CFPB Targets Unfair Discrimination in Consumer Finance

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) announced changes to its supervisory operations to better protect families and communities from illegal discrimination, including in situations where fair lending laws may not apply. In the course of examining banks’ and other companies’ compliance with consumer protection rules, the CFPB will scrutinize discriminatory conduct that violates the federal prohibition against unfair practices. The CFPB will closely examine financial institutions’ decision-making in advertising, pricing, and other areas to ensure that companies are appropriately testing for and eliminating illegal discrimination.

Total Consumer Debt Grows With Student, Auto Loans Doubling

New research from credit and loan services company Credit Summit shows that a staggering amount of consumer debt has piled up over the past few years as households took on a variety of loans. The company said student loans and auto loans have more than doubled since 2010, driving up total debt loads.

CFPB’s New Procedural Rules May Be a Game-Changer 

The Consumer Financial Protection Bureau (CFPB) in late February issued procedural rules that may represent a change in the agency’s strategy to pursue enforcement actions and could also allow it to have more time to tackle its ambitious and crowded agenda.  The CFPB filed the new rules amending the Rules of Practice for Adjudication Proceedings in the Federal Register on Feb. 22. While these rules are effective immediately, the bureau is accepting comments until April 4.  

S&P/EXPERIAN CONSUMER CREDIT DEFAULT INDICES SHOW THIRD STRAIGHT INCREASE IN COMPOSITE RATE IN FEBRUARY 2022

NEW YORK, March 15, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through February 2022 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 0.46%. The bank card default rate increased 13 basis points to 2.15%. The auto loan default rate was one basis point lower at 0.52% while the first mortgage default rate was three basis points higher at 0.34%

CFPB Issues Updated Debt Collection Examination Procedures

The Consumer Financial Protection Bureau has updated its debt collection examination procedures to reflect requirements for regulated entities under Regulation F. These procedures include guidance for examination of all aspects of debt collection, according to the CFPB’s summary.

A student-loan company that just took over 5 million borrowers’ accounts has ‘a growing list of scandals and abuses,’ report says

The Student Borrower Protection Center and the Communications Workers of America released a report on Monday that found student-loan company Maximus, which services federal loans under the name Aidvantage, had been accused of "a growing list of scandals and abuses." Maximus recently took over 5.6 million federal borrowers' accounts from Navient, which was also accused of misleading behavior. SBPC said Maximus now processed almost 13 million accounts owing $449 billion of debt.

The moratorium on repaying federal direct student loans may finally be expiring

About 30 to 40 million Americans have gotten a financial reprieve over the past two years: They haven’t had to pay principal or interest on their federal direct student loans. The student-debt moratorium was originally passed as part of the CARES Act to help the economy and consumers weather the severe downturn at the start of the pandemic. It’s been extended several times, but now it’s set to expire on May 1, that is unless it’s extended yet again.

D.C. City Council Advances Debt Collection Legislation ‘Stronger’ Than FDCPA

Washington, D.C.’s City Council is seeking to strengthen its debt collection law with call caps and limits on electronic communications, among other changes. The city council held a markup on bill 24-357, the “Protecting Consumers from Unjust Debt Collection Practices Temporary Amendment Act of 2022,” March 15.

CFPB’s New Procedural Rules May Be a Game-Changer 

The Consumer Financial Protection Bureau (CFPB) in late February issued procedural rules that may represent a change in the agency’s strategy to pursue enforcement actions and could also allow it to have more time to tackle its ambitious and crowded agenda.  

Data Spotlight: Medical debt among older adults before the pandemic

In 2018, 8.5 percent of older Americans had medical debt, measured as having a past due medical bill. That’s a total of 4.5 million adults ages 65 and older, according to U.S. Census estimates.¹ The incidence of medical debt is lower among adults ages 65 and older compared to younger age groups. This finding is likely the result of older Americans having the highest health insurance coverage rates of all age groups due to their eligibility for coverage through Medicare.²

Designing for the people we serve

At the CFPB, we believe all of our work should be rooted in research and experience from the very people we aim to serve. For many, our website’s homepage is the front door to the CFPB. For that reason, we are excited to unveil our homepage redesign, which benefited from extensive user research and testing.

