CFPB Issues Rulemaking Agenda with October 2020 Deadline for Debt Collection Rules

The Consumer Financial Protection Bureau announced in its spring rulemaking agenda  issued this week that it expects to take final action on the proposed debt collection rules in October 2020.

OCC report highlights elevated compliance risks in banking

In its spring “Semiannual Risk Perspective” report, the OCC found banks “face weak economic conditions resulting from the economic shutdown in response to the pandemic that will stress financial performance in 2020.” Among highlights from the report, the OCC noted that “compliance risk is elevated,” because of a combination of altered operations, employees working remotely, and several new federal and state programs designed to support consumers—such as the CARES Act, Paycheck Protection Program, and a variety of forbearance and deferred payment programs. “Among other challenges, these conditions complicate the compliance responsibilities associated with managing high volumes and various programs of consumer and business lending in a weakened economy,” the OCC said.

CFPB, OCC Host Virtual Innovation Office Hours

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) today announced they will host joint, virtual Innovation Office Hours, July 29-30, as part of the American Consumer Financial Innovation Network (ACFIN). Participants will have the opportunity to discuss issues that touch upon both consumer protection and prudential regulation.

Loans in coronavirus mortgage bailouts see largest weekly decline yet — but there are more red flags

The number of borrowers in government and private sector coronavirus-related mortgage bailouts just fell by the largest weekly volume since these plans were put in place. There are, however, warning signs that the programs could swell again.

Enforcement of Calif. Data Privacy Law Begins

As consumers look ahead to the Independence Day weekend, businesses mark another milestone today: On Wednesday, enforcement of the California Consumer Privacy Act begins to rein in companies from playing fast and loose with consumer data.

3 reasons to pay student loans in coronavirus forbearance

Since March, federal student loans have been put into forbearance through to Sept. 30 under the CARES Act, which has paused interest for borrowers who have been actively making payments. For individuals who have the funds to pay down debt can choose to save or spend their money elsewhere, however, there are some incentives for targeting student loans.

So far Fed’s Main Street Lending program has made zero loans

CONSUMER AND GOVERNMENTAL AFFAIRS BUREAU ANNOUNCES COMPLIANCE DATE FOR REASSIGNED NUMBERS DATABASE RULES

On December 13, 2018, the Commission released the Reassigned Numbers Database Order, establishing a database that will allow callers to determine whether a telephone number has been permanently disconnected after a date certain and therefore is no longer assigned to the party the caller
wants to reach. The Reassigned Numbers Database Order calls for the new rules adopted in that Order to become effective 30 days after the Commission publishes a notice in the Federal Register announcing approval of the new and modified information collection requirements by the Office of Management and Budget (OBM) under the Paperwork Reduction Act. 2.

Consumer Financial Protection Bureau Issues Proposed Rule on Escrow Exemptions for Certain High-Priced Mortgage Loans

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a notice of proposed rulemaking (NPRM) that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs). In issuing the NPRM the Bureau has commenced its last mandatory rulemaking to implement the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The next cybersecurity headache: Employees know the rules but just don’t care

Cybersecurity has shot to the top of many IT leaders' priorities over the past few months as remote working became the de facto way of doing business. Yet despite more awareness of the security risks of working from home, employees are still showing a lax attitude when putting it into practice, according to new findings.

Spring 2020 Rulemaking Agenda

The Bureau has published its Spring 2020 Agenda as part of the Spring 2020 Unified Agenda of Federal Regulatory and Deregulatory Actions, which is coordinated by the Office of Management and Budget under Executive Order 12866. The agenda lists the regulatory matters that we expect to focus on between May 1, 2020 and April 30, 2021.

Judge orders Betsy DeVos to cancel 7,200 scammed borrowers’ student loans

During most of the Trump administration’s tenure, the U.S. Department of Education, led by Betsy DeVos, has worked to limit student debt cancellation for borrowers who say they were scammed by their schools. The agency scored a win in that effort Friday, when Democrats failed to muster enough votes to override President Trump’s veto of a bill that would have overturned the Department’s approach to student debt cancellation under what’s known as the “borrower defense” rule.

Wells Fargo Hits Brakes on Student Loans Amid School Disruption

(Bloomberg) -- Wells Fargo & Co. is pulling back from student lending as the U.S. surge in coronavirus cases threatens to further disrupt higher education and the broader U.S. economy. The firm, which has been reviewing businesses under new Chief Executive Officer Charlie Scharf, said student loans for the upcoming academic year will be granted only to people who submitted applications before July 1 or to customers who already have an outstanding balance on a prior student loan from the bank.

PPP Loans Aren’t for Everyone. Here’s What to Do if You Still Need Relief

Though countless Americans have been hurt financially in the course of our current recession, small businesses have perhaps been hammered the most. It's estimated that more than 100,000 have already closed their doors permanently since the COVID-19 pandemic began, and many more risk a similar fate if economic conditions don't quickly improve. Throughout all of this, the one thing that has helped many local businesses stay afloat is the Paycheck Protection Program, or PPP. Businesses that received PPP loans were eligible for funding equal to two-and-a-half times their monthly payroll costs. 

