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| Wednesday December 6, 2023 |
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CFPB’s Chopra testifies at Senate Banking Committee hearing
On November 30, the Director of the CFPB, Rohit Chopra, testified during the Senate Banking Committee’s hearing on the Bureau’s Semi-Annual Report to Congress. The Senate Banking Committee questioned Chopra on the Bureau’s oversight of financial institutions providing benefits under the Servicemembers Civil Relief Act (SCRA), medical debt collection, so-called “junk fees,” and the increasing popularity of buy now, pay later (BNPL) products.
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House Votes to Overturn CFPB Small Business Lending Rule
The House voted 221-202 to nullify a Consumer Financial Protection Bureau rule requiring lenders to disclose credit applications they receive from small businesses, lending decisions and demographic data. Next it heads to the desk of President Joe Biden, who is expected to veto it, according to American Banker.
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Update: Congress Passes Resolutions to Override CFPB’s Section 1071 Final Rule, Biden Vows to Veto
As discussed here, this summer, Representative Roger Williams (R-Texas) and Senator John Kennedy (R-La.) introduced identical Congressional Review Act (CRA) resolutions in the U.S. House and Senate (H.J. Res. 66 and S. J. Res. 32, respectively) disapproving the Consumer Financial Protection Bureau’s (CFPB or Bureau) implementation of the small business data collection and reporting final rule under § 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Final Rule). Under the Congressional Review Act (CRA), a rule promulgated by an administrative agency “shall not take effect (or continue), if the Congress enacts a joint resolution of disapproval.”
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OCC Issues Guidance on ‘Buy Now, Pay Later’ Lending
The guidance focuses on the risk management of buy now, pay later (BNPL) loans, which are payable in four or fewer installments and carry no finance charges. The guidance notes that banks should maintain underwriting, repayment terms, pricing, and safeguards that minimize adverse customer outcomes and should ensure that marketing materials and disclosures are clear and conspicuous. Additionally, prudent BNPL lending includes safeguards that minimize adverse customer outcomes.
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NAFCU, CUNA urge White House to discourage CFPB’s spotty regulation
“Markets work best when the rules are clear, so it is possible to comply with them,” wrote the groups. “Blog posts that contradict law or regulation, vague guidance that deems common practices like using form contracts or including certain terms and conditions in contracts, proclamations of the CFPB’s novel interpretation of law via amicus briefs, or enforcement actions that contradict state law, are not setting clear expectations that it is possible to follow.
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CFPB continues to avoid following mandated rulemaking process
CUNA, NAFCU, and financial services organizations wrote to President Joe Biden this week asking for him to emphasize the need for proper rulemaking procedure. The organizations noted the Consumer Financial Protection Bureau continues to issue guidance that operates as a rule without the notice and comment process.
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New Illinois Protections Against Patient Medical Debt May Also Help Reduce Hospital Bad Debt
Starting in mid-2024, Illinois hospitals will be required to take a much more active role in limiting consumers’ medical debt by screening all consenting uninsured patients for both public health insurance program coverage and hospital financial assistance eligibility as soon as reasonably practicable and before pursuing any collection action. Hospitals must track all uninsured patient declinations and failures to respond to all such offers in the uninsured patients’ medical records.
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Federal Court Upholds DFPI Protections for Small Businesses
SACRAMENTO — On December 4, 2023, Judge R. Gary Klausner granted the Department of Financial Protection and Innovation’s Motion for Summary Judgment in the case Small Business Finance Association v. DFPI.
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CFPB reported to be planning to unveil overdraft regulations before year-end
Last week, Bloomberg Law reported that “Consumer Financial Protection Bureau officials have privately told industry executives that the regulator will likely unveil its long-awaited plan to crack down [on overdraft fees] in December, according to people familiar with the discussions.
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Spot holiday job scams
Lots of folks look for jobs during the holiday season to make some extra cash or pay bills. But scammers follow seasonal employment trends, too, advertising jobs the same way honest employers do. They’re looking for any opportunity to steal your money and personal information. Do you know how to spot them?
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FTC Announces Claims Process for Consumers Harmed by Credit Karma “Pre-Approved” Offers for Which They Were Denied
The Federal Trade Commission is launching a claims process for consumers harmed by Credit Karma’s practice of misrepresenting that consumers were “pre-approved” for credit card offers. According to the FTC, many consumers were denied, costing them time and subjecting them to unnecessary credit checks.
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U.S. House passes resolution reversing CFPB’s data collection rule
The U.S. House of Representatives on Dec. 1 passed a resolution to stop the Consumer Financial Protection Bureau (CFPB) from enforcing its data collection rule. The resolution now moves to the president’s desk for consideration. The rule requires financial institutions to collect and report certain personal information on small business loan applicants to the CFPB.
