FCC Proposes Largest Illegal Robocall Fine to Date

The FCC has proposed its largest illegal robocall fine ever — a $45 million fine against telemarketing company Interstate Brokers of America. According to the commission, the company conducted an illegal robocall campaign to sell health insurance under the pretense that the annual enrollment period had been reopened due to the coronavirus pandemic.

CFPB Warns of Serious Issues with Fair Lending Standards for Appraisers

The Consumer Financial Protection Bureau (“CFPB”) released a blog post on February 4 warning of the possibility of discrimination in the appraisal process. The CFPB explained that, although appraisal discrimination based on racial inequalities has been outlawed for more than 50 years, they are still seeing reports of biased appraisers who “base their value judgments on biased, unfounded assumptions about borrowers and the neighborhoods in which they live.”

Average mortgage loan size holds near record despite 4% rates

Mortgage rates continue to climb, putting a damper on interest in mortgage applications. Demand for applications dropped 13.1% from a week ago, according to the weekly survey from the Mortgage Banker's Association.

Housing: Where prices to buy or rent a home are rising the fastest

Realtor.com Chief Economist Danielle Hale joins Yahoo Finance Live to discuss the latest national home pricing index data, inflation in renting prices for both landlords and renters, mortgage rents in the pandemic, and compares metro area costs for homebuyers.

Consumer Financial Protection Bureau Outlines Options To Prevent Algorithmic Bias In Home Valuations

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today outlined options to ensure that computer models used to help determine home valuations are accurate and fair. The options will now be reviewed to determine their potential impact on small businesses.

Capital One Reaches $190 Million Settlement In Connection with 2019 Data Breach

The saga of the Capital One data breach, which impacted an estimated 106 million individuals in the U.S. and Canada, may soon be coming to an end. After more than two years of litigation, the parties have reached a settlement that would resolve existing and future consumer claims arising out of the 2019 breach which impacted Capital One customer information stored in the Amazon Web Services (AWS) cloud environment. If the settlement is approved, it will be one of the largest in any multidistrict data breach litigation.

Court Releases Recording of Hunstein Oral Argument

A recording of the oral argument before the 11th Circuit Court of Appeals en banc panel is available in Hunstein v. Preferred Collection and Management Services Inc.

Ocwen agrees to pay $1.5M to settle class action

Nonbank mortgage servicer Ocwen agreed to pay $1.5 million to settle a class action lawsuit regarding alleged phone conversations recorded without clients’ consent.  

FTC Staff Provides Annual Letter to CFPB On 2021 Equal Credit Opportunity Act Activities

The staff of the Federal Trade Commission has provided the Consumer Financial Protection Bureau (CFPB) an annual summary of its activities enforcing the Equal Credit Opportunity Act (ECOA).

New Data Shows FTC Received 2.8 Million Fraud Reports from Consumers in 2021

Newly released Federal Trade Commission data shows that consumers reported losing more than $5.8 billion to fraud in 2021, an increase of more than 70 percent over the previous year. The FTC received fraud reports from more than 2.8 million consumers last year, with the most commonly reported category once again being imposter scams, followed by online shopping scams.

Using special purpose credit programs to serve unmet credit needs

Far too many minority households and businesses continue to lack fair and equitable access to credit. This critical unmet need, coupled with historic and ongoing discrimination such as redlining, has exacerbated our racial wealth divide and continues to leave many communities shut out from and underserved by lenders.

Fair Lending: Interagency Statement on Special Purpose Credit Programs

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Consumer Financial Protection Board (CFPB), the U.S. Department of Housing and Urban Development (HUD), and the Federal Housing Finance Agency (collectively, the agencies) today published an interagency statement regarding special purpose credit programs (SPCP) under the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B.

Serious Delinquency Rate for All Mortgage Loan Types Down from Last Year

The nation’s overall mortgage delinquency rates have improved significantly over the last year, according to the latest CoreLogic Loan Performance Insights Report. Data shows the serious delinquency rate for November 2021 declined 1.9 percentage points from 12 months prior to 2%.[1] When compared to the peak serious delinquency rate for mortgages in August 2020, the rate last November was down 2.3 percentage points. Declines in local unemployment rates, a rapid rise in home prices and demand for housing have helped reduce the overall delinquency rate. Loan product mixes also contribute to the national delinquency rate, and this blog explores mortgage default trends by loan type.

Jackson Lewis Class Action Trends Report 2022: Supreme Court News

The U.S. Supreme Court in 2021 issued a significant decision on Article III standing in the context of a class action brought under the Fair Credit Reporting Act (FCRA). The Court also granted certiorari in cases that will have important implications for employers’ right to pursue arbitration (in lieu of costly litigation).

