Massachusetts Legislature Evaluates Its Own Comprehensive Consumer Privacy Law

The Massachusetts Information Privacy and Security Act (MIPSA) continues to advance through the state legislative process, and is now before the full legislature. While the Act has several hurdles to clear before becoming law, its notable for two reasons. First, the comprehensive nature of the MIPSA exemplifies the direction state data protection laws are heading in the absence of a comprehensive federal consumer data protection law. Second, given the borderless nature of e-commerce, the most robust state consumer data protection law will likely become the de facto national consumer data protection law, and the MIPSA may take that title. This post highlights significant portions of the current version of the Act.

Education Department suspends seizure of tax refunds, Social Security for overdue student loans until November

The U.S. Department of Education has suspended the seizure of tax refunds, Social Security and other government payments to satisfy defaulted student loans until November, the agency said.

New York Lowers Statutory Interest Rate on Money Judgments for Consumer Debts Pursuant to the Fair Consumer Judgment Interest Act

For the first time since 1981, New York will lower the interest rate on money judgments based on consumer debts from nine percent (9%) per annum to two percent (2%) per annum. Governor Kathy Hochul signed the bill, S5724-A, referred to as the Fair Consumer Judgment Interest Act (“FCJIA”), into law on December 31, 2021.

Consumer Financial Protection Bureau Launches New Way for the Public to Petition the Agency for Action

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today made it easier for the public to meaningfully engage with the agency and request regulatory changes. Starting today, members of the public can submit petitions for rulemaking directly to the CFPB. The petitions will be posted on public dockets for review and comment.

CFPB issues warning on use of prepaid cards to pay government benefits

The Consumer Financial Protection Bureau warned financial services companies Tuesday about a longstanding prohibition on using prepaid debit cards as the sole method for distributing government benefits.

Consumer Financial Protection Bureau Launches New Way for the Public to Petition the Agency for Action

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today made it easier for the public to meaningfully engage with the agency and request regulatory changes. Starting today, members of the public can submit petitions for rulemaking directly to the CFPB. The petitions will be posted on public dockets for review and comment.

EDPA Finds Alleged Transmission of Consumer Information to Letter Vendor States Claim Under FDCPA’s § 1692c(b)

The U.S. District Court for the Eastern District of Pennsylvania on Feb. 7 handed down a decision finding that the mere use of a letter vendor is sufficient to allege a violation of 15 U.S.C. § 1692c(b) of the Fair Debt Collection Practices Act by transmitting information to the letter vendor.

Most Consumers Expect Digital Banking to Be Personal Banking

Thanks to the acceleration of digital interactions during the pandemic, consumers now expect more than half of their banking business — 61% — to be digital-only by 2024. But that still leaves another 39% of banking they expect will involve direct human assistance. Even as banks see an increase in customers relying solely on ATMs and mobile channels at the expense of access physical branches and drive up tellers, branches won’t entirely vanish from customer expectations.

CFPB hopes to reverse court decision that handed Ocwen a win last year

Nearly a year after a federal judge dismissed the Consumer Financial Protection Bureau‘s mortgage servicing misconduct suit against Ocwen Financial Corp., the watchdog agency is hoping to overturn the decision.

Colorado AG Issues Guidance on Data Security Best Practices

The Colorado AG recently issued guidance on practices companies should consider to safeguard consumer data. This guidance was issued in response to companies asking what “reasonable” security means. While noting that the standard is a flexible one and calls for case-by-case determinations, the AG highlighted activities it will weigh when making a decision on whether companies are acting reasonably to safeguard information.

Seventh Circuit issues decision on FDCPA standing and bona fide error defense

A new decision from the U.S. Court of Appeals for the Seventh Circuit in two consolidated cases analyzes the requirements for Article III standing in a FDCPA case.  It also addresses what a debt collector must show to establish that it maintained procedures reasonably adapted to avoid an error as required by the FDCPA’s bona fide error defense.  Under the bona fide error defense, a debt collector is not liable for a FDCPA violation if it shows by a preponderance of the evidence that (1) the violation was not intentional, (2) the violation resulted from a bona fide error, and (3) it maintained procedures reasonably adapted to avoid the error.

