U.S. Data Protection Act Would Create A Federal Data Privacy Oversight Agency

U.S. Sen. Kirsten Gillibrand (D-New York) announced that she reintroduced Senate Bill 2134, the Data Protection Act of 2021. The bill creates an independent federal Data Protection Agency (DPA) to protect individuals' data, safeguard their privacy and ensure that data practices are fair and transparent.

Minnesota Bill Package Passes with ARM Industry Remote Work and Licensing Provisions

Minnesota Gov. Tim Walz signed the Commerce and Energy Omnibus bill into law on June 26, which includes several provisions that impact the accounts receivable management industry, thanks in large part to the hard work of the Great Lakes Credit and Collection Association leaders and the unit’s lobbyist, Judy Cook. The bill becomes effective Aug. 1.  

CFPB beefs up protections for struggling homeowners, but will not ban foreclosures

About 2 million homeowners are still in some type of mortgage forbearance amid the health and financial fallout brought on by the Covid-19 pandemic. While the U.S. government extended the foreclosure moratorium through July 31, the Consumer Financial Protection Bureau isn’t planning to put any further bans on foreclosures in place.

CFPB Supervisory Highlights

We periodically publish Supervisory Highlights to share key examination findings. These reports also communicate operational changes to our supervision program and provide a convenient and easily accessible resource for information on our recent guidance documents.

The trends of commercial credit reporting on consumer credit

Lenders of small business loans and credit products have several options for how and where they report information about the borrower and the status of the commercial credit product. While reporting, also known as furnishing, is generally provided to business credit reporting companies – including Dun & Bradstreet, Experian, Equifax, and the Small Business Financial Exchange – many small business owners may also find information on their commercial credit products on their consumer credit reports, especially when their accounts are delinquent.

CFPB Report Highlights Supervisory Findings of Wide-Ranging Violations of Law in 2020

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a report highlighting legal violations identified by the Bureau’s examinations in 2020. The report also highlights prior CFPB supervisory findings that led to public enforcement actions in 2020 resulting in more than $124 million in consumer remediation and civil money penalties.

Preferred Collection and ACA Tell 11th Circuit That SCOTUS Opinion in Ramirez Supports Request for Rehearing in Hunstein

The defendant debt collection agency in Hunstein v. Preferred Collection & Mgmt. Servs. Inc. and ACA International both recently filed letters of supplemental authority with the 11th Circuit Court of Appeals under Federal Rule of Appellate Procedure 28(j).

Top Federal Reserve official ‘skeptical’ about need for US digital dollar

A top Federal Reserve official on Monday advocated against creating a digital version of the U.S. dollar, questioning the use cases and security of a Fed-issued digital currency.

FSA Changes Course on Streamlined Loan Servicing

The Office of Federal Student Aid has canceled its solicitation for vendors to run its intermediate phase of modernizing student loan servicing, according to people familiar with the matter. FSA introduced the Interim Servicing Solution, or ISS, last fall as a part of its Next Gen FSA Initiative to provide a bridge between the current student loan servicing system and a single, modernized website. Currently, there are nine different pre-default loan servicers that each operate their own website, contact center and staff training. ISS was intended to cut that down to two vendors who would take on all of the same responsibilities as the existing servicers.

Farm Debt Declines, Loan Performance Improves- Kansas City Fed

Last week, Nathan Kauffman and Ty Kreitman, of the Federal Reserve Bank of Kansas City, penned an update titled, “Farm Debt Declines Further and Credit Stress Eases,” which noted that, “Agricultural debt at commercial banks continued to decline in the first quarter of 2021 and farm loan performance improved.” The Kansas City Fed pointed out that, "The outlook for agriculture remained strong heading into the summer months. Robust demand for key farm commodities continued to support strong prices and optimism across the sector." “Increases in production costs and persistent drought in many regions lingered as concerns, however; and profitability for cattle producers remained narrow. Overall, strength in aggregate conditions and lasting support of government aid and lending programs have continued to limit increases in farm debt and ease agricultural credit stress.” More narrowly, Kaufmann and Kreitman explained that, “Farm debt at commercial banks continued to shrink in the first quarter. Non-real estate farm debt decreased by 10% from a year ago as strong profits in large segments of the agricultural sector limited producers’ needs for operating loans. Similarly, farm real estate debt declined by 3% from a year ago despite ongoing increases in the valuations of farm real estate.”

