At a glanceWednesday, September 15, 2021

Collection Industry News At A Glance - September 15, 2021
Wednesday September 15, 2021
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One-Two Punch: FTC Does About-Face on Treatment of Debt for HSR Purposes and Casts Doubt on Informal Interpretation Program

In a recent blog post, the Acting Director of the Federal Trade Commission Bureau of Competition announced the reversal of the Federal Trade Commission’s (“FTC”) decades-long position regarding the treatment of debt repayment when determining whether a premerger notification filing under the Hart-Scott-Rodino (“HSR”) Act is required. Effective September 27, 2021, companies and individuals that do not file HSR based on excluding retired debt from the transaction value may face enforcement action.

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Online and Offline Disclosure of Data Collection Practices under California’s Privacy Law

California regulates consumer privacy via the California Consumer Privacy Act (CCPA), an expansive legislation reminiscent of the European Union’s General Data Protection Regulation (GDPR). CCPA imposes obligations on covered businesses to (1) give consumers notice of what personal data it collects, how the data is used or shared and whether the data is being sold, and (2) set forth the rights that consumers have with respect to the data collected from them. 

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CoreLogic Reports June U.S. Foreclosure Rate Lowest in Over Two Decades

IRVINE, Calif.--(BUSINESS WIRE)--CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for June 2021.

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Serious delinquencies improve for nonprime mortgage borrowers

Numbers for late-stage delinquency cure rates in the securitized nonprime mortgage market improved notably in the second quarter, suggesting recovery rates are strong even for nontraditional borrowers.

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FTC Streamlines Consumer Protection and Competition Investigations in Eight Key Enforcement Areas to Enable Higher Caseload

At the joint recommendation from its Bureau of Consumer Protection and Bureau of Competition, the Federal Trade Commission voted to approve and make public a series of resolutions that will enable agency staff to efficiently and expeditiously investigate conduct in core FTC priority areas over the next ten years.

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Biden could slash student debt in half for the average borrower if Congress doubles the Pell Grant, report finds

The Pell Grant, which is a form of federal financial aid given to low-income students, currently gives a maximum of $6,495 per year. But Democrats' $3.5 trillion reconciliation bill includes a plan to raise that award, and a new report found that if Congress succeeds in doubling it, the vast majority of borrowers will see their student debt cut in half.

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Equifax will now offer credit reports in Spanish

Equifax will offer Spanish-translated credit reports for free, both online and via mail, the credit reporting company said Monday. The move will help more than 62 million Spanish speakers in the U.S. Equifax is the first credit reporting firm to offer the service.

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Time to Submit Comments for the Regulation to the New California Debt Collection Licensing Act

Last month, the California Department of Financial Protection and Innovation (the "DFPI") published a notice inviting comments for its second rulemaking regarding the rules that will be promulgated under the new California Debt Collection Licensing Act (the "DCLA"). The DCLA was enacted pursuant to Senate Bill 908, and will become operative on January 1, 2022. Although the DFPI has not yet promulgated rules for the DCLA, the DFPI has started to accept applications for a debt collector license.

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Minnesota Regulator Issues Consent Order Against Lexington Law for Credit Services Violations

The Minnesota Department of Commerce has settled a regulatory action against John C. Heath, an attorney doing business as Lexington Law Firm, for violating the state’s laws on fees and registration requirements for credit services organizations.

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AG Healey Launches Investigation Into T-Mobile Data Breach, Urges Consumers to Protect Themselves From Identity Theft and Fraud

BOSTON — Following a major data breach at international wireless carrier T-Mobile, US, Inc. that compromised personally-identifying information of over 50 million people nationwide, Attorney General Maura Healey has launched an investigation to determine whether the company had proper safeguards in place to protect consumer information and mobile device information.

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Attorney General Bonta Commends Department of Education for Recognizing States’ Vital Role in Investigating Student Loan Servicers

OAKLAND – California Attorney General Rob Bonta commended the U.S. Department of Education (ED) for rescinding an erroneous DeVos-era interpretation of federal law that attempted to shield student loan servicers from state-level oversight and enforcement.

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SBA enhances disaster loan program citing Delta variant challenges

The Small Business Administration on Thursday announced improvements to its disaster loan program in an effort to help more small businesses access financial support from the government as the Delta variant of COVID-19 continues to trip up business operations nationwide. For one, the SBA is raising loan limits in its Economic Injury Disaster Loan program — low-interest loans to be paid back over 30 years — from $500,000 to $2 million. Funds may be used for any operating expenses, including purchasing equipment and making payments on debt.

