Financial Sector Study Shows Deep Concern About Third-Party Cyberrisks

The financial services industry’s heavy reliance on third-parties poses a potential cyberdefense vulnerability if the risks are not actively managed to protect personally identifiable information and other sensitive data.   Those are among the findings of a joint survey “Third-Party Cyber Risk for Financial Services: Blind Spots, Emerging Issues & Best Practices” by Boston-based BitSight, and the Center for Financial Professionals.

Federal authorities warn of fake bank supposedly operating in Minneapolis

Anyone who has received any kind of notice from First National Bank in Minneapolis, Minnesota, take note: the bank does not actually exist.  The Office of the Comptroller of the Currency sent a notice Thursday to the chief executive officers of all national banks and federal savings associations; all state banking authorities; the chair of the board of governors of the Federal Reserve System; the chair of the Federal Deposit Insurance Corporation; the Conference of State Bank Supervisors; and other entities, warning them that there is an entity misrepresenting itself as a national bank.

Jamie Dimon: Cybersecurity threats may be the ‘biggest threat to the U.S. financial system’

JPM) CEO Jamie Dimon has singled out cybersecurity as the “biggest threat” to the financial services industry." data-reactid="15" style="margin: 0px 0px 1em; color: #26282a; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: #ffffff; text-decoration-style: initial; text-decoration-color: initial;">JPMorgan Chase (JPM) CEO Jamie Dimon has singled out cybersecurity as the “biggest threat” to the financial services industry.  In his widely read annual letter, Dimon noted that JPMorgan Chase spends nearly $600 million each year on cybersecurity and employs 3,000 people dedicated toward these efforts.  Dimon isn’t alone with his concerns. Cybersecurity poses a threat to critical infrastructure and the economy, playing a large role in everything from transportation to financial services.

Attorney General Frosh Joins Coalition Opposing Education Department’s Refusal to Release Student Loan Information

BALTIMORE, MD (April 5, 2019) – Maryland Attorney General Brian E. Frosh today joined a coalition of 21 state attorneys general sending a letter to Department of Education Secretary Betsy DeVos renewing their request that the Department reverse limitations placed on the routine disclosure of student loan information to state law enforcement agencies.

Senators To Consumer Watchdog: Prove You’re Protecting Student Borrowers

Six Democratic senators, including two presidential candidates, sent a letter to the head of the Consumer Financial Protection Bureau on Wednesday demanding that the agency prove it is policing the companies, known as servicers, that the government pays to manage its trillion-dollar, federal student loan portfolio. "We are concerned," the letter reads, "that CFPB leadership has abandoned its supervision and enforcement activities related to federal student loan servicers. This suggests a shocking disregard for the financial well-being of our nation's public servants, including teachers, first responders, and members of the military."

Bill targeting illegal robocalls moves to Senate

The Senate Commerce Committee Wednesday reported favorably a bill that would enhance the Federal Communications Commission's (FCC) enforcement authority over violations of the Telephone Consumer Protection Act (TCPA) and require voice service providers to authenticate and block illegal robocalls.

Primeritus Financial Services Acquires Consolidated Asset Recovery Systems

NASHVILLE, Tenn., April 3, 2019 /PRNewswire/ -- Primeritus Financial Services, Inc., the leading service provider of recovery management, skip tracing, and remarketing services to the auto finance industry, today, announced the acquisition of Consolidated Asset Recovery Systems (CARS)."The addition of CARS to the Primeritus Family of Companies demonstrates our ongoing efforts to grow our business while further diversifying our brands.  We are very excited to grow in size and scale and we will continue to invest in technology and operational capabilities which add value.  As we continue this journey we will always embrace great people, great processes, and great solutions," said Mike Thomas, Primeritus Chief Executive Office

Florida Credit Union Completes Second Bank Acquisition

The $1.1 billion IBM Southeast Employees’ Credit Union in Delray Beach, Fla. said Wednesday it completed the acquisition of the $361 million Oculina Bank in Vero Beach, Fla., its second bank purchase.   The conversion phase is scheduled to be completed in the fourth quarter.

