AG Weiser, 50 attorneys general call on FCC to block foreign-based robocalls

DENVER — Colorado Attorney General Phil Weiser, along with a bipartisan group of 50 attorneys general, is urging the Federal Communications Commission to take steps to reduce foreign-based robocalls, Weiser's office announced in a press release Monday.

3 student loan changes in 2022 that borrowers should know about

The student loan industry saw significant reforms over the past few years during the coronavirus pandemic, and many of these changes will impact borrowers in 2022. Here are a few changes that student loan borrowers should be aware of in the next year:

Americans are getting themselves back into debt

During the pandemic, some consumer balance sheets started to improve. Flush with additional cash — from wage increases, stimulus payments, loan forbearance or just fewer opportunities for spending — consumers kept their credit card balances in check.

Breaking: Supreme Court Orders Fourth Circuit to Reconsider Standing Ruling in Light of TransUnion Decision.

The Supreme Court has vacated a $9.7 million judgment against Rocket Mortgage, LLC (formerly Quicken Loans) and ordered the Fourth Circuit Court of Appeals to reconsider its ruling in light of TransUnion LLC v. Ramirez (2021).   Read on to learn more.

Governor Proposes To Increase In DFPI Spending

Yesterday, Governor Gavin Newsom met the constitutional deadline for submitting a proposed budget.  Cal. Const. Art. IV, § 12(a).  The release of the budget kicks of a prolonged legislative process.  In the next several weeks, the budget committee chairs in each house  of the legislature will introduce the Governor’s budget proposal in bill form.  During this time,  the Legislative Analyst’s Office will conduct a detailed review of the budget bill and releases various reports.

5 key themes driving balance sheets

Credit union financials will continue to be influenced by the dynamics of a COVID-centric operating environment in 2022. “As the economy continues to expand, credit unions financials will return to pre-pandemic growth levels,” says Dawit Kebede, CUNA senior economist. “But there will be adjustments along the way as we recover from the effects of earlier restrictions and learn to operate within the uncertainty of a continuing global pandemic.”

FDIC and FinCEN Launch Digital Identity Tech Sprint

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) today announced a Tech Sprint to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity proofing—the process used to collect, validate, and verify information about a person. Through the Tech Sprint, FDIC’s tech lab (FDITECH) and FinCEN seek to increase efficiency and account security; reduce fraud and other forms of identity-related crime, money laundering, and  terrorist financing; and foster customer confidence in the digital banking environment. 

Addition Financial Credit Union Selects Zest AI For Loan Underwriting

ORLANDO, Fla. and LOS ANGELES, Jan. 12, 2022 /PRNewswire/ -- Addition Financial Credit Union, with more than $2.6 billion in assets and 162,000 members across Florida, today announced it has partnered with Zest AI, a leader in software for AI-driven lending, to expand credit access safely to more members.

Spring Labs and TransUnion Bring Credit Data to Public Blockchain Networks for the First Time

For the first time ever, off-chain credit data from TransUnion (NYSE: TRU), a global information and insights company, will be made available on public blockchain networks via Spring Labs’ ky0x Digital Passport. The move enables better-informed, privacy-preserving DeFi and Web3 applications (internet applications based on public blockchains), unlocking a new world of permissioned and reputation-based products and features.

FCC Seeks Comments on Call Blocking Notification Requirements

The Federal Communications Commission is asking for stakeholder input on voice service providers’ call blocking notification requirements by Jan. 31. At the center of the call blocking issue currently is a Petition for Reconsideration and Request for Clarification of USTelecom—The Broadband Association.

CREDIT CONTROL, LLC ANNOUNCES NEW VICE PRESIDENT OF SALES, PHIL THOMAS

St. Louis, MO January 11^th – Credit Control, LLC (“Credit Control”) is proud to announce that Phil Thomas has joined the company as Vice President – Sales. He joins an established team of industry experts specializing in consultative sales & business development and will be a key part of our team’s focus on expanding our national presence as industry leaders in the collections and recovery industry.

Bank of America Announces Sweeping Changes to Overdraft Services in 2022, Including Eliminating Non-Sufficient Funds Fees and Reducing Overdraft Fees

Bank of America today announced significant changes to its overdraft services, including plans to eliminate non-sufficient funds (NSF) fees beginning in February, and to reduce overdraft fees from $35 to $10 beginning in May. The company will also eliminate the transfer fee associated with its Balance Connect™ for overdraft protection service in May. These and earlier changes over the last decade, together with industry-leading solutions that can help consumer clients avoid overdraft fees – such as the no overdraft fee SafeBalance® account and Balance Assist™ – will lead to overdraft fee revenues being reduced by 97% from 2009 levels.

Four Key Takeaways for Digital Health Companies from the FTC’s Recent COPPA Settlement

True to its word, the Federal Trade Commission (FTC) has continued to focus on online privacy by targeting digital platforms that collect personal information. Most recently, the FTC has focused its enforcement authority on OpenX Technologies, Inc., a real-time bidding platform for targeted advertising on websites and apps used in many industries, including the digital health industry. OpenX settled with the FTC over allegations that OpenX violated the Children’s Online Privacy Protection Act (COPPA) by collecting personal information from children under thirteen without parental consent.

