CFPB: Semi-Annual Report Spring 2019

The Bureau of Consumer Financial Protection is pleased to present our Semi-Annual Report to Congress for the period beginning October 1, 2018 and ending March 31, 2019. 

House leaders ask Supreme Court to reject Trump challenge to consumer bureau

The Democratic-led House of Representatives filed a brief late Monday night asking the Supreme Court to reject a challenge to the Consumer Financial Protection Bureau’s (CFPB) constitutionality. The House filed a brief Monday opposing a request for the Supreme Court to take up a case from the 9th Circuit Court of Appeals arguing that the structure of the CFPB, a powerful financial regulator, infringes on the president’s executive authority. The Court of Appeals ruled in favor of the agency against Seila Law, a law firm that refused to comply with a CFPB request for documents related to an enforcement action.

Lower Rates Are ‘Large Challenge’ for Regional Banks

U.S. interest rates are heading a lot lower, and investors don’t seem to have come to terms with how bad that could be for regional banks, according to Citigroup . The bank expects the Federal Reserve to cut rates four times between now and the end of next year. That would leave the Fed’s target for short-term rates at between 0.75% and 1%, compared with 1.75% to 2% currently.

The rise of machine learning in fraud detection

Fraudulent applications present a significant risk to a businesses’ success and reputation. As criminals become more sophisticated in targeting credit cards, loans, current accounts and other financial products, its critical lenders and other organisations ensure their fraud prevention systems are fit for purpose.

CoreLogic Reports U.S. Overall Delinquency Rate Lowest for a July in at Least 20 Years but Four States Post Annual Gains

CoreLogic^® (CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows that nationally, 3.8% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in July 2019, representing a 0.3 percentage point decline in the overall delinquency rate compared with July 2018, when it was 4.1%.

Consumer credit continues to rise in August

Total consumer credit rose 5.2 percent in August (seasonally-adjusted, annualized) and is up 5 percent versus a year ago. NAFCU Chief Economist and Vice President of Research Curt Long credited these results to "strong growth in the non-revolving credit-sector."

Study: Banks Will Replace 200,000 Workers With Robots by Next Decade

I recently visited the bank. To serve me, its customer, the institution that holds my meager savings (but would really prefer to sell me a mortgage) presented me with a choice. I could join a 15 person-deep line to see the lone teller on duty, or visit one of the branch’s four ATMs.

The 21 cities in the US where people carry the most student loan debt

According to new data from Experian, people in college towns tend to have the most student loan debt in the US. And it does make sense: Where the borrowers are, so is the debt. But, many of the biggest colleges and universities in the US aren't on the list. Some cities, like Savannah, Georgia, and Durham, North Carolina are relatively small cities, but have fairly expensive universities.

Column: Newsom signs bill blocking debt collectors from emptying your bank account

Gov. Gavin Newsom signed into law Monday a bill that will prevent debt collectors from emptying Californians’ bank accounts. The bill — SB 616 — doesn’t block collectors from draining funds from the account of a person with IOUs. But it puts a halt to the practice once an individual’s combined account balances are down to $1,724. That’s the minimum the state Department of Social Services says a family of four in California needs to get by each month.

Robocalls annually scam one in 10 Americans, to a loss of $9.5 billion

We don't answer mobile phone calls from numbers we don't recognize. Why? Because if you live in the US, you are very likely to be on a robocaller's list, and that unknown call is one of the 60 billion robocalls this year. An astonishing one in 10 Americans are scammed annually as a result of robocalls, to the yearly cost of a whopping $9.5 billion. "Robocalls increased by 46% from 2017 to 2018," and numbers will increase this year, said Lily Lowe, tech specialist at All Home Connections (AHC), an authorized AT&T retailer. The massive influx of those 60 billion robocalls, and the resulting financial loss, were instrumental in the development of programs to recognize the difference between valid and invalid calls. 

3 things to know during cybersecurity month

Cybersecurity is a top concern for the credit union industry year-round, but the issue receives special focus in October, which is recognized as National Cybersecurity Awareness Month. Here are three things credit unions should be aware of to help the industry effectively prepare for and address cyber threats.

SCOTUS Set to Decide whether FDCPA’s Statute of Limitations is Tolled by “Discovery Rule”

The FDCPA requires that any lawsuit must be brought, if at all, “within one year from the date on which the violation” of the act occurs. 15 U.S.C. § 1692k(d). The US Supreme Court will hear argument this month in Rotkiske v. Klemm to decide whether this statute of limitations is paused until a plaintiff discovers the basis for his or her lawsuit.

California’s new privacy law could cost companies a total of $55 billion to get in compliance

California’s new privacy law could cost companies a total of up to $55 billion in initial compliance costs, according to an economic impact assessment prepared for the state attorney general’s office by an independent research firm.  The review, released publicly by California’s Department of Finance, provided a broad range for the potential costs companies could face to become and stay compliant with the California Consumer Privacy Act (CCPA) if signed into law by Democratic Governor Gavin Newsom.