CFPB warns servicers it’s watching closely, again

The Consumer Financial Protection Bureau today said that they are closely monitoring how servicers conduct themselves to help borrowers avoid foreclosures. Lorelei Salas, assistant director for supervision policy at the CFPB, wrote in a blog post that the CFPB will be closely monitoring complaints of servicers not giving borrowers the option or time to apply for the Homeowners Assistance Fund (HAF).

72% of Consumers Manage Their Lending Accounts Online

Most consumers have loan accounts with outstanding balances, and most of them manage those accounts online. According to “Account Opening And Loan Servicing In The Digital Environment,” a PYMNTS collaboration with Finicity, a Mastercard company, 61% of consumers have loan accounts with outstanding balances. These include several types of loan accounts. The most common type is held by homebuyers and landowners: 33% of consumers have a mortgage account open with an outstanding balance.

LendingTree survey: Credit card debt is up by 30% over the past two years

LendingTree released the results of its survey on Thursday, revealing that 30% of Americans saw an increase in credit card debt over the last two years, driven primarily by inflation and loss of income. In the study, conducted with data from 1,249 consumers, 48% of consumers indicated that inflation led to the increase in credit card debt, while 34% said income loss was the largest driving factor. The study also found that 30% of consumers were able to increase their credit score during the same two-year period.

Improve Your Cybersecurity in 90 Days: Guide for Security Pros

Being the C-suite officer in charge of security requires handling significant pressure.  Cybercriminals are thriving; in 2021, the average cost of a data breach rose 10% and there were 17% more data breaches than in 2020.

Safely sending money to loved ones in conflict areas

Amid the ongoing war in Ukraine, many people in the United States are trying to help family and friends in Ukraine and those who have fled the country, including finding ways to send them money directly. We have a number of resources aimed at helping you safely send money overseas, as well as to help loved ones make informed financial decisions and to protect against fraud.

Arizona deal marks 5th credit union purchase of bank in 2022

Phoenix-based Arizona Federal Credit Union said it would acquire Lake Havasu City, Arizona-based Horizon Community Bank for $91.4 million, according to a Thursday press release.

Using the Homeowner Assistance Fund program to help borrowers prevent foreclosure

As of March 1, 2022, over 768,000 mortgage borrowers remain in active forbearance. Many of these consumers are seriously delinquent and at risk of foreclosure unless they receive loss mitigation assistance from their servicers. The CFPB remains focused on preventing avoidable foreclosures to the maximum extent possible and expects mortgage servicers to do the same.

AG Brnovich Reaches $400,000 Consent Judgment with Home Security Company

PHOENIX - Attorney General Mark Brnovich announced he has agreed to enter into a consent judgment, pending court approval, with Vivint, Inc. (Vivint), a Utah-based home security company.  This consent judgment resolves claims that Vivint made false representations to induce consumers to sign a contract with Vivint.

BayPort settles military credit claims after federal investigation

A soldier whose monthly car loan bill went up when she told BayPort Credit Union that her active duty status was supposed to cap fees and interest at 6% sparked a federal investigation alleging the Newport News-based institution charged service members excessive interest rates and improperly repossessed their cars.

SEC Proposes Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies

Washington D.C., March 9, 2022 —

The Securities and Exchange Commission today proposed amendments to its rules to enhance and standardize disclosures regarding cybersecurity risk management, strategy, governance, and incident reporting by public companies.

Did a Prolific TCPA Plaintiffs’ Attorney Just Argue That the Statute Does Not Regulate Text Messaging? The Hearing Transcript Says Yes

For years, the plaintiffs’ bar has been filing Telephone Consumer Protection Act (TCPA) class actions alleging the receipt of unsolicited, autodialed text messages. But the TCPA’s autodialer prohibition explicitly refers to “calls,” not text messages, whereas other provisions of the statute, namely the Truth in Caller ID Act, expressly extend to both “text messaging service[s].” In fact, that section of the TCPA even includes a definition for “text message.”

New York Amends Contact Requirements for Certain Delinquent Borrowers

A&B ABstract: On February 24, Governor Kathy Hochul signed into law Assembly Bill 8771 (2022 N.Y. Laws 48), amending single point of contact requirements for certain delinquent borrowers.  What changes does the measure require for servicer protocols?

