CFPB Looks Into US Bancorp’s Consumer Sales Practices

The Consumer Financial Protection Bureau (CFPB) is looking into some of U.S. Bancorp’s consumer sales practices, according to the financial services company’s 10-Q filed this week. U.S. Bancorp said in the filing that it has responded to the CFPB and continues responding to the Bureau.

Pa. aims to collect nearly $18 million in unpaid student fees, without using collection agencies

Nearly 4,800 people have accumulated $17.9 million in unpaid student fees owed to one of the 14 state-owned universities and Thaddeus Stevens College of Technology.

CFPB Reiterates Focus on Mortgage Industry COVID-19 Response, Highlights Fair Servicing Concerns

On May 4, 2021, the Consumer Financial Protection Bureau (CFPB or the Bureau) released two new reports that double down on its message in early April 2021 that the Bureau is heightening its supervisory and enforcement scrutiny of mortgage servicers. See April 2021 GT Alert, CFPB Intensifies Focus on Pandemic Mortgage Servicing. The first research report analyzed the racial and ethnic distribution of borrowers in mortgage delinquency or forbearance programs, finding that Black and Hispanic mortgage borrowers are overrepresented in those groups.

Consumer watchdog probing Wells Fargo’s mishandling of accounts

The Consumer Financial Protection Bureau (CFPB) is investigating Wells Fargo over its handling of consumer bank accounts, the company said.

Mortgage rates are falling again

The mortgage rate for 30-year mortgages fell slightly over the past week, marking three straight weeks rates remained below 3%.The average interest rate on a 30-year fixed-rate mortgage fell to 2.96%, according to Freddie Mac. The 15-year fixed-rate mortgage dropped to 2.30%.

After CFPB Refuses to Change FDCPA’s Strict Liability, 9th Circuit Permits Bona Fide Error Defense for Statute of Limitations Mistake

The Consumer Financial Protection Bureau recently considered eliminating strict liability for one category of claims under the Fair Debt Collection Practices Act: claims asserting that a debt collector brought or threatened to bring legal action to collect a time-barred debt.

Here’s who would benefit most from student loan forgiveness

Outstanding student loan debt in the U.S. has climbed to $1.7 trillion, a balance that is not evenly distributed among college graduates. Certain groups are far more burdened than others. President Joe Biden is now considering whether or not to reduce or eliminate those burdens by forgiving student debt. Here’s who would benefit the most should the president move ahead.

Wyoming Supreme Court: Attorney General Can Investigate Debt Resolution Company Accused Of Ripping-Off Clients

Wyoming’s Supreme Court has cleared the way for an investigation by the state’s attorney general into a debt resolution company registered in Wyoming accused of taking money from its clients and taking no action on their behalf.

Debt Collectors Must Be Mindful of Communications with Third Parties Regarding Consumers in Alabama, Florida, and Georgia

Noting it was a matter of first impression, on April 21, 2021, the Eleventh Circuit held consumers may assert a claim under Section 1692c(b) of the Fair Debt Collection Practices Act (the “FDCPA”) for a debt collector’s transmittal of the consumer’s personal information to a third-party. 

Paycheck Protection Program has run out of money for most borrowers. What you need to know

The Paycheck Protection Program has run out of money for most borrowers before its planned May 31 end, the Small Business Administration said. Going forward, the program will only accept new applications from community financial institutions, which typically serve minority borrowers, as about $8 billion in funding was set aside for such businesses.

Student loan forgiveness: Troubled public servant program ‘needs a very critical look,’ Education Secretary says

The Biden administration appears to be highly motivated to fix the Public Service Loan Forgiveness (PSLF) system that has been long considered to be "broken" by experts. "We need to do better with Public Service Loan Forgiveness — about 98% have been rejected, of the claims that are put in," Education Secretary Miguel Cardona told a hearing held by the House Subcommittee on Labor, Health and Human Services, Education, and Related Agencies on Wednesday.

