Bankers Worried Over Credit Card Balances Paid In Full

Consumers are continuing the pandemic-fueled habit of paying off credit card balances, a practice that now has bankers more than a little worried, The Wall Street Journal reported Tuesday (May 11). Some of the biggest banks in the U.S. are stepping up marketing efforts and sweetening the benefits pot to attract a larger and stronger customer base of card users. In earnings calls, some banks — Discover and Capital One for example — indicated that it’s been more than 20 years since people paid off credit card balances in the first quarter at the rate currently being seen now.

Generation Debt: It’s Not Who You Think

An overwhelming majority of Americans report having some kind of debt, and the number has been increasing in the past year, according to a new survey. While that phenomenon is reported across all age ranges, there are some notable generational differences.

Two Major Trends in Fintech Lending

This past year was a true roller coaster ride for lending businesses: sudden drops in consumer spendings as well as business spendings due to lockdowns, deteriorating credit performances, unemployments and PPP loans, unexpected acceleration in e-commerce and digitalization of financial services, favorable regulation changes, and more. I’m eager to hear directly from all these fintech industry experts at LendIt Fintech USA about what they have learned during the pandemic and what they think will be next for lending.

Update on Federal student loan forgiveness: See where the latest policies and proposals stand

The Biden administration hasn’t made a decision when it comes to forgiving student loan debt, despite pressure from progressive Democrats that have called on the president to issue an executive order that would wipe out millions of borrowers’ debt.

3 Ways to Spot Lending Scams With the CFPB

There are definitely times when it feels like you're on your own in the credit world -- like it's us against the big banks, with no one else on our side. But you do have one big ally in the fight for financial fairness: the Consumer Financial Protection Bureau (CFPB).

Senate votes to repeal CUNA-opposed ‘true lender’ proposal

The Senate voted 52-47 Tuesday night in favor of a CUNA-backed repeal of the Office of the Comptroller of the Currency’s “true lender” rulemaking. CUNA wrote Senate leadership Tuesday supporting the repeal, which was done via the Congressional Review Act (CRA).

Emprise Technologies Announces Promotion of Chris Mazur to Vice President and Matt Scott to Senior Director

Toledo, OH – Emprise Technologies is very excited to announce the promotion of Chris Mazur to Vice President and Matt Scott to Senior Director. Matt and Chris have put in massive effort to build Emprise strong. The growth of the company is apparent in our increasing team numbers as well as our larger diversity of work.

CFPB foreclosure moratorium ‘unnecessary, overbroad’

CUNA supports the Consumer Financial Protection Bureau’s (CFPB) Regulation X amendments regarding streamlined modifications, but strongly objects to a proposed moratorium on foreclosures until 2022. The CFPB proposed a set of rule changes last month that would generally prohibit mortgage servicers from starting foreclosure until after Dec. 31, 2021.

TCN Launches Operator, Next-Generation Call Center Platform

St. George, Utah – May 11, 2021 – TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced the launch of TCN Operator, the next generation of its flagship platform. Built for the modern call center, TCN Operator features an intuitive interface and a comprehensive set of easy-to-use, automated agent tools and advanced apps that all work together to boost agent productivity and improve customer experience.

NAFCU calls on Congress to overturn OCC’s ‘true lender’ rule

NAFCU Vice President of Legislative Affairs Brad Thaler Monday called on senators to support a resolution to use the Congressional Review Act to nullify the Office of the Comptroller of the Currency's true lender rule. The chamber could vote on the resolution this week.

1099-C Discharge Without Debt Cancellation Not Consumer Protection Law Violation

Once again, a borrower who argued his debt was cancelled when he received an IRS Form 1099-C was told by the court that it was merely discharged. The court says “discharge” is not “actual discharge.” While acknowledging that a common consumer may not easily understand the distinction, the court held that “discharge” for IRS reporting purposes is not necessarily “actual discharge” of the obligation.

CFPB defends broad investigation into auto title lender

The Consumer Financial Protection Bureau has denied TMX Finance LLC’s bid to end an investigation into the auto title lender’s business practices, rejecting the company’s claim that it was unlawfully broad.

