Statement by FTC Acting Chairwoman Rebecca Kelly Slaughter on the U.S. Supreme Court Ruling in AMG Capital Management LLC v. FTC

Federal Trade Commission Acting Chairwoman Rebecca Kelly Slaughter issued the following statement regarding today’s decision from the U.S. Supreme Court in the matter of AMG Capital Management LLC v. FTC: “In AMG Capital, the Supreme Court ruled in favor of scam artists and dishonest corporations, leaving average Americans to pay for illegal behavior,” Acting Chairwoman Rebecca Kelly Slaughter said. “With this ruling, the Court has deprived the FTC of the strongest tool we had to help consumers when they need it most. We urge Congress to act swiftly to restore and strengthen the powers of the agency so we can make wronged consumers whole.”

Supreme Court overturns $1.3 billion penalty against payday loan tycoon

The U.S. Supreme Court on Thursday unanimously sided with convicted Kansas City payday loan tycoon Scott Tucker in an appeal of a $1.3 billion penalty in a civil case brought by the Federal Trade Commission.

11th Cir. rules FDCPA restriction on third-party communications applies to debt collector’s transmittal of debtor’s personal information to vendor that generated and sent collection letters

In a very troubling decision of first impression, a unanimous panel of the U.S. Court of Appeals for the Eleventh Circuit has ruled that a debt collector’s transmittal of the plaintiff’s personal information to the vendor it used to generate and send collection letters “constituted a communication ‘in connection with the collection of any debt’ within the meaning of [FDCPA Section 1692c(b)]”.  That provision generally prohibits a debt collector from communicating with anyone other than the debtor and certain specified third-parties “in connection with the collection of any debt” without the debtor’s consent, court permission, or to effectuate a postjudgment judicial remedy.

Attorney General James Urges Congress to Rescind Rule Allowing Predatory Lenders to Take Advantage of Consumers

NEW YORK – New York Attorney General Letitia James today continued her efforts to block federal regulatory overreach that takes advantage of New York’s most vulnerable consumers. As part of a bipartisan coalition of 25 attorneys general, Attorney General James sent a letter to Congress, urging the nation’s federal leaders to use the Congressional Review Act (CRA) to rescind the Office of the Comptroller of the Currency’s (OCC) true lender rule.

Supreme Court’s Decision in Facebook Litigation Narrows the Scope of the TCPA

At the beginning of April 2021, the U.S. Supreme Court unanimously ruled in favor of Facebook in Facebook, Inc. v. Duguid, reversing the decision of the Ninth Circuit Court of Appeals , holding: “To qualify as an ‘automatic telephone dialing system’ under the Telephone Consumer Protection Act (TCPA), a device must have the capacity either to store a telephone number using a random or sequential number generator, or to produce a telephone number using a random or sequential number generator.”

Cash Advance Firm to Pay $9.8M to Settle FTC Complaint It Overcharged Small Businesses

Yellowstone Capital, a provider of merchant cash advances, will pay more than $9.8 million to settle Federal Trade Commission charges that it took money from businesses’ bank accounts without permission and deceived them about the amount of financing business owners would receive and other features of its financing products.

CFPB and New York Attorney General File Suit to Seize Hidden Assets from Operator of Shuttered Debt Collection Scheme

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and New York Attorney General Letitia James today filed a complaint in federal court to seize a $1.6 million home, the ownership of which the complaint alleges was fraudulently transferred by the operator of a massive and now-defunct debt-collection scheme. Douglas MacKinnon transferred ownership of his home to his wife and daughter for the sum of $1 shortly after learning of a federal and state investigation into his companies Northern Resolution Group LLC and Enhanced Acquisitions LLC.

CFPB appeals Ocwen’s victory in servicing suit

The CFPB filed the appeal late Wednesday after all claims against Ocwen were dropped in a case in the U.S. District Court for the Southern District of Florida. Judge Kenneth Marra had ruled that nine of the 10 claims filed by the CFPB in a 2017 lawsuit were barred by the 2014 national mortgage settlement and the tenth claim was dismissed by the court.

CFPB establishes interim final rule on debt collector, tenant evictions

The agency’s guidance requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium, authorities noted. The CDC established the eviction moratorium to protect the public health and reduce the spread of coronavirus.

California Assembly Bill No. 1405 To Establish Fair Debt Settlement Practices Act Again Amended In Assembly On April 20, 2021

On April 19, 2021, Assembly Bill No. 1405 (the “Bill”), which would establish the Fair Debt Settlement Practices Act (the “Act”), was heard by the Assembly Committee on Banking & Finance (the “Committee”). The Committee recommended that the Bill be passed as amended and re-referred it to the Assembly Judiciary Committee. The Bill was then read in Assembly a second time and amended as recommended by the Committee. The newly amended Bill is scheduled for its hearing with the Assembly Judiciary Committee on May 4, 2021. 

