Third Party Payment Processors Association (TPPPA) files 2nd Amicus Brief in Hunstein v Preferred Collections

On Tuesday, the Third Party Payment Processors Association (TPPPA) filed a second amicus brief in support of Preferred Collections and Management, Inc. in the Hunstein v Preferred Collections matter USCA11 Case: 19-14434 at the Eleventh Circuit Court of Appeals en banc review of this case

FTC Issues Advisory Opinion on the Holder Rule and Attorneys’ Fees and Costs

The Federal Trade Commission has issued an advisory opinion stating that the Holder Rule does not prevent state law from providing costs or attorneys’ fees against loan holders, as some courts have incorrectly concluded.

$50 billion of student debt could be wiped away in bankruptcy, report says

One oft-derided, pernicious aspect of student loans is that unlike credit card debt or an auto loan, they can follow a borrower forever because they’re impossible to discharge in bankruptcy — at least according to conventional wisdom. This week, we’re taking a look at evidence that suggests that’s not always the case. A new report indicates that as much as $50 billion in debt, colloquially referred to as private student loans and held by 2.6 million borrowers, could actually be wiped away in bankruptcy court. The findings come from an analysis published Thursday by the Student Borrower Protection Center, an advocacy group.  

RMAI Announces Attorneys General Ford and Wasden to Speak in the Keynote Session at the 25th RMAI Annual Conference

January 24, 2022 (Sacramento, CA) – RMAI is honored to announce that the Keynote Session at the RMAI 2022 Annual Conference will feature a “fireside chat” with two of our nation’s leading Attorneys General — Lawrence Wasden from Idaho and Aaron D. Ford from Nevada.  The conference will be held February 7-10, 2022, in Las Vegas.  2022 marks the 25th consecutive year holding the RMAI Annual Conference.

PenFed Credit Union Announces Record Annual Mortgage and Consumer Lending Volume for 2021

TYSONS, Va., Jan. 20, 2022 /PRNewswire/ -- PenFed Credit Union, the nation's second-largest federal credit union, today released financials highlighting another record year in the institution's 87-year history. In the fourth quarter of 2021, PenFed originated a record $6.3 billion in mortgage loans and a record $3.3 billion in consumer loans, bringing the 2021 totals to $19 billion and $12 billion, respectively. Consumer loans include auto loans, credit cards, personal loans and student loans.

CFPB official says pay advance products may be loans

(Reuters) - A U.S. Consumer Financial Protection Bureau official signaled the agency is rethinking its Trump-era guidance on pay advance companies, saying that some of their products may be loans.

CFPB to Probe College Loan Programs

The Consumer Finance Protection Bureau (CFPB) has announced its intent to look into post-secondary schools like for-profit colleges, which extend private loans to students.

Student loan forgiveness has arrived for 70,000 borrowers working public service jobs

The overhaul of a controversial loan forgiveness program was projected to erase the debt of 22,000 student loan borrowers in the effort's first weeks. Three months in, more than triple that figure have had their debts wiped out.

Pa. Senate passes bills aimed at ransomware, data breaches

HARRISBURG — Pennsylvania’s state Senate passed a package of legislation on Wednesday aimed at preventing data security breaches and requiring victims and law enforcement officials to be notified when they happen.

Consumer Financial Protection Bureau to Examine Colleges’ In-House Lending Practices

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) announced it will begin examining the operations of post-secondary schools, such as for-profit colleges, that extend private loans directly to students. The CFPB is issuing an update to its exam procedures including a new section on institutional student loans. As the CFPB begins its supervision, the exam procedures inform industry about practices that CFPB examiners will review, including placing enrollment restrictions, withholding transcripts, improperly accelerating payments, failing to issue refunds, and maintaining improper lending relationships.

Americans pay $120 billion in credit card interest and fees each year

At almost a trillion dollars outstanding, credit cards are the largest consumer lending product by number of users – over 175 million consumers have at least one credit card – and one of the largest sources of consumer debt.¹ From 2018 to 2020, the CFPB estimates that Americans paid roughly $120 billion per year in credit card interest and fees.² That works out to about $1,000 per year for every American household. During the pandemic, credit card debt started to decline as many households reduced their borrowing and paid down more. But, as the economy has improved, credit card debt is on the rise again.

Garnet Capital Advisors Gives Gold Sponsorship Support to RMAI’s 25th Annual Conference

January 19, 2022 (Sacramento, CA) – Receivables Management Association International announced today Garnet Capital Advisors, LLC’s gold sponsorship support of the receivables management industry and the RMAI Annual Conference. The conference will be held February 7-10, 2022, in Las Vegas.  2022 marks the 25^th consecutive year holding the RMAI Annual Conference.