Payments, lending and neobanks rule fintechs in emerging markets, report says

Tech investments in emerging markets have been in full swing over the past couple of years and their ecosystems have thrived as a result. Some of these markets like Africa, Latin America, and India, have comprehensive reports by publications and firms on trends and investments in their individual regions. But there’s hardly a report to compare and contrast trends and investments between these regions and rightfully so. Such a task is Herculean.

CFPB, FTC urge landlords to adhere to moratorium on evictions

Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio and Federal Trade Commission (FTC) Acting Chair Rebecca Kelly Slaughter are reminding the nation’s largest apartment landlords that federal protections remain in place to keep tenants in their homes and stop the spread of COVID-19.

Eleventh Circuit Throws Debt Collectors Under the FDCPA Bus for Sharing Account Information with Letter Vendors

In a panel decision on April 21, the Eleventh Circuit held that (1) a consumer had standing to bring a claim under the Fair Debt Collection Practices Act (FDCPA) because he alleged an invasion of privacy based on the spread of his debt-related information; and (2) a debt collector's outsourcing of its letter process to a third-party letter vendor violates the FDCPA because sending the data to create and mail letters to consumers violates the prohibition on third-party disclosure set forth in Section 1692c(b) of the FDCPA.

6 ways to spot student loan forgiveness scams

Over the past few months, there has been a lot of talk about student loan relief. Federally-held student loan payments are on hold due to COVID. Some private lenders are also offering forbearance and lower monthly payments. Sadly, scammers posing as legitimate lenders can take advantage of the hardship caused by the coronavirus pandemic by offering to pay off or at least pay down your student loans. All you have to do is pay an upfront fee and provide some personal information. Sound too good to be true? It likely is.

The Office of Servicemember Affairs year in review: Working together to protect servicemembers, veterans, and military families

We are proud to share some of the great work done by the Bureau and the Office of Servicemember Affairs (OSA) in 2020, highlighted in our eighth annual report. Even though the pandemic has changed where we work and how we interact with our colleagues, we remain committed to educating and empowering servicemembers, veterans, and military families (collectively referred to as “servicemembers” in this report), monitoring their complaints, and coordinating with other state and federal agencies to ensure their financial concerns are given the attention they deserve.

Making Ends Meet series: Consumer use of payday, auto title, and pawn loans

In a new report in our Making Ends Meet series, we find that consumers who use a payday, auto title, or pawn loan in one year are often still using that type of loan a year later. Some users of these services have lower cost credit available on credit cards, while others lack access to traditional credit. Among payday, auto title and pawn loan borrowers who experience significant financial shocks, the costs of these shocks often exceed other possible sources of funds.

Judge says CDC doesn’t have authority to issue eviction moratorium

A federal judge in Washington on Wednesday declared that the US Centers for Disease Control and Prevention's moratorium on eviction for non-payment must be set aside.

The ruling from Judge Dabney Friedrich says the Public Health Service Act does not give CDC the legal authority to impose the moratorium, which was first issued last year amid the economic fallout of the Covid-19 pandemic.

FTC Acting Chairwoman Slaughter Announces New Appointments to Agency Leadership Positions

Federal Trade Commission Acting Chairwoman Rebecca Kelly Slaughter announced that she has selected Austin King to be the Associate General Counsel for Rulemaking. Replacing Mr. King, who previously served as one of the Acting Chairwoman’s attorney-advisors for consumer protection, will be Gaurav Laroia.

The California DFPI issues proposed regulations to implement new Debt Collection Licensing Act

On April 23, 2021, the California Department of Financial Protection and Innovation (“DFPI”) issued proposed regulations to implement the Debt Collection Licensing Act (“DCLA”).

Debt collector licenses are required beginning on January 1, 2022 but a debt collector that applies for a license before that date can continue to operate while the application is pending.  In its Notice of Rulemaking Action, the DFPI states that it anticipates that final rules will become effective on or about November 19, 2021, thereby allowing debt collectors to apply for a license before January 1, 2022.

