U.S. district court holds state laws partially preempted by FCRA

On January 9, the U.S. District Court of Maine entered judgment, determining that Maine law is only partially preempted by the federal Fair Credit Reporting Act (FCRA).

CFPB Proposes Rule to Close Bank Overdraft Loophole that Costs Americans Billions Each Year in Junk Fees

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today proposed a rule  to rein in excessive overdraft fees charged by the nation’s biggest financial institutions.

Maryland is Latest State to Introduce Legislation Targeting Bank Partnership Programs

On January 10, HB 254, entitled the True Lender Act, was introduced before the Maryland House of Delegates. The Act would amend the Maryland Commercial Law to add an article containing both predominant economic interest and totality of the circumstance tests to determine the “true lender” of a loan. 

Delinquency Rates for Commercial Properties Increased in Fourth-Quarter 2023

WASHINGTON, D.C. (January 16, 2024) — Delinquency rates for mortgages backed by commercial properties increased during the fourth quarter of 2023, according to the Mortgage Bankers Association's (MBA) latest commercial real estate finance (CREF) Loan Performance Survey.

Prepared Remarks of CFPB Director Rohit Chopra on Overdraft Lending Press Call

Overdraft loans – along with the hefty and often surprising fees that come with them – affect families across the country.

Corporate debt defaults soared 80% in 2023 and could be high again this year, S&P says

Corporate debt defaults soared last year and could be a problem again in 2024 as cash-strapped companies deal with the burden of high interest rates, S&P Global Ratings reported Tuesday.

Massachusetts AG and Nelnet Reach Settlement Over Reported Student Loan Servicing Violations

Massachusetts Attorney General Andrea Joy Campbell announced a $1.8 million settlement with Nelnet Inc. (Nelnet), a federal student loan servicer, to resolve allegations the company “failed to appropriately communicate with borrowers about renewing Income-Driven Repayment (IDR) plans that provide access to affordable payments,” according to a news release.

Overdraft Lending: Very Large Financial Institutions Proposed Rule

The Consumer Financial Protection Bureau (CFPB) proposes to amend Regulations E and Z to update regulatory exceptions for overdraft credit provided by very large financial institutions, thereby subjecting that credit to consumer lending regulations, unless the overdraft fee is a small amount that only recovers applicable costs and losses.

DFCU Financial Recognized as a Top Credit Union by Newsweek Magazine

DEARBORN, MI, January 16, 2024 - DFCU Financial has proudly secured its place among the nation's top credit unions, according to Newsweek magazine, placing the credit union in the esteemed top 5% of financial institutions

Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month

As the personal savings rate sank near an all-time low, credit card balances jumped 15% year over year, according to the latest quarterly report from the Federal Reserve Bank of New York, notching the largest increase in more than 20 years.

FTC Announces Claims Process for Consumers Harmed by Lanier Law Mortgage Relief Scheme

The Federal Trade Commission is launching a claims process for consumers harmed by a deceptive mortgage relief operation known as Lanier Law that collected upfront fees of thousands of dollars and promised consumers lower monthly payments but failed to deliver.

This NCPW, speak up against scams in your language

Scammers speak your language. Whether you speak a language from Arabic to Vietnamese, or the language of college students or veterans to older adults — scammers know it fluently.

Attorney General Bonta Advocates for Consumer Protections Against AI-Generated Robocalls

OAKLAND — California Attorney General Rob Bonta today joined a coalition of 26 attorneys general in filing a comment letter responding to the Federal Communications Commission’s (FCC) notice of inquiry related to the potential impact of emerging artificial intelligence (AI) technology on efforts to protect consumers from illegal robocalls or robotexts.

Beware of new CFPB imposter scams

We can’t say it enough – the CFPB will NEVER contact you and ask you for sensitive information or to pay money. This includes never asking you to pay an upfront fee or taxes, or telling you that you’ve won a lottery, sweepstakes, or class-action lawsuit. We also won’t ask you for personal or sensitive information before you can cash a check we’ve issued.

CFPB files amicus brief on FDCPA case regarding scienter

On January 2, the CFPB announced its filing of an amicus brief in the U.S. Court of Appeals for the First Circuit that takes the position that debt collectors can and should be held strictly liable under the FDCPA regardless of whether they knowingly or unknowingly made a false statement.

