US foreclosure filings jump 22%, and repossessions hit highest level in 3 years

US foreclosure filings in the first quarter climbed 22% from a year ago, and repossessions rose by 6%, according to data from analytics company ATTOM.

Nearly Half of US Consumers Earning $100K+ Live Paycheck to Paycheck

According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually. In other words, higher incomes do not necessarily protect people from the financial stress that comes from living from one paycheck to the next. 

Committee on judicial codes of conduct concludes recusal of Fifth Circuit judge not required in lawsuit challenging final CFPB credit card late fee rul

The Committee on Codes of Conduct of the Judicial Conference of the United States (Committee) has unanimously concluded that Fifth Circuit Judge Willett is not required to recuse in the trade group plaintiffs’ appeal in their lawsuit challenging the CFPB’s final credit card late fee rule (Rule).

Virginia Legislature Approves Amendments to Statute of Limitations Bill

The amendments from Gov. Glenn Youngkin update the statute of limitations to be within three years of the due date on the final invoice for a health care service, not the first invoice.

NCUA Board Approves Advance Notice of Proposed Rulemaking on Records Retention

ALEXANDRIA, Va. (April 18, 2024) – The National Credit Union Administration Board held its third open meeting of 2024 and unanimously approved an advance notice of proposed rulemaking(Opens new window) that solicits stakeholder comments on ways the agency can improve and update its records preservation program regulations and accompanying guidelines in Part 749 and other parts of the NCUA’s rules and regulations.

Washington State Collection Agency Board Seeks General Public Member

The Washington State Collection Agency Board is currently accepting applications for a general public member to join the board. Members of the public may apply for a board or commission at any time, regardless of whether there is a current or upcoming vacancy, as vacancies occur periodically throughout the year.

Western District of Washington | New York pair indicted for $1.4 million bank fraud scheme that victimized customers across the U.S. | United States Department of Justice

Seattle – A couple from New York state are in custody tonight following their indictment for a nationwide bank fraud scheme, some of which was executed in Seattle, announced U.S. Attorney Tessa M. Gorman. Amber Towndrow, 35, and Darby Canfield, 34, were indicted by a Seattle federal grand jury on April 3, 2024. 

CFPB Levels Up: Consumer Risks in Gaming Draws Regulatory Scrutiny

If you thought virtual reality was free from real-world regulations, think again. On April 4, 2024, the CFPB released an Issue Spotlight that dives deeply into a realm the agency had not previously traversed—video games and virtual worlds. 

Adapting to Oregon’s New Wage Garnishment Law: Insights for Collection Agencies

As a collection agency operating in Oregon, staying informed about legislative changes is important for navigating the evolving landscape of debt collection practices. Governor Tina Kotek’s recent signing of SB 1595 introduces multiple amendments to wage garnishment regulations, impacting how collection agencies operate within the state. Here’s why paying attention to this bill is essential and how it will affect collection agencies. 

Brown, Reed Push Big Banks to Protect Consumers from Wire Fraud

WASHINGTON, D.C. – Today, U.S. Senators Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and Jack Reed (D-RI), a senior member of the Senate Banking and Housing Committee, are pushing the nation’s four largest banks to protect consumers from costly and damaging wire fraud.

CHARGES: WESTERN PA. TOW TRUCK OPERATOR INFLATED COSTS, CHARGED 27 VEHICLE OWNERS NEARLY $300K FOR SHORT-TRIP TOWS

HARRISBURG — Attorney General Michelle Henry, along with the Allegheny County Police Department, announced charges against the owner of a Pittsburgh-based towing company for inflating tow costs by charging “accident services” fees and other deceptive practices.

Troutman Pepper Weekly Consumer Financial Services Newsletter – April 2024 #3

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:

UPDATE 1-Banks told to anticipate risks from using AI, machine learning

LONDON, April 17 (Reuters) - Banks must anticipate risks from using artificial intelligence (AI) and machine learning (ML) in their operations as part of their day-to-day governance, a top global banking regulator said on Wednesday.

CRA to Pay $5.695M in FCRA Class-Action Settlement

CoreLogic Credco was accused of listing consumers as dead on credit reports despite them still being very much alive. 

ATR Supports Fight Against CFPB’s Credit Card Late Fee Rule

Without any direction from Congress, the Consumer Financial Protection Bureau (CFPB) finalized a  rule that (1) changes the safe harbor dollar amount for late fees from $30, or $41 for subsequent late payment violations, to a strict threshold of $8 while prohibiting any higher amount for future delinquencies; and (2) removes the safe harbor late fee adjustment to account for inflation.

CFPB Updates Supervision Designation Procedures for Nonbanks Posing Risks

On April 16, 2024, the Consumer Financial Protection Bureau ("CFPB" or "Bureau") issued a rule to update its procedures for designating nonbank covered persons for supervision.

Wiley Consumer Protection Download (April 16, 2024)

Welcome to Wiley’s update on recent developments and what’s next in consumer protection at the Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC).

Mystery shopping, (fake) checks, and gift cards

If you’re looking for a new job, getting paid to shop might sound like a dream. Companies hire mystery shoppers to try products or services and share experiences about things like buying or returning something, or their overall customer experience. But while some mystery shopping jobs are legitimate, many aren’t. So how do you spot the scams?

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.

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