CFPB Bites of the Month – 2023 Annual Review – Biggest Fines and Penalties

In this article, we share a list of the top 10 biggest fines and penalties from our monthly bites for 2023.

WEBRECON DEC 2023 STATS & YEAR IN REVIEW

The final stats of 2023 are in and for the first time since June, they show the big three statutes (TCPA -4.3%, FDCPA -.3%, FCRA -14.1%) all down from the previous month. CFPB complaints ended the month up +9.4%.

“True Lender Act” Bill Proposed in Maryland

Maryland has joined the ranks of states considering legislation that would codify elements of “true lender” theory in an effort to impose federally preempted state licensing requirements and rate caps on loans to Maryland residents.

Update on Visa/Mastercard Antitrust Settlement

If your business accepted any Visa or Mastercard payments between 2004 and 2019, you may be eligible to recover funds from a recent settlement. But to take advantage of this opportunity, you have to move quickly. Court documents suggest that the last day to file claims will be May 31, 2024.

Suffolk Credit Union Announces Innovative Partnership to Launch Buy Now, Pay Later Service, Elevating Financial Flexibility for Members

LONG ISLAND, N.Y., Jan. 30, 2024 /PRNewswire/ -- Suffolk Credit Union, with asset base of $1.8 billion, is proud to announce the introduction of a groundbreaking Buy Now, Pay Later (BNPL) service to its suite of digital banking solutions.

NYDFS Issues Proposed Guidance on AI and External Consumer Data Use

On January 17, 2024, the New York State Department of Financial Services (NYDFS) issued a proposed Circular Letter that provides guidance for authorized insurers using external consumer data and information sources (ECDIS) and artificial intelligence systems (AIS) in underwriting and pricing. NYDFS requests feedback on the draft by March 17, 2024.

McHenry, Hill, Flood Urge CFPB to Revisit Digital Consumer Payment Proposed Rule

The Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), Chairman of the Digital Assets, Financial Technology and Inclusion Subcommittee, Rep. French Hill (AR-02), and Rep. Mike Flood (NE-01) sent a letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra regarding the Bureau’s proposed rule “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.”

Court Finalizes Injunction and Monetary Judgment against Illegal Telemarketing Operation and its Owners

A federal district court has entered final orders against a telemarketing company and its owners, who made millions of illegal, unsolicited calls to people that were registered on the Do Not Call Registry. The court ordered the defendants to pay $28.7 million in civil penalties and permanently banned the defendants from participating in telemarketing or assisting and facilitating others engaged in telemarketing to consumers.

Attorney General James Sues Citibank for Failing to Protect and Reimburse Victims of Electronic Fraud

NEW YORK – New York Attorney General Letitia James today sued Citibank, N.A. (Citi) for failing to protect and refusing to reimburse victims of fraud. The lawsuit alleges that Citi does not implement strong online protections to stop unauthorized account takeovers, misleads account holders about their rights after their accounts are hacked and funds are stolen, and illegally denies reimbursement to victims of fraud.

The Average American’s Household Expenses Are $6,081 A Month Or $72,967 A Year — But The Median Annual Household Income Is Just $74,580

With inflation impacting budgets, many are seeking ways to manage their expenses effectively. The 2022 Consumer Expenditure Survey by the Bureau of Labor Statistics reveals that the average American household’s monthly expenses total approximately $6,081, equating to $72,967 annually. This amount includes costs for housing, transportation, food and other essential categories​​

FTC Orders Tax Company Inuit to Halt Deceptive Advertising

In a recent legal move, the Federal Trade Commission has issued an opinion and final order (PDF) against Intuit Inc., the company behind the widely used TurboTax tax filing software, according to a press release from the FTC.

CFPB Bites of the Month – 2023 Annual Review – Small Dollar Lending, Lease-to-Own, and Alternative Financial Services

In this article, we share a timeline of our monthly "bites" for 2023 applicable to the small dollar lending, lease-to-own, and alternative financial services industries.

Navigant named among nation’s best regional credit unions in 2024

SMITHFIELD – Navigant Credit Union recently earned a five-star rating from Newsweek, ranking it as one of the nation’s best regional banks and credit unions.

Court Stymies State Regulator’s Attempt to Block Bank-Credit Union Deal

The last two years have seen a significant uptick in the number of transactions involving credit union acquisitions of banks with 26 deals announced and two transactions already announced in 2024. Yet, the law around these transactions remains somewhat unsettled and the path to regulatory approval is often not clear.

