CFPB Proposes Rule to Shine New Light on Small Businesses’ Access to Credit

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today proposed a new rule designed to help small businesses gain access to the credit they need and deserve by increasing transparency in the lending marketplace. This rule, mandated by Congress in the Dodd-Frank Act, would, if finalized, require lenders to disclose information about their lending to small businesses, allowing community organizations, researchers, lenders, and others to better support small business and community development needs.

AG Healey Secures $1 Million in First-Of-Its-Kind Resolution With Debt Settlement Company

BOSTON — Following an investigation into a Beverly-based debt settlement company accused of harming financially-distressed consumers in Massachusetts, Attorney General Maura Healey announced today a first-of-its-kind settlement that secures $1 million in relief and requires extensive changes to the company's business practices.

Federal and State Financial Regulatory Agencies Issue Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Ida

The Office of the Comptroller of the Currency, Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators, collectively the agencies, recognize the serious impact of Hurricane Ida on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

Court Hold Predictive Dialers Can be ATDS Even Post-Facebook in Allstate TCPA Class Action Suit

The N.D.Ill.–that’s Gadelhak country!–just ruled that predictive dialers may be an ATDS even after Facebook. And that friends is why those dialers are firmly in the YELLOW in the Czar’s awesome handy-dandy prescient stoplight:

Finding Compliant Ways to Use Consumer Data to Better Serve Consumers

With consumer data privacy laws banging on pots and pans in the compliance kitchen, banks are being forced to re-evaluate their marketing practices to identify areas of potential risk. Direct-mail campaigns aimed at purchased lead lists have long been a mainstay of bank marketing. But as more states place restrictions on how consumer data is used and stored, some banks are concluding that they may be better served by prioritizing customer retention above new customer acquisition.

NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ISSUES GUIDANCE TO MORTGAGE LENDING INSTITUTIONS TO COMPLY WITH NEW YORK’S FAIR LENDING LAW

The New York State Department of Financial Services (DFS) today issued new guidance to DFS-regulated mortgage lenders in New York to develop and implement compliance programs, including a fair lending plan, to comply with New York’s Fair Lending Law, Executive Law § 296-a. New York’s Fair Lending Law prohibits discrimination in, among other things, the granting, withholding, extending, or renewing, or in the fixing of the rates, terms, or conditions of any form of credit on the basis of sexual orientation. 

California DFPI Invites Comments on Proposed Second Rulemaking Under Debt Collection Licensing Act

The California Department of Financial Protection and Innovation (DFPI) recently issued an Invitation for Comments on the Proposed Second Rulemaking under the Debt Collection Licensing Act.  The Invitation for Comments seeks further information on topics relating to the scope of certain definitional terms, the types of information required on annual reports, and surety bond amounts.

Governor Hochul Announces Nomination of Adrienne Harris as Superintendent of The Department of Financial Services

Governor Kathy Hochul today announced that Adrienne Harris has been nominated to lead the New York State Department of Financial Services as its next Superintendent. Formerly a top economic advisor to President Obama, Ms. Harris will become the state's top financial regulator tasked with overseeing the banking and insurance industries and their compliance with state laws as New York works to rebuild its economy in the wake of the COVID-19 pandemic, if confirmed by the Senate.

United States: 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. The CFPB had previously proposed extending the final rules' effective date by 60 days to allow for additional comments and time for implementation for those affected by COVID-19 (a recent Sheppard Mullin article discussing the COVID-related impact on debt collection was recently covered here). Based on industry feedback, however, the Bureau determined that an extension is unnecessary, explaining that while "consumer advocate commenters generally supported extending the effective date, they did not focus on whether additional time is needed to implement the rules."

Wells Fargo Risks Regulatory Action Over Pace of Restitution

(Bloomberg) -- Five years into scandals that have already cost Wells Fargo & Co. more than $5 billion in fines and legal settlements, regulators are privately signaling they’re still not satisfied with the bank’s progress in compensating victims and shoring up controls.

FTC Sends Refund Checks to People Targeted in Computer Financing Scheme

The Federal Trade Commission is sending 4,505 checks to people who lost money in a financing scheme that targeted customers shopping for computers and related electronic devices.

Ohio Introduces CCPA-like Consumer Privacy Bill

Consumer privacy issues are as a hot as ever, and on the radar of the state and federal legislature alike.  Following in the footsteps of California, and most recently Virginia and Colorado, Ohio  introduced a comprehensive consumer privacy bill, the Ohio Personal Privacy Act (the “Act”). By introducing the Act, Ohio follows the growing nation-wide trend towards stronger state privacy laws related to consumer rights.

Do you know how to spot a rental assistance scam?

Scammers take advantage of people during times of fear and uncertainty — and the COVID-19 pandemic is no different. While federal rental assistance is being rolled out to communities across the country, scammers are actively using this opportunity to prey on consumers in need, by pretending to be someone they’re not.

United States Digital Lending Market Report 2021: Growth, Trends, COVID-19 Impacts, and Forecasts to 2026 – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "United States Digital Lending Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering. The United States Digital Lending Market is expected to reach a CAGR of 11.4% during 2021 - 2026. Owing to the COVID-19 pandemic, SMEs in the region are facing challenges to raise funds during the crisis to keep their businesses operating. Digital Lending is expected to find several opportunities, especially amongst SMEs for growth and adoption. Further, during the COVID-19 pandemic, the government aims to support the people. In the United States, the Paycheck Protection Program (PPP) asks fintech lenders that qualify with specified requirements to underwrite loans and has deployed USD 511-billion to date.

Loans in forbearance flat ahead of CFPB regulations

The number of loans in forbearance stood unchanged from last week at 3.25% for the week ending on Aug. 22. According to the latest report from the Mortgage Bankers Association, 1.6 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance remained the same, at 1.66%. The share of Ginnie Mae loans with paused payments also saw no change at 3.92%, but the share of portfolio loans and private-label securities in forbearance increased slightly from 7.15% to 7.18%.

New mortgage servicing rule aims to prevent avoidable foreclosures as protections expire

During the COVID-19 pandemic, millions of Americans have been able to temporarily pause or reduce their mortgage payments under the CARES Act. However, in the coming weeks and months, those forbearance programs will begin to expire for some borrowers.

California Attorney General Releases Enforcement Update on CCPA

Enforcement of the California Consumer Privacy Act (CCPA) has been in place for just over one year and, in announcing the milestone, Attorney General Rob Bonta said there has been “great progress” by businesses required to comply.

TCN Launches “The Complete Guide to Managing Call Center Agents,” a Free Online Resource for Managers

ST. GEORGE, UTAH – August 23, 2021 – TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs and collection agencies, today announced the launch of “The Complete Guide to Managing Call Center Agents,” a free online resource for managers. 

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.

FDITECH Opens Registration for Tech Sprint to Measure and Test Bank Resilience

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today opened the registration period to participate in a tech sprint designed to identify and develop measures, data, and other capabilities to understand how resilient banks are to major disruptions. This tech sprint is intended to be the first of several focused on how to foster stronger resiliency in banking.

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.

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.

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.

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.”

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