CFPB Announces Settlement Regarding the 2019 Taskforce on Federal Consumer Financial Law

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it has settled a lawsuit filed by the National Association of Consumer Advocates, U.S. Public Interest Research Group, and Professor Kathleen Engel. The lawsuit alleged that the Taskforce on Federal Consumer Financial Law did not comply with the Federal Advisory Committee Act (FACA).

U.S. Supreme Court Remands Article III Standing Case to 4th Circuit with Instructions to Reconsider Based on TransUnion v. Ramirez

Article III standing remains a focus at the highest levels of appellate litigation, as demonstrated by a recent U.S. Supreme Court decision to vacate a judgment against Rocket Mortgage LLC (formerly Quicken Loans) and remand the case to the 4th Circuit Court of Appeals based on the high court’s June 2021 decision in TransUnion v. Ramirez LLC.

Open Banking Series: What Data Do Banks and FinTechs Share?

Open banking is, undoubtedly, a good innovation for the banking sector, especially for consumers and FinTechs. But open banking can also help traditional banks to provide better services, with the assistance of third-party providers (TPPs) to their customers.

NAVIENT ANNOUNCES SUCCESSFUL RESOLUTION OF LEGAL MATTERS WITH STATE ATTORNEYS GENERAL

WILMINGTON, Del., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI), a leading provider of education loan management and business processing solutions, announced today that it has reached agreements with state attorneys general to resolve their previously disclosed multistate litigation and investigations.

Attorney General James Secures $1.85 Billion From Deceptive Student Loan Servicer Navient

NEW YORK – New York Attorney General Letitia James today announced a $1.85 billion agreement with one of the nation’s largest student loan servicers, Navient, after it deceived thousands of student loan borrowers into costly, long-term, forbearance plans, causing students to pay more than they should have. A bipartisan coalition of 39 attorneys general negotiated the multistate agreement that cancels $1.7 billion in private student loan debt and recovers $95 million in restitution for thousands of students nationwide.

CFPB Issues Bulletin to Prevent Unlawful Medical Debt Collection and Credit Reporting

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today released a bulletin reminding debt collectors and credit bureaus of their legal obligations in light of the No Surprises Act, which protects consumers from certain unexpected medical bills. Companies that try to collect on medical bills that are prohibited by the No Surprises Act, or who furnish information to credit bureaus about such invalid debts, may face significant legal liability under the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA). The bulletin advises credit bureaus that the accuracy and dispute obligations imposed by the FCRA apply with respect to debts stemming from charges that exceed the amount permitted by the No Surprises Act.

AG Ferguson lawsuit nets $45M in debt relief, payments from Navient

SEATTLE — Attorney General Bob Ferguson today announced that, as a result of his lawsuit, student loan servicer Navient will provide nearly $45 million in debt relief, restitution and costs to resolve Washington’s lawsuit. Ferguson asserted Navient, the Sallie Mae offshoot that was then the nation’s largest student loan servicer, engaged in numerous unfair and deceptive practices harming Washington student loan borrowers.

In Response to FTC Charges, Dun & Bradstreet to Clean Up Small Business Credit Reporting Process and Refund Customers

To settle Federal Trade Commission charges that it engaged in deceptive and unfair practices, Dun & Bradstreet (D&B) has agreed to an order requiring substantial changes in the firm’s operations that will benefit small- and mid-sized businesses. Under the proposed order, D&B will also provide refunds to certain businesses that purchased the company’s products in the belief that using the products would improve their business credit scores and ratings.

From California to Washington: State Laws on the Horizon This Year

The accounts receivable management (ARM) industry and ACA International saw a flurry of activity in 2021. Although Regulation F and the Hunstein letter vendor case have been at the center of attention at the federal level, states and municipalities from coast to coast were also busy with ARM industry legislation and regulations.

SCOTUS Cert Recap: Civil Procedure, Bankruptcy, And Worker’s Comp

This week, the U.S. Supreme Court granted three of the cert. petitions it considered at its first conference of the new year.  The Court agreed to hear issues involving: 1) the grounds for relief from a final judgment under Federal Rule of Civil Procedure 60(b)(1), 2) the limits on Congress’ authority to apply different bankruptcy rules to different parts of the country, and 3) the scope of states’ authority to apply their workers’ compensation laws to federal facilities.

FCC Proposes New Reporting and Notification Requirements Following Uptick of Telecom Company Data Breaches

On Wednesday, the Federal Communications Commission (FCC) announced that it would begin the process of enhancing certain rules concerning breaches of customer proprietary network information (CPNI). The notice of proposed rulemaking would update current requirements to better align with recent developments in federal and state data breach laws, the agency said.

New York reduces judgment rate on consumer debts to 2%

On December 31, 2021, New York Governor Hochul signed into law S5724-A which reduces the annual rate of interest on judgments arising out of a consumer debt where the defendant is a natural person from 9% to 2%.  The laws take effect 120 days from the Governor’s signature, which is April 30, 2022.

TCN Named a Finalist in 2021-22 Cloud Awards for Its Advanced Call Center Platform

ST. GEORGE, Utah – January 13, 2022 – TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced it has been named a finalist for the Best Use of Telephony / Unified Communications in Cloud Computing category in the 2021-22 Cloud Awards, which celebrates the brightest and the best in cloud computing. TCN received recognition for TCN Operator, its next-generation call center platform with a holistic set of easy-to-use, automated agent tools, and advanced apps. 

Steve Bouras Appointed President and CEO of The District Credit Union

AURORA, Colo., Jan. 12, 2022 /PRNewswire/ -- The District Credit Union (formerly Aurora Schools Federal Credit Union) announces the selection of Steve Bouras, the institution's current vice president and chief operating officer, as its next president and chief executive officer. The appointment became effective January 1, 2022. Bouras takes the helm from retiring CEO Brad Johnson.

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.

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