US bank regulator to boost transparency of merger reviews, scrap automatic approvals

WASHINGTON (Reuters) -A top U.S. bank regulator on Monday will propose new regulations for bank mergers and acquisitions (M&A) in a bid to increase transparency around the process, while ensuring some deals do not slide through automatically without sufficient scrutiny.

House members urge CFPB to define “risk to consumers” in procedural rule on risk-based supervisory authority

A bi-partisan group of House members has sent a letter to CFPB Director Chopra to express concern about the CFPB’s rule setting forth its procedures for establishing supervisory authority over nonbanks engaged in conduct that poses risk to consumers.

OCC Requests Comments on Proposed Rulemaking and Policy Statement on Bank Mergers

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today requested comment on a proposal to update its rules for business combinations involving national banks and federal savings associations. The proposal also includes a policy statement to clarify the OCC’s review of applications under the Bank Merger Act (BMA).

Attorney General Josh Stein Releases 2023 Data Breach Report

(RALEIGH) Attorney General Josh Stein today released the North Carolina Department of Justice’s 2023 data breach report ahead of Data Privacy Day on January 28. In 2023, more than 4.9 million North Carolinians were affected by a record 2,033 data breaches. The report can be viewed here.

The CFPB’s enforcement work in 2023 and what lies ahead

The CFPB safeguards household financial stability by ensuring that consumer financial markets are fair, transparent, and competitive. Our enforcement authority is among the CFPB’s most impactful tools—reinforcing compliance with federal consumer financial laws and sending a clear message to entities within our authority and the public that the CFPB remains vigilant on behalf of consumers.

CFPB proposes new rule on overdraft lending, opens comment period

On January 17, the CFPB issued a proposed new rule to restrict overdraft fees charged by financial institutions. Historically, the Federal Reserve Board exempted banks from credit disclosure requirements when an overdraft was needed to honor checks (for a fee). 

American bankruptcy filings hit first post-pandemic rise

(CN) — After seeing several years of decline, U.S. bankruptcy filings increased nearly 17% last year, according to data published Friday by the Administrative Office of the U.S. Courts.

Health Care Privacy and Security In 2024: Six Critical Topics to Watch

As we reflect on the flurry of activity in the health care data privacy and security space in 2023 and look ahead to what will continue to be a busy 2024, we are seeing the early stages of federal agency movement to align the regulatory environment with modern health care delivery, cutting-edge technologies, and innovative data-sharing techniques.

Three ways your business can mark Identity Theft Awareness Week | Federal Trade Commission

January 29th kicks off 2024’s Identity Theft Awareness Week, but consumer-conscious companies promote identity theft awareness – and prevention – 52 weeks a year.

Here’s how much the typical American pays toward debt each month

Americans are tumbling deeper into debt, with the typical household paying $1,583 a month on various loans, a recent study found.

CFPB proposes rule to ban “rarely charged” NSF fees for declined transactions based on wildly expansive view of “abusive” prong

On January 24, 2024, a week after issuing its proposed rulemaking for overdraft services, the Consumer Financial Protection Bureau (“CFPB”) issued its proposed rulemaking on non-sufficient funds (NSF) fees.

Attorney General Bonta Announces Investigative Sweep, Focuses on Streaming Services’ Compliance with the California Consumer Privacy Act

OAKLAND – Ahead of Data Privacy Day, California Attorney General Rob Bonta today announced an investigative sweep, and is sending letters to businesses with popular streaming apps and devices alleging that they fail to comply with the California Consumer Privacy Act (CCPA).

Community 1st Credit Union Named Top 250 Regional Credit Union in America by Newsweek

Ottumwa, IA: Newsweek, along with Plant-A Insights Group recently announced that Community 1st Credit Union has been recognized as one of America’s Best Regional Banks and Credit Unions for 2024, receiving a prestigious five-star rating on a five-star scale.

OIG report finds CFPB can enhance certain aspects of its enforcement investigations process

The Office of Inspector General (OIG) for the Federal Reserve Board and CFPB has issued a report on its evaluation of the CFPB’s process for conducting enforcement investigations.  OIG concluded that the CFPB can enhance certain aspects of that process as described below.

FTC Launches Inquiry into Generative AI Investments and Partnerships

The Federal Trade Commission announced today that it issued orders to five companies requiring them to provide information regarding recent investments and partnerships involving generative AI companies and major cloud service providers.