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CFPB report on FDCPA highlights medical debt collection issues
On November 16, the CFPB released its annual Fair Debt Collection Practices Act report, which highlighted challenges specific to medical debt collection. For example, 8,500 complaints were submitted in 2022 related to medical debt collection and described problems such as collectors billing for services never received, collecting the wrong amounts, miscommunication with insurance companies or financial assistance programs, or placing bills on credit reports without prior consumer contact.
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Acting Deputy Comptroller Testifies on Financial Technology
WASHINGTON—Deputy Comptroller for Compliance Policy and Acting Deputy Comptroller for the Office of Financial Technology Donna Murphy today testified on the activities and initiatives of the Office of the Comptroller of the Currency’s (OCC) Office of Financial Technology before the Subcommittee on Digital Assets, Financial Technology and Inclusion, Committee on Financial Services of the U.S. House of Representatives.
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Attorney General James Warns New Yorkers Impacted by Medical Company’s Data Breach of Potential Identity Theft
NEW YORK – New York Attorney General Letitia James today warned New Yorkers impacted by a data breach at a medical transcription company, Perry Johnson & Associates, to take action to prevent potential identity theft. The company experienced a data breach affecting nearly nine million patients, including approximately four million New Yorkers in New York City and Syracuse. Northwell Health and Crouse Health have been affected by this data breach, and most individuals whose data was impacted have been notified. Attorney General James advises affected New Yorkers to protect themselves and their information from theft and impersonation
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Auto loan debt has surpassed student loan debt
In the first quarter of 2023, more than 43 million people in the U.S. were holding federal and private student loan debt, totaling more than $1.77 trillion overall. The staggering statistics around student loan debt have made the topic a fixture of news headlines and a recurring point of discussion in the halls of government. However, in September, the Wall Street Journal reported that the total amount of auto loan debt had surpassed student loan debt. At the end of Q2 2023, auto loan debt reached $1.58 trillion compared to $1.57 trillion in student loan debt.
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Nearly 1 in 5 Consumers Apply for BNPL to Bypass Hard Checks That Hurt Credit Scores
Buy now, pay later (BNPL) has emerged as a popular credit option, enabling consumers to make purchases immediately but pay for them in smaller installments over time. This flexibility has revolutionized shopping experiences, offering convenience and greater control over spending.
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CFPB report on FDCPA highlights medical debt collection issues
On November 16, the CFPB released its annual Fair Debt Collection Practices Act report, which highlighted challenges specific to medical debt collection. For example, 8,500 complaints were submitted in 2022 related to medical debt collection and described problems such as collectors billing for services never received, collecting the wrong amounts, miscommunication with insurance companies or financial assistance programs, or placing bills on credit reports without prior consumer contact
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Director of Financial Technology and Access Charles Vice’s Written Testimony Before Subcommittee on Digital Assets, Financial Technology, and Inclusion
Having worked with financial regulators for over 33 years, I understand the financial services industry’s vital role in the U.S. economy. The NCUA insures deposits at federally insured credit unions, protects the members who are not only consumers but also owners of credit unions, and charters and regulates federal credit unions. The strength of the credit union industry is based on the number and diversity of credit unions that meet the financial needs of their members. Safe, fair, and affordable access to financial services is necessary to ensure that local, state, and national economies grow and thrive.
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CFPB report on FDCPA highlights medical debt collection issues
On November 16, the CFPB released its annual Fair Debt Collection Practices Act report, which highlighted challenges specific to medical debt collection. For example, 8,500 complaints were submitted in 2022 related to medical debt collection and described problems such as collectors billing for services never received, collecting the wrong amounts, miscommunication with insurance companies or financial assistance programs, or placing bills on credit reports without prior consumer contact.
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Ransomware attack causes outages at 60 credit unions, federal agency says
About 60 credit unions in the US are experiencing outages because of a ransomware attack on an IT provider the credit unions use, a federal agency said Friday. The National Credit Union Administration (NCUA), the agency that insures deposits at federally insured credit unions, said in a statement to CNN that it was “coordinating with affected credit unions” in the wake of the hack.
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Millions of Americans unable to make payments on time – top 10 states in ‘distress’
Louisiana residents are more likely to be unable to make payments on time according to new research. Experts are revealing the states in the US which are in the most and least financial distress as 6.8 million Americans have at least one credit account where they are late on their payments.
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FTC and CPPA Release Rules to Address AI Risks and Protect Consumer Rights
The rise of AI technology has prompted regulatory agencies to take action and protect consumers’ rights, as evidenced by the recent efforts of the Federal Trade Commission (FTC) and the California Privacy Protection Agency (CPPA).
