US credit card balances hit a new record as delinquencies rise in the background

Revolving consumer loans (aka credit card debt) hit a new record in the US this week: $1.3 trillion, according to the Federal Reserve’s latest release on consumer debt. At an annualized rate, the category, which mostly consists of credit card balances, spiked nearly 18% in November.

FTC Sends More Than $1.2 Million in Refunds to Consumers Harmed by Deceptive Mortgage Loan Modification Scam

The Federal Trade Commission is sending more than $1.2 million in refunds to consumers who lost money to Consumer Defense, a deceptive mortgage modification scheme. The FTC is sending payments to 6,261 consumers, who will receive $201.34 each. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, JND Legal Administration, at 877-595-0141 or visit the FTC website to view frequently asked questions.

California Licensed Debt Collectors Required to Submit Annual Reports to DFPI by March 15, 2024

In its December 2023 Bulletin, the California Department of Financial Protection and Innovation ("DFPI") announced that debt collectors licensed prior to January 1, 2024, will be required to file an annual report by March 15, 2024, through the DFPI portal.

Report: Annual December Dip in Robocalls Was Big

U.S. consumers got a bit of a break from robocalls in December, according to the YouMail Robocall Index. The firm said that the volume of robocalls was the lowest since February 2022 and “a stunning” 20% below the 2023 average of about 4.6 billion such calls per month.

Avoiding Scams Involving Virtual Currency Kiosks or Bitcoin ATMs

The Washington State Department of Financial Institutions has issued this Consumer Alert to notify Washington consumers that there appears to be an increase in the use of virtual currency kiosks to perpetuate fraudulent or illicit activity.

New York Proposed Ban on Non-Compete Agreements Vetoed; FTC and NLRB Proposed Nationwide Bans Remain Pending

On December 22, 2023, New York Governor Kathy Hochul vetoed proposed legislation that would have banned all employee non-compete agreements in New York.

AI Companies: Uphold Your Privacy and Confidentiality Commitments

Data is at the heart of AI development. Developing AI models can be a resource intensive process, requiring large amounts of data and compute,^[1] and not all companies have the capacity to develop their own models. 

OCC Hosts Public Appraisal Subcommittee Hearing on Appraisal Bias

WASHINGTON—The Office of the Comptroller of the Currency (OCC) will host a public hearing of the Appraisal Subcommittee (ASC) on appraisal bias on February 13, 2024, from 10:00 a.m. to 1:00 p.m., at its headquarters, 400 7th Street SW, Washington, D.C.

FTC Order Prohibits Data Broker X-Mode Social and Outlogic from Selling Sensitive Location Data

Data broker X-Mode Social and its successor Outlogic will be prohibited from sharing or selling any sensitive location data to settle Federal Trade Commission allegations that the company sold precise location data that could be used to track people’s visits to sensitive locations such as medical and reproductive health clinics, places of religious worship and domestic abuse shelters.

FTC to Hold Informal Hearing on Proposed Rule Banning Fake Reviews and Testimonials

The Federal Trade Commission will hold an informal hearing on its proposed rule banning fake reviews and testimonials at 10 a.m. ET on February 13, 2024. During the hearing, which will be open to the public and available via webcast, three interested parties will provide oral statements addressing issues raised during the rulemaking process.

Credit Unions Will Continue Consolidating for Success in 2024

PYMNTS asked industry executives across the payments and digital commerce landscape to give us their take on the pivotal shifts, technological advancements and strategies that have shaped business in 2023. PSCU President and CEO Chuck Fagan says mergers and acquisitions are poised to continue influencing credit unions.

48% of Consumers Look Beyond Their Primary Bank for Mortgage Loans

Traditionally, consumers rely on their primary financial institutions (FIs), such as banks or credit unions (CUs), for credit products like credit cards, mortgages, auto loans and personal loans. However, research indicates a shift in consumer behavior, with more individuals actively seeking better deals and turning to alternative financial service providers, including FinTechs, that provide these products.

Earned Wage Access Products Are Not Loans, According to the AG of Montana

On December 22, 2023, the Attorney General of Montana released an opinion (the “Opinion”) concluding that certain earned wage access (EWA) products are not “consumer loans” or “deferred deposit loans” under Montana law and do not, therefore, require licensure by the Montana Division of Banking and Financial Institutions. The Opinion only applies to EWA products that are:

Civil Penalty Inflation Adjustments

The Bureau is adjusting for inflation the maximum amount of each civil penalty within the Bureau’s jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. 