Gov. Tom Wolf Signs Bill To Limit Robocalls And Telemarketers

HARRISBURG, Pa. (KDKA) – Gov. Tom Wolf signed a bill that puts legal procedures in place for robocallers, including requiring them to provide an opt-out. Before the bill was signed Friday, there was a “Do Not Call” list that Pennsylvanians could put their names on. However, re-registration is required every five years, only protecting people from pesty robocalls for a short time.  “The current ‘Do Not Call’ list in Pennsylvania, you have to re-register every five years,” State Rep. Lori Mizgorski of Shaler told KDKA’s John Shumway on Sept. 24, when the bill was awaiting Gov. Wolf’s signature.

Attorney General Becerra and Assemblymember Rivas Bill to Prohibit Colleges from Withholding Transcripts as Debt Collection Tactic Signed into Law

SACRAMENTO - California Attorney General Xavier Becerra and Assemblymember Luz Rivas (D-Arleta) today announced AB 1313, their bill to help mitigate the student debt crisis, was signed into law. The bill prohibits postsecondary schools from withholding transcripts from students who owe a debt and ensures students are not hamstrung in pursuing educational and career opportunities by the practices of certain schools and colleges.   “As our nation struggles under the weight of a $1.5 trillion student debt crisis, it is essential that we follow every road to help students succeed,” said Attorney General Becerra. “Today, with AB 1313 signed into law, California is a taking a step toward solving a chicken and egg dilemma. Students with debt can no longer be denied their transcripts – one of the most important tools students need to help address their debt. We’re proud to help protect students from unfair debt collection practices – no one should be denied opportunity simply because of their financial situation.

AdvoCare fined $150 million as FTC calls it a pyramid scheme

AdvoCare International, a multi-level marketing company known for endorsements by professional athletes and other celebrities, will pay $150 million to settle government claims it's an illegal pyramid scheme where most of those selling its products earned nothing or lost money.  The Plano, Texas-based provider of diet supplements and energy drinks offered consumers the chance to "earn unlimited income, attain financial freedom, and quit their regular job," according to the Federal Trade Commission. But the agency contends AdvoCare pressured sellers to bring in new distributors to purchase large amounts of the supplement products.

Powell says it’s the Fed’s job to keep the economy in a ‘good place’ for ‘as long as possible’

Federal Reserve Chairman Jerome Powell described the U.S. economy on Friday as being solid, noting the central bank must do what it can to keep it there.   “While not everyone fully shares economic opportunities and the economy faces some risks, overall it is— as I like to say— in a good place,” Powell said in prepared remarks delivered at a “Fed Listens” event in Washington. The event is part of a monetary policy communication review by the Fed. “Our job is to keep it there as long as possible.”

Garnet Capital Advisors Adds RMAI Broker Certification

New York – October 7, 2019 – Garnet Capital is proud to announce that, in addition to its many existing certifications, it has earned the Certified Receivables Vendor (CRV) designation for Broker Services from the Receivables Management Association International (RMAI).    RMAI’s Receivables Management Certification Program (RMCP) offers certifications for debt buying companies, collection agencies, collection law firms, and the vendors that provide services to them. RMCP’s certifications are intentionally designed to cover the full life-cycle of an account receivable to ensure uniform rigorous consumer protection standards follow a consumer account from origination through final disposition.

Governor Newsom Signs Bills to Increase Financial Aid, Improve Integrity in College Admissions and Hold For-Profit Colleges Accountable

SACRAMENTO – Building on the state’s historic investment in two years of free community college and substantial state budget investments that allowed the University of California and the California State University to freeze tuition, Governor Gavin Newsom signed a series of bills into law today focused on affordability, transparency and integrity in higher education. The bills expand access to financial aid for students, strengthen integrity in college admissions and enhance oversight of for-profit colleges in California.

New Maine law to protect abuse survivors’ finances is illegal, credit agencies say in lawsuit

The nation’s largest credit reporting agencies are suing Maine over the state’s first-of-its-kind law to protect survivors of domestic violence from poor credit reports as a result of economic abuse by their estranged partners.   In the lawsuit filed in U.S. District Court in Bangor, the Data Industry Association contends that Maine’s new law is pre-empted by the federal Fair Credit Reporting Act of 1996, and that Congress prohibited states from interfering in credit reporting. The association represents the nation’s large credit reporting agencies, including Experian, TransUnion and Equifax, and other smaller agencies.

United States: CFPB And The Fifth Circuit Agree That Independent Agency Directors Should Be Removable At Will

A recent decision from the United States Court of Appeals for the Fifth Circuit and statements by the Director of the Consumer Financial Protection Bureau (CFPB) may prompt the Supreme Court to consider the constitutionality of the CFPB's single director structure. Sitting en banc, the Fifth Circuit ruled earlier this month that the directorship structure of the Federal Housing Finance Agency (FHFA) is unconstitutional. The FHFA—an independent agency created under the Housing and Economic Recovery Act of 2008 (HERA)—serves as regulator and conservator of government sponsored enterprises such as Fannie Mae and Freddie Mac. Like the CFPB, the FHFA's sole director is only removable by the President "for cause." In Collins v. Mnuchin, the Fifth Circuit ruled that this "for cause" language should be struck from HERA, deeming it an unconstitutional limitation on the President's removal power under Article II. Notably, however, the Court of Appeals found only that severing the provision would be warranted, and did not rule that invalidating the FHFA outright was an appropriate remedy.

