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| Wednesday February 14, 2024 |
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Consumers Flock to BNPL to Pay for Clothing and Accessories
The PYMNTS Intelligence study “Tracking the Digital Payments Takeover: What BNPL Needs to Win Wider Adoption,” created in collaboration with Amazon Web Services, draws from a survey of more than 3,100 consumers in June about their usage of and expectations from deferred payment plans. Among other matters, the report dug into how many consumers use BNPL and credit card installment plans for purchases in various categories of retail items.
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Supreme Court Rules Federal Agencies Are Not Immune to FCRA Violations
The U.S. Supreme Court reached a 9-0 unanimous decision this month that federal agencies issuing loans are required to follow the Fair Credit Reporting Act when it comes to data furnishing practices—just like private lenders.
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Court Enters $20.3 Million Judgment in FTC Case Against Merchant Cash Advance Operator Jonathan Braun for Deceiving Small Businesses and Unlawfully Seizing Assets
As a result of a Federal Trade Commission lawsuit, a federal court has entered a judgment requiring merchant cash advance operator Jonathan Braun to pay $20.3 million in monetary relief and civil penalties. This is the first trial by jury that the FTC has ever conducted.
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Attorney General Bonta, Senator Caroline Menjivar Introduce Legislation to Protect Veterans Against Claim Sharks, Financial Exploitation
SACRAMENTO — California Attorney General Rob Bonta and Senator Caroline Menjivar (D-San Fernando Valley) introduced Senate Bill 1124 (SB 1124) essential legislation seeking to protect veterans from claim sharks. California veterans who need assistance with filing an initial claim for benefits can receive assistance at no charge from their county veteran service office or from another U.S. Department of Veterans Affairs (VA) accredited representative.
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Rents boost US consumer prices in January
WASHINGTON (Reuters) -U.S. consumer prices rose more than expected in January amid a surge in the cost of shelter, but the pick-up in inflation did not change expectations that the Federal Reserve will start cutting interest rates in the first half of this year.
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10th Circuit Rejects Request to Vacate $13.5M Stipulated Judgment With FTC Notwithstanding Change in Law
Despite the U.S. Supreme Court’s decision in AMG Capital Management v. Federal Trade Commission, 593 U.S. 67 (2021), holding that Section 13(b) of the Federal Trade Commission Act does not allow for equitable monetary relief, the U.S. Court of Appeals for the Tenth Circuit affirmed the rejection of a Rule 60(b)(6) motion to vacate a stipulated judgment for payment of equitable monetary relief that was entered before the AMG decision was issued. See FTC v. Elite IT Partners, — F. 4th —, 2024 U.S. App. LEXIS 1473 (10th Cir. Jan. 23, 2024).
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IRS Sues FDIC Over SVB Taxes
The Internal Revenue Service (IRS) is suing the Federal Deposit Insurance Corp. (FDIC) over a tax debt owed by the failed Silicon Valley Bank.
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FACT SHEET: U.S. Department of Education Releases 2023 Update to Equity Action Plan, Outlines New Commitments to Advance Equity
The U.S. Department of Education (Department) today released its 2023 Update to its Equity Action Plan, in coordination with the Biden-Harris Administration's whole-of-government equity agenda. This Equity Action Plan is part of the Department's efforts to implement the President's Executive Order on "Further Advancing Racial Equity and Support for Underserved Communities Through The Federal Government," which reaffirmed the Administration's commitment to deliver equity and build an America in which all can participate, prosper, and reach their full potential.
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DFPI, FTC Take Down Multimillion-Dollar Mortgage Assistance Scam that Preyed on Struggling Homeowners
SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) announced today that, in partnership with the Federal Trade Commission (FTC), it has secured a key consumer protection victory for struggling homebuyers.
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Troutman Pepper Weekly Consumer Financial Services Newsletter – February 2024 # 2
To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week:
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Romance scammers love . . . to take your money
When you have a new romance there’s so much to talk about. But if your new sweetheart only wants to talk about your money and how you should invest it, stop talking. They might be a romance scammer, like those who stole more than $1 billion from people last year. How do the scams start, and what can you do to avoid one?
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Government impersonators mail fake notices to business owners
You’ve heard about scammers who pose as government workers, calling to demand your money or information. But imposters are running scams by mail too. They’re sending fake forms and letters from made-up agencies to small business owners and demanding payment ASAP. Here’s what to know and do if you get a letter like this.
