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| Wednesday December 20, 2023 |
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CFPB and Justice Department Sue Developer and Lender Colony Ridge for Bait-and-Switch Land Sales and Predatory Financing
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the Justice Department today sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
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US Consumers Pick National Banks Most for Their Primary Credit Cards
It found that U.S. consumers prefer national banks for their primary credit cards over any other issuer, even if they have a primary bank account with another financial institution. This preference is stronger among clients from traditional FIs, but it also applies to digital-only bank clients.
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FCC Adopts One-to-One Consent Rule to Protect Consumers from Unwanted Telemarketing Robocalls and Robotexts
MADISON, Wis. – Attorney General Josh Kaul and a coalition of Attorneys General provided input to the Federal Communications Commission which has now amended a rule governing telemarketing communications, requiring individual businesses to obtain written consent from consumers before sending robotexts and making robocalls.
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The State of CFPB Focus on Credit Reporting of Medical Debt
The COVID-19 pandemic's impact on medical debt has spurred the Consumer Financial Protection Bureau into action, particularly as it relates to the credit reporting of medical debt. Since 2020, the CFPB has received a steadily increasing number of complaints related to credit reporting.
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AG Ferguson proposes creation of bipartisan Artificial Intelligence Task Force
OLYMPIA — Attorney General Bob Ferguson announced today he is partnering with Sen. Joe Nguyen, D-White Center, and Rep. Travis Couture, R-Allyn, to propose legislation in the 2024 session to create an Artificial Intelligence Task Force. The task force will convene industry representatives, civil liberty groups, subject matter experts and other stakeholders to discuss AI benefits and risks and make recommendations to the Legislature.
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CFPB Overdraft Fee Report Slams ‘Surprises,’ but Data Shows Usefulness
And as detailed here, in the report, titled “Overdraft and Nonsufficient Fund Fees: Insights from the Making Ends Meet Survey and Consumer Credit Panel,” the Bureau said that amid those surprises, credit cards are a “cheaper” form of credit. The CFPB also wrote that the “our analysis suggests that the majority of consumers charged overdraft and NSF fees have some credit available on a credit card during the period that they report the fees occurring.”
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Power Financial Credit Union Voted Best Credit Union in Miami-Dade
PEMBROKE PINES, Fla., Dec. 19, 2023 /PRNewswire-PRWeb/ -- Power Financial Credit Union (PFCU), one of South Florida's largest credit unions, is proud to announce it has been voted the Best Credit Union in Miami-Dade in the prestigious Miami-Dade Favorites content, presented by the Miami Herald. This recognition reflects the unwavering commitment of Power Financial Credit Union to always put the needs and goals of its members first.
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NCUA Releases Q3 2023 State-Level Data Report
ALEXANDRIA, Va. (Dec. 20, 2023) – Federally insured credit unions experienced growth in loans, positive net income, and delinquencies in the third quarter of 2023, along with a decline in assets, shares, and deposits, according to the latest NCUA Quarterly U.S. Map Review.
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Keep your money safe from gift card scammers this holiday season. Here’s how
What’s one way to keep your money safe from scammers during the holidays? If you’re in the check-out line buying gift cards, make sure they’re for gifts. Only gifts. Not because someone tells you to buy gift cards and give them the numbers off the back of the card. Only scammers say that.
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CFPB Orders U.S. Bank to Pay $21 Million for Illegal Conduct During COVID-19 Pandemic
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today ordered U.S. Bank to pay nearly $21 million for keeping out-of-work consumers from accessing unemployment benefits at the height of the COVID-19 pandemic. U.S. Bank froze tens of thousands of accounts. However, it failed to provide people a reliable and quick way to regain access.
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Credit Union Groups Call Out CNN’s Misleading Report on Credit Union Mortgage Lending Data
Today, the Credit Union National Association (CUNA), the National Association of Federally-Insured Credit Unions (NAFCU), and the African American Credit Union Coalition (AACUC), released the below statement on CNN’s misleading report on credit unions’ lending practices to minority and underserved communities.
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Legislation Seeks Reform of CFPB’s UDAAP Enforcement Actions
U.S. Rep. Andy Barr, R-Ky., has introduced legislation to reform unfair, deceptive, or abusive acts or practices (UDAAP) authority granted to the Consumer Financial Protection Bureau and clarify standards for UDAAP enforcement actions.
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CFPB Issues Report Showing Many Americans Are Surprised by Overdraft Fees
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a new report finding that many consumers are still being hit with unexpected overdraft and nonsufficient fund (NSF) fees, despite recent changes implemented by banks and credit unions that have eliminated billions of dollars in fees charged each year.