CFPB Will Enforce Laws Preventing the Collection/Reporting of Medical Debts Barred by the NSA

As part of the Biden administration’s focus on enforcement of the No Surprises Act (NSA), the Consumer Financial Protection Bureau (CFPB) has issued a bulletin (the Bulletin) indicating that it will closely review the practices of those engaged in the collection or reporting of medical debt, will hold debt collectors accountable for failing to comply with the Fair Debt Collection Practices Act (FDCPA) and Regulation F, and will hold consumer reporting agencies (CRAs) and furnishers accountable for failing to comply with the Fair Credit Reporting Act (FCRA) and Regulation V. The Bulletin is accessible here.

Not Even in the Ninth Circuit: LiveVox HCI Platform Continues to Pile Up Wins as a Manual Solution in an Uncertain TCPAWorld

It is tough sledding for TCPA Defendants these days in the Ninth Circuit. Even as other Circuit Courts of Appeal begin limiting the scope of the TCPA by ruling that the statute’s ATDS definition does not apply to dialers that call from a list, the rule remains the opposite in the Ninth Circuit—any dialer that calls “automatically” from stored numbers remains subject to the TCPA under Marks.

State Creditors Bar Associations, U.S. Chamber of Commerce File Briefs in Support of Preferred Collection

Several groups have filed amicus briefs in support of Preferred Collection and Management Services Inc.’s en banc brief on Article III standing in Hunstein v. Preferred Collection and Management Services Inc. The appeal before the 11th Circuit has become focused, in substantial part, on questions related to the intersection of the federal judicial doctrine surrounding Article III standing, which relies on the U.S. Constitution’s “case or controversy” clause, and bare procedural or technical violations of federal consumer protection laws—here, allegedly, the Fair Debt Collection Practices Act—ACA International previously reported. Judicial analysis in this area of law has become increasingly complex and nuanced over the past 18 months.

Changes to California Consumer Law Protections on January 1, 2022

Effective January 1, 2022, California implemented several important changes to its consumer protection laws, ranging from data privacy to debt collection to updates to the Consumer Legal Remedies Act. This post highlights several notable changes that companies and practitioners may wish to bear in mind as they ring in the new year.

Credit balances spike as Americans become increasingly reliant on credit card debt

The past year has posed several financial challenges for consumers amid record-high rates of inflation as the omicron variant of the coronavirus impacts the U.S. economy. As a result, Americans are becoming increasingly dependent on high-interest credit cards.

CFPB Issues Bulletin to Prevent Unlawful Credit Reporting about Medical Debt

The Consumer Financial Protection Bureau (CFPB) has released a bulletin about “Medical Debt Collection and Consumer Reporting Requirements in Connection with the No Surprises Act” to remind credit bureaus of their legal obligations under the “No Surprises Act” that protects consumers from certain unexpected medical bills.

S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW HIGHER RATES FOR ALL LOAN TYPES IN DECEMBER 2021

NEW YORK, Jan. 18, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through December 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 rose three basis points to 0.40%. The bank card default rate increased one basis point to 1.95%. The auto loan default rate was up five basis points to 0.49% while the first mortgage default rate was two basis points higher at 0.28%.

Gen Z and Millennials Favor National and Online Banks, Survey Shows — What Does That Mean for the Future of Credit Unions?

With roots dating back to the mid-1800s, credit unions have become a pillar of America’s financial landscape, but their popularity could be waning. According to a new survey by GOBankingRates, Gen Z and millennials are less likely to bank with credit unions than they are with national and/or online banks. 

CFPB Releases Report on Diversity and Inclusion within Financial Services

Today the Bureau’s Office of Minority Women and Inclusion (OMWI) released the CFPB Report on Diversity and Inclusion within Financial Services. As part of the mandate of Section 342 of the Dodd-Frank Act, the Bureau’s Office of Minority and Women Inclusion (OMWI) is charged with developing standards for assessing diversity and inclusion at the financial entities the Bureau regulates. To further that effort, CFPB engaged in analysis of public data to gain a better understanding of diversity and inclusion within the financial services sector and compiled a report to share its findings. The Report can help industry understand more about diversity and inclusion initiatives that their peers are undertaking and the various options available to entities of different sizes.

CFPB Bans BrightSpeed Solutions and Its Former CEO for Supporting Telemarketing Scammers Targeting Older Americans

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) filed a proposed final judgement and order with a federal district court that, if entered by the court, would resolve a March 2021 lawsuit brought by the CFPB against BrightSpeed Solutions and its founder Kevin Howard. The CFPB alleges that between 2016 and 2018, BrightSpeed and Howard knowingly assisted companies profiting from fraudulent services and products. BrightSpeed and Howard processed payments for companies that claimed to offer technical-support services and products to consumers over the internet, but in reality, the companies tricked consumers into purchasing expensive and unnecessary antivirus software or services.

