DFPI Efforts Spur Participation in Mortgage Relief Program Funded by U.S. Treasury

SACRAMENTO – Following the announcement on Dec. 20 from Gov. Gavin Newsom of the approval by the U.S. Treasury to provide $1 billion in mortgage relief grants to homeowners, the California Department of Financial Protection and Innovation (DFPI) highlights efforts that spurred participation in the program and helped forge a national model to protect homeowners impacted by the COVID-19 pandemic. 

CFPB’s Latest Orders Place Data Practices Front and Center for 2022

Last month, the CFPB utilized its market monitoring authority to issue a series of orders to five companies offering “buy now, pay later” credit.  Buy now, pay later, or BNPL, is a deferred payment option that allows consumers to split a purchase into smaller installments, typically four or less, often with a down payment of 25 percent due at checkout.

MEDICAL DEBT, COLLECTION PRACTICES TARGETED IN NEW LAWS

Thirty-five percent of American adults carry medical debt, according to HealthCare.com, but new state laws are aiming to limit how aggressively—or even whether—hospitals can collect that money.

Student loan scams increase when payments are paused. What to know

The Biden administration in December again extended the moratorium on student loan payments and interest, meaning most people with federal loans are off the hook until May 1.

Lead Generator that Deceptively Solicited Loan Applications from Millions of Consumers and Indiscriminately Shared Sensitive Info Agrees to Pay $1.5 Million FTC Penalty

A lead generation company that collected sensitive information from millions of consumers under the guise of connecting them with lenders will pay $1.5 million in civil penalties and face restrictions on their operations as a result of a Federal Trade Commission lawsuit.

CONSUMER ALERT: Attorney General James Warns of Cyberattacks Targeting Consumers Reusing Passwords for Online Accounts

NEW YORK – New York Attorney General Letitia James today issued a consumer alert warning New Yorkers of cyberattacks targeting consumers that use the same username and password (login credentials) on more than one website or app. In these cyberattacks, known as “credential stuffing” attacks, cybercriminals attempt to log in to online accounts using login credentials stolen from other online services. Specialized software enables attackers to generate and send tens of thousands of login attempts in quick succession. 

Effective Date of NY Commercial Finance Disclosure Law Postponed

Commercial finance providers doing business in New York will have more time to comply with New York’s new law requiring consumer-like disclosures to be made for certain types of commercial financing. The law previously was to take effect on January 1, 2022, but on New Year’s Eve, the New York Department of Financial Services (DFS) issued guidance stating that the “obligations do not arise until the Department issues final implementing regulations and those regulations take effect.”

New Ginnie Mae director should examine treatment of CUs

CUNA raised several pertinent credit union issues with new Government National Mortgage Association (GNMA) President Alanna McCargo in a letter Thursday. McCargo was confirmed to lead the agency in December. Ginnie Mae has long excluded credit unions from its definition of “depository institutions,” which CUNA says has no statutory basis.

CFPB Closes Online Lending Fintech for Violating ECOA and CFPB Consent Order

On December 21, an online lending fintech agreed to a stipulated final judgment with the CFPB to resolve a September 2021 complaint alleging that the company deceived consumers and violated the Equal Credit Opportunity Act (“ECOA”) (we discussed this complaint in an earlier Consumer Finance & FinTech Blog post here).  The stipulated final judgment prohibits the company from making new loans, collecting on outstanding loans to harmed consumers, selling consumer information, and making misrepresentations when providing loans or collecting debt or helping others that do so.  The company also agreed to a $40,500,000 suspended monetary judgment, and a $100,000 civil penalty based on its limited ability to pay.

CFPB Releases Report Detailing Consumer Complaint Response Deficiencies of the Big Three Credit Bureaus

WASHINGTON, D.C. — A new analysis by the Consumer Financial Protection Bureau (CFPB) reveals how changes in complaint responses provided by nationwide consumer reporting companies resulted in fewer meaningful responses and less consumer relief. In 2021, Equifax, Experian, and TransUnion together reported relief in response to less than 2% of covered complaints, down from nearly 25% of covered complaints in 2019.