FCC adopts updated data breach notification rules

On December 21, 2023, the FCC announced it adopted an updated data breach notifications rule. The rule was formerly designed to protect consumers against pretexting, “a practice in which a scammer pretends to be a particular customer or other authorized person to obtain access to that customer’s call detail or other private communications records.”

56 million Americans have been in credit card debt for at least a year. ‘We are seeing pockets of trouble,’ expert says

Americans are increasingly leaning on their credit cards. Altogether, card balances now total $1.08 trillion, according to the latest quarterly report from the Federal Reserve Bank of New York, a new record.

Negotiations on Government Funding, Including Student Loan Programs, Continue

Members of Congress have reached an overall funding deal to prevent a partial government shutdown but remain divided on student loan relief proposals.

What goes on in the shadows: FTC action against data broker sheds light on unfair and deceptive sale of consumer location data

A private eye novel? A detective thriller on a streaming service? No. According to a proposed settlement announced by the FTC, it was all in a day’s work for data broker X-Mode Social, which has billed itself as the “2nd largest US location data company.” The FTC says X-Mode and its corporate successor Outlogic, LLC sold consumers’ raw location data without their informed consent and without placing effective limits on how X-Mode’s customers used the sensitive information it bought from X-Mode.

U.S. consumer credit tops $5 trillion for first time in November

The numbers: Total consumer credit rose $23.7 billion in November, up from a $5.8 billion increase in the prior month, the Federal Reserve said Monday. That translates into a 5.7% annual rate, up from a revised 1.4% rise in the prior month.

Home-equity lending blossomed in 2023

Home-equity lending overall found its wings in 2023 as a number of independent mortgage banks ramped up product lines over the course of the year — despite a bump in the road in the third quarter when mortgage rates surged past 7%.

U.S. Consumers Received Just Under 3.8 Billion Robocalls in December, According to YouMail Robocall Index

IRVINE, Calif., Jan. 9, 2024 /PRNewswire/ -- U.S. consumers received just under 3.8 billion robocalls in December, representing a 16.3% decrease from November's volume, despite an additional day in the month. December averaged 121.6 million robocalls/day and 1,407 robocalls/second, a full 19% lower than November's average of 150.2 million robocalls/day and 1,738 robocalls/second.

Paycheck-to-Paycheck Consumers Show Strain as Revolving Credit Balances Spike 17.7%

The latest data from the Federal Reserve, released Monday (Jan. 8) showed that overall credit was up 5.7%, annualized. And within that headline number, revolving credit, which includes credit card debt, leapt in November at an annualized pace of 17.7%. 

Community Reinvestment Act: Frequently Asked Questions Regarding the State Small Business Credit Initiative 2.0

The Office of the Comptroller of the Currency (OCC) today published answers to frequently asked questions (FAQ) about the State Small Business Credit Initiative 2.0 (SSBCI) based on the facts and circumstances presented in the questions. These FAQs are not regulations and do not have the force and effect of law.

Big Tech Rebuffs US Consumer Watchdog Plans to Supervise Digital Wallets

(Reuters) -A U.S. watchdog's plan to supervise companies like Apple and Alphabet's Google that provide digital wallets and payment apps risks stifling innovation and keeping some players out of the market, their lobby group said on Monday.

Daily Decision Recap: ATDS, Identity Theft, 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 we’ve covered.

CFPB Files Amicus Brief in Case Contesting Debt Collection Letter Sent in Bankruptcy

The Consumer Financial Protection Bureau has filed an amicus brief in a consumer’s appeal of a decision that a debt collection letter they received in bankruptcy did not violate the Fair Debt Collection Practices Act.

Washington Appeals Court overturns ruling for collector

On December 26, 2023, the Court of Appeals of the State of Washington overturned a ruling in favor of a collection agency. In the initial action, the collection agency sued an individual over a medical debt that was assigned to the agency.

FTC Voice Cloning Challenge submissions are due by January 12th

Thanks to improvements in text-to-speech AI, voice cloning holds promise for consumers, but scammers often find a way to twist tech advancements for their nefarious purposes – and voice cloning is no exception.

CFPB Files Amicus Brief in Case Contesting Debt Collection Letter Sent in Bankruptcy

The Consumer Financial Protection Bureau has filed an amicus brief in a consumer’s appeal of a decision that a debt collection letter they received in bankruptcy did not violate the Fair Debt Collection Practices Act.

