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| Wednesday February 28, 2024 |
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WEBRECON JAN 2024 STATS: 2024 STARTS WITH A ROAR
We can’t remember the last time consumer complaints and litigation had such a strong month across the board. Everything in January was up double digit percentages over Dec 2023: TCPA +78.6%(!), FDCPA +24.1%, FCRA +23.8%. And everything was also up double digit percentages YTD against last year: TCPA +50.4%, FDCPA +30.5%, FCRA +19.6%. CFPB complaints were similarly up +14.8% for the month and +14.3% YTD.
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A Closer Look at the CFPB’s “Enhanced” Supervisory Appeals Process
On February 16, 2024, the Consumer Financial Protection Bureau (CFPB) announced what it heralded as a significant update to its Supervisory Appeals Process. The first of its kind since 2015, this revision introduced a seemingly more inclusive and flexible approach to how financial entities can contest supervisory findings.
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Average auto loan debt grew 5.2% in 2023. How will it affect car buyers in 2024?
Drivers owed $1.51 trillion on cars, motorcycles and other personal vehicles as of the third quarter (Q3) of 2023, according to Experian data, an increase of $108 billion over 2022. The increase is attributable to a combination of factors:
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Federal Ownership Information Reporting Requirement in Effect
The Corporate Transparency Act is now in effect, requiring companies established in the U.S. to identify and report owners in a new form for the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
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Attorney General James Secures More Than $650,000 from Debt Collection Law Firm for Preying on New Yorkers
NEW YORK – New York Attorney General Letitia James today announced that her office secured more than $650,000 from a debt collection law firm, Tromberg, Morris, & Poulin, LLC (TMP), and its subsidiary, Stephen Einstein & Associates, P.C. (SEA), for filing frivolous lawsuits and harming vulnerable New Yorkers.
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Client Alert: New Jersey Privacy Law
On January 16, 2024, New Jersey became the fourteenth state to enact comprehensive privacy legislation after the passage of the New Jersey Data Privacy Act (“NJDPA”), adding to the growing national focus on consumer personal data protections, albeit at the state level.
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FTC Action Leads to Ban for Owners of Automators AI E-Commerce Money-Making Scheme
The owners of a money-making scheme that claimed to use artificial intelligence to boost earnings for consumers’ e-commerce storefronts have agreed to surrender millions in assets to settle the FTC’s case against them.
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Unlawful fees in the mortgage market
Mortgage fees and other costs have risen significantly in recent years. The Consumer Financial Protection Bureau is focused on how these costs affect the affordability of home ownership as well as household balance sheets. And costs for homeowners are driven up if companies in the mortgage industry can pad their profits with illegal junk fees.
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Minnesota Debt Fairness Act to Help Consumers Struggling with Medical Debt
Katy Drahos, access to justice director at the Minnesota State Bar Association (MSBA), spoke at a February 9th press conference about the Bar’s Consumer Debt Litigation Report alongside Governor Tim Walz, Attorney General Keith Ellison, legislators, and Minnesotans affected by the burden of unfair medical debt.
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PrivacyCon looks at latest research into AI, mobile device security, health privacy, deepfakes, and more
If there were a bingo board that included just about every privacy and data security issue on the minds of consumers, academics, businesses, and government agencies, the FTC’s eight annual PrivacyCon would be a winner.
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Governor Walz, Lieutenant Governor Flanagan Announce Support for Proposals to Ease Burden of Medical Debt
Minnesota Debt Fairness Act developed by Attorney General Ellison includes provisions to ban medical debt from affecting someone’s credit score and cut interest on medical debt
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CFPB Issues First Report on Results of Its Updated Terms of Credit Card Plans Survey
Recently, the Consumer Financial Protection Bureau (CFPB or Bureau) issued its first report on the results of its updated Terms of Credit Card Plans survey. The report found that for the first half of 2023, small banks and credit unions often offered lower interest rates than the largest 25 credit card companies across all credit score tiers
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U.S. Department of Education Announces Updates and Additional Preparation Support for 2024–25 FAFSA Implementation
The U.S. Department of Education today announced updates on its progress on the 2024–25 Better FAFSA® implementation. “We are putting all hands on deck and using every lever we have to make sure we can achieve the transformational potential of the Better FAFSA to make higher education possible for many more of our nation’s students,” said U.S. Secretary of Education Miguel Cardona.
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CFPB Executes on Promise to Utilize ‘Dormant’ Authority to Supervise High-Risk Nonbanks
On February 23, 2024, the Consumer Financial Protection Bureau (CFPB) made public an order establishing supervisory authority over a nonbank installment lender on the basis the institution poses risks to consumers. The order gives insight into the procedural aspects of the CFPB’s exercise of this never-before-used authority – and the standards it might use to assess whether an institution poses risk to consumers, and therefore warrants ongoing supervision.
