Banks Report Lending Slows as Corporate Borrowers Pay Down Debt

The largest U.S. banks are reporting a slowdown in lending. Bank of America and PNC were the latest to do so, with the former reporting Tuesday (April 16) that lending was “sluggish” and the latter saying its lending dropped 1%, the Financial Times (FT) reported Tuesday.

CFPB Takes Action Against Coding Boot Camp BloomTech and CEO Austen Allred for Deceiving Students and Hiding Loan Costs

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an order against BloomTech and its CEO, Austen Allred, for deceiving students about the cost of loans and making false claims about graduates’ hiring rates. The CFPB found that BloomTech and Allred falsely told students the school’s “income share” agreement contracts were not loans, when in fact the agreements were loans carrying an average finance charge of around $4,000. 

Attorney General James Secures More than $700,000 from Pathward Bank for Illegally Freezing Bank Accounts and Turning Over Consumer Funds to Debt Collectors

NEW YORK – New York Attorney General Letitia James today secured more than $700,000 from Pathward, National Association (Pathward), a national bank formerly known as MetaBank, for unlawfully freezing customer accounts and illegally transferring money to debt collectors.

Biden-Harris Administration Releases First Set of Draft Rules to Provide Debt Relief to Millions of Borrowers

The Biden-Harris Administration today released its first set of draft rules that propose to provide student debt relief for tens of millions of borrowers across the country. These plans were announced last week by President Biden in Madison, Wisconsin.

Maine Legislature splits on bills designed to rein in burden of medical debt

Seeking to address what has become a pressing issue for nearly half of Mainers, several bills were introduced this session to combat medical debt.  However, the Maine Legislature split on the measures, approving one but sinking another. 

Collection Agency Audits – Understanding AI’s Role without the Jargon

From A Non-AI Guru’s Perspective - I am not an artificial intelligence (AI) guru. In fact, I am that annoying person who must use my watch to find my phone, only to discover it’s been in my pocket all along. What I do understand, however, is the intricate world of auditing Collection Agencies. My expertise lies in ensuring that these agencies have dedicated resources and oversight for all their processes. 

NATIONAL CREDIT UNION FOUNDATION LAUNCHES ONLINE COURSE

MADISON, Wis., April 16, 2024 /PRNewswire/ -- The National Credit Union Foundation (the Foundation) is pleased to announce the launch of Exploring Our Values^™, an engaging, self-guided online course that connects individual purpose and values with the credit union movement.

CFPB Updates Supervision Designation Procedures

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) issued a procedural rule to update how the agency designates a nonbank for supervision. The updates will streamline the designation proceedings for both the CFPB and nonbanks.

FTC Action Leads to Industry Ban for Ringleader of Student Loan Debt Relief Scam

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

Security Principles: Addressing Vulnerabilities Systematically

For more than two decades, the FTC has been bringing enforcement actions for violations of national consumer protection laws due to companies’ poor security practices.

CFPB’s Spring Supervisory Highlights Report Reinforces Focus on Consumer Reporting, Furnisher Activities

On April 8, 2024, the Consumer Financial Protection Bureau (CFPB) published the 32nd edition of its Supervisory Highlights report. As discussed in more detail below, the report highlights consumer reporting issues identified in examinations completed from April 2023 through December 2023.

Federal Government Requests Public Input on Comment and Rulemaking Processes

Led by the Office of Management and Budget, the effort is an opportunity for stakeholders to express their priorities for government processes.

States Tighten Data Privacy Laws In Response to Evolving Digital Challenges

California’s landmark privacy legislation, the California Consumer Privacy Act (CCPA), which grants consumers the legal authority to instruct businesses not to sell their data, has entered a new phase of enforcement.

Powers Combined: FTC Report Recommends Enhanced Collaboration With State AGs

“Today’s consumer protection challenges require an all-hands-on-deck response, and our report details how the FTC is working closely with state enforcers to share information, stop fraud, and ensure fairness in the marketplace[.]

Utah appellate court upholds ruling for defendant in FDCPA Case

Recently, the Utah Court of Appeals affirmed a lower court’s decision granting summary judgment in favor of a defendant debt collector in an FDCPA case. According to the court, defendant’s registration as a debt collection agency had lapsed in Utah when it sent the plaintiff a debt collection letter.