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CFPB examines college credit card agreement decline

A new report from the Consumer Financial Protection Bureau (CFPB) said the market for college credit cards continued its general declining trend in 2020. The 12th annual college credit card report found that agreements with alumni associations made up the largest share of the market in terms of the number of agreements, accounts and amounts of payments made by issuers to their counterparties. The report revealed that the total volume of payments by issuers decreased to $20,882,930, from $24,980,457 in 2019 while 10 percent of active 2019 agreements were terminated during the year.

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Student Loan Forgiveness Extended to January 2022: What You Should Know

In response to the economic hardship created by the coronavirus pandemic, the U.S. government suspended payments and interest on student loans starting in March 2020. Now that vaccine distribution in the U.S. is widespread and businesses have been reopening, many have wondered just how long the student loan forgiveness program would continue. The Biden administration answered that question in August 2021, announcing a final extension of the student loan pause. Here are the details about what this means for those with student loans.

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FTC Sends Refund Checks to People Harmed by Abusive Debt Collector

The Federal Trade Commission is sending checks to 603 people who paid money they did not owe to a debt collector that used deceptive and abusive collection methods.

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U.S. banking regulator proposes removal of updated fair lending regulations

WASHINGTON, Sept 8 (Reuters) - The U.S. Office of the Comptroller of the Currency on Wednesday proposed rescinding recently updated fair lending rules, as the agency begins work on drafting a new, unified regulation with other bank watchdogs.

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Mortgage rates hold steady, giving refi holdouts another chance to save

Even as the demand for refinances slips, mortgage rates are staying solid — and that means homeowners sitting on the fence still have an opportunity to save themselves some real money. For the second week in a row, mortgage rates in the U.S. have displayed minimal movement, according to a weekly survey by one of the country’s largest mortgage facilitators.

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OCC to Hold Hearing on Charges Against Former Wells Fargo Bank, N.A. Executives; Agency Seeks Prohibition Order, Orders to Cease and Desist, and Civil Money Penalties

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced a public hearing before an Administrative Law Judge beginning Monday, September 13, 2021, in Sioux Falls, S.D. The OCC will litigate enforcement actions against Claudia Russ Anderson, former Community Bank Group Risk Officer, David Julian, former Chief Auditor, and Paul McLinko, former Executive Audit Director of Wells Fargo Bank, N.A., Sioux Falls, S.D. This hearing represents the culmination of the OCC’s longstanding efforts to hold these individuals accountable for material failures in risk management and for consumer harm.

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TransUnion Accelerates Growth of Identity-Based Solutions with Agreement to Acquire Neustar for $3.1 Billion

TransUnion (NYSE: TRU) has signed a definitive agreement to acquire Neustar, a premier identity resolution company with leading solutions in Marketing, Fraud and Communications, from a private investment group led by Golden Gate Capital and with minority participation by GIC. The acquisition expands TransUnion’s powerful digital identity capabilities through the addition of Neustar’s distinctive data and analytics, enabling consumers and businesses to transact online with greater confidence.

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Federal Court Holds Defendant’s Purported Compliance With The CCPA is Not a Shield for Other Privacy Claims

In a significant ruling, the Northern District of California recently denied in part a defendant’s motion to dismiss a complaint alleging violations of various consumer privacy statutes. It found that an affirmative defense of compliance with one privacy statute, the California Consumer Privacy Act (“CCPA”), did not shield defendant from liability for alleged violations of other state laws.

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August 2021 U.S. Foreclosure Activity Rises Following The End Of The Foreclosure Moratorium

IRVINE, Calif., Sept. 9, 2021 /PRNewswire/ -- ATTOM, licensor of the nation's most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), the largest online marketplace for foreclosure and distressed properties, released its August 2021 U.S. Foreclosure Market Report, which shows there were a total of 15,838 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 27 percent from a month ago and up 60 percent from a year ago. Numbers reflect the first month since the government moratorium has lifted.

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U.S. banking regulator proposes removal of updated fair lending regulations

WASHINGTON, Sept 8 (Reuters) - The U.S. Office of the Comptroller of the Currency on Wednesday proposed rescinding recently updated fair lending rules, as the agency begins work on drafting a new, unified regulation with other bank watchdogs.

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The U.S. has a record-breaking $1.73 trillion in student debt—borrowers from these states owe the most on average

In the United States, student debt has grown significantly over the past several decades. The Federal Reserve estimates that in quarter two of 2021, Americans owed a startling $1.73 trillion in student loans. The record-breaking total marks an increase of 3% compared to quarter two of 2020 — despite a lengthy pause on federal student loan interest rates and the elimination of billions of federally held student loans by the Biden Administration.

