Meanwhile in Massachusetts…..New Bill Would Outlaw Using Local Area Codes Unless Caller is In State–$10K in Damages Available

Anyway, new bill in MA would make this (amongst other things) illegal: “caus[ing] to be displayed a Massachusetts area code on the recipient’s caller ID unless the person making, placing or initiating the call or text message maintains a physical presence in the commonwealth…”

Seventh Circuit vacates restitution award to CFPB in action against mortgage-assistance relief companies and lawyers

In a decision issued earlier this summer, the U.S. Court of Appeals for the Seventh Circuit vacated the district court’s order awarding restitution, mandating civil penalties, and issuing an injunction in an action brought by the CFPB against two mortgage-assistance relief companies and four lawyers associated with the companies.  The decision imposes significant limitations on the Bureau’s ability to recover both monetary and injunctive relief in enforcement actions.

FTC Sends Nearly $5 Million in Refunds to People who Lost Money to Cramming Scheme

The Federal Trade Commission is sending refund checks totaling nearly $5 million to people who lost money to a cramming scheme that added charges to their home phone bills without their permission.

NCUA has asked credit unions to comment on crypto. So far, crickets.

The National Credit Union Administration released a request for information in July, calling on credit unions and other related entities to provide feedback on how distributed ledger technology and decentralized finance applications are viewed and used by the industry. The agency asked how blockchain can serve members and meet business objectives, as well as what hurdles exist to implementation and what risks the technology could pose to the institutions. Comments in response to the RFI are received and posted by the agency in batches to the government portal, with the frequency increasing closer to the deadline which in this case is Sept. 27.

U.S. Bank to Acquire MUFG Union Bank

MINNEAPOLIS and NEW YORK – September 21, 2021 – U.S. Bancorp (NYSE: USB) today announced that it has entered into a definitive agreement to acquire MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group (NYSE: MUFG) in a transaction that will bring together two premier organizations with a focus on being the leader in serving customers and communities in California, Washington and Oregon.

Attorney General Bonta Announces Arrests in Orange County Connected to One of the Nation’s Largest Student Loan Debt Relief Fraud Schemes

OAKLAND – California Attorney General Rob Bonta today announced the arrest of the leader of a nationwide, multiyear, multimillion-dollar student loan debt relief scam. The defendant owned a network of third-party debt relief (TPDR) businesses based in Orange County. They employed managers and sales agents to operate multiple call centers that contacted individuals across the country promising to reduce or eliminate their federal student loan debt. 

Stronger mortgage demand points to September surge in home sales

After a Labor Day week lull, demand for mortgages rose sharply last week from homeowners and homebuyers. Total mortgage application volume was up nearly 5% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. Mortgage interest rates, however, didn’t move, and haven’t for the past four weeks. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) remained unchanged at 3.03%, with points decreasing to 0.30 from 0.32 (including the origination fee) for loans with a 20% down payment.

CFPB Sues Online Lender for Alleged Violations 2016 Consent Order

The CFPB recently filed a complaint against an online installment and single-payment lender alleging that it violated the terms of a 2016 consent order that previously required the company to pay millions in consumer redress and a civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing.

Wyoming and Maine Issue New Licensing Requirements Potentially Impacting Passive Loan Investors

Wyoming and Maine recently amended their laws related to licensure requirements for consumer lending:

Student loans: Ending the pandemic payment pause ‘is a defining moment,’ Federal Student Aid COO says

The head of the federal government's massive student loan portfolio recently described the pandemic payment pause as "an unprecedented challenge," adding that restarting payments for tens of millions Americans after January 2022 will be "a defining moment."

Justice Department Settles with the State of New Jersey’s Student Lending Authority for Alleged Violations of the Servicemembers Civil Relief Act

The Department of Justice announced today that New Jersey Higher Education Student Assistance Authority (HESAA) has agreed to enter into a settlement and pay $50,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two military servicemembers who co-signed student loans.

DFPI Debt Collector Licensing Now Available at NMLS

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).

Coinbase Caves to SEC Pressure, Drops Lending Product. Will Others Follow Suit?

Two weeks ago, Coinbase was in fighting form. Its CEO Brian Armstrong blasted the Securities and Exchange Commission (SEC) for what he labeled "sketchy behavior." The SEC demanded that Coinbase drop its Lend product, which would have allowed borrowers to use crypto as collateral on loans. It would also have paid investors 4% APY on deposits in the stablecoin USD Coin (USDC). The SEC threatened to sue if Coinbase persisted with the offer.

Why two companies are paying off $225 million in medical debt for 176,000 people

Health care company Nomi Health said on Tuesday it is teaming with charity RIP Medical Debt to pay off $225 million in overdue medical bills for 176,000 Americans. Those people will receive letters over the next few weeks alerting them to the debt forgiveness.

CFPB Sues Software Company That Helps Credit-Repair Businesses Charge Illegal Fees

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today filed a lawsuit in federal district court accusing a California-based software company and its owner of providing assistance to illegal credit-repair businesses. 

Attorney General Chris Carr Provides Update on Fight Against Robocalls

ATLANTA, GA – Attorney General Chris Carr, today released an update on telecom companies’ progress in implementing the Anti-Robocall Principles he signed onto in 2019. Since September 2019, companies that agreed to these Principles have identified more than 52 billion spam or spoofed numbers calls, authenticated the caller ID numbers of hundreds of billions of calls, and blocked more than 32.5 billion spam, spoofed, or illegal calls. 

