CFPB Director Chopra Statement on President Biden’s Digital Assets Executive Order

WASHINGTON, D.C. — Today, CFPB Director Rohit Chopra released the following statement on President Biden’s Executive Order , Ensuring Responsible Development of Digital Assets: “Today’s Executive Order recognizes that the dramatic growth in digital asset markets has created profound implications for financial stability, consumer protection, national security, and energy demand. The Consumer Financial Protection Bureau is committed to working to promote competition and innovation, while also reducing the risks that digital assets could pose to our safety and security. We must make sure Americans in all financial markets are protected against errors, theft, or fraud.”

Shining a Spotlight on Workers’ Financial Experiences

There are troubling signs that too many American workers face financial hardship, even as the economy recovers and unemployment remains relatively low. Larger firms dominate many markets while fewer workers are directly employed by the larger firms that exert significant influence over labor conditions within their markets and supply chains. In response to concerns from workers about financial risk or harm at the hands of the very employers from which they seek to earn a living, the CFPB is looking into the consumer financial products or services that workers face in the workplace.

Online Investment Site to Pay More Than $2.4 Million for Bogus Stock Earnings Claims and Hard-to-Cancel Subscription Charges

The operators of RagingBull.com, an online stock trading site that used bogus earnings claims to trick consumers into signing up for services and then trapped them into hard-to-cancel subscription plans with costly charges, will be required to pay $2.425 million, end the earnings deception, get affirmative approval from consumers for subscription sign ups, and provide them with a simple method to cancel recurring charges.

Public Service Loan Forgiveness: 100,000 borrowers are eligible so far under new rules

Washington (CNN)The Department of Education said Wednesday that it has so far identified 100,000 borrowers who are eligible for student debt cancellation due to the changes the agency made to the Public Service Loan Forgiveness program in October.

OCC’s Hsu: Climate Risk Exams for Community, Midsize Banks ‘Number of Years’ Away

During an industry event today, OCC Acting Comptroller Michael Hsu said his agency is “laser-focused on the safety and soundness aspects” of climate change risks. Specifically, the OCC is concentrating on large banks’ climate risk management capabilities: identifying, measuring, monitoring and mitigating climate-related exposures. “Weaknesses in risk management could adversely affect a bank’s safety and soundness, as well as the overall financial system,” he said.

Latest US Consumer Debt Data May Show Some Warning Signs Ahead

At first glance, the read-across from the latest data from the U.S. Federal Reserve should be encouraging. Consumers are feeling more confident — so they are borrowing more. But the warnings signs are there if you look at other data points. The consumer may indeed be more confident at this moment in time, with the labor market strong, with stimulus having been used to pay down a key form of borrowing (that would be credit card debt). It’s worth noting, too, that the Fed’s data are a bit backward-looking and don’t necessarily account for the turbulence, on a world stage, that confronts us all now.

USM forgives about $2 million in student loan debt

PORTLAND (WGME) – The University of Southern Maine says it has forgiven about $2 million in student debt accrued during the pandemic.

Lawsuit over Iowa Judicial Branch’s debt collection sparks new accusations

A law firm sued for alleged illegal acts while working on behalf of the Iowa Judicial Branch says the opposing lawyers in the case have “padded” their legal bills and may have initiated the case for their own financial gain.

Attorney General Bonta: Ashford University Must Pay $22 Million in Penalties for Defrauding California Students

OAKLAND – California Attorney General Rob Bonta today issued the following statement after the San Diego Superior Court found in the state’s favor in its lawsuit against Ashford University, an online, for-profit school, and its parent company Zovio, Inc. (formerly Bridgepoint Education). In today’s decision, the San Diego Superior Court found that Ashford University and Zovio violated the law by giving students false or misleading information about career outcomes, cost and financial aid, pace of degree programs, and transfer credits, in order to persuade them to enroll at Ashford. As part of the decision, the court ordered Ashford University and Zovio to pay more than $22.37 million in penalties. 

Legislature passes AG Ferguson, Rep. Simmons bill that significantly expands financial assistance for hospital bills

OLYMPIA — The Washington Legislature has passed Attorney General Bob Ferguson’s bill to increase access to affordable health care for millions of Washingtonians. The measure now heads to the governor for his signature. Ferguson worked with prime sponsor Rep. Tarra Simmons, D-Bremerton, and Reps. Eileen Cody, D-Seattle, and Nicole Macri, D-Seattle, on HB 1616 to strengthen Washington’s charity care law. Ferguson’s Attorney General Request legislation will expand charity care eligibility to more than 1 million Washingtonians, and guarantee free hospital care to an additional million Washingtonians who are currently eligible for discounted care.