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Wells Fargo hit with another fine, but also says CFPB order from 2016 sales practices has ended

Wells Fargo was hit with a $250 million fine from a banking regulator after it failed to properly execute a mortgage loss mitigation program. The Office of the Comptroller of the Currency said Thursday that the bank engaged in “unsafe or unsound practices” tied to its loan modification program and violated the terms of a 2018 consent order that was critical of its risk management systems.

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A student-loan forgiveness program will continue to reject 80% of public servants through 2026, report finds

The Public Service Loan Forgiveness (PSLF) program, which relieves student debt for public servants after 120 monthly qualifying payments, has rejected 98% of applicants. Reform is on the way - meaning its denial rate will drop down to the still very high 80%.

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2021 College credit card agreements

The Credit Card Accountability, Responsibility, and Disclosure Act (“CARD Act” or “Act”) requires the Bureau of Consumer Financial Protection (the “Bureau”) to submit to Congress, and to make available to the public, an annual report that lists information submitted to the Bureau concerning agreements between credit card issuers and institutions of higher education or certain organizations affiliated with such institutions in connection with the issuance of credit cards. This report refers to these agreements as “college credit card agreements” or simply “agreements.” Affiliated organizations include fraternities, sororities, alumni associations, or foundations affiliated with or related to an institution of higher education. This is the twelfth annual report pursuant to the CARD Act.

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Consumer Financial Protection Bureau Issues Report Finding a Continued Decline in College Credit Card Agreements in 2020

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report on the agreements signed between credit card issuers and colleges, or organizations affiliated with colleges, finding that the market for college credit cards continued its general trend of decline in 2020. The report also finds that agreements with alumni associations continued to make up the largest part of this market, as defined by the number of agreements, the number of accounts, and the amounts of payments made by issuers to their counterparties. Today’s report is the twelfth annual college credit card report issued as required by the Credit Card Accountability, Responsibility, and Disclosure Act (“CARD Act”).

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As ‘buy now, pay later’ surges, a third of U.S. users fall behind on payments

(Reuters) - A third of U.S. consumers who used "buy now, pay later" services have fallen behind on one or more payments, and 72% of those said their credit score declined, a new study published by personal finance company Credit Karma showed.

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Today’s Mortgage Refinance Rates — September 9, 2021: Rates Up for All Loans

On Sept. 9, 2021, average mortgage refinance rates rose for all loans. If you are a homeowner and the interest rate on your current home loan is higher than the current rates, you may want to think about refinancing. Check out today's average rates to see how they compare to what you're currently paying:

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Biden administration extends $1B of additional student loan debt forgiveness

The Department of Education is canceling an additional $1.1 billion of federal student loan debt for borrowers who attended the now-defunct ITT Technical Institute, according to an Aug. 26 press release. Beginning in September, the Department will automatically discharge the student loan debt for 115,000 eligible borrowers. This isn't the first time the Biden administration has targeted ITT Tech. In June, the Department canceled approximately $500 million worth of debt for 18,000 borrowers who applied for forgiveness under the borrower defense to prepayment program.

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CFPB Sues LendUp Loans for Violating 2016 Consent Order and Deceiving Borrowers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today filed a lawsuit in federal district court accusing LendUp Loans, LLC of violating a 2016 consent order and deceiving tens of thousands of borrowers. In 2016, the Bureau ordered LendUp to pay $1.83 million in consumer redress and a $1.8 million civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing. In today’s complaint, the CFPB alleges that, in violation of the 2016 order, LendUp has continued with much of the same illegal and deceptive marketing. The CFPB also alleges that LendUp illegally failed to provide timely and accurate notices to consumers whose loan applications were denied.

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FTC Announces Tentative Agenda for September 15 Open Commission Meeting

Today, Federal Trade Commission Chair Lina M. Khan announced that an open meeting of the Commission will be held virtually on Wednesday, September 15, 2021. The open meeting will begin at 11 am ET and will be followed by a time for members of the public to address the Commission.

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California Regulator Opens Licensing Application For Debt Collectors

Debt collectors operating in California may now submit applications for licensure by the Department of Financial Protection and Innovation (DFPI) in compliance with the state’s newly enacted Debt Collection Licensing Act (DCLA).

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Industry Events

 
2021 Atlanta Regional Networking & Advocacy Training Event

Renaissance Atlanta Waverly Hotel & Convention Center 2450 Galleria Parkway | Atlanta, GA 30339

Renaissance Atlanta Waverly Hotel & Convention Center 2450 Galleria Parkway
Atlanta , Georgia
September 27 - 28 , 2021

916 482 2462

NCBA 2021 FALL CONFERENCE

NCBA

101 Bowie Street
San Antonio , Texas
October 13 - 15 , 2021

conferences@creditorsbar.org.