Recent Vintage Loans Perform Well Even as More Non-Prime Consumers Secured Credit in Second Half of 2021

With consumer credit performance maintaining healthy levels across auto, credit card, personal loans and mortgages, lenders continued to ramp up new account origination growth in the non-prime segment of the market near the end of 2021. TransUnion’s (NYSE: TRU) newly released Q4 2021 Quarterly Credit Industry Insights Report (CIIR) also found that loans to non-prime borrowers increased while accounts originated during the pandemic in 2020 continued to perform as well or better when compared to loans from previous years.

U.S. Has More Credit Cards Than Ever as Issuance Surged in 2021

A record 196 million Americans held cards at the end of 2021, according to a report by credit-data agency TransUnion. In the third quarter, the latest for which detailed numbers are available, the number of new cards issued hit an all-time high of 20.1 million, it said. Some 9 million of them went to so-called non-prime borrowers -- those with poor or fair credit.

Do People Always Have the Right to Withdraw Consent?

Modern privacy laws contain different definitions for the term “consent,” and different standards for when consent will, and will not, be effective.

U.S. National Debt Tops $30 Trillion as Borrowing Surged Amid Pandemic

WASHINGTON — America’s gross national debt topped $30 trillion for the first time on Tuesday, an ominous fiscal milestone that underscores the fragile nature of the country’s long-term economic health as it grapples with soaring prices and the prospect of higher interest rates.

CFPB Wants Your Input on ‘Junk Fees’

Which do you despise the most? Late payment fees? Hotel resort fees? Document preparation fees? Convenience fees? They all fall under the general category of "junk fees," something about which the Consumer Financial Protection Bureau (CPFB) has grown increasingly concerned.

TCN to Showcase Latest Enhancements to its Advanced Call Center Platform at RMAi 2022 Annual Conference

ST. GEORGE, Utah, Feb. 1, 2022 /PRNewswire-PRWeb/ -- WHAT & WHO
RMAi 25th Annual Conference, hosted by Receivables Management Association International (RMAi), is a premier event for debt buyers, originating creditors, collection agencies, law firms, brokers, and affiliates to gather for timely industry education, in-person networking opportunities, and business development prospects.

It will be ‘a challenge to motivate’ student-loan borrowers to pay off their debt after a 2-year pause, the Education Dept. tells government watchdog

It's no secret that resuming student-loan payments after a two year pause will be difficult — and the Education Department said that's the reality for both itself and for borrowers.

Telecom Alert: Ninth Circuit Upholds CA Net Neutrality Mandate; Auction Communications Investigation; FCC Broadband Nutrition Labels; Section 253 Petition; Order to Dismantle [Vol. XIX, Issue 5]

Last week, the U.S. Court of Appeals for the Ninth Circuit affirmed the U.S. District Court for the Eastern District of California’s ruling denying a preliminary injunction against implementation of California’s net neutrality mandate.  After the FCC found in 2018 that it lacked statutory authority to enact federal network neutrality requirements and that States were preempted from adopted such measures as well, California passed a law that prohibits internet service providers from blocking, throttling, or granting paid priority to web content.

CFPB warnings of bias in AI could spook lenders

Rohit Chopra has seized on nearly every public opportunity as director of the Consumer Financial Protection Bureau to admonish companies about the potential misuse of artificial intelligence in lending decisions. Chopra has said that algorithms can never “be free of bias” and may result in credit determinations that are unfair to consumers. He claims machine learning can be anti-competitive and could lead to “digital redlining” and “robo discrimination.”

Data Breach Alert: Internews Network

Recently, the non-profit organization Internews Network released additional information relating to a “cyber event” that resulted in the personal data of more than 10,000 individuals being compromised. According to an official filing by Internews Network, on December 7, 2021 the organization discovered unusual activity on some of the organization’s computers. Internews conducted a follow-up investigation, revealing that an unauthorized party gained access to the names, Social Security numbers, and dates of birth of 10,637 individuals nationwide.