COVID-19: Federal Judge Rules CDC Not Authorized To Issue Nationwide Eviction Moratorium

A federal judge in Washington, D.C. has ruled that the Centers for Disease Control and Prevention (CDC) exceeded its authority in issuing a nationwide eviction moratorium aimed at protecting renters facing hardship in the wake of the COVID-19 pandemic. 

Fixed-rate student loan refinancing rates sink to new record low for the second straight week

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans into 10-year fixed-rate loans hit another new record low during the week of May 3, 2021. For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender, during the week of May 3:

Here’s why mortgage rates are on the rise

Since the start of the pandemic, mortgage and refinance rates steadily decreased, reaching a historical low of 2.65% for a fixed-rate 30-year mortgage in January 2021. However, over the past few months, we've seen an increase in mortgage rates.

United States: CFPB Proposes 60-Day Extension Of Effective Date Of New FDCPA Regulations

The Bureau of Consumer Financial Protection (CFPB) has proposed and invited comment on a 60-day postponement of the effective date of recently finalized amendments to Regulation F, which implements the Fair Debt Collection Practices Act (FDCPA). The proposed rule, recently published in the Federal Register, would extend until January 29, 2022 the effective date of two final rules adopted at the end of 2020 that currently will become effective on November 30, 2021.

Does the Eleventh Circuit’s Hunstein Decision Mean that the FDCPA Violates the First Amendment?

The Eleventh Circuit’s far-reaching decision in Hunstein v. Preferred Collection and Management Services, Inc. — which we previously covered on this blog — continues to raise questions for the wide range of industries that fall within the FDCPA’s definition of “debt collectors.” To put it briefly, the Eleventh Circuit held that a debt collector violates the FDCPA when it communicates with any third party — including a vendor or other party assisting with the collection or servicing of the loan — regarding the loan or debt.

One-third of people who delayed mortgage payments during COVID-19 used cash for groceries, utilities

One of the lifelines for homeowners during the COVID-19 pandemic has been forbearance, an ability to skip or make smaller monthly payments on mortgages under the CARES Act, leaving them more cash for emergencies.

Some Pennsylvania student debt will no longer be turned over to debt collectors

Nearly $18 million in fees owed to the state by former students was recently pulled from private debt collection agencies and taken over by the Pennsylvania Office of Attorney General. The state will no longer send any debts for outstanding student fees to for-profit debt collectors — at least not before more consumer-friendly efforts are attempted to collect the debt.

Here’s how to avoid a personal loan company scam

It’s an unfortunate reality that most people will interact with at least one scammer when they’re filing financial paperwork for different types of loans, like student loans or a home loan. If you’re looking for a personal loan to help cover expenses, this type of scam can be particularly painful.

Report: Kabbage, FinTechs Under Justice Department Scrutiny For PPP Loan Distribution

The U.S. Department of Justice is conducting a civil probe into whether some FinTechs distributing federal Payroll Protection Program relief botched loan sizes, Reuters reported, citing numerous unnamed sources. One of the companies the government is looking into is Atlanta-based Kabbage, according to the wire service. Spokesmen for American Express, which purchased a significant portion of Kabbage assets, and the Justice Department, declined comment, according to Reuters.

New legislation aims to forgive student debt for eligible caregivers to veterans

Recently introduced Congressional legislation would forgive student loan debt for eligible caregivers to veterans. The bill, introduced by U.S. Reps, Mike Turner, R-Dayton, and Gerald Connolly, D-Va., would amend the Higher Education Act of 1965 to make Veterans Affairs-designated primary family caregivers eligible for the public service loan forgiveness (PSLF) program.

MUSA Auto Finance will rebrand as DRIVRZ Financial, extend focus to mobile app connecting consumers and dealers

DALLAS, May 6, 2021 /PRNewswire/ -- MUSA Auto Finance, an automotive finance and technology lender specializing in effortless leasing, has announced that it will rebrand as DRIVRZ Financial.

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.

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