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Overdraft and Nonsufficient Fund Fees: Insights from the Making Ends Meet Survey and Consumer Credit Panel
This report provides new insights about consumers’ experiences with overdraft and NSF fees, including the credit characteristics of consumers with varying levels of overdraft/NSF activity. We pair the CFPB’s 2023 Making Ends Meet survey with credit bureau data to paint a broad picture of the financial circumstances of consumers who incur overdraft and NSF fees.
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NY passes law to preserve credit card points and rewards for consumers
On December 10, New York General Business Law § 520-e went into effect according to the Governor’s press release. The new law prevents credit card holders from losing unused earned credit card points and requires credit card issuers to send consumers a notice of any outstanding credit card points or rewards they have accrued in their accounts, even after the account is closed.
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40% of Borrowers Have Not Resumed Payments on Student Loans
The burden of student loan debt continues to weigh heavily on millions of Americans, as evidenced by the significant number of borrowers who have not resumed making payments after the pandemic-induced pause. However, approximately 40% of the 22 million borrowers who had bills due did not make their payments by mid-November, the report said, citing data from the Department of Education.
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District Court grants motion to dismiss in FDCPA case regarding an undated Model Validation Notice
On December 5, the U.S. District Court for the Southern District of New York granted a debt collection agency (the defendant) a motion to dismiss an individual’s (plaintiff’s) complaint. The case considers whether an undated Model Validation Notice (MVN) is a material detail that provides standing to sue under the FDCPA.
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Attorney General Bonta Joins Bipartisan Amicus Brief to U.S. Supreme Court Defending States’ Rights to Enforce State Consumer Financial Protection Laws
OAKLAND – California Attorney General Bonta joined a bipartisan multistate coalition of attorneys general in an amicus brief to the U.S. Supreme Court defending states’ rights to enforce state consumer financial protection laws against both state and national banks. In the brief filed in Cantero v. Bank of America, the coalition urges the Supreme Court to overturn a Second Circuit Court of Appeals decision holding that the National Bank Act preempts a New York state law that requires mortgage lenders to pay a 2% minimum interest rate on funds held in mortgage escrow accounts.
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2023 College banking and credit card agreements
Many colleges directly offer financial products to students and market other products that are offered by third-party financial service providers. When colleges do this, students trust and rely on their schools’ offering or marketing of these products as financial advice and may be influenced by what they could perceive as their endorsement to sign up for financial products and services that are more expensive than other available options. However, colleges may also have independent interests from those of their students and may not face competitive pressure to lower fees or provide low-cost products.
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CFPB Report Finds Many College-Sponsored Financial Products Charge High and Unusual Fees
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a report today highlighting that many college-sponsored financial products have higher fees and worse terms and conditions compared to typical market products. The CFPB report identifies college-sponsored deposit accounts with fees above prevailing market rates, which institutions are required to consider under Department of Education rules designed to protect students’ interests.
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FTC Staff Report Details Key Takeaways from AI and Creative Fields Panel Discussion
In a new report, Federal Trade Commission staff detailed key takeaways from an October 2023 public virtual roundtable that examined how generative artificial intelligence, tools that can generate outputs like text, images, and audio on command, is being used and is affecting professionals in music, filmmaking, software development, and other creative fields.
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Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023
As interest rates increased rapidly throughout 2022, the number of refinance mortgage originations declined. The composition of these refinances also changed. Cash-out refinances – where a homeowner borrows an amount substantially greater than what they owe on their existing mortgage – became more common than non-cash-out (also known as “rate-and-term”) refinances. An equity “cashed out” from the home – which, in turn, increases the mortgage balance – is often used by the borrower to pay down other debts, fund home repairs, and pay for educational expenses, among other big-ticket purchases.
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Prepared Statement of CFPB Director Rohit Chopra on the Financial Stability Oversight Council’s 2023 Annual Report
One of the key lessons of the DSIB failures was that regulators had hamstrung themselves in the years prior and had not used legal authorities to protect the public as contemplated by federal law. Another lesson was that just a handful of large players can create chaos in the system. I am pleased that this year’s annual report clearly highlights certain risks and sets us all on a path for actually using our legal authorities, rather than relegating them to dead letter law.
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District Court grants motion to dismiss in FDCPA case regarding an undated Model Validation Notice
On December 5, the U.S. District Court for the Southern District of New York granted a debt collection agency (the defendant) a motion to dismiss an individual’s (plaintiff’s) complaint. The case considers whether an undated Model Validation Notice (MVN) is a material detail that provides standing to sue under the FDCPA.