Inaccurate Small Business Credit Reports Can Block Access to Loans

The COVID-19 pandemic has been devastating for many American small businesses, who have struggled to navigate the economic turmoil caused by the virus. The hardships endured by small businesses and entrepreneurs include damage to their credit histories. Similar to how a bank or credit card company might pull your personal credit report from a consumer reporting company like Equifax, TransUnion or Experian before offering you a loan, creditors rely on data from specialized companies when deciding whether to lend to small businesses.

AB-2839 California Financing Law: Pilot Program for Increased Access to Responsible Small Dollar Loans: Department of Financial Protection

AB 2839, as introduced, Villapudua. California Financing Law: Pilot Program for Increased Access to Responsible Small Dollar Loans: Department of Financial Protection and Innovation. Previous law established the Department of Business Oversight in the Business, Consumer Services, and Housing Agency, headed by the Commissioner of Business Oversight. In 2019 the department was renamed the as the “Department of Financial Protection and Innovation.”

Transmission of Consumer Information to Vendor May Constitute Violation of FDCPA

The Eastern District of Pennsylvania is the most recent federal district court to adopt Hunstein v. Preferred Collection and Mgmt. Svcs., Inc., 17 F.4th 1016 (11th Cir. 2021) by holding that the transmission of information to a vendor was a “communication” to a “person,” satisfying the “in connection with the collection of any debt” prong of Section 1692c(b) of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et. seq.

TransUnion to Offer Credit Checks for Blockchain Lenders

TransUnion recently announced it will make off-chain credit data available on public blockchain networks through Spring Labs’ ky0x Digital Passport, which enables Web3/Decentralized Finance (DeFi) applications or smart contracts to access off-chain identity, compliance, credit, and other custom data with lines of code.

Maryland Joins Other States Proposing Commercial Finance Disclosure Laws: Truth-in-Lending Type Disclosures in Commercial Loans

Earlier this month, Maryland State Senator Benjamin K. Kramer introduced Senate Bill 825 titled “Consumer Credit – Commercial Financing Transactions.” Although not obvious from the bill’s title, it contains legislation substantially similar to the Commercial Finance Disclosure Law (CFDL) passed in New York last year. (N.Y. Fin. Serv. Law § 801 et seq.).

AG’s Office Recovers $5.56 Million From Subprime Auto Lender, Secures Debt Relief for Consumers

BOSTON — A subprime auto lender will pay $5.56 million to resolve allegations that it did not provide sufficient disclosures to consumers as it pertains to the company’s auto loan debt collection practices, Massachusetts Attorney General Maura Healey announced today. 

An Inconvenient Decision on ‎Convenience Fees

Last month, the Fourth Circuit Court of Appeals rendered a decision regarding convenience fees in Alexander v. Carrington Mortgage Services, LLC, 23 F.4th 370 (4th Cir. 2022), which potentially spells trouble for loan servicers offering additional, optional payment options to consumers in exchange for a small convenience fee.

Responding to Automatic Stay Violations: A Cautionary Tale for Overzealous Debtors’ Attorneys

The filing of a bankruptcy petition under any chapter of the Bankruptcy Code creates the ‘automatic stay,’ which prevents creditors from taking any further action against either the debtor or the debtor’s assets during the bankruptcy. Seasoned bankruptcy attorneys know that a violation of the automatic stay is a serious matter and, because of this, appropriately advise their clients on complying with, or enforcing, the stay.

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.

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.

CFPB Steps Up Scrutiny of Student Loan Servicers Who Deceive Borrowers About Public Service Loan Forgiveness

Washington, D.C. – Today the Consumer Financial Protection Bureau (CFPB) released a bulletin detailing student loan servicers’ obligation to halt unlawful conduct regarding borrowers’ eligibility and benefits under the Public Service Loan Forgiveness (PSLF) Waiver. The bulletin recommends actions servicers should consider taking to ensure they do not misrepresent borrower eligibility or make deceptive statements to borrowers about the PSLF program and the Waiver.

FTC Takes Action to Combat Bogus Money-Making Claims Used to Lure People into Dead-end Debt Traps

The Federal Trade Commission launched a proceeding to challenge bogus money-making claims used to lure consumers, workers, and prospective entrepreneurs into risky business ventures that often turn into dead-end debt traps. If finalized, a rule in this area would allow the Commission to recover redress for defrauded consumers, and seek steep penalties against the multilevel marketers, for-profit colleges, “gig economy” platforms, and other bad actors who prey on people’s hopes for economic advancement.

What Do You Do If a Debtor Defaults on Its Confirmed Bankruptcy Plan?

A recent opinion from the Michigan Court of Appeals explained that when a debtor defaults under a confirmed chapter 11 bankruptcy plan, a creditor can enforce its rights in state court, and perhaps also in the bankruptcy court.

