Nevada Governor approves bill requiring translated documents for consumer financial services transactions, including credit cards and auto title loans

A new Nevada law that becomes effective on October 1, 2021 requires translated documents to be provided to consumers by businesses that advertise and negotiate transactions covered by the law in a language other than English (or allow their agents or employees to advertise and negotiate in a language other than English).  A knowing violation of the new requirement is deemed a deceptive trade practice under Nevada’s UDAP law and non-compliance allows “the aggrieved party” to rescind the transaction.

FTC Sends Nearly $2.3 Million in Refunds to People who Lost Money to Credit Card Debt Relief Schemes

In a complaint announced in July 2019, the FTC and the state of Ohio alleged Educare Centre Services, Inc. and Tripletel, Inc. made false and unfounded promises that they would significantly reduce the interest rates on consumers’ credit cards, and also promised a 100 percent money-back guarantee if the promised rate reduction failed to materialize or if consumers were otherwise dissatisfied.

Senate Democrats want to cap interest rates on loans at 36%

Senate Democrats are making a big push for new legislation that would stop consumers from paying sky-high interest rates on small loans, with APRs of more than 600% in some cases. 

United States: CFPB Makes Temporary Revisions Of Default Servicing Rules To Assist Borrowers At Risk Of Foreclosure

As COVID-19 infections are declining and a sense of normalcy begins to return, an estimated 1.75 million mortgage loan borrowers, many of whom have been negatively impacted by the COVID-19 global pandemic, are still in a forbearance program provided by their mortgage loan servicers.1 These borrowers may be at a heightened risk of foreclosure as forbearance programs begin to expire and foreclosure moratoriums come to an end.

CFPB and FHFA Release Updated Data from the National Survey of Mortgage Originations for Public Use

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) and the Federal Housing Finance Agency (FHFA) today published updated loan-level data for public use collected through the National Survey of Mortgage Originations (NSMO). The data provide insights into borrowers' experiences obtaining residential mortgages.

Department of Education Seeks Public Comment on Student Loan Forgiveness

The Biden administration is seeking public comment on the Public Service Loan Forgiveness Program (PSLF), specifically what is working and not working within the program for federal student loan borrowers.

Consumers did great job paying down credit card debt during pandemic. That may be ending

Ask a consumer expert what would happen with credit card loan balances during a recession and the answer wouldn’t be that balances decline sharply and Americans avoid a wave of card delinquencies. But that’s what happened during the pandemic year. Helped by government stimulus and limited to spending on necessary goods rather than discretionary items, consumers bucked economic downturn history when it comes to credit card debt.

Attorney General Bonta Files Amicus Brief Supporting Challenge to Unlawful Trump-Era Borrower Defense Rule That Repealed Protections for Student Borrowers

OAKLAND – California Attorney General Rob Bonta co-led a multistate amicus brief advocating for the rights of federal student loan borrowers. The brief, which was filed in the U.S. Court of Appeals for the Second Circuit Court, supports the New York Legal Assistance Group's (NYLAG) lawsuit challenging action taken by the Trump Administration's Department of Education (ED) that unlawfully repealed and replaced federal borrower defense regulations. 

Consumer Financial Protection Bureau launches new rent assistance search tool

The Consumer Financial Protection Bureau on Wednesday introduced its new Rental Assistance Finder, a search tool anyone can use to quickly access more than 700 emergency rental assistance programs local, state and tribal governments have launched nationwide. 

Medical debt was cut nearly in half in states that expanded Medicaid

The Affordable Care Act offered states a huge infusion of federal money to expand Medicaid eligibility to low-income adults, and about 30 states took that deal right away in 2014. Since then, new medical debt in those states has fallen 44 percent, a dramatically bigger drop than was seen in the states that refused to expand the program over the same period. Those states showed only a 10 percent decline.

Pelosi says Biden doesn’t have the power to cancel student loan debt

House Speaker Nancy Pelosi said Wednesday that President Biden can't unilaterally wipe away student loan debt, as some progressives have urged him to do, and even questioned the fairness of a debt forgiveness policy.

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.

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