OCC Conditionally Approves SoFi Bank, National Association

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today conditionally approved applications from Social Finance Inc. (SoFi) to create SoFi Bank, National Association (SoFi Bank, N.A.), as a full service national bank headquartered in Cottonwood Heights, Utah. As part of the transaction, SoFi Bank, N.A. will acquire Golden Pacific Bank, National Association, a national bank insured by the Federal Deposit Insurance Corporation.

CFPB issues bulletin on medical debt collection and consumer reporting requirements in connection with the No Surprises Act

CFPB issues bulletin on medical debt collection and consumer reporting requirements in connection with the No Surprises Act. The No Surprises Act sets forth requirements that apply to certain individuals who receive care from an out-of-network provider that furnishes emergency services, inpatient services an in-network facility, or air ambulance services.  The Act applies to health plan years beginning on or after January 1, 2022.

Supreme Court to Decide Constitutionality of U.S. Trustee Fees in Chapter 11 Cases

The Supreme Court of the United States granted certiorari on Jan. 10, 2022 in a case arising out of the Circuit City bankruptcy regarding certain additional fees imposed on large Chapter 11 debtors. Most Chapter 11 debtors pay quarterly fees to the Office of the United States Trustee (“UST”) pursuant to a schedule set forth in 28 U.S.C. § 1930(a)(6)

FTC Returns More Than $10 Million to Consumers Who Paid Hidden Fees to LendingClub

The Federal Trade Commission is returning more than $10 million to consumers who were charged undisclosed fees by online lender LendingClub Corporation. The FTC is distributing refunds directly to more than 15,000 LendingClub customers and encouraging additional LendingClub customers to apply for refunds.

Suncoast Credit Union Reaches 1 Million Members

Suncoast Credit Union has reached 1 million members—one of only 10 credit unions in the United States to reach this milestone.

NAFCU, other trade groups urge CFPB to conduct more research on overdraft fees before making policy

A group of trade associations, including the National Association of Federally-Insured Credit Unions (NAFCU), are urging the Consumer Financial Protection Bureau to conduct more research before making any policy recommendations related to overdraft fees.

Around 1,400 Washington residents will have student debt wiped out in settlement

SEATTLE — Around 1,400 Washington residents will have their student loan debt erased, as part of a $1.7 billion settlement from a lawsuit led by state Attorney General Bob Ferguson. Ferguson started the legal process against student-loan lender Navient years ago and 38 other states eventually joined the suit.

Thousands of Nevadans share in student loan debt settlement

CARSON CITY, Nev. (AP) — Thousands of Nevadans will share in a big settlement 39 state attorneys general negotiated with a major student loan collecting company accused of abusive lending practices tied to more than $1 billion in loans, Nevada Attorney General Aaron Ford said Friday.

US State Banking Regulators Drop Lawsuit Over FinTech Charters

The Conference of State Bank Supervisors (CSBS), the national trade group of bank regulators, announced Thursday (Jan. 13) that it has dropped the complaint in federal court challenging the Office of the Comptroller of the Currency’s (OCC) nonbank charter program and Figure Technologies’ application for an OCC nonbank charter. 

CFPB and DOJ Send Joint Letters to Landlords and Mortgage Servicers About Servicemembers’ and Veterans’ Rights

Recently, the CFPB and DOJ jointly issued two letters reminding landlords and mortgage servicers about legal housing protections for military families under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Servicemembers Civil Relief Act (SCRA).  The first letter was sent to landlords and property management companies regarding protection for military tenants.  The second letter was sent to mortgage servicers regarding military borrowers and the COVID-19 mortgage forbearance programs.

CA Adopts Proposed Regulations Under the Debt Collection Licensing Act

California recently adopted its “Proposed Regulations under the Debt Collection Licensing Act.”  Among other things, effective December 22, 2021, the Commissioner of Financial Protection and Innovation designated the NMLS to receive and store filings, obtain credit reports, and collect fees and assessments from applicants and licensees on behalf of the Commissioner. 

Fintech TrueAccord Partners with Synapse to Expand Collections as a Service Offering

TrueAccord Corporation, a debt collection firm providing machine learning or ML-powered digital recovery solutions, recently announced a partnership with Synapse as “an expansion of its Collections-as-a-Service offering.”

Citibank accused of ‘bait and switch’ in deal with debt purchaser

Citigroup pulled a “bait and switch” on a purchaser of delinquent consumer credit card debt by offloading less valuable accounts while keeping those that had a more likely chance of recovery, according to a lawsuit.

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