Education Department Clarifies Rules on Income-Share Agreements

The Education Department clarified this week that income-share agreements in higher education are private loans. As loan providers, the companies that provide these agreements are regulated in different ways than before the clarification, and colleges have specific requirements in terms of how they promote the arrangements.

Court Finds Text Messages Do Not Qualify As Artificial or Prerecorded Voice Messages Under the TCPA

In Eggleston v. Reward Zone USA LLC, No. 2:20-cv-01027-SVW-KS (C.D. Cal. Jan. 28, 2022), the U.S. District Court for the Central District of California rejected the argument that text messages are “artificial or prerecorded voice messages” under the Telephone Consumer Protection Act (the TCPA).

Santander Consumer Expands its Digital Auto Finance Experience in Partnership with AutoFi

DALLAS and BOSTON, March 7, 2022 /PRNewswire/ -- Santander Consumer USA Inc. ("SC"), a wholly owned subsidiary of Santander Holdings USA, Inc. ("Santander US"), today announced the expansion of its partnership with AutoFi Inc. ("AutoFi"), a leading e-commerce platform for automotive sales and financing, to develop SC's end-to-end digital car buying experience. Santander US has also invested in the capital raise announced today by AutoFi, strengthening the Santander/AutoFi relationship and aligning our long-term interests.     

Attorney General James Releases Top 10 Consumer Complaints of 2021

NEW YORK – New York Attorney General Letitia James kicked off National Consumer Protection Week by releasing a list of the top 10 consumer fraud complaints received by the Office of the Attorney General (OAG) in 2021. Attorney General James also provides a variety of tips on how consumers can avoid common scams.

Empire Financial Federal Credit Union Closes; Jovia Federal Credit Union Assumes Loans, Assets, and Shares

ALEXANDRIA, Va. (March 4, 2022) – The National Credit Union Administration today liquidated Empire Financial Federal Credit Union of New York, New York. Jovia Federal Credit Union of Westbury, New York, immediately assumed Empire Financial Federal Credit Union’s assets, member shares, and loans. Jovia FCU is a federally insured credit union with 206,572 members and assets of $3.96 billion, according to the credit union’s most recent Call Report.

FTC Kicks Off National Consumer Protection Week this Sunday, March 6

The Federal Trade Commission will launch the annual National Consumer Protection Week (NCPW) this Sunday, March 6. 

TD to Expand in the Southeastern U.S. with Acquisition of First Horizon

TORONTO, CHERRY HILL and MEMPHIS – February 28, 2022 -- TD Bank Group ("TD" or "the Bank") (TSX and NYSE: TD) and First Horizon Corporation ("First Horizon") (NYSE: FHN) today announced that they have signed a definitive agreement for TD to acquire First Horizon in an all-cash transaction valued at US$13.4 billion, or US$25.00 for each common share of First Horizon. Through this financially compelling transaction, TD accelerates its long-term growth strategy in the United States by acquiring a premier regional bank with an aligned culture and risk-management framework.

Consumer Financial Protection Bureau allows direct petition submission for more transparency

The Consumer Financial Protection Bureau now allows petitions to be submitted directly to the agency which gives the option to request the agency to consider a new rule on a financial issue, amend an existing rule, or repeal one.

Home lending activity drops at fastest pace in 3 years

The residential mortgage industry is entering a new era with mortgage origination rates dropping 11% from the third quarter of 2021 and 13% from the fourth quarter of 2020, according to ATTOM's report.  The report released Thursday found the annual decrease marked the largest since late 2018. The overall drop-off resulted from across-the-board quarterly declines in all three categories of conventional loans - purchase, refinance and home-equity. Only purchases lending remained up from a year earlier.

CONSUMER ALERT: Attorney General James Warns Consumers Impacted by T-Mobile Data Breach of Potential Identity Theft

NEW YORK – New York Attorney General Letitia James today provided guidance to consumers who may have been impacted by a 2021 T-Mobile data breach, following reports that the stolen information was put for sale on the dark web. Alongside a bipartisan coalition of attorneys general, Attorney General James advised all New York residents who believe they were impacted by the data breach to take appropriate steps to protect their information from identity theft. This comes after several individuals received alerts that their information was circulating online following the August 2021 data breach.

