Senate Banking Chair Asks CFPB How It Plans to Address Risks of Chime and Other Banking Apps

The chair of the Senate Banking, Housing, and Urban Affairs Committee is calling for the Consumer Financial Protection Bureau to evaluate the risks associated with apps that provide banking services, citing ProPublica’s article on Chime, the most widely downloaded of those apps. In a letter sent today, Sherrod Brown, D-Ohio, wrote to the CFPB’s acting director, Dave Uejio, stating that “Chime’s abrupt, involuntary closures of its customers’ accounts” call for further “insight into the risks posed by nonbanks to consumers as well as the measures the Bureau is taking to address the risks by nonbank fintech companies and their affiliated banks.”

CFPB Releases Online Tool to Help Renters and Landlords Access Federal Assistance

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released an online tool to help renters and landlords impacted by the pandemic easily find and apply for payment assistance for rent, utilities and other expenses. The Rental Assistance Finder, available at www.consumerfinance.gov/renthelp, connects renters and landlords with the state and local programs that are distributing billions of dollars in federal assistance nationwide to help renters stay housed during the pandemic.

Small Business Administration to revamp PPP forgiveness in bid to end historic program

The SBA on Wednesday plans to outline a new initiative aimed at encouraging borrowers with loans of $150,000 or less — accounting for more than 90 percent of the pandemic-era program — to apply for loan forgiveness. The ability to convert PPP loans into grants in exchange for maintaining payroll was a critical feature of the small business rescue. Nearly 7 million of those loans have not been forgiven.

7th Circuit shrinks lawyers’ $59 mln CFPB penalties

(Reuters) - The U.S. Court of Appeals for the 7th Circuit in Chicago agreed with the Consumer Financial Protection Bureau that debt-focused law firm Consumer First Legal Group misled borrowers but said a judge must reconsider $59 million in restitution and penalties.

FTC Testifies Before House Energy and Commerce Subcommittee on Legislation to Modify the Commission’s Authority and Address Challenges Facing the Agency

The Federal Trade Commission testified before the House Energy and Commerce Subcommittee on Consumer Protection and Commerce on legislation to modify the FTC’s authority and address other pressing issues facing the agency.

Debexpert Launches the World’s First Mobile App for Delinquent Debt Sellers

July 28, New York - Debexpert, an online platform for buying and selling NPLs (Non-Performing Loans), has launched the world's first mobile app for debt portfolio sellers. The Debexpert app, which is available for Android and iOS mobile devices, implements the basic functionality of the online auction familiar to users of the desktop version. Now, you can monitor and take part in bidding using your mobile device when mobile internet or Wi-Fi is available.

Users of the Debexpertapp, will have instant access to bidding and analytics. Transparent information about the auction participants, the number of bids, the dynamics of the masked file downloads, the process of final price formation, and the complete bidding funnel, are now available on your mobile device.

CFPB Reports Credit Apps Are Mostly Back To Pre-Pandemic Levels

The Consumer Finance Protection Bureau published a report which briefly shows that credit applications across a number of loan types, including mortgages, were mostly back to pre-pandemic levels as of May 2021. The bureau stated that prime and near-prime consumers are reportedly the reason for the recovery in applications across auto loans, new mortgages and revolving credit cards.

Carr Reveals Georgia’s Top Consumer Complaints for 2020

ATLANTA, GA – Attorney General Chris Carr today announced Georgia’s top consumer complaints for 2020. This announcement follows the release of the latest report from the annual survey of state and local consumer agencies conducted by Consumer Federation of America (CFA).

Schumer, Democrats push Biden to extend federal student loan payment pause as deadline nears

Key Democrats on Tuesday urged President Joe Biden to extend the federal student loan payment suspension, arguing failure to continue the policy would burden borrowers and hamper the economic recovery. The Biden administration has paused payments, interest accumulation and collections on loans held by the Education Department through Sept. 30. The policy took effect last year as the coronavirus pandemic ravaged the U.S. economy.

