ABA Report: Consumer Delinquencies Reached Record Low in Second Quarter

WASHINGTON —

Consumer credit delinquencies fell to a record low in the second quarter of 2021 as the economy continued to rebound, according to results from the American Bankers Association’s latest Consumer Credit Delinquency Bulletin. Overall, delinquencies fell in nine of the 11 loan categories tracked by ABA when compared to the previous quarter.

CFPB Opts Not to Take Action Against Banking App

Ahead of an upcoming merger between a digital banking platform and a special purpose acquisition company, both parties disclosed in a regulatory filing last week that the platform received a Civil Investigative Demand (“CID”) in June 2020 related to its “cash paycheck advance business in compliance with the prohibition against UDAAPs, the EFTA, and, to the extent it applies, the Truth in Lending Act.”  According to the filing, the platform provided the CFPB with all information and documents required by the CID, and on September 27, 2021, the CFPB staff notified us that it currently did not intend to recommend that the CFPB take any enforcement action.

Carr: Coalition Voices Opposition to Biden Administration’s Proposed “Privacy Invading” IRS Proposal

Atlanta, GA - In a letter to President Joe Biden and Treasury Secretary Janet Yellen, Attorney General Chris Carr, along with 19 other state attorneys general, voiced opposition to the administration advocating a policy that would provide the federal government with unprecedented access to nearly every American’s bank account and financial transaction information.

Foreclosures soar after COVID-19 forbearance programs expire

Oct. 14 (UPI) -- Foreclosures in the United States are up dramatically nationwide now that emergency measures to help people stay in their homes have begun to expire, an industry report said Thursday.

Student Lending: California’s New Requirements for Collection Activity

California is continuing to lead the way on student lending regulation. Its latest enactment further complicates the efforts of financial entities to collect on defaulted private student loans. We discuss the statute below.

New York Governor Signs Bill on Written Communications

A new law in New York will require debt collectors to inform consumers in each initial communication that written communications are available in large print format.

United States: Student Lending: California’s New Requirements For Collection Activity

On October 6, Governor Newsom signed the Private Student Loan Collections Reform Act (the Act) into law. The Act continues the trend of California leading the way in imposing new and burdensome requirements on the financial services industry.

CFPB Names Key Senior Positions

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced leadership changes within the Bureau. The positions being announced today are: Deputy Director; Associate Director for Consumer Education & External Affairs; Chief of Staff; and Chief Technologist.

Here’s how much debt Americans have at every age

From student and auto loans to credit card debt, the average American owes money in one way or another. In 2020, outstanding consumer debt in the U.S. reached $14.88 trillion, according to data from an Experian consumer debt study, which analyzed credit report information for a statistically relevant sampling from its database.

FTC Issues Notice of Penalty Offenses to Over 700 Retailers: Companies Now on “Notice” of Civil Penalty Jeopardy

Today, the FTC announced it had sent “Notices of Penalty Offense” to over 700 businesses, including top consumer products companies, large retailers, tech platforms, media and gaming companies, and ad agencies, warning them against engaging in deceptive and unfair practices when it comes to using endorsements and testimonials in ads.

California changes hospital debt collection, charity care eligibility

A California bill signed into law this month imposes new limitations on hospital debt collection practices and changes charity care eligibility.

The CFPB Ombudsman’s Office celebrates Ombuds Day

Today, the CFPB Ombudsman’s Office is celebrating worldwide Ombuds Day! What is Ombuds Day? It is a day to increase awareness and help educate about the ombudsman profession.

July U.S. Mortgage Delinquency Rates Approach Pre-Pandemic Levels, CoreLogic Reports

IRVINE, Calif., October 12, 2021—CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for July 2021.

The CFPB is looking out for families, workers, and communities

Today, I was sworn in as Director of the CFPB. I am honored to lead this organization, which plays an essential role within the Federal Reserve System. Here’s what I shared with our staff and my fellow financial regulators:

FTC Sends Refunds Totaling Nearly $300,000 to People who Lost Money to a Tech Support Scheme

The Federal Trade Commission is sending 31,075 checks to people who were deceived by Elite IT Partners Inc. into paying for costly and unnecessary computer repair services.

Education Department extends Navient’s federal loan servicing contract through 2023

Student loan servicer Navient extended its federal contract with the Department of Education through 2023, despite previously announcing on Sept. 28 its intention to exit the federal student loan business.

Consumer advocates urge CFPB to rein in pay advance companies

(Reuters) - Dozens of advocates have called on the U.S. Consumer Financial Protection Bureau to regulate earned wage access products as a form of credit, arguing that fronting money to workers ahead of payday poses unaddressed risks.

Vroom to acquire auto lender United Auto Credit for $300 million

(Reuters) - Vroom Inc said on Tuesday it would buy automotive lender United Auto Credit Corp for $300 million in cash, as the online used car retailer seeks to offer financing options for its shoppers.

En banc Ninth Circuit quashes Oakland bid to sue Wells Fargo for lost tax income

SAN FRANCISCO (CN) — The city of Oakland cannot sue Wells Fargo for allegedly racist lending practices that it says triggered widespread foreclosures and lost property tax revenue, an en banc Ninth Circuit panel ruled Tuesday.

Former CFPB Enforcement Director to Lead Federal Student Aid Enforcement Office

The U.S. Department of Education’s Office of Enforcement is restoring the Federal Student Aid (FSA) department under the leadership of Kristen Donoghue, who formerly led the Consumer Financial Protection Bureau’s Office of Enforcement.

