Are Americans Getting Better at Credit Card Debt? New Survey Shows Positive Signs

New data seems to suggest that Americans have been getting better at credit card debt as average balances declined significantly during 2020, according to the Consumer Finance Protection Bureau (CFPB), and Americans say they are very confident in their abilities to pay off their credit card debt, according to a new survey. 

CFPB Report Indicates Consumer Credit Card Use Trends Returning to Pre-Pandemic Levels

On September 29, the Consumer Financial Protection Bureau (CFPB) released its biennial report to Congress regarding the consumer credit card climate. The report shows that the market’s growth during the last few years reversed course in 2020.

FCC Acting Chairwoman Circulates “Robotext” Proposal

Acting Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel announced today that she had circulated to her Commissioner colleagues “a proposed rulemaking that would require mobile wireless providers to block illegal text messaging….”

S&P/Experian Consumer Credit Default Indices Show Composite Rate Stable In September 2021

NEW YORK, Oct. 19, 2021 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through September 2021 for the S&P/Experian Consumer Credit Default Indices. The indices represent a comprehensive measure of changes in consumer credit defaults and show that the composite rate was unchanged at 0.39%.

CFPB adds new section on information technology to Supervision and Examination Manual

The CFPB has added a new section to its Supervision and Examination Manual titled “Compliance Management Review-Information Technology.”  The new section supplements the existing section on Compliance Management Review to provide examination procedures to be used by CFPB examiners to assess information technology (IT) and IT controls as part of a Compliance Management System (CMS) review.

Student loan forgiveness is a lot closer for some borrowers, and they are pumped

The U.S. Department of Education has begun sending emails to thousands of teachers, nurses and other public servants to tell them they could have some of their federal student loan debts erased months — and even years — earlier than borrowers had expected.

CFPB and FTC File Amicus Brief with Appeals Court to Overturn FCRA Case

On October 14, 2021, the Consumer Financial Protection Bureau CFPB), Federal Trade Commission (FTC), and North Carolina Department of Justice filed an amicus brief with the U.S. 4th Circuit Court of Appeals to overturn a district court decision in a case involving the Fair Credit Reporting Act (FCRA), according to CFPB news release.

Student, Medical Debt Vex Collections Firms Under Consumer Rules

Debt collection firms are running into outdated billing procedures, particularly in student loans and medical debt, as they look to revamp their consumer communication practices as required by new federal rules.

CFPB Penalizes JPay for Siphoning Taxpayer-Funded Benefits Intended to Help People Re-enter Society After Incarceration

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today took action against the prison financial services company JPay for violating the Consumer Financial Protection Act (CFPA) by charging consumers fees to access their own money on prepaid debit cards that consumers were forced to use. JPay also violated the Electronic Fund Transfer Act (EFTA) when it required consumers to sign up for a JPay debit card as a condition of receiving government benefits – in particular, “gate money,” which is money provided under state law to help people meet their essential needs as they are released from incarceration.

Mortgage originations will drop 33% in 2022 as interest rates rise, according to industry forecast

Rising interest rates will result in a sharp drop in refinance demand in 2022, meaning a lot less business for mortgage bankers, according to the Mortgage Bankers Association’s just-released annual forecast. It predicts total origination volume will drop 33% to $2.59 trillion.

Attorney General Bonta: Predatory Lending and Illegal Rent-a-Bank Schemes Have No Place in Our Financial System

OAKLAND – California Attorney General Rob Bonta joined 20 attorneys general in urging the Federal Deposit Insurance Corporation, the Federal Reserve, and the Office of the Comptroller of the Currency (collectively, “federal bank regulators”) to explicitly disavow rent-a-bank schemes in their forthcoming guidance for banks on risk management when engaging with third parties. 

Mortgage interest rates to begin trending up: MBA forecast

Mortgage rates could soon begin to increase as the economy improves, and the Mortgage Bankers Association (MBA) forecasted in its economic outlook that the downward trend for interest rates has come to an end.

Outdated hospital billing practices present challenge to meeting new debt collection rules

Outdated billing practices, particularly in hospitals and physician offices, are causing some issues for debt collection firms as they revamp their consumer communication practices as required by law, Bloomberg Law reported Oct. 19.

Low-to-Moderate Income Consumers Present $300 Billion Growth Opportunity for the Mortgage Industry

Low-to-moderate income (LMI) consumers have traditionally been overlooked in the mortgage market and trail non-LMI consumers in terms of homeownership. A new study from TransUnion (NYSE: TRU) suggests closing this gap could yield mortgage lenders as much as ~$300 billion in refinance and purchase originations.

Nearly 10 million borrowers are about to see a change in student loan service—here’s what that means, the good and bad

On Friday, the Department of Education’s Federal Student Aid office announced a stricter set of standards for student loan servicers, the companies the government pays to oversee the billing and collection of student loan payments. 

Court Delays CFPB Payday Rule as Industry Challenge Continues (1)

Payday lenders won a bid to delay a Consumer Financial Protection Bureau rule limiting their access to customers’ bank accounts to collect payments.

Attorney General James Directs Unregistered Crypto Lending Platforms to Cease Operations In New York, Announces Additional Investigations

NEW YORK – New York Attorney General Letitia James today announced new efforts she is taking to protect New York investors, and the trading markets more generally, from exploitation by high-risk virtual currency schemes.

FTC Issues Annual Report to Congress on Protecting Older Adults

The Federal Trade Commission has issued its latest report to Congress on protecting older adults, which highlights updated findings from the Commission’s fraud reports showing trends in how older adults report being affected by fraud.

CFPB enters into second settlement with reverse mortgage provider

Last week, the CFPB simultaneously filed a lawsuit against American Advisors Group (AAG) in a California federal district court and a proposed stipulated final judgment and order to settle the lawsuit. 

U.S. Department of Education Increases Servicer Performance, Transparency, and Accountability Before Loan Payments Restart

The U.S. Department of Education today announced stronger standards for performance, transparency, and accountability for its student loan servicers aimed at protecting borrowers. Six loan servicing companies – Great Lakes, HESC/Edfinancial, MOHELA, Navient, Nelnet, and OSLA Servicing – will be held to these higher standards starting early next year.

DeSantis suspends debt collections for unemployment overpayments ‘indefinitely’

TALLAHASSEE — Facing criticism over the latest unemployment debacle, Gov. Ron DeSantis on Friday ordered the state’s jobless agency not to send Floridians to debt collectors if they’ve been issued an “overpayment” notice for their unemployment claims.

Medical identify theft woes can be more dangerous than financial identity theft

Technology can be wonderful when used properly. However, we also must recognize that technology has made life more complex and potentially more dangerous, particularly in protecting our sensitive information. In the past, shredding statements or tearing carbon copies was a sufficient way to protect our sensitive information.

CFPB Debt Collection Rules Pose Test for Medical, Student Debt

Debt collection firms are running into outdated billing procedures, particularly in student loans and medical debt, as they look to revamp their consumer communication practices as required by new federal rules. Starting Nov. 30, the Consumer Financial Protection Bureau’s rules, the first federal regulations for the industry, require debt collectors to provide consumers with a clear description of the amount of money they allegedly owe and whom they owe, among a host of other changes.

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.

One Way Solutions, LLC

(443) 203-4484

GRAND HEIGHTS LLC

(224) 877-6168

RMAI 2022 Annual Conference

Receivables Management Association International