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Washington State Attorney General wins two suits under medical billing practices
On February 1, the Attorney General from Washington State successfully sued a large healthcare group to pay over $158 million for settlement of funds under the state’s Consumer Protection Act (CPA).
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FFIEC Issues Statement on Examination Principles Related to Valuation Discrimination and Bias in Residential Lending
WASHINGTON, D.C. – The Federal Financial Institutions Examination Council today issued a statement of principles related to valuation discrimination and bias for member entities to consider in their consumer compliance and safety and soundness examinations.
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South Dakota Regulator Requires BSA/AML Compliance for Money Lender Licensees and Non-Residential Mortgage Lenders
The South Dakota Division of Banking issued a Memorandum notifying all licensed money lenders and non-residential mortgage lenders of their Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) obligations under a 2020 Final Rule published by the Financial Crimes Enforcement Network (“FinCEN”).
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Bank Groups Sue to Overturn New Community Lending Rules
On February 5, several trade groups, including the American Bankers Association, the Independent Community Bankers of America, and the U.S. Chamber of Commerce, filed suit against the Federal Reserve Board, the FDIC, and the OCC accusing the regulators of exceeding their authority under federal law when promulgating new rules under the Community Reinvestment Act (CRA).
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FCC Finds Calls Using AI-Generated Voice Are Subject to the TCPA
The Federal Communications Commission has adopted a declaratory ruling confirming that the Telephone Consumer Protection Act’s restrictions on the use of “artificial or prerecorded voice” include artificial intelligence technologies that mimic human voices and/or create calls with a prerecorded voice.
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Acting Comptroller Discusses Appraisal Bias
WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today discussed the importance of eliminating appraisal bias in the financial industry in remarks at an Appraisal Subcommittee (ASC) Hearing. The ASC is a subcommittee of the Federal Financial Institutions Examination Council, of which the Office of the Comptroller of the Currency is a member.
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Fed Finds Consumers Optimistic About Credit but Not Inflation
U.S. consumers are feeling more optimistic about their financial conditions and access to credit. That’s according to the January 2024 Survey of Consumer Expectations, released Monday (Feb. 12) by the Federal Reserve Bank of New York’s Center for Microeconomic Data.
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Fintech trade group sends letter to Director Chopra urging CFPB to develop regulatory approach for earned wage access products
The American Fintech Council (AFC), a trade group whose members include providers of earned wage access (EWA) products, has sent a letter to Director Chopra urging the CFPB to take steps towards development of a “pragmatic regulatory approach” for regulating EWA products.
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“Love Stinks” – when a scammer is involved
Far be it from us to criticize love on Valentine’s Day, but “Love Stinks” – the 80s hit by the J. Geils Band – describes what the FTC Consumer Sentinel Data Book tells us about the injury inflicted by romance scammers. And one statistic is particularly surprising.
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Attorney General Tong Releases Report on Connecticut Data Privacy Act
(Hartford, CT) – Attorney General William Tong today released a report detailing the actions of the Office of the Attorney General to educate consumers and businesses and enforce compliance with the Connecticut Data Privacy Act (CTDPA) since the new law took effect on July 1, 2023.
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FTC bans student loan “scammers” from debt relief industry
On February 6, the FTC announced two orders (here and here) that will ban a group of student loan debt relief “scammers” (defendants) from the debt relief industry. As previously covered by InfoBytes, defendants allegedly misled consumers by charging them for services that are free through the Department of Education, claiming consumers needed to pay fees or make payments to access federal student loan forgiveness.
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Durbin Calls on CEOs of Visa, Mastercard, United Airlines, and American Airlines to Testify Before the Judiciary Committee Regarding Credit Card Competition
WASHINGTON – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, today sent letters to the CEOs of Visa, Mastercard, United Airlines, and American Airlines inviting them to testify at a public hearing regarding competition in the credit card market.
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Senate Banking Committee hearing on P2P payment scams calls for updates to EFTA definitions
On February 1, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held a hearing on “Examining Scams and Fraud in the Banking System and Their Impact on Consumers,” and invited three panelists to testify, including an attorney from a consumer law center and two vice presidents from banking associations. Chairman Sherrod Brown (D-OH) led the hearing by noting that peer-to-peer (P2) apps are a rising target among scammers, alongside a rise in check fraud.