U.S. Attorney’s Office Collects Over $25 Million in Civil and Criminal Actions in Fiscal Year 2023

United States Attorney for the Southern District of Indiana, Zachary A. Myers, announced today that the U.S. Attorney’s Office collected $25,434,282 in asset forfeiture and financial litigation debt in Fiscal Year 2023. Of this amount, $15,244,637 was collected through asset forfeiture actions and $10,189,645 was collected through civil and criminal debt collection actions. 

Biden-Harris Administration Takes Additional Action to Hold Student Loan Servicers Accountable for Failing to Meet Contractual Obligations

The Biden-Harris Administration today announced it is withholding payments to three student loan servicers as part of the U.S. Department of Education’s (Department) continued efforts to strengthen protections for student loan borrowers and hold servicers accountable. The Department has found that Aidvantage, EdFinancial, and Nelnet all failed to meet contractual obligations to send timely billing statements to a combined total of 758,000 borrowers for the first month of repayment. As a result of identifying these errors, 

New law to protect Minnesotans from Predatory Payday Lending Practices Goes into Effect

St. Paul, Minn. – Predatory payday loans are a thing of the past in Minnesota thanks to recent law change that into effect on January 1. The new law, a result of legislation authored by Senator Judy Seeberger (DFL-Afton), will cap the interest rates on these loans to help prevent Minnesotans from falling into debt traps.

Auto dealers challenge new US FTC car-buyer consumer protection rules

WASHINGTON, Jan 5 (Reuters) - Two groups representing auto dealers said on Friday they had filed a legal challenge to the Federal Trade Commission's new sweeping consumer protection regulations finalized last month.

FTC Issues Biennial Report to Congress on the National Do Not Call Registry

The Federal Trade Commission issued its biennial report to Congress on the National Do Not Call (DNC) Registry that shows the number of consumers who have placed their telephone numbers on the Registry over the past two years has reached more than 249 million.

Americans are racking up more ‘phantom debt’ — why that’s a problem

Some types of debt can haunt you. “Buy now, pay later” loans, especially, can be hard to track, making it easier for more consumers to get in over their heads, some experts say — even more than credit cards, which are simpler to account for, despite sky-high interest rates.

56 million credit cardholders have been in debt for at least a year, survey finds

Although Americans helped stave off a recession in 2023 by spending enough to propel economic growth, it has come at a cost: Nearly half of consumers say they are carrying credit card debt, according to a new survey from Bankrate.

CFPB Report Identifies Challenges Faced by Borrowers in Resumption of Student Loan Payments

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) published an issue spotlight today on the CFPB’s oversight of student loan servicing practices in the early months of the resumption of federal student loan repayments after over three years of a payment pause due to the COVID-19 emergency. 

Smaller Banks Warn of ‘Significant Impact’ From CFPB’s Proposed Overdraft Fee Regulation

The most recent volley against the Bureau came Wednesday (Jan. 3), as the American Bankers Association, in tandem with the Independent Community Bankers of America and America’s Credit Unions — representing the nation’s smaller financial institutions (FIs) — issued a letter to CFPB Director Rohit Chopra.

Statement of CFPB Director Rohit Chopra on the Federal Student Loan Return to Repayment Issue Spotlight

In March 2020, the federal government announced that payments in connection with federal student loans owned by the U.S. Department of Education would be suspended, and interest would be waived for the duration of the suspension. In June 2023, Congress enacted legislation to end the pause, and a few months ago, required payments resumed.

VantageScore CreditGauge™ November 2023: Consumer Financial Stress Reflected in Higher Delinquencies, Holiday Spending “Credit Hangover” Increasingly Likely

SAN FRANCISCO, Jan. 4, 2024 /PRNewswire/ -- Today, VantageScore released its November 2023 CreditGauge, a monthly analysis highlighting the overall health of U.S. consumer credit. For the fifth consecutive month, the average VantageScore credit score held steady at 701.

Issue Spotlight: Federal Student Loan Return to Repayment

As monthly payments for federally owned student loans come due for the first time in over three years, the Consumer Financial Protection Bureau (CFPB) is actively engaged in oversight of this return to repayment. We are supervising student loan servicers, monitoring consumer complaints, and collaborating with federal and state partners to ensure that servicers are held accountable when they fail to meet their legal obligations to borrowers during this critical period.

FCC Tightens Lead Generator TCPA Consent Requirements, Adopts Texting Do-Not-Call and “Red Flag” Text Blocking Rules, and Seeks Comment on Additional Texting Measures

On December 18, 2023 the FCC released a Second Report and Order, Second Further Notice of Proposed Rulemaking (FNPRM), and Waiver Order, which it considered and adopted at its December Open Meeting, furthering what it characterized as its “multi-pronged approach to unwanted and illegal calls.”