BREAKING: 11th Circuit Holds Transmitting Data to Mail Vendor is Unauthorized Third-Party Disclosure

Last month, insideARM reported that in the case of Hunstein v. Preferred Collection & Mgmt. Servs., No. 8:19-cv-983 (M.D. Fla. Oct. 29, 2019), the 11^th Circuit Court of Appeals heard oral arguments regarding whether the practice of using a mail house to send demand letters to consumers violated the Fair Debt Collection Practices Act (FDCPA). Today, the Court has given us their answer, holding that transmitting data to a mail house to generate and send demand letters to consumers does indeed violate the prohibition on third-party disclosure set forth in 15 USCA § 1692c(b). 

North Carolina Department of Insurance Announces New Licensing Portal for Collection Agencies

ACA International’s Licensing Services team has learned that the North Carolina Department of Insurance is changing its license or permit numbers for all licensees.

House Passes Seven Bipartisan Financial Services Bills

WASHINGTON, D.C. - This week, the U.S. House of Representatives passed seven bipartisan bills introduced by House Financial Services Committee Members.

Some small businesses could increase PPP loan size under new Senate bill

Under the bill, introduced Tuesday by Senate Committee on Small Business & Entrepreneurship Chair Ben Cardin, D-Md., thousands of self-employed Americans could qualify for a bigger loan through the Paycheck Protection Program, the massive relief program that provides forgivable loans if businesses maintain payroll.

Members Trust Company Wins 3 Prestigious Diamond Awards from CUNA Councils

TAMPA, Fla., April 20, 2021 /PRNewswire/ -- The annual competition included 35 categories with over 1200 entries from the credit union industry. The awards were presented virtually by the Credit Union National Association (CUNA) Marketing and Business Development Council during Diamond Award Week, which began on April 12, 2021.

Who has student loan debt for Biden to cancel? Surprisingly, millions of boomers

It's not just Americans in their 20s, 30s and 40s who are looking for relief from student loan debt. An estimated 8.4 million people in their pre-retirement years are burdened with school debt, too — from their own time in college decades earlier or from loans taken out for children or grandchildren.

California Department of Justice Joins Multistate Coalition Urging Congress to Rescind OCC Rule That Promotes Predatory Lending

SACRAMENTO - The California Department of Justice joined a coalition of 25 attorneys general today in a letter asking Congress to invalidate a rule by the Office of the Comptroller of the Currency (OCC) that encourages predatory lending by non-bank lenders. The OCC regulates national banks, which are generally not bound by state interest-rate caps. The “True Lender Rule,” issued in October 2020, allows payday lenders, auto-title lenders, and other non-bank entities to evade state limits on loan interest rates through phony "rent-a-bank" partnerships with national banks. The California Department of Justice has a pending multistate lawsuit challenging the OCC's “True Lender Rule,” but today’s letter urges Congress to use its powers under the Congressional Review Act to rescind the rule as the most efficient way to prevent predatory lending abuse and consumer harm.

CFPB Tries To Fend Off A Potential Foreclosure Crisis

The Consumer Financial Protection Bureau (CFPB) is taking a long hard look at mortgage servicers — and whether they’ve really been compliant with pandemic-era programs designed to keep struggling homeowners out of foreclosure. Accusations are surfacing that homeowners are failing to get help they were promised, or that institutions have been discriminatory in how they have portioned out aid.

More homeowners are leaving mortgage forbearance — but still need help

The share of mortgages in forbearance hit 4.50% for the week ending April 11, down from 4.66%, the previous week, according to the Mortgage Bankers Association. That marked the seventh straight week of declines and followed one of the largest decreases on record in the prior week. About 2.3 million homeowners remain in forbearance plans, according to the MBA.

FTC warns it could crack down on biased AI

The US Federal Trade Commission has warned companies against using biased artificial intelligence, saying they may break consumer protection laws. A new blog post notes that AI tools can reflect “troubling” racial and gender biases. If those tools are applied in areas like housing or employment, falsely advertised as unbiased, or trained on data that is gathered deceptively, the agency says it could intervene.

Mortgage rates dip, triggering surge in loan requests

When mortgage rates dropped last week to their lowest levels in two months, buyers pounced. After three weeks of mortgage applications falling, a Mortgage Bankers Association index tracking them surged 8.6 percent.

FTC Testifies Before Congress on its Work to Protect Consumers from COVID-19 Scams, and Threats to its Ability to Return Money to Victims of Illegal Conduct

In testimony before the Senate Commerce Committee, the Federal Trade Commission updated lawmakers on its efforts to combat scams and address other consumer issues related to the COVID-19 pandemic, while urging lawmakers to ensure the agency has the authority it needs to prohibit illegal conduct and return money to consumers who have been victims of illegal conduct.

FTC commissioners agree they should act to protect consumer privacy if Congress doesn’t

The agency is awaiting the confirmation of a fifth commissioner to fill out its slate -- the confirmation hearing for President Joe Biden’s nominee Lina Khan will take place Wednesday -- but it’s clear there are several areas in which the FTC does not need a tiebreaking vote. Commissioners generally agreed that:

Know your rights as a renter facing eviction

The Fair Debt Collection Practices Act (FDCPA) is a federal law that says that debt collectors must follow certain rules when collecting a debt. For example, the FDCPA says that debt collectors can’t harass you or use false or misleading statements to collect a debt.