CFPB Withdraws Proposal to Delay Debt Collection Final Rules

On September 1, the CFPB formally withdrew its April 7 proposal to delay the effective date of its two rules revising Regulation F until January 29, 2022. Regulation F, as amended by the two final rules, implements the Fair Debt Collection Practices Act (Debt Collection Final Rules). The CFPB’s withdrawal of its proposal to delay the Debt Collection Final Rules was based on most industry commenters stating that they are prepared to comply with the Debt Collection Final Rules by November 30, 2021, and that an extension would reduce regulatory certainty and increase burden on small entities. The CFPB’s withdrawal of its former proposal means that the Debt Collection Final Rules will officially take effect on November 30, 2021.

Tenth Circuit Applies TransUnion v. Ramirez To Find Standing In Single-Call Debt Collection Case

The U.S. Supreme Court’s recent TransUnion v. Ramirez decision on Article III standing was discussed at length and applied by the Tenth Circuit Court of Appeals in Lupia v. Medicredit, Inc., --- F. 4th ---, 2021 WL 3627103 (Aug. 17, 2021). Although Lupia involves the application of the Fair Debt Collection Practices Act’s (“FDCPA”) bona fide error defense, it is important, for this blog’s purposes, because of its application of TransUnion v. Ramirez in concluding Plaintiff had standing based on the receipt of a single phone call.

FTC Opens Rulemaking Petition Process, Promoting Public Participation and Accountability

At an open Commission meeting today, the Federal Trade Commission voted to make significant changes to enhance public participation the agency’s rulemaking, a significant step to increase public participation and accountability around the work of the FTC.

CFPB Report: Renters at Risk as COVID-19 Safety Net Ends

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report warning that millions of renters and their families may suffer previously avoided economic harms of the COVID-19 pandemic as federal and state relief programs end. The report, “Financial conditions for renters before and during the COVID-19 Pandemic,” finds that some government relief efforts likely helped maintain the financial stability of renters and their families, suggesting that many may be at risk as those programs expire.

Trade groups file appeal from federal district court’s award of summary judgment to CFPB in challenge to payday loan rule

The two trade groups challenging the payment provisions in the CFPB’s 2017 final payday/auto title/high-rate installment loan rule have filed an appeal with the Fifth Circuit from the Texas federal district court’s final judgment granting the CFPB’s summary judgment motion and staying the compliance date for the payment provisions until 286 days after August 31, 2021.

Student loan debt delays homebuying timeline

Over half of non-homeowning millennials (60%) say student loan debt is delaying them from purchasing a home, making them the population most affected by student debt, according to the National Association of Realtors’ 2021 impact of student loan debt report. By comparison, only 53% of Gen Xers, 37% of Baby Boomers and 39% of Gen Zers felt this way, according to the study. The report was conducted by Morning Consult, a data intelligence company, on behalf of the NAR and is based on an online poll that sampled nearly 2,000 student loan debt holders.

Student loans: ‘Revolutionary’ new data shows average debt of recent graduates by degree

Amid a major student loan debt crisis in the U.S., a new report by the Texas Public Policy Foundation found that some degrees cost tens of thousands of dollars more than others. The report — which uses new data released by the Department of Education (ED)'s College Scorecard to examine typical college debt by credential and program — contributes to a burgeoning trend of transparency that's aimed at scrutinizing the cost of tuition generally.

Minnesota Establishes Licensing Requirement for Debt Buyers

Earlier this summer, Minnesota extended many of its collection agency requirements to debt buyers through the enactment of H. F. No. 6. As of January 1, 2022, debt buyers will need to hold a collection agency license or have a licensing application filed with the Minnesota Department of Commerce (Department) in order to “engage[] in the purchase of any charged-off account, bill, or other indebtedness for collection purposes, whether the business collects the account, bill, or other indebtedness, hires a third party for collection, or hires an attorney for litigation related to the collection.” Information on how to register for a Minnesota collection agency license can be accessed here.

CFPB Sets June 2022 Compliance Date for Payday Rule

Nearly four years after the Consumer Financial Protection Bureau (CFPB) issued its final November 2017 "Payday, Vehicle Title, and Certain High-Cost Installment Loans" Rule (Payday Rule), we at long last have a compliance date — June 2022.

Department of Education Revises Student Lending Policy; State Regulators Announce Support

In a letter to the U.S. Department of Education (DOE) this week, state financial regulators expressed support for its new legal interpretation regarding state regulation of federal student loan servicers and debt collectors, according to a news release.

Michigan to Move Licensing and Regulation Database to New System

The Bureau of Professional Licensing (BPL) within the Michigan Department of Licensing and Regulatory Affairs (LARA) is moving to a new online licensing and regulatory database for health and occupational professions, called Michigan Professional Licensing User System (MiPLUS).

U.S. banking regulators working on climate risk management guidance, official says

WASHINGTON, Sept 15 (Reuters) - U.S. banking regulators are working on new climate risk management guidance for large lenders, a top official said on Wednesday, in another sign of efforts to incorporate the risks posed by rising temperatures into financial rules.

Student Debt Holding Buyers Back

Sixty percent of non-homeowning millennials say student loan debt is delaying their ability to buy a home, according to a survey released by the National Association of Realtors. 

Student loan refinance rates rise, but 10-year rates remain near record lows

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender, during the week of Sept. 6, 2021: Rates on 10-year fixed-rate loans averaged 3.50%, up from 3.42% the week before and down from 4.20% a year ago. Last week’s rates were a record low for 10-year fixed-rate loans.

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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