1 in 5 Consumers Pay Auto Loans With Mobile Wallets

Mobile wallets have gained immense popularity among consumers, not only for making in-store purchases but also for their ability to manage finances and store sensitive personal information.

Carrasquillo v. CICA Collection Agency

The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using “any false, deceptive, or misleading representation or means in connection with the collection of any debt.”

Securityplus Federal Credit Union Named TOP Credit Union in Maryland, Earning Coveted Spot on Newsweeks’ List of America’s Best Regional Banks and Credit Unions

BALTIMORE, Jan. 5, 2024 /PRNewswire/ -- Securityplus Federal Credit Union, a trusted financial institution serving the greater Baltimore community, announces its recognition by Newsweek as one of America's Best Regional Banks and Credit Unions for 2024, earning the #10 ranking overall and proudly standing as the #1 ranked credit union based in Maryland. 

FTC to Host Virtual Summit on Artificial Intelligence

The Federal Trade Commission’s Office of Technology is hosting a virtual tech summit on January 25, 2024 that will bring together a diverse group of stakeholders to discuss key developments in the rapidly evolving field of artificial intelligence (AI), looking across the   layers of technology related to AI.

Attorney General Announces Arrest in Meijer mPerks Theft

LANSING – Michigan Attorney General Dana Nessel announced today the arrest and arraignment of Nicholas Mui, 22, of Grand Haven, in connection to the systemic theft and sale of account access information tied to ‘mPerks’ accounts.  Mui was arraigned in the 59th District Court in Kent County on December 27th on one count of Conducting a Criminal Enterprise, a 20-year felony, one count of Use of a Computer to Commit a Crime, a 20-year felony, and seven counts of Identity Theft, each count a 5-year felony.

U.S. Supreme Court Will Hear Cases on Federal Agencies’ Interpretation of Statutes Jan. 17

The court could overturn or narrow a long-time standard for agencies to interpret statutes when enforcing rules, which might impact future regulatory programs.

Dow Credit Union Distributes $19.2 Million To Members As Part of Annual Giveback Program

MIDLAND, Mich., Jan. 4, 2024 /PRNewswire/ -- Dow Credit Union has announced it is paying out $19.2 million to eligible members as part of its annual Member Giveback program for 2023.

FTC and Connecticut take action against Manchester City Nissan auto dealership for illegally charging car buyers

The car shopping process can be challenging — and expensive. Deceptive and unfair practices can make the shopping process even more confusing and costly. That’s why the FTC recently passed the CARS Rule. And it’s why the FTC and State of Connecticut just sued Manchester City Nissan (MCN), its owners, and some key employees.

Attorney General Mayes Announces $13 Million Settlement with Cox Communications for Disguising Price Increases as Routine Fees

PHOENIX – Attorney General Kris Mayes announced today that her office had secured a settlement with Cox Communications for more than $13 million, resolving an investigation and lawsuit alleging the telecommunications company failed to adequately disclose additional fees to customers.  

Growing BNPL Demand Outpaces Merchant Response 

Buy now, pay later (BNPL) has gone mainstream. So much so that if businesses don’t provide this payment option, they might lose out on sales at checkout. This is especially important as inflation influences whether consumers choose to spend money. 

ICBA to CFPB: Include Community Bank Exemption in 1033 Proposal on Sharing Consumer Financial Data

n its comment letter on the bureau’s proposal to implement Section 1033 of the Dodd-Frank Act, ICBA urged the CFPB to exempt community banks with less than $850 million in assets — which are defined as small businesses by the Small Business Administration — from a provision requiring institutions to create and maintain a third-party developer interface.

FTC puts out public call to help stop voice cloning robocalls

The Federal Trade Commission announced it will be accepting submissions until January 12 for its exploratory Voice Cloning Challenge to help protect U.S. consumers from the growing instances of artificial intelligence-enabled voice cloning calls that can be used to scam and harm individuals. 

US bankruptcies surged 18% in 2023 and seen rising again in 2024 -report

Jan 3 (Reuters) - U.S. bankruptcy filings surged by 18% in 2023 on the back of higher interest rates, tougher lending standards and the continued runoff of pandemic-era backstops, data published Wednesday showed, although insolvency case volumes remain well below the level seen before the outbreak of COVID-19.

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