On Data Privacy Day, Attorney General Bonta Puts Businesses Operating Loyalty Programs on Notice for Violations of California Consumer Privacy Act

OAKLAND – California Attorney General Rob Bonta today announced an investigative sweep of a number of businesses operating loyalty programs in California and sent notices alleging noncompliance with the California Consumer Privacy Act (CCPA). Under the CCPA, businesses that offer financial incentives, such as discounts, free items, or other rewards, in exchange for personal information must provide consumers with a notice of financial incentive. This notice must clearly describe the material terms of the financial incentive program to the consumer before they opt into the program. Letters were sent today to major corporations in the retail, home improvement, travel, and food services industries, who have 30 days to cure and come into compliance with the law. 

Personal loan rates continue to trend upward, but are lower than this time last year

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

Proposed State Privacy Law Update: Jan. 31, 2022

Keypoint: This week lawmakers introduced new bills in Georgia, Hawaii and Oklahoma, the Indiana Senate passed a bill out of committee, and hearings were held on bills in Alaska, Maryland, and Washington.

3 Challenges Facing Credit Unions

Talk to experts in the credit union (CU) space, and they’ll tell you most CUs are trailing their peers in the banking industry when it comes to innovations. Catching up will mean CUs making substantial digital strides — from technological investments to complete overhauls of infrastructure — as well as an honest assessment of the digital experiences CUs offer.

Debt Buyer Sued for Deceptive Practices of Downstream Third-Party Collectors; CFPB Uses Its Substantial Assistance Authority

On January 10, 2022, the Consumer Financial Protection Bureau (CFPB) filed a complaint in federal district court against three affiliated debt-buying businesses and the individuals who founded and operated them for "knowingly and recklessly [placing debts with and selling them to] debt collection agencies that used threats and misrepresentations to coerce payments from consumers."

Justice-Involved Individuals and the Consumer Financial Marketplace

From arrest to incarceration and reentry, people who come into contact with the justice system are confronted with numerous financial challenges, including financial products and services that too often contain exploitative terms and features, offer little or no consumer choice, and can have long-term negative consequences for the individuals and families affected. This report outlines some of the challenges faced by justice-involved people and their families in navigating their finances at each stage of the criminal justice system. The available information raises serious questions about the transparency, fairness, and availability of consumer choice in markets associated with the justice system, as well as demonstrating the pervasive reach of predatory practices targeted at justice-involved individuals.

CFPB Report Shows Criminal Justice Financial Ecosystem Exploits Families at Every Stage

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today published a review of the financial issues facing people and families who come in contact with the criminal justice system. The report, “Justice-Involved Individuals and the Consumer Financial Marketplace,” describes an ecosystem rife with burdensome fees and lack of choice, and where families are increasingly being forced to shoulder the costs. It walks through the financial challenges families encounter at every stage of the criminal justice process, and the ways in which providers – often for-profit private companies – are leveraging a lack of consumer choice and their own market dominance to impose hefty fees at families’ expense.

The Government Needs Your Help Cracking Down on Fees From Banks and Mortgage Lenders

The Consumer Financial Protection Bureau (CFPB) just launched a new initiative encouraging people to lodge complaints about the worst fees they’ve encountered. The CFPB — a federal agency established in 2011 to protect and enforce consumer financial laws — says it will use this feedback to crack down on “junk fees” charged by banks, credit unions, credit card companies, mortgage lenders and more, potentially saving Americans billions of dollars in the process.

On Data Privacy Day, Attorney General Bonta Puts Businesses Operating Loyalty Programs on Notice for Violations of California Consumer Privacy Act

OAKLAND – California Attorney General Rob Bonta today announced an investigative sweep of a number of businesses operating loyalty programs in California and sent notices alleging noncompliance with the California Consumer Privacy Act (CCPA). Under the CCPA, businesses that offer financial incentives, such as discounts, free items, or other rewards, in exchange for personal information must provide consumers with a notice of financial incentive.

