Attorney General Becerra Warns Consumers to Beware of Financial Pitfalls and Scams Targeting Veterans and Servicemembers

SACRAMENTO – California Attorney General Xavier Becerra today, in recognition of Veterans Day, issued a consumer alert warning Californians to be aware of scams targeting veterans, servicemembers, and their families. In today’s alert, Attorney General Becerra provides tips and information to help avoid military-targeted scams, and provides tips for Californians who would like to support our veterans and servicemembers through charitable donations.

Non-QM lenders are back. But will brokers pick up the phone?

Mark Dodson was having a promising start to the year. His corner of the Atlanta mortgage market – high-value home loans that wouldn’t be bought by the GSEs – was booming. But by March there were whispers that the non-QM space was going to vanish soon. Liquidity had dried up and bond investors were running for the hills.

CFPB data shows consumers “struggling to pay” during the pandemic

It’s no secret that many consumers are facing deep financial distress during the COVID-19 pandemic. Through September, only about half of the people who lost their jobs early in the pandemic had gone back to work. The $600 a week federal unemployment boost ended months ago. And critical policies like limits on debt collection and repossession have only been offered at the state level, leaving millions unprotected.

Nebraska sees strong year for small-business lending

Nebraska saw a strong year for lending to small businesses even without counting the money lent as part of emergency stimulus programs. The Small Business Administration said Monday that it provided guarantees for $153.7 million worth of loans in fiscal year 2020, which ended in September. That’s $10 million more than the amount guaranteed in 2019, even though the number of loans guaranteed actually declined slightly, from 445 in 2019 to 436 in 2020.

Millennial Money: What new debt collector rules mean for you

Working with third-party debt collectors can be confusing and scary. For the more than 68 million U.S. adults with debt in collections, knowing their legal rights is crucial. The Fair Debt Collection Practices Act covers third-party debt collectors — those who buy a delinquent debt from an original creditor, like a credit card company. An update to the rules on how the act is applied, announced by the Consumer Financial Protection Bureau in late October, alters the terms of engagement.

The CFPB’s final collections rule: using electronic communications to send required disclosures

On November 13, 2020, from 12:00 p.m. to 1:00 p.m. ET, Ballard Spahr will present a webinar on the CFPB’s final collection rule.  Click here for more information and to register.

One of the initial promises of the CFPB’s NPRM was a level of certainty as to the use of electronic communications to provide legally-required collection disclosures to consumers.  In adopting the final rules, however, the CFPB left this promise unfilled by creating different standards for different types of disclosures.

US consumer borrowing up $16.2 billion in September

WASHINGTON (AP) — U.S. consumers increased their borrowing in September, helped by the first gain in the category that covers credit cards in seven months.

15 States With the Most Seriously Overdue Mortgages

In response to the crisis, the CARES Act invoked a moratorium on home foreclosures for all federally backed mortgages that extends until the end of the year. The act also placed many federally backed mortgage loans into forbearance, allowing mortgage payments to be temporarily deferred for the nearly 70% of all outstanding mortgage holders with federally backed mortgages.

FTC Requires Zoom to Enhance its Security Practices as Part of Settlement

The Federal Trade Commission today announced a settlement with Zoom Video Communications, Inc. that will require the company to implement a robust information security program to settle allegations that the video conferencing provider engaged in a series of deceptive and unfair practices that undermined the security of its users.

2020 could be ‘the worst year in cybersecurity history’

Businesses around the world are severely unprepared to face the sheer scale of cyberhtreats facing us today, new research has claimed. The latest 2020 Business Threat Landscape report from security firm Bitdefender has said that this could be the worst year in cybersecurity history, as despite multiple warnings, many firms still aren't ready to protect themselves.

AI Can Make Bank Loans More Fair

As banks increasingly deploy artificial intelligence tools to make credit decisions, they are having to revisit an unwelcome fact about the practice of lending: Historically, it has been riddled with biases against protected characteristics, such as race, gender, and sexual orientation. Such biases are evident in institutions’ choices in terms of who gets credit and on what terms. In this context, relying on algorithms to make credit decisions instead of deferring to human judgment seems like an obvious fix. What machines lack in warmth, they surely make up for in objectivity, right?