House Passes Bill Aimed at Clarifying FTC Enforcement Authority

On July 20, the U.S. House of Representatives passed the Consumer Protection and Recovery Act (H.R. 2668).  Authored by Representative Tony Cárdenas (D-CA), the Act is intended to restore the Federal Trade Commission’s section 13(b) consumer protection enforcement powers and would authorize the FTC to seek permanent injunctions and other equitable relief, including restitution and disgorgement.

How the people you serve can find help with rent and utilities

The COVID-19 pandemic has made it difficult for renters and landlords to cover housing costs. With the CDC moratorium ending on July 31, many renters are worried about catching up on owed rent and facing eviction. Help is available.

TCN Consumer Survey Finds Americans Overwhelmingly Prefer to Interact with a Live Person When Dealing with Customer Service Reps

ST. GEORGE, Utah--(BUSINESS WIRE)--TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs and collection agencies, today released the results of its inaugural “Consumer Insights about Customer Service” survey. The national survey, conducted by OnePoll and commissioned by TCN, reveals Americans overwhelmingly prefer to interact with a live person when dealing with customer service centers. Furthermore, when waiting to speak to a customer service representative by phone, they are willing to wait on hold for six minutes on average, but the average actual wait time is three times longer, averaging 17.4 minutes. The survey also finds companies that prioritize good customer service are likely to be rewarded by consumers with increased brand loyalty and positive online reviews

‘All-in’ 36% rate cap would reduce access to credit for millions

Legislation that would cap all fees and interest at 36% would make it more difficult for many consumers to obtain credit, CUNA and other organizations wrote Senate Banking, Housing, and Urban Affairs Committee leadership Friday. The letter was sent for the record of a committee hearing on legislation extending the Military Lending Act’s all-in 36% rate cap for consumers.

Biden, Congress and student loan forgiveness: What is the federal government doing to address the issue?

WASHINGTON – For millions of Americans, Sept. 30 marks the end of nearly a year-and-a-half of relief on student loan payments — unless the government extends it, or tackles the issue at hand. Now, as the deadline approaches, Democrats are not only calling on the White House to extend the forgiveness once again, but to take lasting action toward forgiving student loans, which reached record high numbers in 2020.

Why The Term Of “Debt Securities” Matters

The California General Corporation Law defines three types of "reorganizations" - a merger reorganization, an exchange reorganization, and a sale-of-assets reorganization.  Cal. Corp. Code § 181.    A "sale-of-assets reorganization" is defined as the acquisition of all or substantially all of the assets of a domestic corporation, foreign corporation or other business entity  in exchange in whole or in part for equity securities or debt securities.  However, not every such exchange for debt securities will constitute a reorganization.   In the case of an exchange solely for debt securities, a transaction will be a "sale-of-assets reorganization" only when the debt securities are: (i) not adequately secured; and (ii) have a maturity date in excess of five years after consummation of the reorganization.  

Washington, D.C., Public Health Emergency Expires: Debt Collection Restrictions Remain in Place

Debt collection restrictions in Washington, D.C., will continue for 60 days, as planned under Mayor Muriel Bowser’s executive order to establish a public health emergency last spring.

California Attorney General Issues Summary of CCPA Enforcement Actions and Launches Consumer Privacy Interactive Tool

The California Attorney General (“AG”) recently released a summary of enforcement actions the agency brought against companies in violation of the CCPA since enforcement of the Act began on July 1, 2020. The summary provides 27 illustrative examples of instances in which the AG sent notices of alleged noncompliance with the CCPA and how each company cured the alleged noncompliance.

Student loans: Beauty schools lead to high levels of debt, study finds

Beauty school programs are relatively costly and leave students saddled with very high levels of student loan debt, according to a new report that examined federal data from the National Center for Education Statistics. The analysis, conducted by libertarian organization Institute for Justice, highlighted how cosmetology schools are tapping on billions of dollars in federal aid and coronavirus stimulus funding while leaving students with poor outcomes

More struggling U.S. homeowners eligible for reduced payments – White House

WASHINGTON, July 23 (Reuters) - Homeowners with certain government-backed mortgages could get their monthly payments reduced by 25% if they are still struggling to make payments, the White House said on Friday as part of efforts to help keep people housed amid the pandemic.