Fraud Costs and Volumes Remain Significantly Higher than Pre-Pandemic for Financial Services and Lending Firms, According to New LexisNexis Risk Solutions Report

ATLANTA, Jan. 6, 2022 /PRNewswire/ -- LexisNexis® Risk Solutions today released the 2021 edition of the LexisNexis® True Cost of Fraud™ Study: Financial Services & Lending, the 5th edition of the report. The study examines fraud trends for the United States and Canadian financial services and lending sectors and key pain points related to adding new payment mechanisms, transacting through online and mobile channels and international expansion. This edition is based on responses from more than 500 risk and fraud management executives in August and September 2021 and reveals that fraud costs and attack volumes remain significantly higher compared to before the pandemic. U.S. banks and mortgage lenders are experiencing much of the increase in both areas, as is the mobile channel.

1 in 3 Americans overspent during the holidays, boosting credit card balances

By many measures, 2021 saw a record-spending holiday season despite ongoing supply chain problems, inflation and a new Covid-19 variant. Holiday sales are on track to grow as much as 11.5% over 2020, according to a projection by the National Retail Federation. About 30% of Americans said they overspent during the gift-giving season, according to a post-holiday survey by WalletHub. Although omicron drove a new wave of infections, more than half, or 56%, said Covid did not affect their plans, the survey found.

CUNA-backed legislation would address un-, underbanked

The Expanding Financial Access for Underserved Communities Act would significantly address the epidemic of the unbanked and underbanked, CUNA wrote to the Senate Banking, Housing, And Urban Affairs Subcommittee on Housing, Transportation, and Community Development Wednesday. 

TCN to Host First Annual C3 Virtual User Group Conference for Contact Center Professionals

TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs and collection agencies, will host its first annual C3 Virtual User Group Conference. Through the free one-day online event, TCN aims to offer various educational and networking opportunities to contact center professionals. The conference will feature insightful sessions led by industry leaders, covering topics such as the latest contact center trends, the best way to utilize TCN’s cloud-based software to achieve contact centers’ goals, and more. This year’s conference theme is “Connect, Collaborate and Communicate.”

TrueAccord Brings Collections to the Synapse Fintech Ecosystem

LENEXA, Kan., Jan. 5, 2022 /PRNewswire-PRWeb/ -- TrueAccord Corporation, a debt collection company offering ML-powered digital recovery solutions, today announced a partnership with Synapse as an expansion of its Collections-as-a-Service offering. The partnership will bring the best-in-class collection and recovery capabilities of TrueAccord to Synapse's fintech partners and customer base, integrating collections into the customer-centric fintech ecosystem.

Confusion Abounds Over Scope Of Debt Collection Licensing Act

California's new Debt Collection Licensing Act, Cal. Fin. Code § 100000 et seq., took effect on January 1, 2022.  However, the legislature's inartful and inconsistent draftsmanship has resulted in a great deal of uncertainty over who exactly must be licensed.

CFPB Data Point Studies Subprime Financing Rates and Default Risks Across Creditor Types

Every creditor with subprime customers has experienced—on one occasion or another, we expect—someone judging it unfavorably for allegedly taking advantage of consumers by charging higher interest rates. That "tsk-tsk" reaction might come from a consumer advocate who is unschooled in the realities of credit losses, servicing costs, and other factors that increase the cost of extending credit to higher-risk borrowers.

Jan. 14 webinar informs credit unions nearing $10 billion asset level

Increased regulatory requirements loom for credit unions as they reach the $10-billion mark in assets. A Jan. 14 webinar for CUNA members, Nearing $10 Billion in Assets: Key CFPB & NCUA CMS Expectations, will help prepare credit unions for what to expect.

California DFPI Addresses NMLS Delays on Licensing Applications

Before the end of 2021, the California Department of Financial Protection and Innovation (DFPI) had received approximately 600 applicants for debt collection licenses, which were required to be submitted by Dec. 31, and at the time assured applicants they should not be concerned about delays in a response on their license.

FTC Issues Biennial Report to Congress on the National Do Not Call Registry

The Federal Trade Commission issued its biennial report to Congress on the National Do Not Call (DNC) Registry. The new report details the number of consumers – now totaling more than 244 million – who have placed their telephone numbers on the Registry over the past two years. It also states the FTC received more than five million Do Not Call complaints in fiscal year (FY) 2021, with people overwhelmingly reporting these violations came via robocalls, as opposed to live telemarketing.

