HIGHEST TCPA SETTLEMENT EVER REACHED!: $25MM in Fees, Over $5,000 for Some Class Members–the Rash Curtis Settlement is a Real Stunner

For many years the old In re Capital One settlement reigned supreme as the biggest TCPA settlement of all time at $75.5MM. But the folks at Bursor and Fisher now have a vanity claim to the largest settlement of all time: the $75.6MM Rash Curtis’ insurer just agreed to pay it to settle the Perez matter.

Massachusetts District Court Denies Credit Repair Company’s Motion to Dismiss in Case Brought by the CFPB

A federal district court judge in Massachusetts denied a credit repair company’s motion to dismiss a case brought by the Consumer Financial Protection Bureau (CFPB) and the state of Massachusetts alleging that the company made false representations about customers’ ability to improve their credit rating and requested payment in advance of full performance, in violation of Telemarketing Sales Rule (TSR), 16 C.F.R. § 310 et. seq., the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5531, 5536, and state law.

Student borrower ‘bill of rights’ takes effect in California, caps late fees and sets servicing standards

The Student Borrower Bill of Rights requires student loan servicers to post, process and credit student loan payments within certain time frames and ensure that any fee for a past-due payment does not exceed 6% of any past-due amount, among other requirements. CDA also supports current legislation that, if passed this October, will protect borrowers of private student loans.

U.S. Supreme Court Clarifies Spokeo With TransUnion Decision

On June 25, 2021, the U.S. Supreme Court (the “Court”) issued a decision in TransUnion v. Ramirez (“TransUnion”), providing much-needed clarity on the types of injuries required to assert statutory privacy claims in federal court. The TransUnion decision expanded on the Court’s 2016 decision, Spokeo v. Robbins (“Spokeo”), in which the Court held plaintiffs must demonstrate a “concrete harm” in order to move forward with claims under the Fair Credit Reporting Act and other similar privacy statutes. However, the standard for what is or is not “concrete” was left unclear after Spokeo, leading appellate courts to reach differing conclusions on what must be alleged to prop up claims under various privacy-related statutes.

The Education Dept. illegally garnished paychecks during the pandemic and can’t find 11,000 people who deserve refunds

The Education Department responded last week to Student Defense, which works to protect students' rights. According to the response, as of July 19, the Federal Student Aid (FSA) office had issued refunds of garnished payments to 382,306 borrowers totaling $187 million, but 10,868 borrowers who are owed a refund have not yet received it because the department does not have their correct addresses on file.

Agencies issue guide to help community banks evaluate fintech relationships

The federal bank regulatory agencies today released a guide intended to help community banks assess risks when considering relationships with financial technology (fintech) companies.

FCC Imposes its Largest Fine to Date for Robocalls in Violation of the TCPA

This week the Federal Communications Commission (FCC) proposed its highest financial penalty against lobbyist and political consultant group, John M. Burkman, Jacob Alexander Wohl, and J.M. Burkman & Associates LLC (the Group), for allegedly making over 1,000 robocalls to voters without obtaining prior express consent as required by the Telephone Consumer Protection Act (TCPA). The FCC has suggested a $5,134,500 penalty for these calls.

COVID-19 uncertainty gives boost to mortgage refinances as interest rates fall

Mortgage purchase and refinance applications were up 1.6% for the week ending Aug. 20, 2021 compared to the week prior, new data from the Mortgage Bankers Association (MBA) showed. The MBA’s Market Composite Index indicated that the increase in volume was driven by a 1% weekly rise in the refinance market index and a 3% weekly increase in purchase loan applications, according to the latest MBA Weekly Mortgage Applications Survey.

Extended Closed School Discharge Will Provide 115K Borrowers from ITT Technical Institute More Than $1.1B in Loan Forgiveness

Today, the U.S. Department of Education announced it will make $1.1 billion in closed school discharges available to an additional 115,000 borrowers who attended the now-defunct ITT Technical Institute (ITT). This decision is based on a new review of the problems leading up to ITT's closure.

California Licensing Requirements Checklist Posted on NMLS

The California Commissioner of the Department of Financial Protection and Innovation (DFPI) recently posted a checklist of requirements for the state’s debt collection licensing application on the Nationwide Multistate Licensing System (NMLS) website.

Credit access declined during the pandemic for credit cards, but increased for mortgages and auto loans

This is the fifth and final post in a series documenting trends in consumer credit outcomes during the COVID-19 pandemic. This post focuses on access to new credit—the share of new credit applications that result in new accounts and the amount of credit that is extended to consumers who open new accounts.

US mortgage applications rebound, loan sizes ease

US mortgage applications inched up 1.6% for the week ending August 20 following a slight drop in mortgage rates, according to the Mortgage Bankers Association. “Treasury yields fell last week, as investors continue to anxiously monitor if the rise in COVID-19 cases in several states starts to dampen economic activity,” said Joel Kan, AVP of economic and industry forecasting at MBA. “Mortgage rates slightly declined as a result, with the 30-year fixed-rate decreasing for the first time in three weeks.”