OCC taps new head of Large Bank Supervision

The Office of the Comptroller of the Currency has tapped Maryann Kennedy as senior deputy comptroller of Large Bank Supervision. As such, the OCC said Kennedy will oversee the nearly 800 staff members who supervise the nation’s largest banks and federal branches and agencies, which hold more than $10 trillion in total consolidated assets. Kennedy, who will also serve as a member of the agency’s executive committee, is taking over for Morris Morgan, former head of Large Bank Supervision who was promoted earlier this year to CEO.

CFPB settles with online lead aggregator for $4 million

On March 28, the U.S. District Court for the Central District of California entered a stipulated final judgment and order resolving the CFPB’s allegations against a California-based company for allegedly buying and selling personal information from payday and installment loan applications without properly vetting buyers and sellers. As previously covered by InfoBytes, the CFPB’s December 2015 complaint alleged that, among other things, the company (i) knew or should have known that the lead generators in its network used false or misleading statements to obtain consumer information; and (ii) connected consumers with lenders that offered less favorable loan terms than were otherwise available, did not comply with state usury limits, or claimed they were exempt from state regulation and jurisdiction. 

PayThink Smaller institutions should embrace, not oppose, fintechs

Recently, community bank and credit union groups have initiated efforts to use their lobbying influence in Washington to restrict the growth and aspirations of innovative fintech firms. Their arguments, however, amount to the old regulatory Catch-22.   On the one hand, they claim that fintech firms are currently getting a lighter touch from regulators. This is just not true — the consumer protection laws and regulation that apply to bank or credit union loans also govern fintech loans.

Need help with your credit card debt? Start with your credit card company!

 If you’re struggling to keep up with credit card bills, you’re not alone. According to a 2017 Bureau report, from 2015 to 2017 overall credit card debt increased by 13 percent, while people with very low credit scores saw their debt rise by 22 percent.    Even if you’ve hit a rough spot, lost your job, are dealing with family illness, or facing emergencies, you still have options. The earlier you act on those options, the better your chances are for avoiding a debt in collections, damage to your credit report, a potential lawsuit or bankruptcy.   

The Importance Of A Timely Data Breach Response

When companies are targeted by cybercriminals, it is essential that they have plans in place in order to deal with this and enable themselves to get back online rapidly. This not only applies to internal systems but also to public perception as well — clients want to know that companies can deal with data breaches effectively. The way that security incidents are dealt with will have a significant impact on companies' reputation and standing within their industry. Yet many businesses struggle to adopt the best strategy for dealing with data theft. Thus, standards put in place by the National Institute for Standards and Technology (NIST) are particularly helpful, as they effectively provide an excellent outline for drafting a suitable response plan for data breaches and cybersecurity problems. NIST's Five Functions provide a basis for crafting a holistic cyber defense program.

How financial institutions are risking customer data through insecure mobile apps

An investigation of mobile apps from 30 financial institutions reveals weak encryption, data leakage, insecure data storage, and other vulnerabilities.  

The report discovered several key security flaws among 30 mobile apps offered by financial institutions. Almost all of the apps researched could easily be reverse engineered, providing access to sensitive source code data, including account credentials, API keys, server file locations, and incorrectly stored health savings account information.  In the report, 97% of the apps tested lacked the proper code protection, opening themselves up to reverse engineering or decompiling. Some 90% of the financial institution (FI) apps shared services with other programs on the device, while 83% insecurely stored data by housing it in the device's file system and external data or by copying content to the clipboard. Such flaws expose the data to use by other apps on the device.

Online lenders put small banks in a bind

The boom in internet lending is taking a toll on traditional commercial banks, especially smaller ones, suggesting that they’re going to have to have to find ways to adjust to the changes wrought by financial technology. New academic research says more than a quarter of the “peer-to-peer” dollars loaned over the internet today would’ve traditionally been handled by small commercial banks before the advent of online lenders. The figures come from a paper presented at Federal Reserve Bank of New York’s fintech conference in March, which found 27 percent of peer-to-peer lending dollars had displaced traditional bank lending.