CFPB Issues Rules to Facilitate Smooth Transition as Federal Foreclosure Protections Expire

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today finalized amendments to the federal mortgage servicing regulations to reinforce the ongoing economic recovery as the federal foreclosure moratoria are phased out and which will help protect mortgage borrowers from unwelcome surprises as they exit forbearance. The amendments will support the housing market’s smooth and orderly transition to post-pandemic operation.

SCOTUS decision on FHFA’s constitutionality could provide support for validity of pre-Seila Law CFPB actions

In its decision earlier this week in Collins v. Yellin (previously captioned Collins v. Mnuchin), the U.S. Supreme Court, relying on its decision in Seila Law, held that the Federal Housing Finance Agency’s structure is unconstitutional because the Housing and Economic Recovery Act of 2008 only allows the President to remove the FHFA’s Director “for cause.”  Despite ruling that the FHFA’s structure was unconstitutional, the Supreme Court also held that the proper remedy for the constitutional violation was not to invalidate the FHFA actions challenged by the plaintiffs.

OCC Working With Tech Firms on Credit Score Alternatives

During the American Bankers Association’s Regulatory Compliance Conference this week, Grovetta Gardineer, a senior official at the OCC, said the regulator is working to find nontraditional ways to establish a good credit history for those with no credit.

Legislature looks to halt child support debt collections — only for some

California lawmakers have advanced a budget proposal to stop collecting child support debt from some parents who are receiving cash assistance, but the proposed solutions are a far cry from what advocates for those debt-holders sought in January. The Legislature’s budget proposal would reduce or expunge debt owed to the government – not the debt owed to families – for parents whose only source of income is from Supplemental Security Income or State Supplementary Payment, the Cash Assistance Program for Immigrants, a combination of SSI/SSP and Social Security Disability Insurance benefits, or Veterans Administration disability benefits. 

As foreclosure protections end, it’s time to work with your mortgage servicer

Today we finalized amendments to federal mortgage servicing rules to help ensure that mortgage servicers give homeowners a meaningful opportunity to pursue available foreclosure avoidance options while homeowners are recovering from the effects of COVID-19. Effective August 31, 2021, most mortgage servicers must tell you about your repayment or other options when they reach out to you.

Biden Selects Nominee for FHA Commissioner, Plans to Appoint Acting CFPB Director to HUD

The White House announced on Friday that President Joe Biden has selected a series of new nominees for positions within the administration, including for Assistant Secretary for Housing, Federal Housing Commissioner (FHA Commissioner) as well as the appointment of the current Acting Director of the Consumer Financial Protection Bureau (CFPB) to a position at the U.S. Department of Housing and Urban Development (HUD).

NICE TCPA WIN!: Court Holds System Not an ATDS Because It did not Call From a Random List

In Hufnus v DoNotPay, Case No. 20-cv-08701, Doc. No. __ (N.D. Cal. June 24, 2021) the Court held that a system is not an ATDS if it calls sequentially from a non-random list of numbers. And that’s a pretty nice win. But we know courts are struggling with this, so don’t get too excited just yet.

Planning to take out a federal student loan this fall? Prepare for a higher interest rate

Students planning to borrow federal student loans for the upcoming school year, take note: Interest rates for new ones will tick up a percentage point come July 1, to more than 3.7% for undergraduates. This change comes as interest rates on existing federal student loans are set at zero percent through the end of September as part of coronavirus relief.

Lina Khan Takes Charge of the Federal Trade Commission

On June 15, 2021, in a 69–28 vote, the Senate confirmed Lina Khan to fill the current vacancy at the Commissioner level of the Federal Trade Commission (“FTC”). Immediately upon her confirmation, President Biden tapped Ms. Khan for FTC Chair. Since Ms. Khan has no prior experience at the FTC and is only 32, her appointment to lead the FTC took many by surprise. Although Acting Chair Rebecca Slaughter had been thought to be a likely candidate for the position since the departure of former Chair Joseph Simons, the administration took a different path.

U.S. government fails to collect over $1 billion in debt from nearly 1,300 colleges, report says

The Department of Education has failed to collect more than $1 billion in debt from nearly 1,300 colleges, most of which are for-profit, according to a report released Thursday by a nonprofit student advocacy group. These institutions owe money to the department as of February, according to the National Student Legal Defense Network’s report, which cites documents obtained over the past two years through Freedom of Information Act requests.

Shelling it Out– New Ruling Shows CIPA Cases Can Be Even More Dangerous than TCPA

Quick one for you TCPAWorld. In Collins v. Enver Solar, SACV19-00146-JLS-KES, 2021 U.S. Dist. LEXIS 115616 (C.D. Cal. May 26, 2021) we get a peek at how dangerous claims under California’s famous Invasion of Privacy Act (CIPA) can be.