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FTC to Hold Virtual Informal Hearing in January 2024 as Part of its Review of the Proposed “Click to Cancel” Rulemaking
The Federal Trade Commission will hold a virtual informal hearing on January 16, 2024, on the proposed amendments to the Negative Option Rule. During the hearing, which will be open to the public and viewable on the FTC’s website, six nongovernmental organizations will provide oral statements addressing issues raised to date during the rulemaking process.
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SEN. MENENDEZ QUESTIONS DIRECTOR OF CFPB ABOUT HOW THE CFPB CAN CURB EXCESSIVE OVERDRAFT FEES
WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, yesterday asked the Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, about what the CFPB can do to rein in excessive overdraft fees.
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AG Campbell Proposes Regulations To Combat “Junk Fees” And Bolster Transparency For Consumers
BOSTON — Attorney General Andrea Joy Campbell has announced that her office has proposed regulations to prohibit hidden “junk fees,” which companies use to deceptively hike prices on consumers above advertised prices. The proposed regulations would require businesses to clearly disclose the total price of a product at the time it is presented to consumers, provide clear and accessible information on whether fees are optional or required, and simplify the process for cancelling trial offers and recurring charges, amongst other rules.
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House passes resolution to void section 1071 rule
The House passed a resolution of disapproval for the Consumer Financial Protection Bureau’s section 1071 rule Friday. The Senate passed the resolution in October and it will now head to President Joe Biden’s desk, who is expected to veto it.
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AG Nessel Re-issues Alert Warning Consumers About Dangers of Artificial Intelligence
LANSING – Michigan Attorney General Dana Nessel joined Hank Winchester with WDIV-Detroit to alert consumers that artificial intelligence (AI) is now being used by scammers to make their requests for money and personal information more convincing.
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Digital Shopping Scams Rose 12% Between Thanksgiving and Cyber Monday — Protect Your Money for Remainder of Holiday Season
The average incidence of suspected digital shopping fraud during the Cyber Five days — the days from Thanksgiving, Nov. 23, through Cyber Monday, Nov. 27 — was up a whopping 12% in the U.S. compared to the rest of the year, according to a new analysis from TransUnion.
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State Regulatory Developments on “Income-Based Advances”
The CFPB carefully monitors developments in state law and regulation relating to consumer financial protection. The California Department of Financial Protection and Innovation (DFPI) recently proposed to undertake registration and examinations of companies that provide what the proposal refers to as “income-based advances.” Earlier this week, the CFPB submitted input on DFPI’s proposal.
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Order and share FREE fotonovelas to help your community avoid scams
Talking about scams is one of the best ways to protect yourself, your loved ones, and your community against scammers. You don’t have to be an expert, especially with tools to help get the conversation started.
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A New Landmark for Consumer Control Over Their Personal Information: CPPA Proposes Regulatory Framework for Automated Decisionmaking Technology
Today, the California Privacy Protection Agency released draft automated decisionmaking technology (ADMT) regulations that define important new protections related to businesses’ use of these technologies. The proposed regulations would implement consumers’ right to opt out of, and access information about, businesses’ uses of ADMT, as provided for by the California Consumer Privacy Act (CCPA). The Agency Board will provide feedback on these proposed regulations at the December 8, 2023 board meeting, and the Agency expects to begin formal rulemaking next year.
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Teachers Federal Credit Union launches annual Season of Giving campaign, pledging $50,000 to non-profit organizations
HAUPPAUGE, NY (November 30, 2023) — Teachers Federal Credit Union, one of the largest credit unions in the United States with $9.7 billion assets and more than 470,000 members, is celebrating Giving Tuesday with the launch of its annual Season of Giving campaign, pledging $50,000 to three remarkable non-profit organizations – Memorial Sloan Kettering Cancer Center, Ronald McDonald House, and Tunnel to Towers Foundation.
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AG Campbell Announces $8.75 Million Settlement With Rent-A-Center For Alleged Pattern Of Abusive Misconduct Targeting Low-Income Communities
BOSTON — Attorney General Andrea Joy Campbell has announced a $8.75 million settlement, via an assurance of discontinuance (AOD), with Rent-A-Center (RAC), to resolve allegations that the company engaged in a pattern of unfair and deceptive business practices against consumers in violation of state consumer protection laws.
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Making Ends Meet in 2023: Insights from the Making Ends Meet Survey
Pandemic relief improved many consumers’ finances in 2020 and 2021, but in 2022 financial stability and health deteriorated across a range of measures. Using the 2023 Making Ends Meet survey, we show that in 2023 consumers were still on average somewhat better off financially than they were in 2019 but the trend is negative. Financial well-being was unchanged between 2022 and 2023 but more families had difficulty paying their bills. Income variability declined in 2023 but remains higher than in 2019.
