CFPB Issues Advisory Opinions on FCRA

The Consumer Financial Protection Bureau has issued two advisory opinions addressing requirements of consumer reporting agencies (CRAs) under the Fair Credit Reporting Act.

Big U.S. bank profits fall on insurance fund charges, falling lending margins

WASHINGTON (Reuters) - Major U.S. bank fourth quarter profits fell on Friday as lenders put aside cash to replenish a government insurance fund dented by last year's bank failures, and as the rising cost of retaining deposits ate into margins.

Student Loan Servicing Issues Found in CFPB Oversight Examinations

Student loan borrowers are experiencing delays in managing their payments and loan plan applications, according to a recent issue spotlight (PDF) on the Consumer Financial Protection Bureau’s oversight of student loan servicing practices.

Credit Card Delinquencies Near Highest Level Since 2012

During the third quarter, large bank credit card nominal balances continued to grow, and all stages of delinquency approached the highest levels on record since 2012, according to a report released Thursday (Jan. 11) by the Federal Reserve Bank of Philadelphia.

New FCC rule targets robocalls, robo-texts, telemarketers, and other annoying phone scams

You aren’t alone if you already dread picking up phone calls and looking at text messages because of the constant barrage of scams. The creativity of scammers and the pervasiveness of telemarketing drive a widening gap between users and their tech, making it difficult to keep up with the latest tactics or the lawmakers’ responses.

Biden-Harris Administration to Shorten Path to Debt Cancellation for Some SAVE Borrowers

Today, the Biden-Harris Administration announced that next month it will start providing forgiveness after as few as 10 years of payments for borrowers on the Saving on a Valuable Education (SAVE) Plan who originally took out $12,000 or less for college.

U.S. Foreclosure Activity Increases From 2022 But Still Below Pre-Pandemic Levels

IRVINE, Calif. – Jan. 11, 2024 — ATTOM, a leading curator of land, property, and real estate data, today released its Year-End 2023 U.S. Foreclosure Market Report, which shows foreclosure filings— default notices, scheduled auctions and bank repossessions — were reported on 357,062 U.S. properties in 2023, up 10 percent from 2022 and up 136 percent from 2021 but down 28 percent from 2019, before the pandemic shook up the market. Foreclosure filings in 2023 were also down 88 percent from a peak of nearly 2.9 million in 2010.

Wisconsin Senate proposes new bill to revise money transmission, consumer lenders, collection agency and other financial services licenses

In November 2023, S.B. 668 was introduced in the Wisconsin Senate. S.B. 668 would make sweeping changes to the state laws governing financial service providers. 

Fitzgerald & Colleagues Co-Introduce Bipartisan Bill to Expand Credit Options for Americans

WASHINGTON, DC – Today, Congressman Scott Fitzgerald (WI-05), Congressman Brad Sherman (CA-32), Congressman Juan Vargas (CA-52), and Congresswoman Young Kim (CA-39) co-introduced the Expanding Access to Lending Options Act. This bill would expand credit options for Americans by giving credit unions the flexibility to offer longer loan terms and lower monthly payments, thus creating greater competition for lending products including small business, student, and agricultural loans.

CFPB Addresses Inaccurate Background Check Reports and Sloppy Credit File Sharing Practices

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued guidance to consumer reporting companies to address inaccurate background check reports, as well as sloppy credit file sharing practices. 

The ‘phantom debt’ of buy now, pay later is growing and will soon hit some Americans hard

After two years of persistent inflation and economic uncertainty, consumers have adopted a range of conservative attitudes across consumer products and services.

Consumers Look at Security First, Fees Second When Opening a Bank Account

After two years of persistent inflation and economic uncertainty, consumers have adopted a range of conservative attitudes across consumer products and services.

Fair Credit Reporting; File Disclosure

The Consumer Financial Protection Bureau is issuing this advisory opinion to address certain obligations that consumer reporting agencies have under section 609(a) of the Fair Credit Reporting Act (FCRA). 

Fair Credit Reporting; Background Screening

The Consumer Financial Protection Bureau is issuing this advisory opinion to affirm that, when preparing consumer reports, a consumer reporting agency that reports public record information is not using reasonable procedures to assure maximum possible accuracy under section 607(b) of the Fair Credit Reporting Act (FCRA) if it does not have procedures in place that: (1) prevent reporting information that is duplicative or that has been expunged, sealed, or otherwise legally restricted from public access; and (2) include any existing disposition information if it reports arrests, criminal charges, eviction proceedings, or other court filings. 

FTC Publishes Inflation-Adjusted Civil Penalty Amounts for 2024

The Federal Trade Commission has adjusted the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Nearly 30% of Americans behind on debt payments in largest metros, study finds

American households racked up a record $17.29 trillion in debt last year, driven by mortgage, credit card and student loan balances, according to the latest numbers from the Federal Reserve Bank of New York. Now, fresh data indicates an alarmingly high percentage of consumers began falling behind on their payments at the same time.

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.

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RMAI 2024 Annual Conference

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