DEBT SETTLEMENT MINI-SURVEY PRELIMINARY RESULTS RELEASED

Resource Management Services has released preliminary survey results from their Debt Settlement Mini-Survey. The survey consisted up 9 questions, and was responded to by 77 people, representing creditors (48.68%), Debt Settlement Companies (22.37%), Industry Participant Companies, not Debt Settlement (14.47%), Agency/Attorney (22.37%), and Others (6.58%). (It was not directed at consumers, and no “consumers in need” responded or identified themselves.)   There are 9 basic questions, (like defining debt settlement, trust issues, transparency with types of consumers and issues, credit reporting, additional standards and regulatory guidance), and areas for write in regarding future research and comments. 

CFPB Supervisory Highlights recap examinations of ancillary-product rebates

WASHINGTON, D.C. - The Consumer Financial Protection Bureau indicated that it took a deep look at what it called “unfair and deceptive practices” regarding rebates for certain ancillary products after examining the protocols executed by at least one captive finance company. CFPB officials recapped through its latest Supervisory Highlights the vehicle buyers sometimes also finance the purchase of ancillary products such as an extended warranty when they take delivery and enter into a retail installment sales contract. Then as finance companies know, if the contract holder later experiences a total loss or repossession, the servicer or contract holder may cancel such ancillary products in order to obtain pro-rated rebates of the premium amounts for the unused portion of the products.

FDIC Hosts Fintech and the Future of Banking Conference in Arlington, Virginia

The Federal Deposit Insurance Corporation (FDIC) and Duke University's Fuqua School of Business and Innovation and Entrepreneurship Initiative will host the Fintech and the Future of Banking conference on Wednesday, April 24, 2019. FDIC Chairman Jelena McWilliams and Treasury Secretary Steven Mnuchin will open the conference with a conversation about the role of financial technology and innovation in banking, followed by a series of discussions on regulatory innovation; data and technology in lending; the competitive landscape of 2019 and beyond; fintech funding; and financial advice and consumer decision-making.

HMDA Modified Loan Application Registers Released

WASHINGTON, D.C. — Today, the Home Mortgage Disclosure Act (HMDA) Modified Loan Application Registers (LARs) data were published for approximately 5,400 financial institutions. This is the first year in which additional data reported by certain institutions under the 2015 HMDA rule will be available. The Modified LARs contains loan level information for 2018 on individual HMDA filers, modified to protect privacy. For guidance as to how submitted data is modified to protect privacy, please seehttps://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-policy-guidance-disclosure-home-mortgage-data/.

2018 Consumer Response annual report

The Consumer Financial Protection Bureau began consumer response operations on July 21, 2011, and became the first federal agency solely focused on consumer financial protection. The Bureau’s Consumer Response team hears directly from consumers about the challenges they face in the marketplace, brings their concerns to the attention of financial institutions, and assists in addressing their complaints.

State officials launch push for student loan bill of rights

PROVIDENCE, R.I. (AP) — Rhode Island’s treasurer and attorney general want a “student loan bill of rights” to protect borrowers from deceptive lending practices. Treasurer Seth Magaziner and Attorney General Peter Neronha announced a bill Thursday that would provide new protections for borrowers and establish oversight of student loan servicers operating in Rhode Island. The Democratic leaders join a growing movement among states to protect those who take out student loans. A Maine lawmaker is currently making a push to create a state system to oversee student loan services operating there. Oregon’s attorney general wants to regulate student loan services and force them to be licensed under the state. Connecticut’s student loan bill of rights has been picked up by other statehouses nationwide.

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LendIt Fintech USA 2019

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NCUCA – National Credit Union Collection Alliance

NCUCA - National Credit Union Collection Alliance

Collection & Recovery Solutions 2019

Resource Management Services, Inc.

National Creditors Bar Association 2019 Spring Conference

National Creditors Bar Association

PrivacyCon 2019

Federal Trade Commission

NACTT 54th Annual Seminar Registration Open

NACTT

ACA International 2019 Annual Convention & Expo

ACA International

Debt Connection Symposium & Expo 2019

Resource Management Services, Inc.

National Creditors Bar Association 2019 Fall Conference

National Creditors Bar Association