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Class action lawsuit alleging discrimination filed against Navy Federal after CNN exclusive report
The largest credit union in the US is facing new scrutiny over racial disparities in its mortgage lending following a CNN investigative report, with a class-action lawsuit filed Monday alleging the lender discriminated against Black and Latino applicants, and a senior congressional Democrat demanding answers about its practices.
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CFPB’s Updated Rulemaking Agenda Signals Final Rules on Nonbank Supervision
The Consumer Financial Protection Bureau released its Fall 2023 rulemaking agenda (PDF) with updates that rules on overdraft fees and personal financial data rights are in the proposal stage.
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Daily Decision Recap: Identity Theft, Land Lines, and More
Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Here’s a rundown of recent top FCRA, TCPA and FDCPA cases
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CFPB’s Updated Rulemaking Agenda Signals Final Rules on Nonbank Supervision
The Consumer Financial Protection Bureau released its Fall 2023 rulemaking agenda (PDF) with updates that rules on overdraft fees and personal financial data rights are in the proposal stage.
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NCUA approves budget, revises operating fee schedule methodology
The NCUA Board adopted a final 2024-2025 budget at its Thursday meeting. The approved budget is roughly $8.8 million lower than the proposed 2024 budget. Specifically, compared to the proposed budget, the final 2024 budget reflects the following:
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THE PREDATORY LENDING ELIMINATION ACT WOULD EXTEND CRITICAL FINANCIAL PROTECTIONS FOR SERVICEMEMBERS TO ALL CONSUMERS
WASHINGTON, DC – U.S. Senator Jack Reed (D-RI), Chairman of the Senate Armed Services Committee and a senior member of the Banking and Housing Committee, today joined Senators Jeff Merkley (D-OR), Sherrod Brown (D-OH), Chairman of the Senate Banking and Housing Committee, and others in introducing the Predatory Lending Elimination Act (S. 3549).
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Delinquencies are rising for credit card, auto loans – and it could soon get worse
A growing number of Americans are falling behind on their monthly credit card and car loan payments, a trend that may be a harbinger of economic troubles ahead, according to a new report from Moody's Analytics.
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Rep. Barr’s Introduces UDAAP Reform Legislation
Washington, D.C. – This week, Congressman Andy Barr (KY-06) introduced legislation to amend the Consumer Financial Protection Act of 2010 to clarify standards for UDAAP enforcement actions brough by the Bureau of Consumer Financial Protection (CFPB). This legislation reforms the unfair, deceptive, acts and practices (UDAAP) authority granted to the CFPB by the Dodd-Frank Act to provide certainty for lenders and credit providers.
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Holiday debt hangover poised to be ‘particularly nasty’ this year, analyst says
While retail sales are strong, typically an indication of a healthy consumer, an industry economist is deeply concerned about how consumers will pay it all off when the bill comes.
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Illinois adopts regulatory changes as part of its Collection Agency Act
On December 1, the State of Illinois’s Department of Financial and Professional Regulation promulgated final regulations implementing provisions of the Illinois Collection Agency Act.
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FCC Announces Effective Compliance Date for SIM Swapping Item
At its November 15, 2023, Open Meeting, the FCC adopted a Report and Order implementing new rules to protect cell phone consumers from SIM swap and port-out fraud, two practices that bad actors use to take control of consumers’ cell phones.
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AARP survey finds 80% have encountered scams or fraud
The percentage of consumers who have experienced fraud via fake notifications about shipments, fraudulent online ads or other scams has increased over the last year, when 76% of AARP survey respondents indicated they had been targeted.
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CFPB Shuts Down Commonwealth Financial Systems for Illegal Debt Collection Practices
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against a medical debt collector, Commonwealth Financial Systems, for illegally trying to collect unverified medical debts after consumers disputed the validity of the debts. Under the order issued today, the company will cease operations and pay a $95,000 penalty to the CFPB’s victims relief fund.
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State AG Updates: Data Privacy & Security; Consumer Protection; Wage & Employment; Unfair & Deceptive Practices; Health Care Fraud & False Claims; and Cryptocurrency
In this final edition for 2023, the number and breadth of data privacy and security enforcement actions demonstrate that state AGs are flexing their muscles and playing a significant regulatory role in this area. Some of the trends that are emerging and are likely to continue include:
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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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Six Defendants Plead Guilty to Fraud Charges in Multi-Million-Dollar, Nationwide Skimming Conspiracy
HUNTSVILLE, Ala – Six defendants indicted for defrauding credit unions across the country have pleaded guilty to bank fraud conspiracy and identity theft charges, announced U.S. Attorney Prim F. Escalona, FBI Special Agent in Charge Carlton L. Peeples, and United States Secret Service Special Agent in Charge Patrick Davis.