CFPB Letter to Connecticut State Legislature on Barring Medical Bills on Credit Reports

I write on behalf of the Consumer Financial Protection Bureau (CFPB) regarding Senate Bill 395 as amended (SB395), which would prohibit health care providers in Connecticut from reporting medical debt to consumer reporting agencies for use in a consumer report.

Scammers follow the news about student loan forgiveness

Hearing a lot about federal student loan forgiveness in the news? You’re not alone — scammers are, too. You might get a call from someone saying they’re affiliated with Federal Student Aid (FSA) or the Department of Education. (They’re not.) They’ll say they’re following up on your eligibility for a new loan forgiveness program, and might even know things about your loan, like the balance or your account number.

When companies share your personal information without your permission

Health and wellness websites and apps collect a lot of personal and sensitive health information about their users. And they might make promises about how they’ll use and protect that data. If companies don’t honor those promises, it can lead to a serious breach of trust — and a lawsuit from the Federal Trade Commission.

Proposed FTC Order will Prohibit Telehealth Firm Cerebral from Using or Disclosing Sensitive Data for Advertising Purposes, and Require it to Pay $7 Million

Under the proposed order, filed by the Department of Justice upon notification and referral from the FTC, Cerebral will also be required to pay more than $7 million over charges that it disclosed consumers’ sensitive personal health information and other sensitive data to third parties for advertising purposes and failed to honor its easy cancellation promises. The order must be approved by the court before it can go into effect.

Wisconsin enacts update to Department of Financial Institutions’ licensing and regulation of mortgage and non-mortgage financial services providers

On April 4, Wisconsin enacted SB 668 (the “Act”) which will amend many provisions to the Wisconsin Department of Financial Institution’s (DFI) regulation of non-banks. According to an analysis by the state’s Legislative Reference Bureau, the Act will change how multiple financial practices are regulated and rely on the Nationwide Multistate Licensing System and Registry (NMLSR).

Credit Unions Want Gen Z’s Deposits and Loyalty

PYMNTS Intelligence, in delving into the mindset of more that 200 credit union (CU) executives and more than 100 FinTech executives, found a bit of bifurcation in how these providers think about consumers who were born between the years 1981 to 1996 and who are now in their late 20s to early 40s.

Foreclosures are rising, but it’s not yet alarming

The real estate market is experiencing a slight rise in foreclosure activity following an extended period of moratoria that paused any foreclosures during the pandemic.

Colorado Introduces an AI Consumer Protection Bill

Colorado is the latest state to introduce a bill focused on consumer protection issues when company’s develop AI tools. The bill imposes obligations on developers and deployers of AI systems.

Recent FDIC Consent Orders Reflect Ongoing Scrutiny of Bank Relationships with Fintechs

In February 2024, the Federal Deposit Insurance Corporation (FDIC) entered into consent orders (here and here) with two banks who partner with fintechs to offer “banking as a service” (BaaS) related to safety and soundness concerns relating to compliance with the Bank Secrecy Act (BSA), compliance with applicable laws, and third-party oversight. 

Bill Prohibiting Debt Collectors from Imposing Fees or Interest on Medical Debt Approved by Maine Lawmakers

Under the amended version of this bill now approved by both chambers of the Legislature, debt collectors are prohibited from charging any interest or fees in connection with medical debt.

Compliance Deadlines Approaching for New York Cybersecurity Regulations

Compliance documentation is due for covered entities April 15. The cybersecurity policy and risk assessment review, among other requirements, are due April 29.

Inflation Takes Its Toll as Consumer Loan Delinquencies Rise

While the strong labor market remains the key pillar supporting the finances of resilient US consumers, major nonmortgage consumer loans have seen delinquencies increase as inflation has taken a toll on wallets, and more profoundly on lower-income segments.

California Proposes Amending State FDCPA to Cover Small Business Debt

The California Senate Banking and Financial Institutions Committee is currently considering Senate Bill (SB) 1286, which would expand the scope of the Rosenthal Fair Debt Collection Practices Act (RFDCPA) to also prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of small business debts.

Consumers Make Minimum Credit Card Payments as Inflation Takes a Bite

In signs of continued pressure in the paycheck-to-paycheck economy, more consumers are making only the minimum payments on their credit cards. And the debt on those cards is rising.

CFPB and EU Eye Consumer Risks of BNPL, AI and Digital Payments

Consumer protection officials for the United States and the European Commission have met to discuss three shared priorities: buy now, pay later (BNPL), digital payments and artificial intelligence (AI).

