More Than Half of US Companies Are Under Financial or Operational Stress and 14% Are in Distress as Pandemic’s Economic Impact Deepens
BOSTON, Jan. 6, 2021 /PRNewswire/ -- More than seven months into the novel coronavirus pandemic, a disturbingly large number of US companies are at risk, according to new research from Boston Consulting Group (BCG) confirming that economic distress is deeply entrenched and shows no sign of letting up.
Several U.S. states sue banking regulator over ‘true lender’ rule
NEW YORK (Reuters) - Seven U.S. states and Washington, D.C., sued a U.S. banking regulator on Tuesday, seeking to void a rule they said could encourage predatory lending by preventing them from enforcing state laws against exploitative interest rates.
U.S. bankruptcy filings hit 35-year low thanks to government pandemic aid
WASHINGTON (Reuters) - U.S. bankruptcy filings for 2020 hit their lowest level since 1986 as a flood of government support programs offset at least temporarily the full brunt of the coronavirus pandemic and a related recession, Epiq AACER reported on Friday.
2021 Cybersecurity Trends: Bigger Budgets, Endpoint Emphasis and Cloud
After shrinking in 2020, cybersecurity budgets in 2021 climb higher than pre-pandemic limits. Authentication, cloud data protection and application monitoring willtop the list of CISO budget and cybersecurity priorities. According to experts, these are just a few of the themes to dominate the year ahead.
Attorney General Becerra Challenges OCC Rule That Facilitates Predatory Lending Schemes
SACRAMENTO – California Attorney General Xavier Becerra today joined a multistate lawsuit against the Office of the Comptroller of the Currency (OCC) challenging its “True Lender Rule.” The OCC’s rule facilitates predatory lending by allowing payday lenders, auto-title lenders and other non-bank entities to evade state limits on loan interest rates through sham "rent-a-bank" arrangements with national banks. California limits interest rates to 36 percent on consumer loans under $10,000. To circumvent California law, the predatory non-bank lenders “partner” with national banks that are shielded from state rate caps. The OCC’s True Lender Rule enables rent-a-bank schemes that often hike interest rates on borrowers to 100 percent or higher.
With the California Consumer Financial Protection Law in Effect, the DFPI Prepares to Better Protect Consumers and Foster Financial Innovation
SACRAMENTO – With the new California Consumer Financial Protection Law now in effect, the Department of Financial Protection and Innovation (DFPI) will exercise expanded powers to better protect consumers from unlawful, unfair, deceptive, and abusive practices.
Katabat Expands Product Reach by Acquiring Simplicity Collection Software
January 5, 2021, Wilmington, DE – Katabat, a leading global provider of debt management software solutions for lenders, fintechs, and collection agencies, announced today that it has acquired Simplicity Collection Software of Idaho Falls, Idaho. The acquisition aligns with and accelerates Katabat’s vision to be the dominant provider of debt collection software products for global consumer lenders and third-party agencies. Terms of the transaction were not disclosed.
Consumer Financial Protection Bureau’s Taskforce on Federal Consumer Financial Law Releases Its Report
WASHINGTON, D.C.– The Consumer Financial Protection Bureau (Bureau) Taskforce on Federal Consumer Financial Law (Taskforce) released a report today with recommendations on how to improve consumer protection in the financial marketplace. The Taskforce Report uses five interrelated principles that serve as the foundation for proposed systematic changes to the current legal and regulatory framework: consumer protection, information and education, competition and innovation, regulatory modernization and flexibility, and inclusion and access.
Interest in divorce loans jumps during coronavirus pandemic
The coronavirus pandemic hasn’t been great for love. Itderailed weddings and honeymoons— and some married couples are so eager to split that they’re looking to take out loans to fund divorces. The number of inquiries to fund a divorce thatLoanryreceived was up 62% through November 2020 compared with all of 2019, according to the online loan marketplace company after analyzing search divorce-related queries it received from Google during those periods. The company’s data, broken down by state, also indicated that the largest divorce inquiry increases came from Tennessee, Texas, and Georgia.
Student loan interest rate forecast for 2021: Rates are unlikely to rise
The COVID-19 crisis caused many Americans to fall into physical or financial hardship in 2020. As a result, student loan interest rates fell to historic lows, largely in part due to the Federal Reserve slashing interest rates as an attempt to stimulate the economy.
The Consumer Financial Protection Bureau on Dec. 30 issued two compliance assistance sandboxes: one for dual usage credit cards and another for employee access to earned but unpaid wages. CFPB compliance sandboxes provide a safe harbor for banks to test products or services that have been approved by the bureau.
PayPal Wins Prepaid Card Regulation Lawsuit Against CFPB
FinTech giant PayPal has won a lawsuit against the U.S. Consumer Financial Protection Bureau (CFPB) pertaining to rules regarding prepaid cards and digital wallets, Westlaw Today reported. U.S. District Judge Richard Leon in Washington, D.C. invalidated part of the CFPB’s mandate, essentially agreeing with PayPal that the agency went beyond its jurisdiction. PayPal filed the suit in December 2019 under the Administrative Procedure Act (APA), contesting a 2019 rule regulating prepaid cards and electronic wallets.