Justices add new cases on bankruptcy, workers’ comp, and relief from final judgments

The Supreme Court on Monday morning added three new cases — involving bankruptcy law, civil procedure, and workers’ compensation — to its docket for the 2021-22 term. But the orders that the justices issued from their private conference on Jan. 7 were just as noteworthy for what they did not do: The court did not act on a pair of petitions challenging the consideration of race in the undergraduate admissions process at Harvard University and the University of North Carolina, nor did it act on a petition filed by a website designer who does not want to design wedding websites for same-sex couples.

Personal loan interest rates drop: 5-year rates nearly 1% lower than same time last year

Borrowers with good credit seeking personal loans during the past seven days prequalified for rates that were lower for 3-year fixed-rate loans and 5-year fixed-rate loans compared to the previous seven days.

Unauthorized Banking: Fedro Asset Bank, N.A. and Ledge Community Credit Union, N.A.

The Office of the Comptroller of the Currency (OCC) has been informed by the State of Florida’s Office of Financial Regulation that entities using a multitude of fictitious names and websites are purporting to offer banking services in Florida. In some situations, they are misrepresenting themselves as national banks. Both groups have been using foreign-hosted websites designed to obtain information to likely perpetrate fraud, including identity theft. None of these entities are authorized to conduct banking business in the United States, and websites appear to spoof a legitimate financial institution.

Los Angeles-based Rent-to-Own Furniture Startup Agrees to Refund Overcharges and Comply with Consumer Protection Laws

SACRAMENTO – In its first action against a rent-to-own firm violating the California Consumer Financial Protection Law (CCFPL), the Department of Financial Protection and Innovation (DFPI) today finalized a settlement with Los Angeles-based rent-to-own furniture provider Fernished, Inc., doing business as Fernish.

CFPB Sues United Holding Group, Its Affiliates, and Its Owners for Illegal Debt Collection Practices

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today sued United Debt Holding (UDH), JTM Capital Management (JTM), United Holding Group (UHG), and their owners, Craig Manseth, Jacob Adamo, and Darren Turco, for illegal debt-collection practices. The Bureau alleges that the defendants placed consumer debt with, or sold consumer debt to, collection companies that used unlawful and deceptive collection tactics. The defendants knew, or should have known, the collection companies made false threats and false statements to consumers. And although some of the defendants have been the subject of prior enforcement action, they continued their unlawful practices.

Rates plunge for private student loan refinances following weeks of steady increases

Rates for well-qualified borrowers using the Credible marketplace to refinance student loans fell for both 10-year fixed-rate loans and 5-year variable-rate loans.

Analysts Expect Big Banks to Post Record Profits for ’21

The biggest Wall Street banks are set to report new record profits in 2021, due to bumper investment banking fees and less-than-expected losses on loans, the Financial Times (FT) reported Saturday (Jan. 8). Citigroup and J.P. Morgan Chase are the first big banks to post fourth quarter results on Jan. 14, with Goldman Sachs posting on Jan. 18 and Bank of America on Jan. 19. Except for Citigroup, all of them plan to report their biggest ever full-year profits, according to estimates from Bloomberg.

Office of The Attorney General Announces New Online Form For Submitting Data Breach Notifications

(Hartford, CT) – Attorney General William Tong today announced a new online form designed to help businesses comply with their obligation to notify the Office of the Attorney General when they experience a data breach impacting Connecticut residents.

CONSUMER ALERT: Attorney General James Issues Alert to Protect New York Homeowners From Deceptive Practices

NEW YORK – New York Attorney General Letitia James today issued alerts in multiple languages, warning New Yorkers to be wary of scams and other deceptive practices related to the Homeowner Assistance Fund (HAF). The HAF is a federally funded program designed to assist homeowners who are experiencing financial hardship due to the coronavirus disease 2019 (COVID-19) pandemic. New York state has since received nearly $540 million in HAF funding that is available to eligible New York homeowners.

Protecting servicemembers from predatory lending

Financial readiness is military readiness. A servicemember who is focused on repaying a predatory loan is not focused on her mission. And a servicemember who loses his security clearance as a result of a default or other credit issue may not be able to serve at all. Protecting American servicemembers and their families is a core part of the Consumer Financial Protection Bureau’s mission, and it is work that we take very seriously. That is why, this week, the Bureau partnered with the Department of Defense and the Department of Justice to ensure that military families enjoy the full protections of federal law.

CFPB Releases Fall 2021 Supervisory Highlights

The CFPB recently issued its Fall 2021 Supervisory Highlights, discussing findings from its examinations in connection with credit card account management, debt collection, fair lending, mortgage servicing, deposits, prepaid accounts, and remittance transfers.

Recent Settlements and Penalties Show Perils of Data Breaches

Two major U.S. financial institutions, Morgan Stanley and Capital One, recently agreed to resolve separate class action lawsuits by paying, in the aggregate, hundreds of millions of dollars in compensation for massive data breaches a couple of years ago. Those breaches exposed personal data of millions of their customers, giving rise to the class actions. 

Nevada Regulator Issues Reminder to File Report on Residential Debt Collection

The Nevada Financial Institutions Division is reminding licensed collection agencies that collect residential debt for unit-owners’ associations of common-interest communities to file their report required by Senate Bill 186 by Jan. 31.

Sen. Scott, Rep. Timmons Urge CFPB to Reconsider Rule Harming SC Farmers

WASHINGTON – U.S. Senator Tim Scott (R-S.C.) and Representative William Timmons (R-S.C.) sent a letter to Consumer Financial Protections Bureau (CFPB) Director Rohit Chopra regarding a new data collection rule that would place undue burden on South Carolina small business owners, farmers, and lenders.

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.”

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