U.S. FORECLOSURE ACTIVITY IN JANUARY 2022 HIGHEST SINCE BEGINNING OF COVID-19 PANDEMIC

IRVINE, Calif., Feb. 10, 2022 /PRNewswire/ -- ATTOM, licensor of the nation's most comprehensive foreclosure data and parent company to RealtyTrac (www.realtytrac.com), the largest online marketplace for foreclosure and distressed properties, today releasedits January 2022 U.S. Foreclosure Market Report, which shows there were a total of 23,204 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 29 percent from a month ago and 139 percent from a year ago.

CFPB Takes Action to Halt Prepaid Card Providers Siphoning Government Benefits

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) is taking action to halt prepaid card providers illegally siphoning money away from Americans through exclusive government benefit contracts. The CFPB issued a compliance bulletin today outlining the existing prohibitions against prepaid cards being the sole method for distributing government benefits. The bulletin underscores rules intended to protect market competition and to protect people’s right to have a choice in how they receive their money under the Electronic Fund Transfer Act (EFTA).

CFPB Bulletin 2022-02: Compliance Bulletin on the Electronic Fund Transfer Act’s Compulsory Use Prohibition and Government Benefit Accounts

Section 913 of the Electronic Fund Transfer Act (EFTA) provides, among other things, that no person may require a consumer to establish an account for receipt of electronic fund transfers with a particular financial institution as a condition of receipt of a government benefit. The Consumer Financial Protection Bureau (CFPB) is issuing this Compliance Bulletin to reiterate that this prohibition in EFTA applies to government benefit accounts.

3-year personal loan rates dip, still hovering near 2022 record low

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

CFPB hopes to reverse court decision that handed Ocwen a win last year

Nearly a year after a federal judge dismissed the Consumer Financial Protection Bureau‘s mortgage servicing misconduct suit against Ocwen Financial Corp., the watchdog agency is hoping to overturn the decision. During oral arguments in Miami before the U.S. Court of Appeals for the Eleventh Circuit, Lawrence DeMille-Wagman, CFPB’s attorney, argued that a consent agreement from 2013 did not excuse the mortgage servicer from future violations and that Ocwen is on the hook for alleged wrongdoings.

FTC to VoIP Providers: Turn over Information for Robocall Investigations or Prepare to be Sued in Federal Court

At the request of the Federal Trade Commission, federal courts in California ordered two Voice-over-Internet Protocol (VoIP) service providers to turn over information that the agency is seeking as part of ongoing investigations into potentially illegal robocalls. Companies that fail to comply with such federal court orders can be held in contempt.

FCC Targets “Ringless Voicemails” for Robocalling Enforcement

The Federal Communications Commission (FCC) is considering opening another front in robocalling enforcement by declaring “ringless voicemails” subject to consumer consent and other requirements under the Telephone Consumer Protection Act (TCPA). Ringless voicemails deliver messages directly to wireless users’ voicemail boxes without ringing their devices. Proponents of the technology have long argued that such messages fall outside the TCPA because no “call” actually is made to the consumer

CFPB highlights changes in VA medical debt credit reporting practices as precedent for broader healthcare industry

In a blog post, the CFPB reported that the Department of Veterans Affairs (VA) has announced a change to when it will report information on outstanding medical bills to consumer reporting companies.

VA Changes Debt-Reporting Procedure

Veterans who owe money to the Department of Veterans Affairs will have a better chance to avoid having their debt reported to consumer reporting agencies (CRAs). VA has amended its procedures for reporting these debts until all available efforts to collect them have been exhausted and they are classified as not collectible. Also, catastrophically disabled and low-income veterans’ debts will not be reported to CRAs at all, with the understanding that these veterans are entitled to free VA care.

Report illustrates how the big three credit reporting companies are giving consumers the runaround

he nationwide consumer reporting agencies (NCRAs), including the Big Three—Experian, Equifax, and TransUnion—play an outsized role in Americans’ economic lives. The companies cover more than 1.6 billion credit accounts for over 200 million adults every month. But inaccurate reports can inflate the cost of credit and severely limit opportunities for Americans looking to buy their first home, start a small business, or even reenter the workforce. A recent Consumer Financial Protection Bureau (CFPB) report reveals that the NCRAs are failing to substantively respond to most consumer complaints filed with the CFPB—and harming consumers and businesses in the process.