Study estimates over 400K SC residents caught in a cycle of debt

COLUMBIA — On Tuesday, January 9, 2024, Senator Tom Davis (District 46) of Beaufort introduced Bill S. 910 to curb predatory lending practices in South Carolina. According to Senator Davis, “In South Carolina, there are lenders that offer payday, installment, and auto-title loans that mine and use personal data to identify, target and then trap vulnerable South Carolinians in a cycle of debt.

FTC and DOJ Update Guidance That Reinforces Parties’ Preservation Obligations for Collaboration Tools and Ephemeral Messaging

The Federal Trade Commission and Justice Department today announced that both agencies are updating language in their standard preservation letters and specifications for all second requests, voluntary access letters, and compulsory legal process, including grand jury subpoenas, to address the increased use of collaboration tools and ephemeral messaging platforms in the modern workplace. These updates reinforce longstanding obligations requiring companies to preserve materials during the pendency of government investigations and litigation.

AG Nessel’s New Consumer Alert Informs Businesses About New Transparency Requirements, Warns of Scammers

LANSING – Michigan Attorney General Dana Nessel has issued a new consumer alert to notify small business owners about the new federal Corporate Transparency Act (CTA), which will impact millions of small businesses. Knowing what the legislation requires will help businesses comply with the law and avoid scammers who may try to steal personal or corporate information under the guise of offering assistance.

Does New York’s Failed Noncompete Bill Forecast a Similar Fate for the FTC’s Proposed Noncompete Rule?

After proposing in 2023 to ban nearly all employee noncompete agreements nationwide, the Federal Trade Commission (FTC) has remained largely silent on whether it will pare back some of the proposal’s more controversial provisions.

State attorneys general ask FCC to clarify TCPA requirements for AI calls

The Federal Communications Commissions (FCC) published a Notice of Inquiry (NOI) last fall about the implications of emerging artificial intelligence technologies on the Telephone Consumer Protection Act (TCPA) and related FCC rules. 

Pair of Maine bills aimed at limiting medical debt

More than 40% of Mainers have medical debt, according to a recent survey by Consumers for Affordable Health Care. Two bills before state lawmakers aim to reduce some of that burden.

Identity Theft Awareness Week 2024 starts January 29

You’ve probably heard about identity theft, but have you heard about Identity Theft Awareness week? That’s when the FTC and its partners host free podcasts, webinars, Facebook Live interviews, and other events to talk about how to spot, avoid, report, and recover from identity theft. Mark your calendars. Identity Theft Awareness Week starts Monday, January 29!

State Attorneys General Back FCC’s Exam of AI in Robocalls

A coalition of 26 state attorneys general is urging the Federal Communications Commission to restrict use of artificial intelligence (AI) in marketing phone calls in response to a Notice of Inquiry (PDF) from the FCC to better understand the impact of AI technologies.

HEARING NOTICE: Subcommittee on Financial Institutions and Monetary Policy

Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), announced the following hearing:

New Jersey Becomes Most Recent State to Sign a Comprehensive Consumer Privacy Law

On January 16, 2024, New Jersey Governor Phil Murphy signed into law Senate Bill No. 332, “An Act concerning online services, consumers, and personal data” (“SB 332”).  New Jersey is the fourteenth state to pass a comprehensive consumer privacy bill, and the obligations and rights created by SB 332 follow the format used in a growing number of states that have passed comprehensive consumer privacy laws.

State-by-state analysis: Comparing personal loan debt across America

In quarter three of 2023, America’s personal loan finances totaled $241 billion, compared to $210 billion a year prior, making it a 14.8% change, TransUnion statistics showed.

Newsweek names Veridian among America’s Best Regional Banks and Credit Unions.

Newsweek recently released a list of America's Best Regional Banks and Credit Unions for 2024, recognizing Veridian Credit Union with five stars on a five-star scale. The list is based on an analysis of 9,440 financial institutions across the U.S. to identify the best 250 regional banks and 250 credit unions

2024 Brings New Cyber-Related Legal Obligations for Banks and Fintech Firms

Fintech companies and their partners are on alert as a flurry of new state and federal cybersecurity requirements take effect.

Fraud Concerns Leave Consumers Skeptical of Payment Data Aggregation Apps

Payment fraud incidents have been on the rise, increasing 88% since December 2021, PYMNTS Intelligence research reveals. For instance, 11% of consumers who paid for groceries experienced payment fraud in March 2023, compared to 5.7% in December 2021.

FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline

For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim. According to the FTC, the subscription-based business violated the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Equal Credit Opportunity Act (ECOA) by using deceptive and unfair tactics against its customers, including people on Social Security and veterans receiving military pensions.

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