9 in 10 student loan borrowers aren’t ready to begin payments again, survey finds

The vast majority of nearly 24,000 student loan borrowers surveyed recently said they are unprepared for the pandemic payment pause ending after September. The sampling, conducted between June 17 and June 22 through a 46-question survey distributed via email to a group of followers of advocacy group Student Debt Crisis, found that 9 in 10 respondents across all 50 states were not ready to resume making payments in October.

CDC Director Extends the Eviction Moratorium for 30 days

CDC Director Dr. Rochelle Walensky has signed an extension to the eviction moratorium further preventing the eviction of tenants who are unable to make rental payments. The moratorium that was scheduled to expire on June 30, 2021 is now extended through July 31, 2021 and this is intended to be the final extension of the moratorium.

Ripple Effects of Supreme Court’s TCPA Decision Still Developing for Companies Using Auto-Dialers

If you work in the Telephone Consumer Protection Act (TCPA) space, you are certainly aware of the landmark unanimous decision by the United States Supreme Court in Facebook v Duguid[1], in which the Court narrowed the definition of an automatic telephone dialing system (ATDS) to equipment that has the capacity to either store or produce numbers using a random or sequential number generator.

U.S. House targets ‘predatory lenders’, votes to repeal Trump banking rule

WASHINGTON (Reuters) - The U.S. House of Representatives voted Thursday to repeal a contentious banking rule introduced during former President Donald Trump's administration that Democrats say allows predatory lenders to skirt state consumer protections.

Agricultural Lending: By the Numbers

Agricultural production loan demand declined 6.7% due to rising costs, supply and production bottlenecks, price volatility and an increase in federal cash payments, the report found. Government payments also enabled producers to pay down existing loan balances, according to the report.

Student loan rates set new record lows – how to know if you should refinance

If you've been considering refinancing your private student loans, there's never been a better time to do so. Student loan refinancing rates set a new record low for the week of June 14, based on an analysis of borrowers with credit scores of 720 or higher who refinanced their student loans on Credible's online marketplace.

FTC Sends Refunds to People who Lost Money to Student Loan, Mortgage Debt Relief Scheme

The Federal Trade Commission is sending refunds totaling more than $223,000 to people who lost money to a student loan and mortgage debt relief operation.

New data show improving yet sustained housing insecurity risks

In March 2021, we released an initial report on the effects of the COVID-19 pandemic on housing insecurity We continue to monitor the market to assess new and developing risks to consumers, and we share updated charts from the report below that show an improving economic picture, yet sustained housing insecurity risks.

Majority of Consumers in Accommodation Programs Continued to Make Payments

Enrollment in financial hardship programs grew significantly as a result of the COVID-19 pandemic – to approximately 7% of all accounts for credit products such as auto loans and mortgages. However, a new TransUnion (NYSE: TRU) study found that the majority of consumers continued to make payments on their accounts even when in an accommodation program.

Medical Debt Collection Bill Takes Effect July 1 in Nevada

Less than a month after it was signed by Nevada Gov. Steve Sisolak, the state’s new medical debt bill will take effect on July 1.

What CFPB Data Sharing Rule Would Mean For Financial Institutions

It seems simple: People want access to all their financial data from their banks and credit unions and want to be able to share that information with third parties. It's not that easy – financial institutions argue it could be a major security concern. Yet, the CFPB may impose a long-delayed rule which would make it easier for people to share their financial data. If it stalls again, private-sector initiatives are gaining speed.

Supreme Court: Mortgage overseer structure unconstitutional

WASHINGTON (AP) — The Supreme Court on Wednesday gave the president greater power to fire the head of the agency that oversees mortgage giants Fannie Mae and Freddie Mac, ruling that the agency’s structure violates separation of powers principles in the Constitution.

Thirty-five percent of students who are in debt have stopped repaying their loans

In response to the pandemic, 35 percent of students who are in debt have stopped repaying their loans. In January 2021, President Biden used an executive order to extend the federal student payment freeze for eight more months, giving students more time to resume their payment at least by September. However, with talks of student loan debt possibly being forgiven as much as $50,000 some time in the timeline, it has altered the spending habits of students now reliant on uncertain premises, College Finance reported.

U.S. judge blocks $4 billion debt relief program for minority farmers

June 24 (Reuters) - A U.S. federal judge on Wednesday temporarily blocked a part of the Biden administration's federal stimulus relief package that forgave agricultural debts to farmers of color.

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