Get ready for wave of small-business defaults, PNC’s Demchak warns

Banks are about to start feeling the economic pain caused by the global coronavirus pandemic, PNC Financial Services Group CEO William Demchak warned Wednesday. So far the damage has been minimal because consumers’ checking account balances have been propped up by government stimulus checks and reprieves from making mortgage, car and other monthly payments while the economy was on lockdown.

Debt Settlement Market 2020 Estimated to Experience a Hike in Growth with National Debt Relief, Freedom Debt Relief, New Era Debt Solutions, Guardian Debt Relief

Debt Settlement Market 2026 evaluation of an enterprise is an important component for diverse stakeholders like traders, CEOs, buyers, providers, and others by IT Intelligence Markets. The Debt Settlement industry research record is an aid, which gives modern in addition to upcoming technical and economic details of the industry. Debt Settlement Market research file is an expert and in-depth take a look at the modern nation of this market. Diverse definitions and types of enterprise, programs of the enterprise and chain shape are given. The modern popularity of the Debt Settlement enterprise policies and the news is analysed.

The man who paid off the student debt of 400 Morehouse College graduates has a new initiative to help borrowers

Last year, billionaire Robert Smith shocked roughly 400 graduates of Morehouse College (and the world) when he announced that he would pay off their student debt. Now, he’s back with an initiative he says will address the challenges Black student-loan borrowers face on a broader scale. Through a nonprofit, called the Student Freedom Initiative, Smith is aiming to “create a sustainable, pay-it-forward model,” for funding higher education, he told TIME in an interview.

Five U.S. airlines reach deals with Treasury Department for billions in coronavirus loans

Five airlines have struck agreements with the Treasury Department for portions of $25 billion in federal loans aimed at softening the blow of the coronavirus pandemic on their businesses. American Airlines, Hawaiian Airlines, Sky West Airlines, Spirit Airlines and privately-held Frontier Airlines have signed letters of intent for the loan terms, the Treasury Department said Thursday.

Freddie Mac extends multifamily loan forbearance relief to landlords

Freddie Mac is expanding the mortgage relief options it offers multifamily property owners, but there are strings attached. The agency, which is under government conservatorship, today announced that landlords with federally-backed mortgages can further extend the repayment period. Putting off those payments does come with a price.

Popular coronavirus relief loan program for small business expires with billions untapped

Nearly $135 billion provided by Congress to help small businesses struggling to survive the COVID-19 pandemic was left on the table Tuesday as the Paycheck Protection Program stopped accepting new applications.

California Senate passes bill to license debt collectors

SACRAMENTO – With more Californians living paycheck-to-paycheck and taking on more debt to cover their bills, the California State Senate today approved with bipartisan support SB 908 by Senator Bob Wieckowski (D-Fremont) to require the licensing of debt collectors and debt buyers in California. The bill is supported by a number of California’s top consumer organizations.

United States Supreme Court Provides Little Guidance to Remedy an Unconstitutional CFPB

The Consumer Financial Protection Bureau (CFPB or Bureau) has been a federal agency like no other. Born out of the last financial crisis, the Dodd-Frank Act envisioned the CFPB to be an independent agency, free of “political influence.” Congress thus authorized the CFPB to be led by a single director – rather than a board of multiple members - who would possess significant rulemaking and enforcement over 19 consumer protection statutes as well as unfair, deceptive, and abusive acts and practices. Its single director structure – only removable for “inefficiency, neglect of duty or malfeasance” – as well as its funding outside the appropriation process – provoked strong opinions from industry and advocates alike.  

Chicago Ticketing Enforcement, Debt Collection Returning to Normal

The city of Chicago's ticketing enforcement and debt collection practices will begin returning to normal Wednesday with the start of the new month, officials say. Ticketing of certain vehicle violations was temporarily suspended in March but will resume for street sweeping beginning Wednesday.

Attorney General Becerra Reminds Consumers of Data Privacy Rights Under the California Consumer Privacy Act

SACRAMENTO – California Attorney General Xavier Becerra today issued an alert reminding consumers of their data privacy rights under the California Consumer Privacy Act (CCPA). The CCPA, which went into effect this year, provides consumers with access to and control over their personal information. The Attorney General plans to begin enforcement of the CCPA starting July 1, 2020. Businesses subject to CCPA were required to begin complying with the law on January 1, 2020. Proposed final regulations under the CCPA were submitted to the California Office of Administrative Law on June 1, 2020 and are currently pending approval.

Senate passes extension of Paycheck Protection Program

The Senate has passed an extension of the popular Paycheck Protection Program for small businesses, which was set to close down Tuesday night with $130 billion in funding left over. The extension to Aug. 8 was offered by Sen. Ben Cardin, D-Md., and cleared the chamber by unanimous consent. The House has yet to take up the bill but could pass it as soon as Tuesday night.

Phillips & Cohen Announces Vulnerable Customer Expansion Plans

Wilmington, DE – June 2020 – Phillips & Cohen Associates, Ltd., the leading specialist recoveries management business servicing creditors in the US, Canada, UK, Ireland, Australia, New Zealand, Spain, Portugal and Germany has announced plans to expand into the servicing of potentially vulnerable consumers.