Navient Says Verdict in TCPA Case Stops Misleading Business Practices that Harmed its Customers

Student loan servicer Navient received a favorable verdict in a 2019 case, Navient Solution LLC v. The Law Offices of Jeffrey Lohman et al., in the U.S. District Court for the Eastern District of Virginia last week.

CFPB initiates new credit card agreement technical specs

Consumer Financial Protection Bureau (CFPB) officials said the organization has issued new technical specifications with regard to complying with credit card agreement and data submission requirements.

CFPB Proposes Settlement with Debt Collector for Failing to Investigate Identity Theft Reports

With the ongoing COVID-19 pandemic, credit card companies may face increased scrutiny, as Consumer Financial Protection Bureau (CFPB) Acting Director Dave Uejio recently stated that "credit reports play a huge role in consumers' financial lives" and "we will not tolerate companies that put inaccurate data on credit reports or fail to investigate consumers' disputes."

A Settlement From a Different Era?: Huge New TCPA Settlement Calls to Mind the Glory Days of TCPA Risk

As I’ve reminded folks a few times recently, the TCPA is the single largest cash cow in American history for the Plaintiff’s bar. More multi-million dollar settlements have been reached under the TCPA than any other federal statute–and it's not even close. Mercifully, however, the settlement dollars have been slowing down some in recent years and the overall “market” for TCPA settlements has been trending steadily down as risk around ATDS issues, standing issues and constitutional issues weigh in favor of the Defense.

Credit Union Lending Picks Up in Most Areas

Credit unions were increasing their portfolios in most areas in June, except business lending and new car loans, where portfolios fell for the 24th month in a row after seasonal adjustments, according to a CUNA Mutual Group report released Tuesday. The Madison, Wis., trade group’s Credit Union Trends Report showed new auto loan balances were $141 billion on June 30, falling at a 3.3% seasonally adjusted, annualized rate from May to June, part of the May-through-October peak car-buying season.

ACA Joins Industry Trade Groups in Support of Changing CFPB Leadership Structure

ACA International has joined nearly 30 industry trade groups, led by the Consumer Bankers Association, in a letter supporting legislation from U.S. Rep. Blaine Luetkmeyer, R-Mo., to transform leadership at the Consumer Financial Protection Bureau into a five-member bipartisan commission.

Telemarketer Fees to Access the FTC’s National Do Not Call Registry to Increase in 2022

The fees for telemarketers accessing phone numbers on the National Do Not Call (DNC) Registry will increase incrementally in FY 2022.

CFPB initiates new credit card agreement technical specs

Consumer Financial Protection Bureau (CFPB) officials said the organization has issued new technical specifications with regard to complying with credit card agreement and data submission requirements. Officials indicated the actions are in accordance with the Truth in Lending Act (TILA) and the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) — noting credit card issuers would be able to use the CFPB’s Collect website to submit terms of credit card plans (TCCP) survey data; quarterly credit card agreement submissions; and annual reports regarding college credit card marketing agreements and data.

Ontario Systems Acquires Katabat to Further Expand its Industry-Leading Collections Footprint

BURLINGTON, Mass., Aug. 23, 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 – today announced its acquisition of Katabat, a leading cloud-based collection platform providing cutting edge solutions to debt resolution for both lenders and borrowers.

Bitcoin passes $50,000 after second-largest mortgage lender in the US reveals plans to accept crypto

What just happened? One reason more people don't own crypto such as Bitcoin is the small number of companies currently accepting it as payment, but that's starting to change. United Wholesale Mortgage (UWM), the second-largest mortgage lender in the United States, has announced that customers will be able to pay their mortgage using BTC later this year. In the company's second-quarter earnings last week, CEO Mat Ishbia said, "We've evaluated the feasibility, and we're looking forward to being the first mortgage company in America to accept cryptocurrency to satisfy mortgage payments."

Healthy Consumer Credit Market Drives Return to Lending

The financial services industry is rebounding strongly from the early impacts of the COVID-19 pandemic, according to TransUnion’s (NYSE: TRU) Q2 2021 Quarterly Credit Industry Insights Report (CIIR). The auto, credit card, mortgage and personal loan industries exhibited renewed signs of strength at the mid-point of 2021.

Have Student Loans? It’s Possible To Have Them Forgiven

Currently, 45 million people are carrying student loan debt, adding up to about $1.7 trillion total. Many borrowers might feel like they’re drowning; some can’t imagine a future where all their debt is paid off.

The ‘astronomical’ increases in student debt are keeping 42% of teachers with over a decade of experience from paying off their loans

The National Education Association released a report examining the impact of student debt on educators, and it found that 45% of teachers have taken out a student loan to fund their own education, and 42% of those with 11 or more years of experience still have not fully paid them off. According to the report, while nearly 40% of that group has a debt balance standing at less than $25,000, 14% reported having a balance of at least $105,000 to pay off. The average debt load for experienced educators stands at $56,500, which is roughly the national average annual salary for teachers, according to the Bureau of Labor Statistics.

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