California DFPI Seeks Comments on Debt Collection License Application and Requirements

The California Department of Financial Protection and Innovation (DFPI) has filed a Notice of Proposed Rulemaking to add to the agency’s licenses application process.

CFPB Takes Action Against Reverse Mortgage Lender for Deceptive Advertising

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against Nationwide Equities Corporation for sending deceptive loan advertisements to hundreds of thousands of older borrowers. The Bureau found that advertisements from Nationwide Equities misled consumers about how much money they could receive from a reverse mortgage, the fees and costs associated with the products, and the consequences of nonpayment.

Why an Opinion from the Eleventh Circuit is Keeping Creditors Up at Night

A recent federal appeals decision is sending shockwaves throughout the financial services sector. In Hunstein v. Preferred Collection & Mgmt. Services, Inc., the Court of Appeals for the Eleventh Circuit held that, under the federal Fair Debt Collection Practices Act (FDCPA), businesses and individuals operating as “debt collectors” are prohibited from communicating debtor information to third-party service providers and vendors (such as mail processors) hired to send dunning correspondence or other communications “in connection with the collection of any debt.”

FTC Asks Congress to Pass Legislation Reviving the Agency’s Authority to Return Money to Consumers Harmed by Law Violations and Keep Illegal Conduct from Reoccurring

In testimony before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce, the Federal Trade Commission asked Congress to pass legislation that would revive the FTC’s ability to return money to their constituents who were harmed by law violations and to stop that illegal conduct from reoccurring.

CFPB issues interim rule applicable to FDCPA debt collectors seeking to evict tenants for non-payment of rent

The CFPB has issued an interim final rule that requires “debt collectors” as defined under the FDCPA who seek to evict tenants for non-payment of rent to provide written notice to tenants of their rights under the Centers for Disease Control and Prevention (CDC) Order that establishes an eviction moratorium. The interim rule also prohibits FDCPA debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. The rule becomes effective on May 3, 2021 and comments on the rule must be submitted by May 7, 2021.

CFPB Delays Mandatory Compliance Date For General QM Final Rule

The Consumer Finance Protection Bureau is moving the mandatory compliance date of the General Qualified Mortgage final rule to Oct. 1, 2022. The CFPB stated that this delay was made in order to help ensure access to responsible, affordable mortgage credit and preserve flexibility for consumers affected by the COVID-19 pandemic. The original date was scheduled for July 1, 2021, according to the press release.

Statement by CFPB Acting Director Dave Uejio on Mr. Cooper Unauthorized Withdrawals

WASHINGTON, D.C. – Today Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio issued the following statement in response to apparent unauthorized withdrawals made by a mortgage servicer, Mr. Cooper. Unauthorized duplicate-payment drafts by Mr. Cooper appear to have resulted in hundreds of thousands of consumers’ bank accounts being debited for multiples of their mortgage payments. Affected consumers have reported being charged overdraft fees and likely suffered additional harm as a result of these unauthorized withdrawals.

CFPB looking at Mr. Cooper after withdrawal errors

On Tuesday, the Consumer Financial Protection Bureau (CFPB) announced it was looking into a situation with mortgage servicer Mr. Cooper after the company made unauthorized withdrawals from borrower accounts over the weekend due to a vendor error. “The CFPB is taking immediate action to understand and resolve the situation that has affected hundreds of thousands of consumers,” said CFPB acting director Dave Uejio. “The CFPB will use all appropriate tools at our disposal to help ensure harmed consumers receive relief. Consumers affected by the incident should monitor their accounts and may contact Mr. Cooper directly.”

No Coverage for Common Law Claims “Arising Out Of” Alleged TCPA Violations

TCPA lawsuits are expensive. So when Colorado company Mesa Laboratories, Inc. faced a class action for its unsolicited faxes promoting dental-industry-related services, it turned to its insurance company for coverage. The insurance company refused, citing an exclusion in the policy for any claims “arising out of” the TCPA. The District Court upheld the insurer’s coverage decision and the Seventh Circuit affirmed. Mesa Laboratories, Inc. v. Federal Insurance Company, No. 20-1983, 2021 U.S. App. LEXIS 11365 (7th. Cir. April. 20, 2021).

CFPB shake-up: What administration changes may mean for auto lenders

Things are quickly changing at the Consumer Financial Protection Bureau. President Joe Biden made Dave Uejio acting director of the CFPB on January 20, and nominated former FTC Commissioner Rohit Chopra for director.

Innovation and collaboration: Tech sprints support improvements in consumer notifications and data collection and processing

Today, I’m excited to share the team presentations from the Bureau’s first two tech sprints. Our tech sprint program emphasizes a “technology first” approach that asks, across a range of challenges, what role advanced technology can play to strengthen compliance, encourage innovation, drive down cost and burden, and promote transparency.

ConServe to Award Continuing Professional Education (CPE) Credits

Rochester, N.Y. – Today ConServe announced it will award sponsored Continuing Professional Education (CPE) credits through its ConServe University^® quarterly Webinar Series. CPE is a requirement for most CPAs and financial leaders to maintain their professional competence and provide quality professional services.

COVID-19: CFPB’s Proposed Mortgage Servicing Amendments Add Loss Mitigation Protections for Borrowers and Signal Heightened Expectations for Mortgage Servicers’ Operational

On 5 April 2021, the Consumer Financial Protection Bureau (CFPB) solicited comments on proposed amendments to Regulation X,[1] which amendments are intended to assist mortgage borrowers impacted by the COVID-19 pandemic.[2] Though the proposal to extend the current foreclosure moratorium to January 2022 is gaining the headlines, it is important to note that the proposed amendments, if adopted, once again require modification to servicers’ existing loss mitigation programs in order to “maximize the likelihood that borrowers exiting forbearances have sufficient time to complete a loss mitigation application.”[3]

Student loan forgiveness: Where Joe Biden’s student debt plan stands today

Student loan debt right now in the US is roughly $1.7 trillion, sitting just behind home mortgages in consumer debt and ahead of credit card debt and auto loans. While we don't know if President Joe Biden will cancel $10,000 per student in loan debt, some Congress members are pressuring Biden to go even higher, forgiving $50,000 per student.

Florida ranks third for states with highest share of renters with debt

TAMPA, Fla. — Florida is ranked third when it comes to states who have the highest shares of renters with debt, according to data from PolicyLink. PolicyLink, a national research and action institute, says across the country the share of renters with debt is trending downward from a high of 19% in January.

Here’s the average student debt balance of borrowers under 25

Collectively, there are 7.8 million people ages 24 and younger carrying an outstanding $115.50 billion in student loan debt. Individual borrowers in this age group are carrying an average balance of $14,807.69, according to statistics from the U.S. Department of Education’s Q4 2020 data. The average debt load is $39,351 for student loan borrowers of all ages. While that’s more than double what the 24-and-younger cohort carries, this segment of borrowers still has years of interest accruing ahead of them — not to mention that many may take on more debt as they finish up their undergrad degrees and pursue additional education.

Fixed-rate student loan refinancing rates just miss tying record low

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans fell just shy of record lows during the week of April 19, 2021 .

Innovation and collaboration: Tech sprints support improvements in consumer notifications and data collection and processing

Today, I’m excited to share the team presentations from the Bureau’s first two tech sprints. Our tech sprint program emphasizes a “technology first” approach that asks, across a range of challenges, what role advanced technology can play to strengthen compliance, encourage innovation, drive down cost and burden, and promote transparency.

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.

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