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Third Circuit Finds Pennsylvania’s Consumer Discount Company Act Does Not Apply to Debt Collectors
In representing fintech companies and other lenders, we increasingly confront claims against debt buyers or entities with bank partner relationships brought under Pennsylvania’s Consumer Discount Company Act (CDCA) and the Loan Interest and Protection Law (LIPL).
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CFPB Establishes Supervisory Authority Over World Acceptance
The Consumer Financial Protection Bureau (CFPB) has taken action to establish supervisory authority over installment lender World Acceptance Corp., saying it aims to ensure compliance with federal consumer financial protection laws.
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PURDUE FEDERAL CREDIT UNION CELEBRATES 55 YEARS OF SERVICE
Founded in 1969, Purdue Federal Credit Union has been supporting its members for the last 55 years. A local credit union that was created by members, Purdue Federal has achieved this important milestone through trusted relationships and a thriving culture.
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The ABC’s of Collection Agency Management
Don’t ever let anyone tell you that agency management, or communicating with your agencies, is as simple as “ABC.” Managing your agencies for maximum return takes knowledge, dedication, perseverance, patience and consistent effort.
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91% of banks are endorsing Generative AI at board level
The comprehensive global banking research report, entitled “The Digital Horizon: Banking’s Shift from Mainframe to AI-Driven Cloud Infrastructure”, surveyed 650 global banking decision-makers, and revealed that generative AI is gaining widespread support at the board level, with 91% of respondents reporting endorsement of AI and cloud initiatives by the board.
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Paycheck-to-Paycheck Consumers Could Benefit From Capital One/Discover Deal
But it is not just Capital One and Discover shareholders that stand to benefit from the deal. As PYMNTS: wrote, “bringing the two credit card giants together would pave the path toward creating a banking giant with particular expertise in serving the paycheck-to-paycheck consumer.”
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Third Circuit Finds Pennsylvania’s Consumer Discount Company Act Does Not Apply to Debt Collectors
In representing fintech companies and other lenders, we increasingly confront claims against debt buyers or entities with bank partner relationships brought under Pennsylvania’s Consumer Discount Company Act (CDCA) and the Loan Interest and Protection Law (LIPL).
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CFPB Orders Federal Supervision for Installment Lender Following Contested Designation
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today published an order establishing supervisory authority over installment lender World Acceptance.
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Tlaib Introduces Bill to Address Youth Homelessness
DETROIT —Today, Congresswoman Rashida Tlaib (MI-12) introduced the Youth Homelessness Guaranteed Income Pilot Program Act. This bill establishes a new way to address youth homelessness in our country.
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Congress Continues to Pressure Zelle and Other Payment Apps to Change Their Fraud Policies
On February 15, Senators Sherrod Brown (D-OH), Jack Reed (D-RI) and Elizabeth Warren (D-MA) sent a letter to Zelle seeking clarification of its reimbursement policy for victims of imposter scams.
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Navy Federal Credit Union named in class-action lawsuit alleging racial discrimination
ALEXANDRIA, Va. (WAVY) — A team of attorneys, including nationally-known civil rights advocate Ben Crump, claims Navy Federal Credit Union — the world’s largest credit union — used racially-motivated lending practices.
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Credit card interest rates are at record highs. Cards have ‘never been this expensive,’ CFPB says
Credit card interest rates have ballooned to record highs in recent years — and the growing portion of the formula that generates profit for card issuers is partly to blame, according to a new analysis by the Consumer Financial Protection Bureau.
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Daily Decision Recap: Mortgage Statements, 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.
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FTC Takes Action Against Tax Prep Company H&R Block For Wiping Consumers’ Data, Deceptively Marketing ‘Free’ Online Filing
The Federal Trade Commission is taking action against tax preparation company H&R Block for unfairly deleting consumers’ tax data and requiring them to contact customer service when they downgrade to more affordable online products, and deceptively marketing their products as “free” when they were not free for many consumers.
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NFCC Financial Stress Forecast℠ Predicts Growing Consumer Discomfort in First Quarter of 2024
WASHINGTON — Despite an easing of inflation and reports of improved consumer confidence, the NFCC Financial Stress Forecast℠ indicates that American families are feeling their budgets stressed even more during the first quarter of 2024 than at any time in the last three years.
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Banking Trade Groups Challenge New Community Reinvestment Act Regulation
On February 5, 2024, several banking trade groups[1] (the Plaintiffs) sued the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve), and the Federal Deposit Insurance Corporation (FDIC) (collectively, the Agencies) in the US District Court for the Northern District of Texas.
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SPECIAL REPORT: U.S. COMMERCIAL FORECLOSURES INCREASE IN JANUARY 2024
IRVINE, Calif., Feb. 22, 2024 /PRNewswire/ -- ATTOM, a leading curator of land, property, and real estate data, today released a special report on U.S. Commercial Foreclosures. The report reveals a significant climb in commercial foreclosures over the years, from a low of 141 in May 2020 to the current figure of 635 in January 2024. This represents a steady increase throughout the period.