Department of Labor Advances Worker Classification Rule and Proposed Overtime Changes

The changes, especially proposed updates on overtime thresholds, could shape policies for employee pay and classification in the coming year.

Hudson Valley Credit Union to Acquire Catskill Hudson Bank

POUGHKEEPSIE, N.Y. and KINGSTON, N.Y., Jan. 10, 2024 /PRNewswire/ -- Hudson Valley Credit Union (HVCU) announced today that it has entered into a definitive merger agreement with Catskill Hudson Bank and its parent company Catskill Hudson Bancorp, Inc. (OTCPK: CSKL) ("Catskill Hudson"), pursuant to which Catskill Hudson Bank will merge with and into HVCU, with HVCU as the surviving institution in a series of transactions.

US House Panel Considers Commission to Tackle Nation’s Soaring Debt

WASHINGTON (Reuters) - Bipartisan legislation to create a commission charged with taming the $34 trillion U.S. national debt is set to advance this week in a House of Representatives panel, as lawmakers battle over federal spending.

State Privacy Update: New Jersey Becomes 13th State to Pass a Consumer Privacy Bill

The New Jersey Legislature this week passed Senate Bill 332 (SB 332), a comprehensive consumer data privacy bill. Since its conception, the bill has undergone significant revisions that expanded a once narrow bill into a more comprehensive privacy framework.

New York Amends Existing Credit Card Surcharge Prohibition

On December 13, 2023, the State of New York enacted Assembly Bill No. 2672 (Act), which modifies New York’s ban on credit card surcharges. The revised law takes effect on February 11, 2024.

Utah Court of Appeals Reverses Dismissal of Consumer Claims Based on Failure to Register Under Collection Agency Act

In a change of course, the Utah court of appeals has reversed the dismissal of a plaintiffs’ suit against a debt collector based on its alleged failure to register as a collection agency prior to filing collection suits.

CFPB Continues Focus on Consumer Reporting and the FCRA With New “Guidance” on Background Checks and Consumer Disclosures

On January 11, the Consumer Financial Protection Bureau (CFPB or Bureau) issued two “advisory opinions” addressing the CFPB’s views of the obligations of consumer reporting agencies (CRAs) under the Fair Credit Reporting Act (FCRA).

New York Amends Existing Credit Card Surcharge Prohibition

On December 13, 2023, the State of New York enacted Assembly Bill No. 2672 (Act), which modifies New York’s ban on credit card surcharges. The revised law takes effect on February 11, 2024.

Credit card delinquencies surge as Americans battle high inflation, interest rates

A growing number of Americans are falling behind on their monthly credit card payments as they continue to battle high inflation and interest rates, according to new data published by the Federal Reserve Bank of Philadelphia.

Daily Decision Recap: Reg F, Validation Notice, 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.

Flagging loan margins, one-off charges drag down profit at major US banks

WASHINGTON (Reuters) -Major U.S. banks reported lower profits on Friday in a choppy fourth quarter clouded by special charges and job cuts, with signs an income boost from high interest rates is waning and some consumer loans are starting to sour.

Operator? I’d like to Report a Data Breach—The FCC’s Updated Data Breach Rule

After waiting 16 years for a call, the FCC is finally back on the line. Last month the FCC updated their 16-year-old data breach notification rule. The updated rule makes drastic changes to the previous FCC notification requirements. 

US Banking Giants Shed Over 17,000 Employees in Turbulent Year

(Reuters) - Wells Fargo, Bank of America and Citigroup reduced their workforces by a combined 17,700 last year, the banking giants reported in their fourth-quarter earnings on Friday.

Americans are missing credit card payments at the highest rate in a decade

A report from the Federal Reserve Bank of Philadelphia found credit-card delinquency rates have surpassed pre-pandemic levels, with the share of balances 30 days past due hovering at the highest mark since late 2012.

Debt Collection – Licensee

The Department of Financial Protection and Innovation (DFPI) provides licensure, regulation, and oversight of California debt collection practices under the California Consumer Financial Protection Law, 2021 (CCFPL) and the Debt Collection Licensing Act, 2022 (DCLA). Both measures help to better protect consumers and create a level playing field for industry.  The DFPI began accepting applications for licensure September 1, 2021.

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.

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