Miss. AG settles case with auto lender; Private lawyers get six figures

JACKSON, Miss. (Legal Newsline) – The plaintiffs firm Motley Rice will take more than $100,000 from a settlement recently reached between Mississippi Attorney General Lynn Fitch and Credit Acceptance Corp.

Nebraska Regulator Denies Bank’s Acquisition Deal With GreenState CU

The Nebraska Department of Banking and Finance on Monday denied an application of the $395 million Premier Bank to be acquired by the $7.9 billion GreenState Credit Union in North Liberty, Iowa.

Mortgage rates hit 9-month high, and loan demand drops further

The economic damage from the omicron variant of the coronavirus is now expected to be less than initially thought, and that has interest rates back on their upward trajectory yet again. As a result, mortgage demand fell 2.7% to end 2021, compared with two weeks before, according to the Mortgage Bankers Association’s seasonally adjusted index. [The MBA did not release application volume last week due to the holidays.]

Getting out of debt is a top New Year’s resolution, study finds

Following a year marred by record-high inflation and soaring personal debt, 2022 is a clean slate for many consumers who want to improve their finances. The majority (68%) of Americans are considering a New Year's financial resolution, according to a recent study from Fidelity.

No Surprises Act Tackles Unexpected Medical Bills at the Federal Level

New consumer protections for medical bills are in effect through the No Surprises Act, which hit the roster of federal laws addressing health care costs on Jan. 1.

In addition to banning surprise billing for emergency services, it also bans certain non-emergency care provided by out-of-network providers at in-network facilities and limits high out-of-network cost-sharing, ACA International’s Vice President of State Unit and Government Affairs Andrew Madden and Communications Director Anne Rosso May report in the latest issue of Collector magazine.

Maryland changes medical debt collection rules for hospitals

A law that took effect Jan. 1 changes medical debt collection rules for hospitals and providers in Maryland, according to NPR affiliate WAMU.  The law aims to protect low-income residents from medical debt and applies to patients making 200 percent or less of the federal poverty level, according to the report. 

More Banks Ditching Lucrative Overdraft Fees

Despite bringing in an estimated $15.47 billion in 2019, more banks in the U.S. are ditching or modifying overdraft fees in a move to better compete with zero-fee FinTechs, placate politicians and make customers happy, according to the most recent data from the Consumer Financial Protection Bureau (CFPB).

Attorney General James and Governor Hochul Continue Efforts to Defend SALT Deduction

NEW YORK — New York Attorney General Letitia James and New York Governor Kathy Hochul today announced that New York, Connecticut, Maryland, and New Jersey filed a petition for certiorari to the U.S. Supreme Court to continue their lawsuit against the federal government for its unlawful and unprecedented cap on the deduction for state and local taxes, known as SALT.

FTC Reviews Non-Compete Agreements: An Update On The Future Of Restrictive Covenants

In July 2021, President Biden signed an Executive Order directed at promoting competition in the U.S. economy. As part of that overarching goal, the Biden Administration tasked the Federal Trade Commission (“FTC”) with curtailing the use of non-compete clauses “and other clauses or agreements that may unfairly limit worker mobility.” While the FTC has only recently initiated informal proceedings on the issue, the agency – and perhaps Congress as well – seems poised to move forward in 2022 to address restrictive covenants.

White House expected to make fresh push to confirm Biden nominees for FTC, FCC

Jan 3 (Reuters) - The White House was expected to make a fresh push as early as Monday to persuade the U.S. Senate to confirm President Joe Biden's nominees for top posts at agencies such as the Federal Trade Commission and Federal Communications Commission, an administration official said.

Credit Unions Mark Unprecedented Growth

Credit unions saw more than 4.4 million people join their ranks between August 2020 and August 2021, according to a recent report by the Credit Union National Association (CUNA).  CUNA says this figure surpassed the 4.1 million new members from the previous year, bringing the total national credit union membership to 130 million. 

New York Governor Signs Bill on Money Judgments

New York will lower its interest rate on money judgments in actions involving consumer debt for the first time since 1981 after Gov. Kathy Hochul signed the Fair Consumer Judgment Interest Act (FCJIA) on Dec. 31, 2021.

