection Bureau. This case has potentially widespread implications for the consumer finance industry, as it challenges the constitutionality of the CFPB’s funding mechanism.
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CFPB Seeks to Fundamentally Alter the Credit Reporting Process and Use of Public Data
On Sept. 21, 2023, the Consumer Financial Protection Bureau (CFPB) officially announced it is considering a rulemaking to address several consumer reporting topics under the Fair Credit Reporting Act (FCRA). Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB is required to consult with representatives of small entities likely to be affected directly by the regulations.
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Five Indicted in Scheme to Fraudulently Obtain Bank and Small Business Administration Loans in Property Flipping Scheme
Baltimore, Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels.
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Fed: Banks Healthier Than in 2008 but Still Vulnerable
America’s banks are in a steadier place than they were in 2008. But according to a recent Federal Reserve report, that doesn’t mean they’re completely healthy.
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Thousands of student-loan borrowers have one week to file a claim for $16 million in relief from a major private lender. Here’s how.
Thousands of student-loan borrowers have one week to benefit from a recent settlement with a major private lender. In July, Navient agreed to a $198 million settlement with private student-loan borrowers who claimed the lender continued to collect on debts that should have been discharged in bankruptcy. The settlement resolved those allegations following six years of legal battles. Navient denied any wrongdoing when it agreed to $182 million in debt relief for impacted borrowers, along with $16 million in cash for a settlement class of 4,607 borrowers.
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Top Five 2024 Cybersecurity Predictions by KnowBe4 Cybersecurity Experts
TAMPA BAY, Fla., November 13, 2023--(BUSINESS WIRE)--KnowBe4, the provider of the world’s largest security awareness training and simulated phishing platform, announced its 2024 cybersecurity predictions from its team of global industry experts.
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CFPB Takes on Big Tech in Larger Participant Rulemaking on Digital Wallets and Payment Apps
On November 7, 2023, the Consumer Financial Protection Bureau (“CFPB”) announced a new proposed rule wherein providers of digital wallets and payment apps would be defined as “Larger Participants” and would become subject to supervision by the CFPB, as well as need to comply with consumer financial services laws and regulations. Comments to this Larger Participant rulemaking are due by January 8, 2024.
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America’s bad auto loans could have nasty consequences
The Federal Reserve’s interest-rate rises are causing pain in the land of casinos: Nevadans are googling how to return their car more than folk in any other state. Yet while their pain is acute, it is not unique.
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CUNA to Congress: CUs stand ready to serve veterans
CUNA highlighted credit union service to veterans and called for support for the Veterans Member Business Loan Act in a message to Congress sent Wednesday. The bipartisan legislation—introduced in the House and Senate—would exempt loans to veteran owned business from the member business lending cap.
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Community Reinvestment Act Final Rule Update
On October 24, 2023, the Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation issued a final rule to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law.
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Biden-Harris Administration Announces Framework for Student Loan Servicer Accountability To Protect Borrowers Nationwide
The Biden-Harris Administration is fully committed to supporting student loan borrowers as they navigate return to repayment and fixing problems in the student loan system. To further the goal of protecting borrowers nationwide, the Biden-Harris Administration is taking steps to hold student loan servicers accountable for meeting their obligations to students, borrowers, and taxpayers when managing student loans.
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FTC Providing Refunds to Consumers who Lost Money to Tech Support Scheme
The Federal Trade Commission is providing full refunds to consumers who lost money to the NTS IT Care tech support scheme, which tricked consumers into buying expensive and unnecessary tech support services and often claimed to be affiliated with Microsoft, Apple, and other tech companies.
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Washington Has the Lowest Mortgage Delinquency Rate in the U.S.
Following record-breaking unemployment numbers in the early stages of the COVID-19 pandemic, congress passed the CARES Act, which invoked a moratorium on home foreclosures and provided loan forbearance options for federally-backed mortgages. While the relief options offered through the CARES Act applied only to federally-backed mortgages—which comprise about 70% of the total—many private lenders offered similar protections.
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Total Household Debt Reaches $17.29 Trillion in Q3 2023; Driven by Mortgage, Credit Card, and Student Loan Balances
NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The Report shows total household debt increased by $228 billion (1.3%) in the third quarter of 2023, to $17.29 trillion. The report is based on data from the New York Fed’s nationally representative Consumer Credit Panel.
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Attorney General Ellison shuts down another fraudulent student-loan debt-relief company in Minnesota
November 8, 2023 (SAINT PAUL) — Minnesota Attorney General Keith Ellison announced today that his office has obtained a settlement with Network 46, a California student-loan debt-relief company that illegally collected fees from customers and misrepresented its services to consumers. The settlement requires Network 46 to cease operating in Minnesota and provide full refunds to its Minnesota consumers. As a result of the Attorney General’s investigation, Network 46 has ceased operating nationwide.
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CFPB Proposes Oversight for Big Tech and Digital Wallet Providers
In a move to ensure consumer protection and regulatory oversight, the Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps.
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PenFed Credit Union Named ‘Best for Vets’ Employer 2023 by Military Times
TYSONS, Va., Nov. 9, 2023 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, today announced for the fifth year in a row it was selected by the Military Times as a "Best for Vets" employer of 2023. The editorially driven Best for Vets program produces a highly respected analysis of a company's efforts to recruit, retain, and support current and former service members, military spouses and military caregivers.
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Nebraska Attorney General Mike Hilgers Warns of Bank Impersonation Scam
The Attorney General’s Office is alerting Consumers to be aware of bank scams because they are on the rise. The Federal Trade Commission has reported a tenfold increase in bank scams in the last three years.
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New FTC Rule Expands Reach of Data Breach Notification Requirement to Non-Banking Financial Institutions
In an amendment to the Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA), which was officially announced on October 27, 2023, the Federal Trade Commission (FTC) will mandate that a wide array of nonbank financial institutions report instances of unauthorized acquisition of unencrypted, personally identifiable, nonpublic financial information pertaining to more than 500 customers.
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FTC Adds Support for Consumers in Multiple Languages for Fraud and ID Theft Reporting; Offers Multi-lingual Resources on How to Spot, Avoid, and Report Fraud
As part of its ongoing efforts to combat scammers and protect consumers in every community, the Federal Trade Commission is now providing the ability to report fraud, scams and deceptive practices in multiple languages in addition to English and Spanish.
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FTC, DOJ Meet with G7 Enforcement Partners to Discuss Competition in Digital Markets
The Federal Trade Commission and Justice Department’s Antitrust Division participated in the G7 Competition Authorities and Policymakers’ Summit today to discuss how members are addressing competition concerns in digital markets, including in emerging technologies such as artificial intelligence (AI).
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Receivables Management Association International
Aria Resort & Casino
Las Vegas , Nevada
February 05 - 08 , 2024
https://rmaintl.org/events/2024-annual-conference/
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