FTC Data Shows Record Surge in Online Shopping Complaints During Pandemic

Newly released data show that since the beginning of the coronavirus pandemic, consumers have complained to the Federal Trade Commission in record numbers about problems related to online shopping.

CFPB Announces Tech Sprints To Empower Consumers, Reduce Regulatory Burden

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today announced its first-ever Tech Sprints to reduce regulatory burden and improve consumer understanding of financial services. The Bureau’s Tech Sprints program will bring together regulators, technologists, software providers, consumer groups, and financial institutions to develop technological solutions to shared compliance challenges. The first Tech Sprint will kick off in October with another in March 2021.

Data Center Company Settles FTC Privacy Shield Case

An operator of secure data centers has settled Federal Trade Commission allegations that it misled consumers about its participation in the EU-U.S. Privacy Shield framework and failed to adhere to the program’s requirements before and after allowing its certification to lapse.

PPP loans are ending. Here’s where small businesses can turn now

The Paycheck Protection Program is ending, meaning ailing small businesses will need to look elsewhere for funding. But where to turn? While there are other options that may be of help to entrepreneurs during the coronavirus-induced downturn, they are limited and may not carry favorable terms for borrowers, according to experts.

California Senate Passes Bill To License Debt Collectors

With more Californians living paycheck-to-paycheck and taking on more debt to cover their bills, the California State Senate today approved SB 908 by Senator Bob Wieckowski (D-Fremont) to require the licensing of debt collectors and debt buyers in California. The bill is supported by a number of California's top consumer organizations.

The more cybersecurity tools an enterprise deploys, the less effective their defense is

The enterprise is slowly improving its response to cybersecurity incidents, but in the same breath, it is still investing in too many tools that can actually reduce the effectiveness of defense. On Tuesday, IBM released the results of a global survey, conducted by the Ponemon Institute and featuring responses from over 3,400 security and IT staff worldwide. The research suggests that while investment and planning are on the uptake, effectiveness is not on the same incline, with response efforts hindered by complexity caused by fragmented toolsets.

Supreme Court gives president more control over Consumer Financial Protection Bureau

The Supreme Court on Monday dealt a blow to the Consumer Financial Protection Bureau as conceived by President Barack Obama and Sen. Elizabeth Warren, making it easier for the agency’s leader to be removed for any reason.

SEILA LAW LLC v. CONSUMER FINANCIAL PROTECTION BUREAU

In the wake of the 2008 financial crisis, Congress established the Consumer Financial Protection Bureau (CFPB), an independent regulatory agency tasked with ensuring that consumer debt products are safe  and transparent. See Dodd-Frank Wall Street Reform and Consumer     Protection Act Dodd-Frank), 124 Stat. 1376. Congress transferred the     administration of 18 existing federal statutes to the CFPB, including      the Fair Credit Reporting Act, the Fair Debt Collection Practices Act,  and the Truth in Lending Act; and Congress enacted a new prohibition on unfair and deceptive practices in the consumer-finance sector. 12 U. S. C. §5536(a)(1)(B). In doing so, Congress gave the CFPB extensive rulemaking, enforcement, and adjudicatory powers, including the authority to conduct investigations, issue subpoenas and civil investigative demands, initiate administrative adjudications, prosecute civil actions in federal court, and issue binding decisions in administrative proceedings. The CFPB may seek restitution, disgorgement, injunctive relief, and significant civil penalties for violations of the 19 federal statutes under its purview. So far, the agency has obtained over $11 billion in relief for more than 25 million consumers.

Supreme Court rules structure of CFPB is unconstitutional

Washington — The Supreme Court ruled Monday the structure of the Consumer Financial Protection Bureau (CFPB), a consumer watchdog that was the brainchild of Democratic Senator Elizabeth Warren, is unconstitutional.

Survey: Lending cash to loved ones ends badly for nearly half of Americans

Despite good intentions, lending money to friends and family can often lead to some uncomfortable situations. According to Bankrate’s latest survey of 2490 U.S. adults, 60 percent of Americans have helped out a friend or family member by lending cash with the expectation of being paid back, while 17 percent have lent their credit card and 21 percent have co-signed for a financial product like a loan or rental. But more than a third (35 percent) who participated in at least one of these activities were negatively impacted, resulting in lost money, a damaged credit score or harmed relationship.

Crypto Lending: The Ultimate Killer App?

Crypto lending, one of the fastest-growing industries in the blockchain ecosystem, has made it possible to earn yields and borrow capital using digital assets. According to a report by research company Credmark, the volume of crypto-backed loans increased seven-fold in 2019, ultimately reaching $8 billion. Experts speculate that crypto lending will attract more investors into the crypto market by increasing its liquidity.

U.S. lenders, businesses brace for disclosure on small business pandemic aid

WASHINGTON (Reuters) - Americans will soon get a first full look at which businesses received $515 billion of taxpayer funds when the government, after initial resistance by President Donald Trump’s administration, releases borrower data for one of its highest- profile pandemic aid efforts.

NACTT 55th Annual Seminar 2020 – Virtual

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LendIt Fintech Europe 2020 – Virtual

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