DFPI Reminds Debt Collectors, Mortgage Lenders and Servicers about COVID-19 Renter and Homeowner Protections

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) recently issued a reminder to future debt collector licensees and existing mortgage lenders and servicers about protections for California renters and homeowners experiencing economic hardship under the COVID-19 pandemic.

CFPB begins cracking down on mortgage servicers

The Consumer Financial Protection Bureau (CFPB) is making good on its threats to police mortgage servicers. In late January, the agency released a series of authority actions warning servicers that they need to do right by consumers who need access to forbearance programs. According to a new report from Reuters, the government watchdog is already actively investigating several servicers.

How student lending can benefit non-bank lenders

Over the last several years, non-bank mortgage originators have established a much larger market share. Additionally, non-bank servicers have more than doubled their ownership of servicing rights in the last 10 years. This gives non-bank lenders and servicers significantly greater access to more consumers and provides an opportunity for student lending to make an impact. 

Know your rights as a renter facing eviction

The Fair Debt Collection Practices Act (FDCPA) is a federal law that says that debt collectors must follow certain rules when collecting a debt. For example, the FDCPA says that debt collectors can’t harass you or use false or misleading statements to collect a debt. The FDCPA applies to many lawyers who regularly collect debt. This may include lawyers who represent landlords or property managers in eviction court to collect unpaid rent, if they start collecting the debt for your landlord after you fall behind on your payments.

The Federal Government Will Now Give PPP Loans to Borrowers in Bankruptcy

In late March, ProPublica reported on a Small Business Administration rule that disqualified individuals or businesses currently in bankruptcy from getting relief through the Paycheck Protection Program, an $813 billion pot of funds distributed to small businesses in the form of loans that are forgiven if the money is mostly spent on payroll. The agency had battled in court against several bankrupt companies attempting to apply for PPP loans, and did not change course even after Congress explicitly passed legislation in December allowing it to do so.

U.S. debt collectors must tell delinquent renters about eviction protections

The new interim final rule takes effect on May 3 and seeks to make sure tenants know about protections against eviction under a nationwide moratorium issued by the Centers for Disease Control and Prevention (CDC). That measure, introduced to limit the spread of COVID-19, has been extended to June 30.

Student loan forgiveness: Will Biden clear $50,000 debt per person, or less? The story today

US student loan debt currently sits at an accumulated total of roughly $1.7 trillion, making it second in consumer debt behind home mortgages. President Joe Biden made canceling $10,000 of student loan debt per student a part of his election campaign, but members of Congress are urging Biden to forgive much more: $50,000 per student. "America is facing a student loan time bomb," Sen. Elizabeth Warren said during a Senate hearing on April 13. The explosion, the Massachusetts Democrat said, "could throw millions of families over a financial cliff."

6 Cybersecurity Tips for Working from Home

This unique transition has required flexibility to adapt to a new environment, and with that new environment has come a different set of security practices. Although many of us have finally established a rhythm when it comes to working from home, it is worth reminding ourselves of some important security practices every remote employee should be implementing.

CFPB Rule Clarifies Tenants Can Hold Debt Collectors Accountable for Illegal Evictions

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. 

Business Lending Volume Is Low Even While Economists Are Optimistic and Consumer Spending Is High

Last week, JP Morgan Chase and Company reported astounding first quarter profits. Smaller banks followed with amazing earnings, and even Wells Fargo showed signs of life recovering from its three year hangover from its troubles, with a strong earnings report.

$10,000? $50,000? What different amounts of student loan forgiveness would mean for borrowers

Phyllis Wintter has had student debt for more than 30 years. At 67, she still owes around $48,000. Now she hopes that change could be coming, and that President Joe Biden will forgive her loans. “It would be great if we could die free of this debt,” said Wintter, who lives in Georgia. But, she added, ”$10,000 wouldn’t do it. I’d still have $38,000, and I can’t afford that.”

Exclusive: Fearing foreclosure crisis, U.S. watchdog cracks down on mortgage servicers

NEW YORK/WASHINGTON (Reuters) - The U.S. consumer watchdog is scrutinizing mortgage servicers’ compliance with pandemic relief programs amid concerns struggling homeowners are not getting the help they need to avoid foreclosures, or are being discriminated against, said a dozen people with knowledge of the regulatory effort.

AG SHAPIRO ENSURES CANCELLATION OF DEBT FOR PA STUDENT LOAN BORROWERS

HARRISBURG – Attorney General Josh Shapiro today announced that his office has entered into an agreement that will result in the cancellation of approximately $2.6 million in private Pennsylvania student loans held by 1,300 students who attended schools operated by the now-defunct Education Corporation of America, including five former Brightwood Career Institute locations in Pennsylvania.

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