January 5, 2021 Release of the Taskforce on Federal Consumer Financial Law Report
In January 2020, CFPB Director Kathleen Kraninger announced the appointment of five members to serve on the Bureau’s Taskforce on Federal Consumer Financial Law (Taskforce). The Taskforce was charged with examining ways to harmonize and modernize federal consumer financial laws and given a year to submit a report of their findings and recommendations to the Director.
U.S Mortgage Rates Rise in the Final Week of the Year
Mortgage rates failed to fall to a 17th record low of the year, with 30-year fixed rates on the rise in the final week of the year. 30-year fixed rates rose by 1 basis point to 2.67% in the week ending 31st December.
Coronavirus relief bill makes it easier for companies to pay down workers’ student loans
Student loan assistance, which started as a niche offering by a handful of companies, was already finding its way into the mainstream menu of workplace benefits before Covid hit. The pandemic may only accelerate the trend.
What we know about the new PPP loans for small businesses
SACRAMENTO, Calif. — Small businesses struggling from the COVID-19 shutdowns are getting another round of financial help with the latest spending bill passed by Congress. Of the $900 billion approved for COVID-19 relief, $284 billion is slated for the Paycheck Protection Program, with some changes.
Some Pandemic Protections for Consumers Could Become Permanent
Consumer complaints to federal and state agencies exploded this year, fueled by a global crisis that financially stressed millions of Americans and disrupted thousands of businesses’ normal operations. Now state legislators and consumer advocates across the country are pushing for permanent protections to address the gaps in consumer law exposed by the pandemic.
Challenger bank Current becomes first FinTech to receive government stimulus payments
New York-based leading challenger bank Current aimed to serve Americans overlooked by traditional banks has announced it was the first fintech in the country to receive the second round of government stimulus payments.
If there's one lingering holdover of 2020 into 2021 - it'll be the expected large number of car repossessions that are expected by experts in the auto industry. Lending firms and observers of the car industry anticipate that 2021 will see the largest number of car repossessions ever as many struggle to make their car payments.
Mortgage rates hover near record lows to close out 2021
Mortgage rates have closed out 2020 around the lowest levels on record. But those looking to lock-in this cheap financing shouldn’t wait on the sidelines for too long. The 30-year fixed-rate mortgage averaged 2.67% for the week ending Dec. 31, up a basis point from the new record low of 2.66% set the week prior, Freddie Mac FMCC, -1.30% reported Thursday. Meanwhile, the 15-year fixed-rate mortgage dropped two basis points to an average of 2.17%, representing a record low for that mortgage product. The 5-year Treasury-indexed hybrid adjustable-rate mortgage fell by eight basis points to 2.71%.
Peer-to-Peer Lending Platforms Market Analysis Growth Opportunities and Demand Drives by 2020 to 2028 Lending Club, Prosper.com, Social Finance Inc., OnDeck Capital Inc.
The market report titled Peer-to-Peer Lending Platforms Market has recently been added by The Research Corporation to its extensive repository and the data can be used to gain penetrative insights into the businesses. The case study thus addresses the present market scenario and historical developments of the market. The global Peer-to-Peer Lending Platforms sector has been scrutinized with regards to key elements such as products or services, applications, end-users, and technologies. Moreover, the case study has been gauged on the basis of primary and secondary research methodologies.
New Virginia law protects $600 economic relief payments from debt collectors
RICHMOND, Va. (WSET) —A new law in Virginia aims to make sure the second round of economic stimulus payments will help Virginians support themselves and their families instead of getting swept up by debt collectors and creditors.
Benchmark U.S. 30-year mortgage rises slightly to 2.67%
MCLEAN, VA. — U.S. long-term mortgage rates ticked up slightly this week but remain near record lows as the coronavirus pandemic continues wreak havoc on the U.S. and global economies. The average rate on the benchmark 30-year fixed-rate home loan rose to 2.67% from a record-low 2.66% last week, according to mortgage giant Freddie Mac on Thursday. A year ago, it stood at 3.72%
Consumer Financial Protection Bureau Settles with Omni Financial of Nevada, Inc. for Violations of the Military Lending Act, Electronic Fund Transfer Act, and Consumer Financial Protection Act
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) issued a consent order against Omni Financial of Nevada, Inc. (Omni). The Bureau found that Omni violated the Military Lending Act (MLA), Electronic Fund Transfer Act (EFTA), and Consumer Financial Protection Act of 2010 (CFPA) in connection with making installment loans.
Consumer Financial Protection Bureau Issues Approval Order to Facilitate the Use of Dual Usage Credit Cards
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued a compliance assistance sandbox (CAS) approval order to Synchrony regarding their proposal to develop a “dual-feature credit card.” The card is designed for consumers with a limited or damaged credit history as a tool that can be used to establish or reestablish a favorable credit history. Synchrony intends to offer a lower rate on secured use with the opportunity for eligible accountholders to graduate to unsecured use after 12 months.
Consumer Financial Protection Bureau Issues an Approval Order to Facilitate Employee Access to Earned but Unpaid Wages
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued a compliance assistance sandbox (CAS) approval order to PayActiv regarding specific aspects of some of its earned wage access (EWA) products. EWA products allow employees access to their earned but unpaid wages prior to payday.
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