Senate sends Wieckowski assigned debt collection bill to Governor Newsom

SACRAMENTO – With no opposition, the state Senate approved legislation by Senator Bob Wieckowski (D-Fremont) today to give consumers more protection when dealing with assigned debt collectors who operate with fewer restrictions than those governing debt that is sold. SB 531, which was approved with bipartisan support earlier this week in the Assembly, now heads to Governor Gavin Newsom for his consideration.

CFPB Requests Comments on Plans to Study Electronic Disclosure on Mobile Devices

On August 11, the Consumer Financial Protection Bureau (CFPB) published a notice and request for comment in the Federal Register on its information collection initiative, “Electronic Disclosure on Mobile Devices.” The CFPB issued the request for comment in advance of seeking formal approval for the initiative from the Office of Management and Budget (OMB).

CFPB Issues NPRM on Dodd-Frank 1071

Yesterday, the Consumer Financial Protection Bureau (CFPB) issued its long-awaited Notice of Proposed Rulemaking (NPRM) related to Dodd-Frank 1071. As we have discussed in this space, Section 1071 amends the Equal Credit Opportunity Act to mandate certain reporting requirements for financial services companies making business loans. The act aims to “facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses.” There is a 90-day period in which stakeholders can submit comments to the CFPB regarding the proposed rule.

State Financial Regulator Moves Forward to License California Debt Collectors

SACRAMENTO – The Department of Financial Protection and Innovation (DFPI) has announced that all debt collectors operating in California can now apply to be licensed by the Department, representing the first step in increased state oversight that will include an assessment of applications, formal examinations, and protections for California consumers. Debt collectors, debt buyers, and debt collection attorneys operating in the state may now submit their license applications online at the Nationwide Multistate Licensing System (NMLS).

In Largest Settlement of Its Kind, AG Healey Secures $27 Million for Thousands of Massachusetts Consumers From Subprime Auto Lender

BOSTON — In the largest settlement of its kind, national subprime auto lender Credit Acceptance Corporation (CAC) will pay more than $27 million to settle a lawsuit brought by Massachusetts Attorney General Maura Healey over a variety of alleged unfair practices relating to the company’s role in the origination, collection, and securitization of subprime auto loans.

FTC Fines Capital One CEO Richard Fairbank for Repeatedly Violating Antitrust Laws

Today, the Federal Trade Commission announced that Richard Fairbank, CEO of Capital One Financial Corp., will pay a $637,950 civil penalty to settle charges that his acquisition of Capital One Financial stock violated the Hart-Scott-Rodino (HSR) Act. Fairbank’s recent multi-million dollar compensation package included over 100,000 Capital One Financial shares in 2018, which increased his holdings to $168 million. 

CFPB Proposal to Help SMBs Gain Access to Credit

The Consumer Financial Protection Bureau (CFPB) proposed a new rule Wednesday (Sept. 1) that will help small- to medium-sized businesses (SMBs) get access to credit, according to a press release. The proposal, which is mandated by Congress in the Dodd-Frank Act, entails having lenders reveal information about their lending to SMBs, such as “the amount and type of small business credit applied for and extended, demographic information about small business credit applicants, and key elements of the price of the credit offered,” the release stated.

Did you get a notice that your student loans are transferring to a new servicer? Learn more about what this means for you

Over the next few months, many federal student loan borrowers will have their loans transferred to a new servicer. If your loans are currently being serviced by FedLoan Servicing or Granite State, this blog post can help you prepare for the transition to a new servicer.

Remarks of Acting Director Dave Uejio at the Press Call on the Small Business Lending Proposed Rule

Thank you for joining us. Today we are taking important steps toward a fairer, more transparent small business lending market. As Congress required in the Dodd-Frank Act, we are proposing a new rule that would shine light on the credit market for small businesses. That credit supports the majority of new jobs created and enables small business entrepreneurs to achieve the American dream. The small business lending rule we are proposing today, if finalized, will help all of us better understand this vital component of the American economy and help ensure that entrepreneurs can access credit free from discrimination and other barriers.

Colorado Private Education Lender Registration Takes Effect September 1, and Schools Using Income Share Agreements Are Covered

With Colorado’s private education lender registration scheduled to take effect on September 1^st, the Colorado Department of Law has just announced that they intend to bring a new group within their jurisdiction: private postsecondary schools that use income share agreements (ISAs) to help finance students’ education.  Schools regulated by the Division of Private Occupational Schools received notice of this interpretation on Friday.

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.

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.

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