CFPB Announces Crackdown on ‘In-House’ Loan Programs Offered by Colleges and Universities

On January 20, 2022, the Consumer Financial Protection Bureau (CFPB) announced that it will examine postsecondary schools’ “in-house” lending practices (the Announcement). The Announcement highlights the CFPB’s intent to focus on schools’ debt collection practices, such as withholding transcripts from delinquent borrowers, and whether the schools maintain “preferential relationships” with certain student loan lenders in light of requirements in the early 2000s after “many lenders and institutions of higher education were caught engaging in kickback arrangements that gave schools the incentive to steer students into certain loans.”

Debt Study: The average American has $155,000 in debt

RICHMOND, Va. (WWBT) - The average American has around $155,000 in debt according to a new study by Nerdwallet. That’s an increase of more than 6% from last year. This same study found that revolving credit card debt is actually down almost 14% for most families. This means you are likely paying about $100 dollars less in interest payments throughout the year. Sara Rathner a personal finance expert with NerdWallet says any amount of savings is a good thing. She adds the problem is, we are paying more in other areas of our life.

Arkansas groups erase millions in medical debt

Nearly 24,000 Arkansans in all 75 counties have had their outstanding medical bills paid off thanks to a coalition of nonprofits seeking to raise awareness of the negative impacts of debt. The $35.2 million debt erasure was made possible by donors including the Arkansas Community Foundation, the Hope Credit Union and the Winthrop Rockefeller Foundation.

Majority of borrowers say taking on federal student loan debt is not worth it, CNBC survey finds

Nearly one-third of undergraduates borrow money from the federal government to pay for college. That’s about 43 million Americans who owe a staggering total of nearly $1.6 trillion in outstanding student loans.

CFPB Issues Request for Information on Convenience Fees

The Consumer Financial Protection Bureau is seeking comments from the public and businesses related to fees that are not subject to competitive processes that ensure fair pricing.

The public comments will serve to assist the CFPB and policymakers in exercising its enforcement, supervision, regulation and other authorities to create fairer, more transparent and competitive consumer financial markets, according to the request for information (RFI.)

CFPB Addresses “Confusion” Over Earned Wage Access Program

On January 18, acting CFPB General Counsel Seth Frotman sent a letter to three representatives of consumer advocacy groups addressing the CFPB’s November 2020 advisory opinion on earned wage access (EWA) products.  The letter responded to concerns that the advisory opinion was being used as justification by the proponents of a pending New Jersey law that would allow third-party EWA providers to charge fees or permit “tips” for their products without having to abide by the state’s 30% usury cap.

Virginia Attorney General Reduces Collection Fees For Student Loan Borrowers

Virginia Attorney General Jason Miyares  introduced a new policy aiming to provide immediate relief to student loan borrowers with overdue fees.

Auto Marketing Company Banned from Industry Under FTC Order

A marketing services company and its owner will be banned from the auto industry under an Order issued by the Federal Trade Commission after the Commission found that they illegally misled consumers to believe their websites were affiliated with a government stimulus program and sent consumers deceptive mailings about prizes they had supposedly won

Neustar Supports RMAI’s 2022 Annual Conference with Gold Sponsorship

January 27, 2022 (Sacramento, CA) – Receivables Management Association International is pleased to announce that Neustar, Inc., a TransUnion company, will participate in the 2022 Annual Conference February 7-10, 2022, as a Gold Sponsor. The conference brings together key participants in the receivables management industry, with opportunities to network and make new connections, to learn from timely education sessions, and to find new products and services to help businesses grow.

NCB Management Services, Inc. Partners with Interactions to Power Consumer-Centric Conversations

TREVOSE, Pa. and FRANKLIN, Mass. -- NCB Management Services, Inc. (NCB), an industry leader in accounts receivable management (ARM) and a well-respected debt buyer, and Interactions, one of the world’s largest standalone artificial intelligence (AI) companies, today announced the live launch of the Interactions Virtual Collection Agent (VCA). The two companies worked closely together for several months to prepare, integrate and test the VCA to provide streamlined, conversational self-service experiences for NCB customers, 24/7.