FBI Issues ‘High-Impact’ Cyber Attack Warning—What You Need To Know

Be it the prohibition-era gangsters of the 1920s or the global war on terrorism, the Federal Bureau of Investigation (FBI) has been the primary U.S. investigative agency of the federal government with a responsibility to protect the nation. As part of what the FBI describes as being "a unique dual responsibility, to prevent harm to national security as the nation’s domestic intelligence agency and to enforce federal laws as the nation’s principal law enforcement agency," it has increasingly had to deal with the cyber threat. One "high impact" and ongoing cyber threat has become such a critical concern that on October 2, the FBI issued a warning to U.S businesses and organizations.

Important compliance deadlines CUs should know

NAFCU this week sent Final Regulation alerts to member credit unions to notify them of important effective dates for rules that will impact the industry. The rules covered include the CFPB's innovation policies, NCUA's payday alternative loans (PALs), and the Department of Labor's (DOL) overtime rule.

Consumer Bankers Association comments on CFPB’s proposed debt collection rule

The Consumer Bankers Association (CBA) has filed a letter commenting on the CFPB’s proposed debt collection rule.  Ballard Spahr served as counsel to the CBA in preparing the comment letter. In the letter, the CBA urges the Bureau to make various revisions and clarifications to the proposal, including the following:

CFPB structure challenged in Supreme Court petition filed by payday lender

Payday lender, All American Check Cashing, is asking the Supreme Court to decide whether the structure of the Consumer Financial Protection Bureau, Massachusetts Sen. Elizabeth Warren’s brainchild, is unconstitutional and how the alleged separation-of-powers violation should be judicially redressed. All American is arguing that the agency’s structure is unconstitutional, based on how its director can be removed, as well as “other anomalous features of the agency.” All American, of Mississippi, asked the U.S. Supreme Court to take up the case even though an appeals court has yet to review it.

Commercial, multifamily debt rises in 2019

Commercial and multifamily debt keeps rising, increasing by $51.9 billion in the second quarter of 2019. The level of mortgage debt rose 1.5% in the second quarter, according to the Mortgage Bankers Association’s latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. At the end of the first half of 2019, total commercial and multifamily debt outstanding stood at $3.5 trillion. But multifamily mortgage debt alone increased by 1.7% or $24.4 billion in the first quarter to $1.5 trillion.

CFPB Announces Advisory Committee Members

WASHINGTON, D.C. – Consumer Financial Protection Bureau Director Kathleen L. Kraninger today announced the appointment of members to the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC). These experts advise Bureau leadership on a broad range of consumer financial issues and emerging market trends.  

Why the federal government has expanded exposure to risky mortgages

Banking, Tech Communities Are ‘Breathless’ About Fintech, But Is It All Hype?

Bankers and tech experts keep speculating that Big Tech and financial technology (fintech) companies will dramatically disrupt the traditional banking industry, but some economists say such talk is overhyped. Deutsche Bank just released a report describing how the expanding financial ecosystem now includes Big Tech companies like Amazon, Apple, Google and Facebook, which host services from fintech companies like mobile payments (CashApp, Paypal, Venmo), renter’s insurance (Lemonade) and student loan refinancing (SoFi).

Zillow: Over half of renters blame student debt for delay in buying a home

In a paper released at the beginning of this year, the Federal Reserve estimated that about 20% of the decline in homeownership among young adults could be attributed to increased student loan debts since 2005. Based on the 2019 Zillow Group Report on Consumer Housing Trends released on Monday, that percentage may be a little low.  The report surveyed 13,000 U.S. household decision-makers about their homes, including how they search for them, pay for them and what challenges they encounter along the way. Among these findings, there was a recurrent topic of debt holding back potential buyers. From medical and credit card debt to student loans, an increasing amount of Americans are putting off buying a home.

AG James Sues Student Loan Servicer For Mismanaging Loan Forgiveness Program

NEW YORK – New York Attorney General Letitia James today sued the Pennsylvania Higher Education Assistance Agency (PHEAA) — one of the nation’s largest student loan servicers — for failing to properly administer the Public Service Loan Forgiveness (PSLF) program. The PSLF program is a federal program that forgives the student loans of borrowers who have made qualifying loan payments while working in public service for 10 years. PHEAA’s deceptive, unfair, and abusive practices in administering the federal program have contributed greatly to the large number of rejected PSLF applications, despite the fact that tens of thousands of New Yorkers are eligible for the program.

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National Creditors Bar Association 2019 Fall Conference

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Collection and Recovery Solutions 2020

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Debt Connection Symposium & Expo 2020

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