CFPB Announces Taskforce on Federal Consumer Financial Law

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced that it will establish a taskforce to examine ways to harmonize and modernize federal consumer financial laws.   The Taskforce on Federal Consumer Financial Law will examine the existing legal and regulatory environment facing consumers and financial services providers and report to Director Kraninger its recommendations for ways to improve and strengthen consumer financial laws and regulations. The taskforce will produce new research and legal analysis of consumer financial laws in the United States, focusing specifically on harmonizing, modernizing, and updating the enumerated consumer credit laws—and their implementing regulations—and identifying gaps in knowledge that should be addressed through research, ways to improve consumer understanding of markets and products, and potential conflicts or inconsistencies in existing regulations and guidance.

CFPB issues final HMDA rule

The Consumer Financial Protection Bureau issued its final rule for the Home Mortgage Disclosure Act, which could lessen the burden for some smaller lenders. Under the new rule, the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA will be extended for two years until January 1, 2022. The current temporary threshold is 500 open-ended lines of credit. For data collection years 2020 and 2021, financial institutions that originated fewer than 500 open-end lines of credit in either of the two preceding calendar years will not need to collect and report data with respect to open-end lines of credit.

Consumer Financial Protection Bureau Issues Final HMDA Rule to Provide Relief to Smaller Institutions

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a rule which finalizes certain aspects of its May 2019 Notice of Proposed Rulemaking under the Home Mortgage Disclosure Act (HMDA). It extends for two years the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA. The rule also clarifies partial exemptions from certain HMDA requirements which Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

Convoke Onboards Three New Credit Issuers

ARLINGTON, Va., Oct. 10, 2019 /PRNewswire/ -- Convoke, a leader in SaaS solutions for the debt collection market, today announced the most recent software update to its debt collections compliance and management hub. Each year, Convoke develops and releases several updates to its platform to support its clients' evolving needs. This release includes the onboarding of three new credit issuers, as well its continued development of existing functionality.

The CFPB Ombudsman’s Office celebrates the 2nd Annual Ombuds Day

Today, the CFPB Ombudsman’s Office is celebrating the 2nd annual Ombuds Day!   What is Ombuds Day? It is a day to increase awareness and help educate about the ombudsman profession.   Who is celebrating Ombuds Day? Many organizations worldwide are celebrating—from all levels of government, private industry, and educational institutions—that have a resource dedicated to this unique approach to conflict resolution. 

Amex announces data breach amidst cybersecurity month

A former American Express (Amex) employee potentially accessed the personally identifiable information – including names, card numbers, addresses, and Social Security numbers – of an undisclosed number of customers with the intent to open accounts at other financial institutions. Amex began notifying costumers of the data breach last week.

Upgrade Card Combines Credit Card Acceptance With Installment Payments Flexibility

Twelve years ago, LendingClub Founder Renaud Laplanche built a business to help consumers manage the $800 million in outstanding credit card debt. That product was an unsecured personal loan that consolidated the debt into a lower interest option with fixed monthly payments.

Misplaced Student Loan Blame

During a U.S. House of Representatives subcommittee hearing on the Public Service Loan Forgiveness program last month, Democrats held a seat open for the top executive from a loan servicer responsible for managing the program. The servicer, the Pennsylvania Higher Education Assistance Agency, has been under fire for its alleged mismanagement of the program. And the absence of PHEAA's president and CEO, who noted in a letter to the committee that the company was bound by federal laws and regulations, didn’t do anything to mollify concerns of lawmakers on the committee. The scrutiny of PHEAA is emblematic of the place servicers have come to occupy in the debate over the federal student loan program.

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.

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