The Open Banking Opportunity at the Intersection of Data and Payments

Open banking may be seen as a buzzword in the banking and payment industries. It promises new products and innovations that everybody can enjoy, namely banks, FinTechs, consumers and merchants. But open banking is much more than one product or service; it is a choice (regulatory or market driven) that allows a whole new financial ecosystem to flourish.

Digitization: The Most Popular Strategy Pursued By Financial Institutions

Various governments are pushing their favorite initiatives to ensure easy availability of credit for businesses, which is expected to drive the adoption of digital lending platforms over the forecast period.

Morgan Stanley to pay $60 million to resolve data security lawsuit

NEW YORK (Reuters) - Morgan Stanley agreed to pay $60 million to settle a lawsuit by customers who said the Wall Street bank exposed their personal data when it twice failed to properly retire some of its older information technology.

36% of Americans Took On Holiday Debt, Averaging $1,249

The holiday season can be a busy time for consumers, from making travel plans to purchasing gifts for loved ones. For some Americans, this can mean spending outside their budget by adding debt to their credit card, using buy now, pay later financing or taking out personal loans.

Mortgage Lending Snag: Boomers & Millennials Vie for the Same Houses

Baby Boomers want to keep their independence by downsizing to smaller homes, but that conflicts with Millennials’ aspirations for first-time ownership. Compounding the situation are investors buying smaller properties in bulk. Mortgage lenders need to factor this complex dynamic into their planning.

Voluntary Credit Union Diversity Self-Assessment

The NCUA’s 2021 Diversity Equity and Inclusion (DEI) Summit in early November generated considerable energy and highlighted progress within the credit union industry around the principles of diversity, equity, and inclusion. In all, more than 800 attendees participated in this event, and most left the conference with a sense of possibility and empowerment around the positive impact DEI can make not only in their credit union’s products and services, but also the communities they serve. The voluntary Credit Union Diversity Self-Assessment(opens new window) is an appropriate next step for moving ahead on the path from intention to action, which was our theme for the 2021 DEI Summit.

New year, new low rates: 30-year mortgage rates slide, other rates hold | Jan. 3, 2022

What this means: After closing out 2021 at 3.250% — the second-highest rate of the year — 30-year mortgage interest rates slipped back to 3.190%. It seems unlikely they’ll fall much lower in 2022, as mortgage experts widely predict rate increases ahead. The Mortgage Bankers Association forecasts 30-year fixed-rate mortgages will reach 4.000% by the end of the year. Buyers may want to act quickly to lock in one of today’s relatively low interest rates.

Cybersecurity: What to expect in 2022 after chaotic 2021

ESET Chief Cyber Threat Officer Tony Anscombe joins Yahoo Finance Live to discuss for cybersecurity threats in 2022 and what to look out for.

TCN to Donate More than 40,000 Meals to Utah Food Bank and Feeding America, Giving Back to Its Community During the Christmas Season

TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced it will make a substantial donation to the Utah Food Bank on behalf of its clients. This is the second consecutive year that TCN has donated funds to Utah Food Bank and Feeding America that would have otherwise been used to provide holiday gifts to TCN’s clients.

Two of America’s biggest banks return to remote work to start 2022

Omicron is messing with back-to-the-office plans for both JPMorgan Chase and Citigroup. Citing the spike in COVID-19 cases, both big banks told U.S. employees on Thursday that they can start 2022 by working remotely.

Photo publisher’s checklist: Seven New Year’s legal resolutions for your website

As we near the end of the 2021, here are seven resolutions – not including the obligatory “get in shape” or “be more organized” – that you may want to consider for 2022.

Two of America’s biggest banks return to remote work to start 2022

New York (CNN Business)Omicron is messing with back-to-the-office plans for both JPMorgan Chase and Citigroup.Citing the spike in Covid-19 cases, both big banks told US employees on Thursday that they can start 2022 by working remotely.

OCC Formally Rescinds June 2020 CRA ‎Rule and Generally ‎Reinstates 1995 Banking ‎Agencies’ Joint ‎CRA Rule‎

On December 14, 2021, the U.S. Office of the Comptroller of Currency (“OCC”) adopted a new ‎final ‎rule (“Final Rule”)‎ under the Community Reinvestment Act of 1977, as amended (the ‎‎“CRA”) which ‎will be effective on January 1, 2022, with certain compliance requirements ‎delayed to April 1, 2022. 

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