CFPB making changes to credit card data submission process

The Consumer Financial Protection Bureau (CFPB) issued new technical specifications for the credit card agreement submission process. The CFPB’s Collect website is the mandatory vehicle for issuers to submit credit card agreements and their associated data in 2022 and beyond.

NOTICE OF WORKSHOP TO SOLICIT COMMENTS ON PROPOSED REGULATIONS PERTAINING TO SENATE BILL 248 (S.B.248) MEDICAL DEBT COLLECTION AND WORKSHOP AGENDA

The State of Nevada, Financial Institutions Division (“Division”), 3300 W. Sahara Avenue, Suite 250, Las Vegas, Nevada 89102, (702) 486-4120 is proposing the adoption of regulations to Chapter 649 of the Nevada Administrative Code (“NAC”). The proposed regulations are required as a result of the passage of Senate Bill 248 (S.B.248) during the 81st Session of the Nevada Legislature adjourned sine die on June 1, 2021. This workshop will be conducted in accordance with NRS 233B.061 and the purpose is to solicit comments from interested persons on the proposed regulations to be held through videoconference and teleconference.

As 1.2 million mortgage holders exit forbearance, unexpected hurdles

In the 18 months since the CARES Act first passed, over a million American homeowners took advantage of the forbearance protections the law provided for. After a few extensions, the mortgage payment pause officially ended — or will be ending soon — for 1.2 million out of an estimated 1.7 million loans that remained in forbearance as of August, according to CoreLogic.

Semi-Annual Report of the Consumer Financial Protection Bureau

This Semi-Annual Report to Congress comes as we begin the recovery from a global pandemic. The last two years have brought tragedy and loss to millions and heightened our collective awareness of the persistent racial and economic inequities in our country. Congress, through the Dodd-Frank
Wall Street Reform and Consumer Protection Act, created the CFPB to stand on the side of consumers and ensure they are treated fairly in the financial marketplace, and the statute compels the CFPB to respond to this moment.

42% of Americans have racked up more credit card debt since Covid-19 began. These tips can help get that under control

Covid-19 has triggered unprecedented financial challenges for many individuals and families. Now, one survey shows just where many of them are feeling the pinch — their credit card balances. Bankrate.com finds that 42% of U.S. adults with credit card debt have increased those balances since the Covid-19 pandemic began in March 2020. The company’s online survey was conducted in early September and included 2,400 adults, 1,297 of whom had credit card debt.

Why Americans’ Personal Debt Has Dropped More Than 20% Over the Last 2 Years

Although the average American with debt holds $23,325 in non-mortgage debt, that’s actually a major drop from just two years ago. In 2019, the average American with debt held $29,800 in non-mortgage debt, so this new figure represents a 20% decrease, a recent Northwestern Mutual study found.

U.S. banks expected to report mixed Q3 results, iffy loan outlook

Oct 7 (Reuters) - The largest U.S. lenders are expected to report moderately higher third-quarter profits next week as pandemic-related accounting adjustments that had doubled their earnings earlier this year taper off and business starts to return to normal.

Nonbanks are hiking conforming loan limits

Earlier in the month, PennyMac Financial and United Wholesale Mortgage publicly announced that they are each raising their conforming loan ceilings by 14%, nearly two months ahead of the Federal Housing Finance Agency‘s official decree. They’re not the only ones getting a jump on new conforming loan limits.

Connecticut Expands Breach Reporting and Creates Cybersecurity Safe Harbor

On October 1, 2021, two Acts overhauling data privacy and cybersecurity in Connecticut took effect—the latest instance of stronger state breach reporting requirements with a safe harbor protection from litigation for businesses that implement cybersecurity measures. The still relatively new safe harbor incentive system may be further validated by this development and continue to spread to other states.

Attorney General Bonta Provides Public Servants With Information on How to Utilize the Updated Public Service Loan Forgiveness Program

OAKLAND – California Attorney General Rob Bonta issued a consumer alert today highlighting important information regarding recent changes to the Public Service Loan Forgiveness (PSLF) program. On Oct. 6, 2021, the U.S. Department of Education (ED) announced that over the coming months, it will be implementing critical improvements to the PSLF program that should provide more eligible public servants with the student loan forgiveness that they deserve. As part of these improvements, ED has launched a limited-time Public Service Loan Forgiveness Limited Waiver Opportunity that will run through Oct. 31, 2022, allowing eligible borrowers to receive credit for past payments made on loans that would otherwise not qualify under the PSLF program.

CFPB releases debt collection rule FAQs

The CFPB has released frequently asked questions on the limited-content message and call frequency provisions of its debt collection rule (Regulation F) that becomes effective on November 30, 2021.  While many of the FAQs repeat what is stated in the rule, they do provide some clarifying information which we highlight below.

CFPB Takes Action Against American Advisors Group for Deceptively Marketing Reverse Mortgages to Consumers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today filed a complaint and proposed consent order alleging that American Advisors Group (AAG) used inflated and deceptive home estimates to lure consumers into taking out reverse mortgages. The CFPB also alleges that AAG’s deceptive conduct violated a 2016 administrative consent order that addressed AAG’s deceptive advertising of reverse mortgages. If entered by the court, the proposed consent order would prohibit AAG from future unlawful conduct and require AAG to pay $173,400 in consumer redress and a $1.1 million civil money penalty.

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