Washington State WSR 20-21-004 EMERGENCY RULES DEPARTMENT OF LICENSING

Purpose: The department of licensing (DOL) is refiling this emergency rule allowing employees of collection agencies the option to work remotely, and does not alter any requirements of the Collection Agency Act in regards to collection activity while permanent rule making is currently being done. DOL will file the CR-102 to propose the permanent adoption of these rules after final language has been drafted. Anticipated date is November 16, 2020. Once the CR-102 is filed, the comment period will begin. The department originally filed notice of permanent rule making within the emergency rule-making order under WSR 20-14-020.  The State’s Collection Agency Act and expires February 17, 2021.

The average millennial has $27,251 in non-mortgage consumer debt—here’s how they compare to other generations

Millennials are the generation with the fastest growing debt load, which isn’t surprising when you consider this cohort is increasingly having children, buying homes and continuing to pay off their student loans. According to the Experian 2020 State of Credit report, the average millennial consumer has about $27,251 in non-mortgage debt, and millennial homeowners have an average mortgage balance of $232,372.

OCC payments charter proposal raises questions about what is a bank

Recent moves by the Office of the Comptroller of the Currency are forcing Congress to ask a deceptively complex question: What is a bank? Acting Comptroller of the Currency Brian Brooks previewed plans over the summer to grant bank charters for national money transmitters. The federal charter would allow some payment servicers to get a single, federal operating license, supplanting the need for state licenses wherever they operate and allowing them access to the Federal Reserve’s payments clearing system.

Consumer Financial Protection Bureau Issues No Action Letter to Facilitate Consumer Access to Small-Dollar Loans

 WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) granted a no-action letter (NAL) to Bank of America, N.A. regarding certain small-dollar credit products. Issued under the updated NAL   Policy from last year, NALs provide increased regulatory certainty that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances. 

Consumer Financial Protection Bureau Takes Action Against Debt-Relief Business and Its Owner for Taking Illegal Advance Fees

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today filed a complaint against Performance SLC, LLC (PSLC), a California debt-relief business focused on federal student loan debt; Performance Settlement, LLC (PSettlement), a California debt-settlement company; and Daniel Crenshaw, the owner and CEO of the two companies.

Consumer Financial Protection Bureau Files Lawsuit Against Driver Loan, LLC And Its CEO

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today filed a lawsuit against Driver Loan, LLC, and its Chief Executive Officer, Angelo Jose Sarjeant, for allegedly engaging in deceptive acts or practices in taking deposits from and offering credit to consumers. Driver Loan, based in Doral, Florida, offers short-term, high-interest loans to consumers funded by deposits made by other consumers.

Debt Collection Strategies and Cutting Edge Practices – LEND360

Henderson, NV –  An industry leader and founder of DebtTrader, Matthew Wratten, will be speaking at LEND360 on Tuesday, November 10, 2020. He and a panel of experts will discuss the topic of debt collection strategies and cutting edge practices.

Attorney General James and Governor Cuomo Renew Suspension of State Debt Collection for Eighth Time as Coronavirus Continues to Impact New Yorkers’ Wallets

NEW YORK – New York Attorney General Letitia James and Governor Andrew M. Cuomo today announced that the state has renewed, for the eighth time, an order to halt the collection of medical and student debt owed to the state of New York that has been specifically referred to the Office of the Attorney General (OAG) for collection — with limited exceptions — through December 31, 2020.

Why fewer borrowers are repaying student loans during coronavirus

Just 11% of borrowers are currently repaying federal student loans during coronavirus, according to an analysis by Mark Kantrowitz, a student loan expert, and publisher of Saving For College. Borrowers have paused payments for many reasons and, in some cases, it's the right course of action. But not every type of student loan is eligible for automatic forbearance, and there are both pros and cons to consider before discontinuing student loan payments.

States with the most and least student debt

Once the cost of books, room and board, and other fees are added in, paying for college with a part-time or summer job is increasingly becoming a thing of the past. Today’s students are instead turning to loans, leading to a widespread debt crisis. Americans currently owe a collective $1.56 trillion in student loans, changing the shape and trajectory of the U.S. economy. Instead of buying a car or a house, millenials are focused on finding a job that will allow them to make loan payments without defaulting.

$19,500,000 Medical

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$3,800,000 Retail

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$102,000 Auto Deficiencies

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$9,500,000 Retail

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$5,800,000 Payday Loans

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WEBINAR – CFPB’s Final Collection Rule

Ballard Spahr

LEND360 Virtual Event – November 9-13, 2020

LEND360

Collection and Recovery Solutions 2021 (CRS2021)

Resource Management Services, Inc.

Digital Banking 2020 – December 7 – 9

American Banker