Consumer Advisory – Know Your Rights Under the Servicemember Civil Relief Act (SCRA)

The Servicemember Civil Relief Act (SCRA) has been amended to make it easier to terminate residential housing and automobile leases without penalty. Servicemembers, veterans, and their families should also be aware to do the necessary due diligence before waving their SCRA rights. Not doing so may result in dire consequences!

Visa Moves Into Buy-Now-Pay-Later To Counter Threat From PayPal, Others

Visa (V) is venturing into the domain of rivals such as PayPal Holdings (PYPL) by creating so-called buy-now-pay-later installment payment services for its credit card-issuing customers, the company says. The news comes as Visa stock has been in or near a buy range of late, as has PayPal stock.

Canadian Mortgage Quality Has “Deteriorated”: Bank Of Canada

Canada used to be known for its conservative mortgage lending, but that’s no longer the case. The Bank of Canada (BoC) warned mortgage quality has “deteriorated” in 2020. The central bank found highly indebted households, those with a loan-to-income ratio higher than 450%, now represent a record share of new mortgage debt.

Millions of student loan borrowers don’t have a diploma to show for their debt

U.S. student debt has increased by more than 100% over the past 10 years and today, 44.7 million borrowers collectively owe more than $1.7 trillion dollars in student debt. 

California Debt Collectors Licensing Requirement

Beginning on January 1, 2022, any person engaged in the business of debt collection in California must be licensed under the Debt Collection Licensing Act.  Licensed entities also are subject to additional requirements under the Act, such as developing compliance-focused policies and procedures, maintaining surety bonds, filing annual reports, and undergoing periodic examinations.  The Act made related changes to existing debt collection laws in the state as well.

Black Knight: 1.55 Million Serious Delinquencies Remain

JACKSONVILLE, Fla., July 22, 2021 /PRNewswire/ -- Black Knight, Inc. (NYSE:BKI) reports the following "first look" at June 2021 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market. 

White House makes more homeowners eligible for lower mortgage payments

WASHINGTON — Homeowners with certain government-backed mortgages could get their monthly payments reduced by 25 percent if they are still struggling to make payments, the White House said on Friday as part of efforts to help keep people housed amid the pandemic.

DFPI Report Shows California Payday Loan Activity Significantly Declines Amid Pandemic

SACRAMENTO – During an historic pandemic, California’s payday lenders made fewer than 6.1 million loans in 2020, representing a 40 percent decline in loans from 2019 and a 30 percent decline in customers compared to 2019, according to the 2020 Annual Report of Payday Lending Activity Under the California Deferred Deposit Transaction Law (CDDTL). Payday loans are also down by half in terms of dollar volume since 2011.

House Passes Bill to Restore FTC’s Efforts to Provide Monetary Relief

The House of Representatives passed a bill Wednesday challenging a unanimous ruling from the U.S. Supreme Court concerning the Federal Trade Commission’s ability to seek financial restitution under the FTC Act.
The Consumer Protection and Recovery Act, H.R. 2668 passed 221-205 with significant support from Democrat members of Congress, the Hill reports.. 

Can you file bankruptcy on student loans? Here’s everything you need to know

When student loan payments get burdensome, the idea of discharging your loans altogether through bankruptcy may start to sound like the next best option. Through bankruptcy, you would be completely off the hook for that large chunk of debt. But filing for bankruptcy in any scenario is a huge financial decision — and typically a last-ditch effort. Bankruptcy stays on your credit report for seven to 10 years, making it destructive to your credit. It’s also extremely difficult to do when it comes to eliminating your student loans.

IMF board approves lending reforms to better support low-income countries

WASHINGTON (Reuters) -The International Monetary Fund on Thursday said it would revamp its concessional lending programs to better support low-income countries during the COVID-19 pandemic and recovery, and raised the prospect of limited sales of IMF gold to boost its lending capability.