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Lawmakers Urge CFPB to Reconsider Digital Payments Rule
Members of Congress are urging the Consumer Financial Protection Bureau to reopen comments on its digital payments rule for large nonbank companies in the marketplace and reconsider the rule as proposed.
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CT Attorney General Highlights Key Areas of Enforcement, Suggests Legislative Changes
Connecticut was one of the first U.S. states to pass a comprehensive data privacy law back in May 2022. Today, a total of 13 states have passed similar laws, and dozens of other states are proposing legislation to do so as well.
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New law requires New York businesses to show credit card surcharge in price before checkout
NEW YORK -- A new law mandating more transparency in credit card surcharges takes effect Sunday in New York.
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2024 Officers & Directors Elected to Lead Receivables Management Association International
February 8, 2024 (Sacramento, CA) – Members of Receivables Management Association International (RMAI) elected Officers and Directors to its Board for 2024. Of the ten-member Board, eight are continuing service from the previous year. The 2024 Officers and Directors are:
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California data privacy ballot measure can take effect immediately, court rules
Californians can now enforce a ballot measure that seeks to protect privacy rights by allowing consumers to stop businesses from using or selling information about their location, health, race, gender or other personal details, a state appeals court ruled Friday.
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FloatMe Settlement with FTC Contains Exacting Requirements
On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp.
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Big banks have drastically cut overdraft fees, but customers still paid $2.2 billion last year
The three biggest American retail banks collected 25% less overdraft revenue last year as the companies, under pressure from regulators to cap the fees, created new ways for customers to avoid the penalties.
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Attorney General James Announces Historic Judgment Against Predatory Lender
NEW YORK – New York Attorney General Letitia James today announced a historic court judgment against three merchant cash advance companies, Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding (Richmond companies) and their principals, Jonathan Braun, Tzvi Reich, Robert Giardina, and Michelle Gregg, for usury and fraud due to illegally high-interest, short-term loans and undisclosed fees.
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Credit unions should expect increased supervision from NCUA on overdraft/NSF fees, vendor risk, and fair lending
On February 6, 2024, National Credit Union Administration (NCUA) Chairman Todd M. Harper spoke at a Brookings Institution event to outline his regulatory agenda and supervisory priorities for 2024. His prepared remarks addressed the 90th Anniversary of the Federal Credit Union Act, credit union performance in third quarter of 2023, risks posed by third party service providers, liquidity management, and consumer financial protection.
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Yellen sees more commercial real estate stress, losses, but no systemic banking risk
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen said on Thursday that she expects additional bank stress and financial losses from weakness in the commercial real estate market but believes this will not pose a systemic risk to the banking system.
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Facts about fraud from the FTC – and what it means for your business
The FTC just issued its 2023 Consumer Sentinel Network Data Book jam-packed with facts about the kind of scams consumers have reported to us. Has the reported dollar amount lost to fraud gone up or down this year? And what are the most frequently reported scams?
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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.
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ESL issues warning to customers about recent phishing schemes
ROCHESTER, N.Y. (WROC) — ESL Federal Credit Union is warning customers about recent fraudulent activity. According to ESL, they were alerted to an increase in phishing schemes — a type of scam that tricks customers into giving their personal information to the scammers.
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FloatMe Settlement with FTC Contains Exacting Requirements
On January 22, 2024, the Federal Trade Commission (FTC) entered into a Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief (the “Order”) with FloatMe Corp.
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FCC Proposes AI Calls Should be Illegal Under TCPA
Federal Communications Commission Chair Jessica Rosenworcel wants calls made with voices generated by artificial intelligence to be considered illegal under the Telephone Consumer Protection Act, according to a news release (PDF).
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Bankcard Balances Surpass $1 Trillion as Millennials Increasingly Turn to Cards
Findings from the newly released Q4 2023 Quarterly Credit Industry Insights Report (CIIR) from TransUnion (NYSE: TRU) reveal that credit card debt is at a historical high, driven in part by Millennials further building on their credit portfolios. This comes at a time when an anticipated reduction in interest rates over the course of the coming year may open up new avenues to more affordable credit.