US Banks Look for Interest Earning to Rebound in ’22

A new economic forecast says U.S. banks will see more growth from the “bread and butter” business of taking deposits and lending money, Reuters writes. The U.S. economy is likely to keep expanding, and the Federal Reserve has said it’s ready to raise interest rates for the first time in three years – which could usher in the end of the low-interest-rate environment banks have experienced.

Connecticut Department of Banking Revokes Collection Agency License

The Connecticut Department of Banking has revoked a debt collection agency’s license after it did not provide records of its business operations requested for examination.

CFPB Identifies Consumer Reporting Companies the Public Can Hold Accountable

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) released its annual list of consumer reporting companies. The list identifies dozens of specialty reporting companies that collect and sell access to people’s data, including individuals’ finances, employment, check writing histories, or rental history records, often without their knowledge. Using the list, people can exercise their right to see what information these firms have, dispute inaccuracies, and file lawsuits if the firms are violating the Fair Credit Reporting Act.

Don’t let sloppy servicing keep you from benefitting under the PSLF Fix before it expires on October 31, 2022

For years, the CFPB has documented the problems that consumers faced due to shoddy student loan servicing, which knocked teachers, servicemembers, and other public service workers off track and kept them from getting the relief that the Public Service Loan Forgiveness (PSLF) program promised. In fact, it was a decade agothat the CFPB warned that servicer failure was adding unnecessary cost to servicemembers’ loans and keeping them from making progress toward loan forgiveness. And those problems continued: just a few months ago , we reported how servicers illegally misled consumers about their eligibility for PSLF, giving false statements about which loans and employers are eligible for the program.

Convenience Fees: Not So Convenient for the Collectors

A recent Fourth Circuit Court of Appeals decision may have sweeping implications across the consumer debt collection industry in Maryland. In Alexander v. Carrington Mortgage Services, LLC, the Fourth Circuit held that a mortgage loan servicing company violated the Maryland Consumer Debt Collection Act and the Maryland Consumer Protection Act by charging debtors a convenience fee for making a one-time payment online or by phone, when the agreement creating the debt does not specifically allow the fee to be charged. 

Remaining Defendants Banned from Providing Student Loan Debt Relief Services in Settlements with FTC

The remaining defendants in a deceptive student loan debt relief scheme are permanently banned from providing all student loan debt relief products and services in settlements with the Federal Trade Commission.

40% of millennials say credit card debt is their biggest financial setback, survey finds

Credit cards come with many benefits, such as providing a way for consumers to earn rewards on their purchases and build their credit scores. But revolving credit card debt that's carried over from month to month can be an expensive burden due to high interest rates.

Over 80 lawmakers call on Biden to release memo outlining authority to cancel student debt

Over 80 House and Senate members wrote a letter to President Joe Biden on Wednesday urging his administration to publicly release the memo outlining his legal authority to cancel student debt.

CFPB reports average household pays $1K in credit card interest and fees annually

Credit cards are one of the largest sources of consumer debt, along with mortgages, student loans and auto loans. But unlike other common forms of debt, credit cards typically come with high interest rates and steep annual fees.

Consumer watchdog signals broad crackdown on hidden fees for banks, credit cards

The Consumer Financial Protection Bureau on Wednesday signaled a broad crackdown on hidden and excessive fees charged by banks, mortgage lenders and other financial entities.

What Institutional Student Lenders Need to Know About Changes to the CFPB’s Exam Manual

The Dodd-Frank Act gave the Consumer Financial Protection Bureau (CFPB) direct supervisory authority over any institution that engages in private education lending, regardless of whether the lender is a depository institution or a non-depository institution, or the size of the lender. The CFPB also has direct supervisory authority over “larger participants” in the student loan servicing market, as those institutions are defined in 12 USC § 1090.106.

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