California Regulator Signals New Scrutiny of Student Lending Industry, Enters Into Consent Order with Servicer of Income Share Agreements
On August 5, California’s Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with a New York-based FinTech company that offers student Income Share Agreements (ISAs) to finance post-secondary education and training.
AG Healey Secures $1.6 Million From Online Loan Servicer Over Abusive Debt Collection Practices
BOSTON — Online loan servicer Avant will pay $1.6 million in a settlement with Attorney General Maura Healey’s Office over allegations that the company used abusive debt collection practices against consumers.
Credit card limits are rising for most groups after stagnating during the pandemic
This post is the fourth in a series documenting trends in consumer credit outcomes during the COVID-19 pandemic. Last August, we published a report on early trends in consumer credit outcomes through June 2020, which found largely positive trends in those outcomes despite widespread economic hardship due to the pandemic.
Maine amends Consumer Credit Code to target loans made using bank partnership model
Maine has amended its Consumer Credit Code to target loans made using a bank partnership model. The amendments include an anti-evasion provision under which a purported agent or service provider is deemed a “lender” subject to Title 9-A, Article 2 of Maine Revised Statutes. Article 2 contains a licensing requirement and rate and fee limits for consumer loans.
CFPB Confirms November 30 Effective Date for Debt Collection Final Rules
The CFPB recently announced that its two final debt collection rules implementing the Fair Debt Collection Practices Act (FDCPA) will take effect as planned on November 30.
Carr: $19.8M Settlement reached with Turtle Creek Assets, Ltd.
ATLANTA, GA – Attorney General Chris Carr today announced a $19.8 million settlement with Turtle Creek Assets, Ltd. and its owner, Gordon Engle, (collectively “Turtle Creek”), resolving allegations that the company committed multiple violations of the federal Fair Debt Collection Practices Act and the Georgia Fair Business Practices Act.
FFIEC Issues Guidance on Authentication and Access to Financial Institution Services and Systems
WASHINGTON, D.C. – The Federal Financial Institutions Examination Council (FFIEC), on behalf of its members, today issued guidance that provides financial institutions with examples of effective authentication and access risk management principles and practices for customers, employees, and third parties accessing digital banking services and information systems.
Student loans: Bipartisan bankruptcy reform bill proposes alternative to forgiveness hope or lifelong debt
While some progressive Democrats continue to push the president to cancel student loan debt, there's a bipartisan effort underway to overhaul the student loan system in another way: by making bankruptcy discharges more accessible for student debtors.
6th Circ rejects bankruptcy shield for 401(k) contributions, in certain cases
(Reuters) - Individuals who have filed for Chapter 13 bankruptcy may not protect 401(k) contributions from creditors if they were not already making those contributions in the months leading up to the bankruptcy, an appeals court ruled on Tuesday.
CFPB and trade groups file briefs on compliance date for payment provisions in payday loan rule
The CFPB and the two trade groups challenging the CFPB’s 2017 final payday/auto title/high-rate installment loan rule (2017 Rule) have filed briefs with the Texas federal court regarding a compliance date for the 2017 Rule’s payment provisions.
Attorney General Bonta Reminds Tenants and Homeowners of Their Rights and Protections Under California Law
OAKLAND – California Attorney General Rob Bonta today issued a consumer alert reminding California’s tenants and homeowners of their rights and protections amidst the COVID-19 pandemic.
Ontario Systems Fuels Growth and Innovation with New Chief Technology Officer
BURLINGTON, Mass., Aug. 10, 2021 /PRNewswire/ --Ontario Systems, a leading provider of enterprise workflow automation software—which accelerates revenue recovery and removes friction from the payments process for clients in the accounts receivable management (ARM), healthcare, and government markets—is pleased to officially announce the appointment of Raj Sethuraman as Chief Technology Officer.
Attorney General Cameron Joins Coalition of Attorneys General in Letter to FCC Calling for Faster Implementation of Anti-Robocall Technology
FRANKFORT, Ky. (August 9, 2021) – Attorney General Daniel Cameron today joined a bipartisan coalition of 51 attorneys general in sending comments to the Federal Communications Commission (FCC) calling for faster implementation of anti-robocall technology. The coalition urges the FCC to move up the deadline for certain small telephone companies to implement caller identification (caller ID) authentication technology.
RevSpring Appoints Michael McDonnell Senior Vice President, Financial Services
LIVONIA, MI (August 9, 2021) – RevSpring, a leading provider of consumer engagement and payment solutions, today announced that Michael McDonnell has been appointed to the company’s executive team as senior vice president of financial services. In his new role, McDonnell will be responsible for the strategic direction of the financial services division, including managing and extending the growing client base, as well as expanding into new markets.
Four reasons why landlords should take advantage of federal rental assistance
If you’re a landlord, you might depend on rental income to cover your own housing costs. This means that if your tenants had trouble paying their rent during the coronavirus pandemic, it could affect your financial well-being too.
Major Settlement in Plaid Fintech Data Privacy Case
Saturday, August 7, 2021 - On August 5, 2021, a proposed class action settlement was reached in the closely-watched privacy action against fintech services company Plaid Inc. (“Plaid”), featuring a $58 million settlement fund and certain injunctive relief that would make changes to Plaid’s methods of notice and consumer data collection, including provisions requiring the deletion of certain banking transaction data. (In re Plaid Inc. Privacy Litig., No. 20-3056 (N.D. Cal. Memorandum of Points for Proposed Settlement Aug. 5, 2021)). The plaintiffs have since filed a motion for preliminary court approval of the settlement.
Appeals court vacates CFPB’s $59 million judgment in foreclosure relief suit
Case Law - Monday, August 9, 2021
An appellate court has vacated a $59 million judgment against two former mortgage relief service providers and their principals the Consumer Financial Protection Bureau sued for alleged foreclosure relief scams. The bureau alleged the companies took in more than $19.2 million in fees from distressed homeowners nationwide from illegal advance fees for so-called loan modification services, and of failing to make required disclosures.
A New Digital Age Privacy Protection Agency Holds Promise
Data privacy regulation in the United States is overdue for an upgrade. Not only have basic internet governance rules defied comprehensive amendment but specific calls for the U.S. Congress and the Federal Trade Commission (FTC) to address data platform governance in a way that systematically responds to privacy and racial equity problems—along with antitrust and intellectual property concerns—have gone unheeded.
Three new trends are shaping the credit card industry in this time of rapid change. Credit unions looking to offer a competitive credit card program should be aware of these trends and implement adjustments to remain relevant to cardmembers.
Attorney General Bonta Encourages Federal Communications Commission to Swiftly Curtail Robocalls that Use Fake Caller ID Numbers
OAKLAND – California Attorney General Rob Bonta today joined a multistate coalition encouraging the Federal Communications Commission (FCC) to accelerate the implementation of STIR/SHAKEN, a caller ID framework that is critical to detecting and blocking “spoofed” robocalls. Spoofed calls occur when an illegal telemarketer or other phone scammer “spoofs” or hacks a caller ID to appear as a more welcome caller.