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FTC Announces CARS Rule to Fight Scams in Vehicle Shopping
The Federal Trade Commission has finalized a new rule to fight two common types of illegal tactics consumers face when buying a car: bait-and-switch tactics and hidden junk fees. The new rule is expected to save consumers nationwide more than $3.4 billion and an estimated 72 million hours each year shopping for vehicles.
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Hickenlooper, Klobuchar Push Biden Administration to Crack Down on Predatory Debt Collection Practices
WASHINGTON – U.S. Senators John Hickenlooper and Amy Klobuchar sent a letter urging the Consumer Financial Protection Bureau (CFPB) to protect consumers from deceptive and illegal debt collection practices. The letter takes specific issue with abusive tactics in the telemarketing of debt relief services:
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Credit unions recover from outages caused by third-party ransomware attack
About 60 credit unions have recovered and brought systems back online after they experienced outages linked to the ransomware attack against Ongoing Operations, which provides disaster recovery and cloud services to credit unions.
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US State Attorneys General Seek Use of Federal Cudgel Against Banks
The attorneys general of 20 states and territories, led by New York Attorney General Letitia James, recently sent letters to the heads of the US Consumer Financial Protection Bureau (CFPB) and US Office of the Comptroller of the Currency (OCC) requesting that the agencies partner with the states and “take appropriate action” to clarify that federally chartered institutions must cooperate with state attorneys’ general information requests, and that their failure to do so is unsafe, unsound, and may give rise to unfair or abusive acts and practices.
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FCC ADOPTS NEW RULES TO CLOSE THE ‘LEAD GENERATOR’ ROBOCALL AND ROBOTEXTS LOOPHOLE AND FACILITATE BLOCKING OF UNWANTED ROBOTEXTS
WASHINGTON, December 13, 2023—The Federal Communications Commission today adopted new rules to further protect consumers from scam communications by directly addressing some of the biggest vulnerabilities in America’s robotext defenses and closing the “lead generator” robocall/robotexts loophole.
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AG report: Data breaches decline for the second consecutive year, remain historically high
OLYMPIA — Attorney General Bob Ferguson released his eighth annual data breach report today that shows data breaches remain at historic levels. However, the number of breaches and Washingtonians affected has gone down over the past two years.
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FDIC Signature Bridge Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $16.8 Billion of Commercial Real Estate Loans
WASHINGTON — The Federal Deposit Insurance Corporation (FDIC), as receiver of Signature Bridge Bank, N.A. (FDIC–Receiver), today completed one of several transactions following the marketing of the $33 billion Commercial Real Estate (CRE) loan portfolio retained in receivership after the failure of Signature Bank, New York, New York.
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Last-minute shopping? Three ways to spot rip-offs
Ever think about clicking on ads for big markdowns or close-out sales in your feed? Social media seems to know what’s on your shopping list, whether it’s the season’s hot toys, electronics, or other popular items.
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Eight People Indicted in Connection with Nationwide Conspiracy Targeting Credit Unions
ALBANY, NEW YORK – Two leaders of a nationwide bank fraud conspiracy have been arrested in connection with a scheme that has targeted credit unions all over the country since at least December 2021.
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AG Campbell Reaches Precedent Setting Settlement Against Real Estate Company EasyKnock For Deceptive Practices That Stripped Consumers Of Home Equity
BOSTON — Attorney General Andrea Joy Campbell has announced a precedent setting settlement, via an assurance of discontinuance (AOD), with the “PropTech” company EasyKnock, for engaging in an unlawful sale-leaseback scheme. The settlement resolves allegations that the company engaged in an unfair and deceptive equity-skimming scheme that involved purchasing the homes of cash-strapped consumers at bargain-basement prices and then renting them back to the consumers, at times for unfair rents.
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FCC bans early termination fees, giving consumers more freedom to switch cable and satellite providers
The Federal Communications Commission (FCC) has voted to ban early termination fees, a move that could reshape the landscape of cable and satellite services. These fees are charged by service providers to subscribers who wish to cancel their service before the end of their contracts.
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Fake shipping notification emails and text messages: What you need to know this holiday season
The scammers send bogus messages by email or text. The message might say that you missed a delivery attempt and ask you to click on a link to re-schedule the delivery. Or it could say that your item is ready to ship but you need to update your shipping preferences
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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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