Credit Card, Auto Loan Delinquency Rates Rise in NY Fed Report

(Bloomberg) -- American households took on more debt at the end of last year, and some of those loans are increasingly going bad, according to data from the Federal Reserve Bank of New York.

Governor Hochul Announces New Law to Clarify Disclosure of Credit Card Surcharges Goes Into Effect Sunday, February 11

Governor Kathy Hochul today announced a new consumer protection law that will go into effect on February 11, 2024. This new law will amend and clarify New York’s existing credit card surcharge law. The NYS Division of Consumer Protection assists aggrieved consumers in the marketplace and the New York State Attorney General and local governments have the authority to enforce the credit card surcharge law.

UPDATE 1-New York Fed sees trouble in auto borrowing as overall debt level rises

Feb 6 (Reuters) - Overall borrowing levels in the U.S. rose modestly during the final three months of last year as more types of borrowing ran into trouble, especially on the auto front, even as overall difficulties remained below levels seen before the onset of the COVID-19 pandemic.

JPMorgan Chase to add 500 branches and 3,500 employees by the end of 2027 as the U.S.’s largest bank gets bigger

JPMorgan Chase & Co. said Tuesday it will add 500 branches and 3,500 employees by 2027, as the largest bank in the United States bucks the trend of layoffs and bank closures.

Kochava Must Face FTC Location Privacy Charges

Siding against mobile data broker Kochava, a federal judge has ruled that the Federal Trade Commission can proceed with a lawsuit alleging the company harmed consumers by selling precise geolocation data.

FTC focused on competition and dominance in generative AI space

On January 25, 2024 the Federal Trade Commission (FTC) hosted a Technology Summit focused on generative artificial intelligence (AI) and other innovative technologies to address how control over key inputs—like data, chips, and cloud computing resources—could undermine competition.

Credit Card and Auto Loan Delinquencies Continue Rising; Notably Among Younger Borrowers

NEW YORK—The Federal Reserve Bank of New York’s Center for Microeconomic Data today issued its Quarterly Report on Household Debt and Credit. The report shows total household debt increased by $212 billion (1.2%) in the fourth quarter of 2023, to The report is based on data from the New York Fed’s nationally representative Consumer Credit Panel.

Comments to the CFPB on the Larger Participant Rule

The Center has submitted comments to the Consumer Financial Protection Bureau on the proposed rule for supervising large non-bank participants in the general-use digital consumer payment application industry.

Q U A R T E R L Y REPORT ON HOUSEHOLD DEBT AND CREDIT

Aggregate household debt balances increased by $212 billion in the fourth quarter of 2023, a 1.2% rise from 2023Q3. Balances now stand at $17.50 trillion and have increased by $3.4 trillion since the end of 2019, just before the pandemic recession.

Receivables Management Association International and BBB National Programs Announce New Accountability Service to Enhance the Receivables Management Certification Program

Sacramento, CA – The Receivables Management Association International (RMAI) and BBB National Programs announced today that, effective March 1, 2024, BBB National Programs will independently administer the Remediation Committee for RMAI’s Receivables Management Certification Program (RMCP).

Utah First Credit Union Secures Ninth Consecutive Crystal Performance Award

SALT LAKE CITY--(BUSINESS WIRE)--Utah First Credit Union is excited to announce another honor for an unprecedented ninth consecutive year. The institution has received the Crystal Performance Award, a distinguished honor presented by Raddon, A Fiserv Company, that sets Utah First apart as one of the premier credit unions in the country.

FTC Action Leads to Permanent Ban for Scammers Who Charged Students Seeking Debt Relief with Junk Fees

A group of student loan debt relief scammers will be permanently banned from the debt relief industry and is required to turn over their assets as part of a settlement with the Federal Trade Commission.

Credit card delinquencies surged in 2023, indicating ‘financial stress,’ New York Fed says

Credit card delinquencies surged more than 50% in 2023 as total consumer debt swelled to $17.5 trillion, the New York Federal Reserve reported Tuesday.

Federal Bank Regulatory Agencies Seek Comment on Interagency Effort to Reduce Regulatory Burden

The federal bank regulatory agencies today announced their first of a series of requests for comment to reduce regulatory burden. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 requires the Federal Financial Institutions Examination Council and federal bank regulatory agencies to review their regulations every 10 years to identify any outdated or otherwise unnecessary regulatory requirements for their supervised institutions.

Economic Growth and Regulatory Paperwork Reduction Act of 1996: Regulatory Review to Identify Outdated, Unnecessary, or Unduly Burdensome Regulations

On February 6, 2024, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) published in the Federal Register their first notice requesting comment on their regulations pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). EGRPRArequires the agencies to review their regulations every 10 years to identify outdated, unnecessary, or unduly burdensome regulations applicable to insured depository institutions.