CFPB Finalizes Policy Guidance for Student Loan Servicers

The Consumer Financial Protection Bureau’s compliance bulletin and policy guidance detailing student loan servicers’ obligation to halt unlawful conduct regarding borrowers’ eligibility and benefits under the Public Service Loan Forgiveness (PSLF) waiver is now in effect.

Credit union restrictions, lending cap are barriers to financial access

Credit unions’ field of membership restrictions and the member business lending cap shut out those that need access to mainstream financial services, CUNA wrote to Congressional committees this week. CUNA wrote to the Senate Banking, Housing, and Urban Affairs Committee and House Financial Services Committee this week for their hearings on monetary policy and the state of the economy.

Mayor Adams Delivers $20 Million in Debt Relief to Former Berkeley College Students

NEW YORK – New York City Mayor Eric Adams today announced an agreement with Berkeley College that will deliver $20 million in debt relief to former students of one of the largest for-profit colleges in New York state. The agreement stems from a 2018 lawsuit filed by the New York City Department of Consumer and Worker Protection (DCWP), which asserted that, to generate revenue, Berkeley engaged in aggressive recruiting tactics designed to prey on the hopes and dreams of consumers seeking improved career prospects and greater financial security.

Study: 58% Of Workers ‘Check In’ During Off Hours

These days, the phrase “on the clock” doesn’t mean what it once did. The connected world allows people to be available whenever and wherever they need to be. PYMNTS research shows 58% of people check in on work from outside the office or beyond the confines or normal working hours, while 44% work remotely from places other than their homes.

Navient Student Loan Settlement Leaves Many With a Bill To Pay

Student loan giant Navient grabbed headlines last month when it agreed to cancel $1.7 billion in debt and pay $95 million in restitution for predatory lending practices, but not all of its borrowers will benefit from the settlement.

Millions of student-loan borrowers are being driven toward ‘dangerous’ debt for a for-profit education, investigation finds

The for-profit education sphere has been under scrutiny for decades over accusations of bad behavior and misleading students into taking on debt — and a new investigation highlighted the major risks with the loans many of those schools offer.

Ed Dept reminds colleges ISAs are private loans, subject to disclosure requirements

The U.S. Department of Education on Wednesday reminded colleges of their legal obligation to inform students of the costs and conditions of taking out private loans, including income-share agreements.

CFPB Announces New Process to Submit Petitions for Rulemaking

On February 16, 2022, the CFPB announced that members of the public are now able to submit petitions for rulemaking directly to the agency and request regulatory changes, such as requests for the issuance, amendment, or repeal of a CFPB rule.  All petitions, including attachments and other supporting materials, will be posted publicly for review and comment. 

CFPB Increases Scrutiny on Student Loan Servicers

On February 18, 2022, the Consumer Financial Protection Bureau (CFPB) issued a Compliance Bulletin and Policy Guidance (Bulletin) regarding the servicing of Federal student loans for borrowers who may be eligible under the recently-issued Public Student Loan Forgiveness (PSLF) Waiver.  The CFPB announced that it will be closely reviewing student loan servicer conduct for potential unfair, deceptive or abusive acts and practices in connection with student loan forgiveness as certain program deadlines near.

SKINNER ANNOUNCES SB 1200, HELPING RELIEVE FAMILY DEBT

State Sen. Nancy Skinner, D-Berkeley, today announced the introduction of SB 1200, which would reduce excessively high interest rates that California courts levy when issuing legal judgments on consumer and personal debt. It would also limit the amount of time that Californians can be burdened with long-term debt.

Consumer Financial Protection Bureau signals attention to auto loans

The Buyer Economical Protection Bureau will retain an eye on underwater car financial loans and analyze subprime automobile lending competitors, the company stated final week. The company mentioned it was “concerned” about bank loan-to-value ratios, which assess the total owed on a car or truck with its true really worth.

Bill Payment Survey Reveals U.S. Consumers Are Struggling to Pay Bills on Time

PayNearMe, the modern and reliable payments platform known for making payments easy for both businesses and customers, today released bill payment survey findings that reveal why some U.S. adults are struggling to pay personal loans, auto loans, mortgages and utilities on time. The online survey of 2,676 U.S. consumers, age 18 and older, also highlights U.S. adults of all ages want to use mobile payments to pay their bills, and that having the ability to store bills in an Apple or Google Wallet and pay via a smartphone makes it easier for them to make on-time payments.

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