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CFPB Handles 20,000 Consumer Complaints Per Week
The Consumer Financial Protection Bureau (CFPB) sends 20,000 complaints to companies for responses every week. “I am proud of the CFPB’s work in getting consumers the resolutions they deserve, often through referrals from local organizations, Congressional offices and many others,” CFPB Director Rohit Chopra said Thursday (Nov. 30) in his opening statement during the bureau’s Semiannual Report to Congress.
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CFPB continues to miss opportunity to leverage CU mission, structure
The Consumer Financial Protection Bureau has failed to account for credit unions’ mission and structure in its activities, a trend that has continued under Director Rohit Chopra, CUNA and NAFCU wrote to the Senate Banking, Housing, and Urban Affairs Committee. Chopra will testify before the committee Thursday.
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AG Campbell Proposes Regulations To Combat “Junk Fees” And Bolster Transparency For Consumers
BOSTON — Attorney General Andrea Joy Campbell has announced that her office has proposed regulations to prohibit hidden “junk fees,” which companies use to deceptively hike prices on consumers above advertised prices. The proposed regulations would require businesses to clearly disclose the total price of a product at the time it is presented to consumers, provide clear and accessible information on whether fees are optional or required, and simplify the process for cancelling trial offers and recurring charges, amongst other rules.
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Military consumers: The FTC wants to hear from you
Recently, the White House announced some initiatives the Administration is undertaking to improve the lives of the military and veteran communities. The FTC participates in several of these efforts, including the VSAFE task force that’s working to help veterans and their families avoid scams and other deceptive practices.
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Mark Sekula Named Next President/Chief Executive Officer at RBFCU
LIVE OAK, Texas, Nov. 30, 2023 /PRNewswire/ -- The Board of Directors at Randolph-Brooks Federal Credit Union (RBFCU) has chosen Mark Sekula to be RBFCU's next President/Chief Executive Officer. Sekula will officially begin this position in mid-March 2024 and will replace Christopher W. O'Connor upon his retirement.
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Opening Statement of Director Rohit Chopra before the Senate Committee on Banking, Housing, and Urban Affairs
I am pleased to share that the CFPB has reached important milestones on critical priorities, including personal financial data rights and credit reporting, while continuing to enforce the law and deliver results for consumers and law-abiding businesses. Today, I will share some observations about household financial stability and highlight our progress on important areas of work.
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CFPB Ombudsman’s Office 2023 Annual Report
The Ombudsman’s Office is an independent, impartial, and confidential resource that assists consumers, financial entities, consumer or trade groups, and others in informally resolving process issues with the CFPB.
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WEBRECON OCT 2023 STATS: TCPA & FCRA DOWN, FDCPA UP
Well, it’s another month with sort of weird results. Somewhat bucking long term trends, FDCPA (+14.7%) suits were up in October while TCPA (-17.3%) and FCRA (-7.8%) were both down. YTD however, TCPA (+11.5%) was the only one up from last year, while FDCPA (-13.4%) and FCRA (-2.1%) were trending downward.
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FCC to Examine Impact of Artificial Intelligence on ‘Robocalls’ and ‘Robotexts’
As part of its focus on protecting consumers from illegal telephone calls and text messages, the Federal Communications Commission approved a Notice of Inquiry (PDF) to better understand the impact of artificial intelligence (AI) technologies.
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Americans need an extra $11,400 today just to afford the basics
The typical American household must spend an additional $11,434 annually just to maintain the same standard of living they enjoyed in January of 2021, right before inflation soared to 40-year highs, according to a recent analysis of government data.
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FDIC-Insured Institutions Reported Net Income of $68.4 Billion in Third Quarter 2023
WASHINGTON — Reports from 4,614 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate net income of $68.4 billion in third quarter 2023, down $2.4 billion (3.4 percent) from the prior quarter. First and second quarter income benefitted from non-recurring gains from the accounting treatment for the acquisition of the three large bank failures this spring.
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CFPB continues to miss opportunity to leverage CU mission, structure
The Consumer Financial Protection Bureau has failed to account for credit unions’ mission and structure in its activities, a trend that has continued under Director Rohit Chopra, CUNA and NAFCU wrote to the Senate Banking, Housing, and Urban Affairs Committee. Chopra will testify before the committee Thursday.
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The Beige Book
The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. It characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from each District’s sources. Reports are published eight times per year.
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CFPB’s Chopra taking aim at $130 billion in credit card interest, fees Americans paid last year
Rohit Chopra, director of the Consumer Financial Protection Bureau, said Wednesday that total outstanding credit card debt last year rose above $1 trillion for the first time, and that high interest rates and fees are contributing to the growing debt burden.
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So an online scam is NOT what you ordered?
This time of year, you’re probably buying lots of things online. Gifts, decorations, food! But what if something you’ve ordered shows up different than advertised? Or damaged? Or never comes at all? If so, you’re not alone.
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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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