70% of Consumers Opt for Instant Merchant Refunds If Given the Choice

For most American consumers, disbursements — which include earnings and income payments, Social Security payments, tax refunds, insurance claim payouts and loan disbursements — remain an essential aspect of daily life

FCC Chairwoman proposes making all AI-generated robocalls “illegal” to help State Attorneys General

On January 31, FCC Chairwoman, Jessica Rosenworcel, released a statement proposing that the FCC “recognize calls made with AI-generated voices are ‘artificial’ voices under the Telephone Consumer Protection Act (TCPA), which would make voice cloning technology used in common robocalls scams targeting consumers illegal.”

Newsweek Names Redwood Credit Union One of “America’s Best Credit Unions”

Santa Rosa, CA – Redwood Credit Union has been recognized by Newsweek as one of "America’s Best Credit Unions 2024." Newsweek’s inaugural study analyzed the financial health, operational performance, and customer evaluations of nearly 4,800 regional credit unions across the U.S. to identify the best 250. RCU ranked in the top 10 of California-based credit unions.

Some Americans have become saddled with credit card debt as rent and everyday prices remain high

NEW YORK (AP) — While the U.S. economy is broadly healthy, pockets of Americans have run through their savings and run up their credit card balances after battling inflation for more than two years.

Republican lawmakers ask CFPB to reopen comment period on proposal to supervise nonbank providers of digital wallets and payment apps

Patrick McHenry, the Republican Chair of the House Financial Services Committee, and two other Republican Committee members have sent a letter to Director Chopra regarding the CFPB’s proposed rule to supervise nonbank companies that qualify as larger participants in a market for “general-use digital consumer payment applications.” 

Guaranteed delivery by Valentine’s Day: If it doesn’t arrive, you have rights

Playing cupid? A quick online shopping scroll shows tons of exciting Valentine’s gifts for those you love. If you order now, many sellers guarantee delivery on or before Valentine’s Day. But what happens when your order doesn’t arrive by that guaranteed date? As a customer, you have rights.

Daily Decision Recap: Debt Purchasers, Letter Vendor Claims, 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 case

Declined: CFPB Proposes Rule to Limit Non-Sufficient Funds Fees | Venable LLP – JDSupra

One week after the CFPB published its proposed rule restricting overdraft fees, the CFPB proposed yet another rule prohibiting nonsufficient funds fees (NSF fees) on transactions like declined debit card purchases and attempted ATM withdrawals, among others.

Commercial real estate a ‘manageable’ problem but some banks will close: Powell

Federal Reserve chair Jerome Powell is predicting that more small banks will likely close or merge due to commercial real estate weaknesses, but that the problem is ultimately "manageable."

Court Refuses to Dismiss Privacy Case Involving Alleged Unlawful Recording

In a recent court order (PDF), a California district court denied the defendants’ motions to dismiss a second amended complaint in a case involving allegations of unlawful recording and violation of privacy. The hearing, originally scheduled for Jan. 12, 2024, was deemed unnecessary by the court.

Providence agrees to $158M of refunds, debt erasure to settle charity care billing investigation

Renton, Washington-based Providence has cut a deal to refund or erase $157.7 million in medical care payments following allegations and a lawsuit from its home state’s attorney general that the large nonprofit had failed to inform tens of thousands of patients of charity care eligibility.

FCC to declare AI-generated voices in robocalls illegal under existing law

The Federal Communications Commission plans to vote on making the use of AI-generated voices in robocalls illegal. The FCC said that AI-generated voices in robocalls have "escalated during the last few years" and have "the potential to confuse consumers with misinformation by imitating the voices of celebrities, political candidates, and close family members."

CFPB and State AGs Prosecute Debt Relief Companies and Law Firms

In recent weeks, we have seen an increase in prosecution by the Consumer Financial Protection Bureau (“CFPB”) and state attorneys general against debt relief companies and law firms.

AG Nessel Wraps Identity Theft Awareness Week with Tips on Recovering from Identity Theft

LANSING – To conclude Identity Theft Awareness Week (January 28-February 3) and to provide consumers with the knowledge to recognize and respond to identity theft crises, Michigan Attorney General Dana Nessel has re-issued her Identity Theft Recovery alert.

Connecticut Will Cancel $650 Million in Medical Debt

Connecticut reportedly plans to cancel $650 million in medical debt for its residents. This relief will impact around 250,000 people and will make Connecticut the first state in the country to undertake such an effort, CNN reported Friday (Feb. 2). 

Banks and Credit Unions Utilizing Ineffective Chatbots May Risk Violating Federal Law

In an October 2023 advisory opinion, the Consumer Financial Protection Bureau (CFPB) put large banks and credit unions on notice that the use of chatbots and other technologies could increase the risk of violating federal law if those services are ineffective.

Brown: Scammers Have Ramped Up Efforts While Banks and Payment Apps Stand By

WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, delivered the following opening statement at today’s hearing entitled, “Examining Scams and Fraud in the Banking System and Their Impact on Consumers.”

AG Ferguson: Providence must provide $157.8 million in refunds and debt relief for unlawful medical charges to low-income Washingtonians

SEATTLE — Attorney General Bob Ferguson announced today that Providence, one of the nation’s largest health care systems, must forgive more than $137 million in medical debt and refund more than $20 million to patients the company billed for services despite knowing they likely qualified for free or reduced-cost health care. The $157.8 million resolution will provide full refunds, plus interest, and debt forgiveness for 99,446 individuals. It is the largest resolution of its kind in the country.