We have resources to help you avoid foreclosure

Over the past 17 months, the COVID-19 pandemic devastated the nation, with its human and economic damage especially concentrated in communities of color. As the nation looks forward to a return to normal, we are here to help homeowners understand their options.

AG Lynn Fitch Reaches Settlement with Santander for Deceptive Auto Loan Practices

Attorney General Lynn Fitch has reached a settlement with Santander resolving allegations that Santander violated the Mississippi Consumer Protection Act by exposing Mississippi consumers to high levels of risk, placing these consumers into auto loans that had a high probability of default, and engaging in aggressive collection practices.

Canceling student loan debt will barely boost the economy, but a targeted approach could help certain groups

At the end of June 2021, 43 million borrowers – or about 14% of all adults in the U.S. – owed approximately US$1.59 trillion in outstanding federal student loans. Although in many cases the media has focused on borrowers with extremely large balances – such as the orthodontist who owes over $1 million in student loans – the average balance is a more modest $39,351 per borrower with an average monthly payment of $393 per month. The standard repayment period for $39,351 in student loans is 20 years.

Government has forgiven nearly $400 billion in Covid-relief PPP loans, federal watchdogs say

WASHINGTON — The federal government has forgiven $394.6 billion in more than 4 million loans to businesses through the Paycheck Protection Program (PPP), according to new data published by a group of internal federal watchdogs.

For the 4th Consecutive Year Consumers Credit Union Awarded on the Forbes America’s Best-In-State Credit Unions 2021 List

Consumers Credit Union is proud to announce that it has been awarded on the Forbes list of America’s Best-In-State Credit Unions for 2021. This prestigious award is presented by Forbes and Statista Inc., the world-leading statistics portal and industry ranking provider.

Celebrating 10 years of consumer protection

Today is the 10th anniversary of the Consumer Financial Protection Bureau. We are proud to celebrate 10 years of protecting consumers, and we look forward to the next decade.

Alliant Credit Union closes two student housing transactions totaling in excess of $52 million

CHICAGO , CT (July 21, 2021) — Alliant Credit Union announced that it has closed over $52 million in financing for two student housing properties. In Austin, Texas, the Credit Union funded a $39.05 million acquisition loan for a Class A student housing property associated with University of Austin. In Statesboro, Ga., Alliant financed a $13 million refinancing loan for a Class A student housing complex associated with Georgia Southern University.

TCN to Showcase Next-Generation Call Center Platform at ACA International Convention & Expo 2021

/PRNewswire-PRWeb/ -- WHAT
Welcoming back members to in-person education and networking, ACA International Convention & Expo 2021 will take place July 28-30, 2021, in Las Vegas, Nevada.

SBA’s Guidance on Requests to Honor SBA’s Guaranty of PPP Loan

The SBA recently issued its Procedural Notice on when a lender may request the SBA to honor its guaranty of a PPP loan. The PPP loan program has been in place for over a year and has provided billions of dollars of assistance to small businesses all over the United States. It is not surprising that some PPP borrowers have encountered continued financial difficulty, in some instances resulting in bankruptcy, dissolution, shutting their doors, or discovery of fraud-related issues. What is a lender to do?

Student loan refinancing saves borrowers nearly $17K, thanks to historically low rates

With student loan refinancing rates hovering near record lows, many graduates are taking advantage of this opportunity to save money on their college debt. Well-qualified borrowers who refinanced to a shorter-term loan were able to save nearly $17,000 on total interest over the life of their loan, according to a recent Credible analysis. They also shaved years off their debt repayment schedule because they lowered their interest rate.

Statutes of Limitations: Some Guidance for Vehicle Finance from the Ninth Circuit

Many finance companies, debt buyers, debt collectors, and collection law firms wrestle with the question of which statute of limitations to apply when collecting a deficiency balance on a retail installment contract. States often have different statutes of limitations for contracts or written promises to pay money than they do for sales of goods, like motor vehicles. A RIC is a credit agreement that evidences a sale where the buyer agrees to pay in installments, most often subject to a finance charge (interest).

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