CFPB Gauges COVID-Related Borrower Challenges

The Consumer Financial Protection Bureau (CFPB) has issued two reports showing that more work needs to be done to help mortgage borrowers coping with the COVID-19 pandemic and economic downturn. The first report, “Characteristics of Mortgage Borrowers During the COVID-19 Pandemic,” documents that Black and Hispanic mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers. In a second report, the CFPB reports that overall mortgage complaints to the CFPB have risen to their highest level in three years.

Mortgage complaints hit three-year-high, CFPB says

In April, the Consumer Financial Protection Bureau warned the industry of its plans to keep a much closer eye on servicers as they transition borrowers out of forbearance. On Tuesday, a report from the government watchdog may have just kicked up the incentive. According to the report, in March 2021, consumers submitted more mortgage complaints to the CFPB than in any month since April 2018. Within those complaints, mentions of forbearance and related terms reached their highest monthly average since March and April of 2020, while the number of borrowers who reported struggling to make payments also rose.

The Hunstein Effect – Examining the Eleventh Circuit’s Ruling and What’s Next for Debt Collectors and Their Third-Party Service Providers

The U.S. Court of Appeals for the Eleventh Circuit has delivered a novel and highly consequential interpretation of the Fair Debt Collection Practices Act that is potentially transformative for debt collectors and their third-party service providers.

Biden’s education secretary isn’t ruling out an extension of the student-loan payment freeze

In one of his first actions in office, President Joe Biden extended the freeze on student-loan payments through September 30. Education Secretary Miguel Cardona said on Monday that the department was looking at whether to resume payments and interest come October.

More than 178,000 troops may be eligible for this student loan debt forgiveness benefit, watchdog says

Although many military members and Defense Department civilian employees could benefit financially from a 14-year-old federal student loan debt forgiveness program, the benefit is underused and misunderstood, according to a new report from government auditor.

Student Debt-to-Income Ratios Lowest in California, Highest in Mississippi

Average college costs in 2020-2021 for full-time undergraduates range from $18,550 for in-district students at two-year public schools to $54,880 for students at four-year, private nonprofit schools, according to College Board.

CFPB Issues Reports Detailing Mortgage Borrowers’ Continuing COVID-19 Challenges

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) released two reports today showing that more work needs to be done to help mortgage borrowers coping with the COVID-19 pandemic and economic downturn. The first report documents that Black and Hispanic mortgage borrowers are much more likely to be delinquent or in a forbearance program than white borrowers. In a second report, the CFPB reports that overall mortgage complaints to the CFPB have risen to their highest level in three years.

1 in 4 Americans with debt are in collections, survey reveals

Rachel Cruze, Personal Finance Expert with Ramsey Solutions, joins the Yahoo Finance Live panel to discuss a new survey shedding light on the state of personal finance for Americans during COVID-19.

Federal Reserve official set to lead U.S. banking regulator: reports

Treasury Secretary Janet Yellen is reportedly set to name a Federal Reserve official to take over at the U.S. Office of the Comptroller of the Currency on an acting basis, according to reports from the Wall Street Journal and Politico. 

Stunning Decision from West Virginia: Common Carriers Can Be Liable for TCPA Violations on Their Network

Platforms, carriers and anyone else worried about TCPA liability should pay close attention to a recent decision out of West Virginia.  Daina Mey sued several common carriers–including CenturyLink and Level 3 Communications–for alleged violations of the TCPA.  The common carriers moved to dismiss, raising a slew of arguments against Ms. Mey’s complaint.  The Court rejected all of them and denied the common carriers’ motions. 

What Supreme Court’s FTC ruling means for LendingClub

One of the biggest winners from a recent Supreme Court decision involving the Federal Trade Commission is a Silicon Valley consumer lender that was not even a party to the lawsuit. LendingClub has been mired in a three-year legal fight with the FTC over allegedly deceptive business practices. But the San Francisco-based company now appears poised to reach a favorable settlement following a high court ruling that undermined the FTC’s authority to seek restitution.