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FCC MAKES AI-GENERATED VOICES IN ROBOCALLS ILLEGAL
WASHINGTON, February 8, 2024—Today the Federal Communications Commission announced the unanimous adoption of a Declaratory Ruling that recognizes calls made with AI-generated voices are “artificial” under the Telephone Consumer Protection Act (TCPA). The ruling, which takes effect immediately, makes voice cloning technology used in common robocall scams targeting consumers illegal.
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Illinois Makes Changes to Collection Agency Regulations
Illinois recently transferred the authority to regulate collection agencies from the Division of Professional Regulation to the Division of Financial Institutions under Public Act 102-975 (PDF).
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As Nationwide Fraud Losses Top $10 Billion in 2023, FTC Steps Up Efforts to Protect the Public
Newly released Federal Trade Commission data show that consumers reported losing more than $10 billion to fraud in 2023, marking the first time that fraud losses have reached that benchmark. This marks a 14% increase over reported losses in 2022.
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BROWN INTRODUCES NEW BILL TO PREVENT VETERANS FROM LOSING THEIR HOMES
WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Banking, Housing and Urban Affairs Committee, hosted a news conference call with Larry Moore, Executive Director of the Summit County Veterans Service Commission, and Veterans of Foreign Wars Department of Ohio State Legislative Chairman, to discuss new legislation to prevent veterans and servicemembers using Department of Veterans Affairs (VA) home loans from losing their homes.
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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.
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Nevada Federal Court Declines to Decide at Summary Judgment Stage Whether Pre-Dispute Investigation Was Sufficient to Satisfy FCRA
A federal district court judge in Nevada recently denied competing motions for summary judgment in a Fair Credit Reporting Act (FCRA) furnisher investigation case, demonstrating the challenges FCRA litigants often face in convincing courts to decide cases on matters of law.
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FCC Proposes AI Calls Should be Illegal Under TCPA
Federal Communications Commission Chair Jessica Rosenworcel wants calls made with voices generated by artificial intelligence to be considered illegal under the Telephone Consumer Protection Act, according to a news release (PDF).
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Empeople Credit Union to acquire Wisconsin bank
Buying TSB Bank would deepen Empeople’s Wisconsin footprint with three added branches and $182 million in assets. The deal is set to close in the fourth quarter for an undisclosed sum.
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FTC Files Proposed Orders to Ban Student Debt Relief Companies for Illegal Junk Fees and Upfront Fees
On February 6, 2024, the Federal Trade Commission (“FTC”) filed two proposed stipulated orders with a California federal court to permanently ban student debt relief companies as well as their individual operators.
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Pennsylvania AG Settles with Law firms over Alleged Deceptive Debt Settlement Services
On January 24, 2024, Pennsylvania Attorney General, Michelle Henry announced a settlement with attorney Erik M. Helbing and his businesses Helbing Law, LLC, and Consumer Law Relief, LLC. (Respondents) to resolve alleged violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), the Pennsylvania Debt Settlement Services Act (DSSA), and the federal Telemarketing Sales Rule (TSR).
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Department Stores Face Financial Pressure From Proposed Junk Fee Ban
Retailers like Macy’s and Nordstrom are dealing with a pair of card-related threats to their bottom lines, The Wall Street Journal reported Wednesday (Feb. 7). The first is a proposal by the Consumer Financial Protection Bureau to lower late fees, and the second is a rise in delinquencies.
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CFPB Secures $12 Million From Ringleaders of Foreclosure Relief Scam
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced that it resolved an appeal in a long-running enforcement suit against a foreclosure relief scam operation for $12 million in consumer redress and penalties.
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FTC Sends Refunds to Consumers Harmed by a Tech Support Scam Facilitated by Payment Processor Nexway
The Federal Trade Commission is sending more than $610,000 in refunds to consumers who lost money to a tech support scam facilitated by the payment processing company Nexway.
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Resource Management Services, Inc.
Learn to Audit Repossession Vendors and Collection Agencies
Four Seasons Hotel, Las Vegas ,
May 06 - 07 , 2024
info@resourcemanagement.com
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CRS2024
Four Seasons Hotel
Las Vegas, Nevada , https://collectionrecoverysolutions.com
May 08 - 10 , 2024
mark@collectionrecoverysolutions.com
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