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Attorney General Merrick B. Garland Designates Jonathan Mayer to Serve as the Justice Department’s First Chief Science and Technology Advisor and Chief AI Officer
Attorney General Merrick B. Garland announced today the designation of Jonathan Mayer as the Justice Department’s first Chief Science and Technology Advisor and Chief Artificial Intelligence (AI) Officer. As the Chief Science and Technology Advisor, Mayer will advise the Attorney General and Justice Department leadership and collaborate with components across the Department on complex issues requiring technical expertise, including on matters relating to cybersecurity, artificial intelligence, and other areas of emerging technology.
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Nearly 1 in 4 Americans with debt are putting less money toward credit card payments: ‘People are really struggling’
Americans collectively hold $1.13 trillion in credit card debt as of the end of December, according to the Federal Reserve Bank of New York's latest Household Debt and Credit Report.
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Harris & Harris Firm Settles Case with Washington Attorney General
Earlier this month, Washington Attorney General Bob Ferguson and Providence, one of the nation’s largest health care systems, reached an agreement regarding a 2022 charity care practices lawsuit. On Feb. 21, the attorney general also announced an agreement with the one of the collection agencies involved that was hired to collect outstanding debt from those patients.
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Attorney General Tong Submits Testimony Supporting Legislation to Curb Junk Fees
(Hartford, CT) – Attorney General William Tong today submitted testimony in support of legislation to curb hidden “junk” fees. The testimony supports Senate Bill No. 15, An Act Requiring Fee Disclosures, which was proposed.
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Attorney General Bonta Issues Warning to Small Banks and Credit Unions: Surprise Overdraft and Returned Deposited Item Fees Harm Consumers
OAKLAND — California Attorney General Rob Bonta today issued letters to small banks and credit unions warning that overdraft and returned deposited item fees may violate California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA). Some financial institutions charge up to $36 or more for each overdraft. California consumers paid an estimated $200 million in overdraft fees in 2022, with the financial burden disproportionately falling on low-income consumers and consumers of color. Today’s letter was sent to banks and credit unions in California with assets under $10 billion.
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Attorney General Ellison secures settlement stopping predatory online lending and collection of illegal interest
February 22, 2024 (SAINT PAUL) – Today Minnesota Attorney General Keith Ellison announced his office has secured a settlement that stops three online lenders from conducting predatory lending and collecting illegal interest. In October 2023, Attorney General Ellison sued three online lenders through their managers — Bright Lending, Green Trust Cash, and Target Cash Now, operating jointly under control of a single entity called the Island Mountain Development Group — for issuing thousands of loans to consumers in Minnesota that charged between 400 and 800 percent annual interest, in violation of Minnesota and federal consumer-lending laws.
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California Privacy Protection Agency to Begin Enforcement Activities
After a successful appeal of a June ruling, the California Privacy Protection Agency (CPPA) is authorized to begin immediate enforcement of privacy regulations developed, and expanded, under the California Privacy Rights Act of 2020 (CPRA). Any company that has been relying on the nine-month enforcement delay is now required to implement the polices and regulations required by the CPRA to avoid penalization by the CPPA.
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FTC Order Will Ban Avast from Selling Browsing Data for Advertising Purposes, Require It to Pay $16.5 Million Over Charges the Firm Sold Browsing Data After Claiming Its Products Would Block Online Tracking
The Federal Trade Commission will require software provider Avast to pay $16.5 million and prohibit the company from selling or licensing any web browsing data for advertising purposes to settle charges that the company and its subsidiaries sold such information to third parties after promising that its products would protect consumers from online tracking.
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AG Ferguson: Providence debt collector Harris & Harris to pay $1 million for failing to inform patients of their medical debt collection rights
SEATTLE — Attorney General Bob Ferguson announced today that debt collection agency Harris & Harris will pay his office $1 million to resolve a lawsuit, which asserted the company unlawfully collected medical payments from more than 160,000 Washington patients without providing them with disclosures about their rights when faced with medical debt. By excluding those disclosures, Harris & Harris created barriers that kept patients from learning about and accessing financial assistance on their hospital bills.
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Credit card interest rate margins at all-time high
By some measures, credit cards have never been this expensive. For cardholders who carry a balance without paying it off in full each month, issuers generally charge interest based on annual percentage rates (APRs). In 2022 alone, major credit card companies charged over $105 billion in interest, the primary cost of credit cards to consumers.
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Learn to Audit Repossession Vendors and Collection Agencies
https://collectioncomplianceexperts.com/
Four Seasons Hotel, Las Vegas ,
May 06 - 07 , 2024
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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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