New VA rule relieves financial distress for thousands of veterans with medical bills

Getting sick or injured can often result in a heavy financial burden for many families, leaving them with mounting medical bills. Aggressive debt collection and coercive credit reporting can make matters worse by pressuring families to pay medical bills. On top of the initial medical crisis, this financial distress can make it even harder for a family to recover.

If you’re a homeowner struggling to make housing-related payments due to the pandemic, help is available or coming soon

If you are a homeowner and COVID-19 has made it difficult for you to pay your mortgage, utilities, property taxes, or other home expenses, financial assistance may already be available for you. The Homeowner Assistance Fund (HAF) was established by the American Rescue Plan Act to help homeowners financially impacted by COVID-19 with housing-related costs. This federal assistance program provides money to states, Tribes, territories, and the District of Columbia to assist homeowners with housing-related costs.

Mortgage Delinquencies Decrease in the Fourth Quarter of 2021

WASHINGTON, D.C. (February 10, 2022) - The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.65 percent of all loans outstanding at the end of the fourth quarter of 2021, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey.

California Adopts New Debt Collection Regulations

New regulations from the California Department of Financial Protection and Innovation (Department) affecting licensure of debt collectors became effective as of January 1, 2022.  The regulations provide the process and requirements to apply for a license as a debt collector, including application through the NMLS, and specify the acts that constitute grounds for license denial.

Banks Moving Off the Sidelines to Snag Piece of Growing Buy Now, Pay Later Market

Banks are getting ready to embrace buy now, pay later (BNPL) — likely in a major way. The urgency is there, as more than 40% of consumers would prefer to use BNPL options from their banks instead of other companies. Yet, banks have been relatively late to the game.

Hospital Payment Guidelines Under Review by Maryland Stakeholder Working Group

Maryland’s Health Services Cost Review Commission’s (HSCRC) Workgroup on Hospital Payment Plan Guidelines review of draft guidelines on payment plans is underway as part of requirements in the state’s new medical debt law, HB 565, that took effect Jan. 1.

DC OAG Reaches $4 Million Settlement with FinTech Over Claims of Predatory Lending

On February 8, the District of Columbia attorney general announced a settlement with a FinTech company for alleged violations of the District of Columbia Consumer Protection Procedures Act (CPPA) by marketing high-costs loans carrying interest rates exceeding D.C.’s interest rate caps. The complaint, filed in June 2020, alleged that the company offered two loan products to D.C. residents with APRs ranging from 99 to 251 percent, exceeding D.C.’s rate cap limit of  24 percent.

Allowing FCUs to serve underserved areas would advance financial inclusion

Congress can promote financial inclusion and help small businesses by ensuring federal law permits all federal credit unions to serve underserved areas, CUNA wrote to the Senate Banking, Housing, and Urban Affairs Subcommittee on Financial Institutions and Consumer Protection. The subcommittee conducted a hearing on the role Community Development Financial Institutions and Minority Depository Institutions.

2022 Officers & Directors Elected to Lead Receivables Management Association International

February 10, 2022 (Sacramento, CA) – Members of Receivables Management Association International (RMAI) elected Officers and Directors to its Board for 2022. Of the ten-member Board, nine are continuing service from the previous year. The 2022 Officers and Directors are:

Comparing overdraft fees and policies across banks

The CFPB recently published research on banks’ continued reliance on overdraft fees and the lack of competition on overdraft terms, highlighting our ongoing and growing concern about the impact of bank overdraft fees on families. Recent weeks have seen an uptick in changes banks are making to their overdraft programs.

RMAI Honors an Outstanding Member and a Former Board President

February 9, 2022 (Sacramento, CA) – The Receivables Management Association International celebrated its 25^th Annual Conference in Las Vegas, February 7-10, 2022. With a strong attendance of more than 1,200 representatives from the industry, leaders from RMAI took the opportunity to honor an outstanding member and a former board president.

No Surprises Act: How we are protecting people from the side effects of surprise medical bills

Millions of people, including people you serve, need medical care each year. Because of internal billing processes, some patients have received surprise medical bills for hundreds or even thousands of dollars. Patients generally do not see detailed costs up front, before they receive care. Afterward, they might make the decision to stay away from the health care system, just to prevent unwelcome surprises.

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