Collection Agency Financial Transaction Audits for Non-Financial Individuals

The term “financial transaction audit” might sound like a daunting phrase, particularly to those without a background in finance.  Trust me, I understand. I am not a CPA, nor do I hold a finance degree. However, through my experiences and research, I have come to realize that delving into financial transaction audits is not reserved solely for the financially savvy. In fact, non-financial individuals like me can navigate these audits with confidence and proficiency.

U.S. Foreclosure Activity Increases Quarterly in Q1 2024

IRVINE, Calif. — April 11, 2024 — ATTOM, a leading curator of land, property, and real estate data, today released its Q1 2024 U.S. Foreclosure Market Report, which shows a total of 95,349 U.S. properties with a foreclosure filing during the first quarter of 2024, up 3 percent from the previous quarter but down less than 1 percent from a year ago.

Bipartisan Lawmakers Announce Draft Federal Data Privacy Bill

Is a national data privacy law on the horizon? Lawmakers are considering a bill that would override state laws and give consumers a private right of action.

California Privacy Protection Agency Issues First-Ever Enforcement Advisory

On April 2, the California Privacy Protection Agency (CPPA or “the Agency”) issued the Agency’s first-ever enforcement advisory. The advisory (“Applying Data Minimization to Consumer Requests”) reaffirms data minimization as a core principle of the California Consumer Privacy Act (CCPA) and stresses, in particular, that this principle applies to businesses’ processing of CCPA data subject requests, such as the right to delete or right to opt-out.

Prepared Remarks of Seth Frotman, General Counsel and Senior Advisor to the Director Consumer Financial Protection Bureau, at the National Consumer Law Center/National Association of Consumer Advocates Spring Training

At the CFPB, we are paying attention to what you might call the growing financialization of nearly every sector of the economy. From employer-provided loans for workers whose paychecks doesn’t cover their expenses to employer-originated debts to cover workers’ on-the-job “training,” to doctors’ visits that leave people with a new credit card or an exotic payment plan, to being required to download a new app just to pay rent – it increasingly feels that every interaction is turning into a consumer financial transaction, often with debt collection and credit reporting implications

New report shows Nevada has some of the fewest consumer debt protections in the country

RENO, Nev. (KOLO) - A new report from the National Center for Access to Justice at Fordham Law School finds that Nevada offers fewer protections on consumer debt than most other states.

Ensuring servicemembers can protect themselves from unlawful financial practices

The Servicemembers Civil Relief Act was passed by Congress to enable servicemembers to devote themselves to the defense of the Nation by providing them key protections. This law’s important provisions include the right to reduced interest on certain loans and shielding servicemembers from foreclosure while they are serving the nation.

VA announces new program to help more than 40,000 Veterans stay in their homes

Wilmington , DE — On May 31, 2024, the Department of Veterans Affairs will launch a new program — the Veterans Affairs Servicing Purchase (VASP) program — to help more than 40,000 Veterans experiencing severe financial hardship avoid foreclosure and stay in their homes.

FDIC finds banks violated RESPA on mortgage brokerage payments

Mortgage brokers’ compensation is in the spotlight after a recent Federal Deposit Insurance Corporation (FDIC) test concluded that some financial institutions failed to prove that payments were “reasonably related” to the value of services provided.

CFPB Could Block Lenders From Charging for Title Insurance

America’s leading consumer watchdog is reportedly weighing a sweeping change to the title insurance industry. As Bloomberg News reported Wednesday (April 10), the Consumer Financial Protection Bureau (CFPB) is considering whether to forbid mortgage bankers from charging homeowners for title insurance, ending a long-held practice.

Credit-Card Delinquency Rates Were Worst on Record in Fed Study

(Bloomberg) -- US credit-card delinquency rates were the highest on record in the fourth quarter, according to a Federal Reserve Bank of Philadelphia report.

Proposed California Law Could Cap CU Overdraft Fees

California state lawmakers are considering legislation that would limit the number of overdraft fees credit unions (CUs) can charge their members. Under SB-1075, the 100+ CUs now doing business in the Golden State would be prohibited from charging their customers more than three overdraft fees per month. 

Collection and Recovery Solutions 2024

CRS2024

Webinar – Bankruptcy Filings: The New Normal or the Calm Before the Storm?

WEBINAR 2:00 pm - NACTT Academy

RMAI 2024 Executive Summit