Year-End Report Reveals Increased TCPA Filings and CFPB Complaints in 2023

According to a recent year-in-review report by WebRecon, reversing the trend of the last two years, filings under the Telephone Consumer Protection Act (TCPA) increased in 2023 as compared to 2022.

Arizona, Kentucky, and Hawaii Become Latest States to Introduce Legislation to Regulate Earned Wage Access Products

Recently, Arizona, Kentucky, and Hawaii have jumped on the bandwagon to regulate earned wage access (EWA) products and services. Arizona’s proposed bill makes clear that EWA services are not considered to be loans or money transmissions, and voluntary tips or gratuities are not finance charges.

CFPB Bites of the Month – 2023 Annual Review – Debt Collection

In this article, we share a timeline of our monthly "bites" for 2023 applicable to debt collection. If debt collection in 2023 had a theme it would be medical debt. Medical debt woes transcend political parties and affect nearly all demographic groups. 

FTC Order Will Require Blackbaud to Delete Unnecessary Data, Boost Safeguards to Settle Charges its Lax Security Practices Led to Data Breach

South Carolina-based Blackbaud Inc. will be required to delete personal data that it doesn’t need to retain as part of a settlement with the Federal Trade Commission over charges that the company’s lax security allowed a hacker to breach the company’s network and access the personal data of millions of consumers including Social Security and bank account numbers.

The importance of incident response

In the ever-changing financial services landscape, credit unions face an array of cybersecurity threats. From data breaches to more sophisticated cyberattacks, the risks aren’t just operational, but also carry severe reputational and financial implications.

GenAI Can Help Credit Unions Match Payments Innovation to Member Needs

Vlad Jovanovic, vice president of innovation at PSCU, told PYMNTS that credit unions will gain loyalty as they harness artificial intelligence to forge new use cases and personalized interactions with their retail and commercial clients.

PenFed Credit Union Finishes 2023 with Over $3 Billion in Net Worth and Welcomes Over 230,000 New Members

TYSONS, Va., Jan. 31, 2024 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, today released financial results highlighting it finished 2023 with nearly 3 million members, $35 billion in assets and over $3 billion in net worth. PenFed continues to focus on its members with market-leading products and services, despite a challenging economic environment with prolonged yield curve inversion.

OCC Assesses $65 Million Penalty Against City National Bank

WASHINGTON, D.C. — The Office of the Comptroller of the Currency (OCC) today assessed a $65 million civil money penalty against City National Bank, of Los Angeles, California, related to systemic deficiencies in the Bank’s risk management and internal controls.

FCC CHAIRWOMAN: MAKE AI VOICE-GENERATED ROBOCALLSILLEGAL

WASHINGTON, January 31, 2024—FCC Chairwoman Jessica Rosenworcel today proposed that the FCC recognize calls made with AI-generated voices are “artificial” voices under the Telephone Consumer Protection Act (TCPA), which would make voice cloning technology used in common robocalls scams targeting consumers illegal.

Attorney General Nessel Re-Issues Identity Theft Alert in Recognition of Identity Theft Awareness Week

LANSING – Michigan Attorney General Dana Nessel is re-issuing her alert detailing Identity Theft Warning Signs in recognition of Identity Theft Awareness Week to make residents aware of the clues that might mean their identity has been stolen. 

Carr: Georgia Files Suit Against MV Realty Over Allegations of Unfair and Deceptive Practices

ATLANTA, GA – Attorney General Chris Carr has filed suit against MV Realty and certain affiliates over allegations that the companies used unlawful and deceptive means to mislead cash-strapped homeowners into signing a 40-year agreement for what is essentially a predatory financial product.

AG Platkin, Division of Consumer Affairs Announce 2023 Consumer Protection Enforcement Highlights

TRENTON — Attorney General Matthew J. Platkin and the Division of Consumer Affairs (“Division”) today provided a look back at the 2023 enforcement initiatives undertaken by the Division to protect consumers from unfair and deceptive business practices in industries that historically generate a high volume of consumer complaints in New Jersey each year.

SAFE Credit Union Paid Members $57 Million in Dividends in 2023

FOLSOM, Calif., Jan. 31, 2024 /PRNewswire/ -- Citing its commitment to help its members build financial freedom, SAFE Credit Union paid out a total of $57 million in dividends to its members, an impressive 423% increase in 2023 over the previous year.

Be scam free for Black History Month

February is Black History Month — a great time to help raise awareness in Black communities, and among your family and friends, by staying on top of the latest scams that might affect them.

Veterans: Guard against identity theft

Identity theft can happen in a lot of ways: a stolen wallet, a missing phone, or a hacked online account. Then there are impersonators — scammers who pretend to be almost anyone. They’ll tell you almost any story to get you to trust them, so they can steal your money or information.

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