CFPB to Examine Colleges’ Direct Lending Practices

On January 20, 2022, the CFPB announced that it will examine post-secondary, for-profit colleges, that lend directly to students.  The CFPB will examine specific actions that these colleges take against their students who are late or delinquent on private student loans.  These practices include: placing enrollment restrictions on students, withholding transcripts from students, improperly accelerating payments, failing to issue refunds, and maintaining improper lending restrictions. 

District Court Grants Interlocutory Appeal in CFPB Enforcement Action against Student Loan Trusts and Stays Case Pending Appellate Review

On February 11, 2022, the U.S. District Court for the District of Delaware granted a motion for interlocutory appeal in Consumer Financial Protection Bureau v. The National Collegiate Master Student Loan Trusts filed by defendants The National Collegiate Student Loan Trusts (the “Trusts”) and certain interveners in the action.¹  The district court certified two questions for review by the U.S. Court of Appeals for the Third Circuit: (1) whether, under the Consumer Financial Protection Act (“CFPA”), the Trusts are “covered persons” subject to the CFPB enforcement authority; and (2) whether, after Collins v. Yellen, the CFPB was required to ratify the enforcement action before the three-year statute of limitations ran out.²

FCC Chairwoman proposes ruling declaring ringless voicemails subject to TCPA autodialer prohibition

Although several court decisions have held that ringless voicemails to a consumer’s cell phone constitute “calls” subject to the Telephone Consumer Protection Act (TCPA) autodialer prohibition, the Federal Communications Commission (FCC)  has not yet officially weighed in on the question.  In 2017, a marketing company filed a petition with the FCC seeking a declaratory ruling that the technology was not subject to the TCPA but the petition was withdrawn.

After TransUnion, Lower Courts Grapple With Article III Standing in Data Breach Lawsuits

In a data breach lawsuit, a plaintiff will sue a company that suffered a data breach in which the plaintiff’s personal information was stolen by cyberattackers. The plaintiff will claim that the breach has exposed the plaintiff to an increased risk that criminals will steal their identity at some point in the future. A recurring issue in these lawsuits is whether such an allegation is a sufficiently “concrete” injury such that the plaintiff has standing to bring their claims. Lately, courts have begun to consider the Supreme Court’s recent decision in TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2021). 

Reverse mortgage complaints to CFPB accelerate during pandemic

The amount of consumer complaints to the Consumer Financial Protection Bureau (CFPB) related to the reverse mortgage product category appear to have accelerated since the beginning of the national emergency stemming from the COVID-19 coronavirus pandemic, RMD has learned.

The Eastern District of Pennsylvania is the most recent federal district court to adopt Hunstein v. Preferred 

The Eastern District of Pennsylvania is the most recent federal district court to adopt Hunstein v. Preferred Collection and Mgmt. Svcs., Inc., 17 F.4th 1016 (11th Cir. 2021) by holding that the transmission of information to a vendor was a “communication” to a “person,” satisfying the “in connection with the collection of any debt” prong of Section 1692c(b) of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et. seq.

Year-End Report Reveals Continuing Trend of Increased FCRA Filings in 2021

According to a recent year-in-review report by WebRecon, Fair Credit Reporting Act (FCRA) filings continued their upward trajectory throughout 2021. This stands in contrast to filings under the Fair Debt Collection Practices Act (FDCPA) or the Telephone Consumer Protection Act (TCPA), which decreased from the previous year. Meanwhile, complaints filed with the CFPB increased substantially from 2020.

Education Department Approves $415 Million in Borrower Defense Claims Including for Former DeVry University Students

Nearly 16,000 borrowers will receive $415 million in borrower defense to repayment discharges following the approval of four new findings and the continued review of claims. This includes approximately 1,800 former DeVry University (DeVry) students who will receive approximately $71.7 million in full borrower defense discharges after the U.S. Department of Education (Department) determined that the institution made widespread substantial misrepresentations about its job placement rates. These are the first approved borrower defense claims associated with a currently operating institution, and the Department will seek to recoup the cost of the discharges from DeVry. The Department anticipates that the number of approved claims related to DeVry will increase as it continues reviewing pending applications.

FTC Enforcement Action Leads U.S. Dept. of Education to Forgive $71.7 Million in Loans for Students Deceived by DeVry University

The Federal Trade Commission announced today that its years-long investigation into DeVry University continues to benefit consumers, as the U.S. Department of Education will forgive $71.7 million in federal student loans for students deceived by the for-profit university, based in part on the FTC’s prior action.

NEW – CBA URGES CFPB TO SUPERVISE FINTECH SMALL BUSINESS LENDERS

In a new letter sent yesterday to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, Consumer Bankers Association (CBA) President & CEO Richard Hunt urged the Bureau to extend its supervisory authority over small business fintech lenders, who operate outside the regulatory purview of the Bureau and do not abide by the same federal oversight requirements as traditional banks.

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