Biden admin taps Rich Cordray, former CFPB chief, to oversee federal student loans

The Biden administration has tapped Richard Cordray, the former director of the Consumer Financial Protection Bureau, to serve as the top official overseeing the federal government’s $1.6 trillion portfolio of student loans and array of financial aid programs.

FTC, CFPB Send Notice Letters to Landlords Regarding Pandemic Eviction Moratorium

The acting heads of the Federal Trade Commission and Consumer Financial Protection Bureau (CFPB) have sent joint notification letters to the nation’s largest apartment landlords, which collectively own more than 2 million units, reminding them of their obligations under the ongoing national eviction moratorium put in place as a result of the ongoing COVID-19 pandemic.

FTC issues warning that using biased AI could violate consumer protection laws

The Federal Trade Commission issued a warning to businesses and health systems this week that the use of discriminatory algorithms could violate consumer protection laws. It could signal that the agency plans to take a hard look at bias in artificial intelligence technologies. "Hold yourself accountable—or be ready for the FTC to do it for you," Elisa Jillson, an attorney in FTC’s privacy and identity protection division, wrote in an official blog post.

Student Loan Debtors Seek High Court Standard in Debt Discharge

Consumer advocates are calling on the U.S. Supreme Court to provide a uniform, nationwide standard for what debtors must prove to eliminate student loan debt in bankruptcy.

Rhode Island Banking Division Announces Move to State Examination System

The Rhode Island Division of Banking will soon start using the State Examination System (SES)  to conduct supervisory activities such as examinations and commencement of administrative actions, share consumer complaints and other supervisory activities with licensees.

FTC announces refunds for victims of credit card scam, BBB warns of airfare scams

GREEN BAY, Wis. (WBAY) - This week, the Federal Trade Commission (FTC) announced that checks are in the mail for nearly 11,000 victims of a credit card interest rate reduction scheme. The FTC says the checks total more than $11 million, and are for victims of a scheme operated by E.M. Systems and Services, who used a variety of fake business names and websites to cold call people with credit card debt.

Debt collectors would be barred from taking COVID-19 stimulus money

Consumer groups are applauding a bill that is meant to keep debt collectors from garnishing the stimulus payments and other direct aid approved by the federal government to offset the financial strain created by the pandemic.

CFPB makes postponement of QM rule compliance official

The Consumer Financial Protection Bureau (CFPB) has made the postponement of the General Qualified Mortgage (QM) final rule official.

DFPI Announces Members of New Debt Collection Advisory Committee

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) today announced the formal creation of its inaugural debt collection advisory committee, a seven-member board that will provide critical feedback to the Department as it stands up its debt collection licensing program. The diverse group includes a consumer advocate and representatives from the debt collection, debt-buying, third-party collection, and collection law industries.

United States: Reverse Mortgage Lender Settles CFPB Charges For Misleading Advertising

A reverse mortgage lender settled CFPB charges for sending advertisements to senior citizens that misrepresented the costs and risks associated with the lender's loans.

New York’s Highest Court Eliminates A Spurious Issue In Foreclosure Litigation

When a mortgage borrower stops paying its loan and the lender eventually decides to foreclose, the lender first needs to accelerate the loan. In other words, the lender needs to tell the borrower that the loan is in default and the borrower must repay it all now. If the borrower doesn’t do that, then eventually the lender goes ahead with foreclosure litigation and eventually, if all goes well for the lender, the borrower loses its real property. In New York that judicial proceeding can take at least one or two years, even if the borrower has no meritorious defenses. Sometimes a lender accelerates the loan and then doesn’t pursue foreclosure, instead sitting on its hands and doing nothing. If that continues for six years in New York, or other periods in other states, then the lender loses its right to foreclose. 

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