U.S. FORECLOSURE ACTIVITY IN FEBRUARY 2022 CONTINUES TO INCREASE STEADILY

IRVINE, Calif., March 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 released its February 2022 U.S. Foreclosure Market Report, which shows there were a total of 25,833 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 11 percent from a month ago and 129 percent from a year ago.

Preparing for the Tidal Wave and Bracing for the Tsunami: Utah Becomes the Fourth State to Pass Privacy Legislation

At last count, at least 39 states have introduced (or passed) comprehensive privacy legislation. After what was previously a watch-and-wait game of legislative whack-a-mole, we are now seeing this legislation get passed and implemented more regularly and with greater speed.

During Consumer Protection Week, Attorney General Bonta Reminds Public Servants to Take Advantage of Recent Changes to Public Service Loan Forgiveness Program

OAKLAND – California Attorney General Rob Bonta today issued a consumer alert highlighting important information regarding recent changes to the Public Service Loan Forgiveness (PSLF) and Temporary Expanded Public Service Loan Forgiveness (TEPSLF) programs. On Oct. 6, 2021, the U.S. Department of Education (ED) announced that it would implement critical improvements to the PSLF program that should provide more eligible public servants with the student loan forgiveness that they deserve.

Justice Department Resolves Lawsuit Against BayPort Credit Union for Violations of the Servicemembers Civil Relief Act

The Justice Department today announced that it has obtained a settlement agreement requiring BayPort Credit Union (BayPort) to pay nearly $110,000 to resolve allegations it violated the Servicemembers Civil Relief Act (SCRA) by charging excessive interest on servicemembers’ loans and repossessing servicemembers’ cars without court orders.

California Credit Union Launches $100,000 Challenge Match Campaign With Worldwide Foundation for Credit Unions Supporting Ukrainian Credit Unions, Members & Communities

LOS ANGELES, March 10, 2022 /PRNewswire/ -- California Credit Union has partnered with the Worldwide Foundation for Credit Unions (WFCU) to provide urgently needed aid for Ukrainians, offering a $100,000 donation match for the organization's Ukrainian Credit Union Displacement Fund.

Florida Data Privacy Legislation Fails (Again)

Florida will not pass a comprehensive data privacy law for the second year in a row. It will be easy for some to speculate that the bill died because the House insisted on a private right of action. That speculation would be wrong. The bill died because there were multiple differing views on the law’s scope, what activity the law should apply to, and how the law should be enforced. I am confident we will see another data privacy bill introduced next year. But I don’t know how vigorously the new incoming House Speaker will push it.

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.       

First Community Bank and Trust Selects Lendsmart to Digitize and Automate its Lending and Home Buying Operations

NEW YORK–(BUSINESS WIRE)–#banking—First Community Bank and Trust, a privately owned bank, serving individuals, families and businesses in Beecher and Peotone, IL, as well as across the state, has selected Lendsmart, an AI-driven digital lending platform, to enhance its digital lending operations.

Leading FinTech Company Marlette Announces $225 Million Preferred Equity Raise

WILMINGTON, Del., March 10, 2022 /PRNewswire/ -- Best Egg, the machine learning powered, online credit and financial wellness platform that is owned and operated by Marlette Holdings, Inc, announced today that it has secured $225 million in committed preferred equity capital. The Series E capital round was led by the Healthcare of Ontario Pension Plan (HOOPP), which manages over $80 billion in assets, with participation from investment funds advised by Davidson Kempner Capital Management LP, as well as a large international bank.

Capital One Releases Two-Year COVID Retrospective on Americans’ Financial Health

MCLEAN, Va., March 7, 2022 /PRNewswire/ -- Timed to the two-year anniversary of the COVID-19 pandemic, the Capital One Insights Center has released new research that shows the gap between lower and higher earners continues to widen against new affordability pressures. As part of the Center's ongoing Marketplace Index survey, this latest release dives into the disproportionate impact of the pandemic across income groups against the backdrop of rising inflation.

New effort focused on financial issues facing rural communities

The Consumer Financial Protection Bureau has launched a new initiative to focus on financial issues facing rural America. Our effort will initially focus on rural banking deserts, discriminatory and predatory agricultural credit, and manufactured housing.

RMAI Celebrates a Decade of Its National Certification Program

March 10, 2022 (Sacramento, CA) – The RMAI Certification Council announces the adoption of version 10.0 of the Receivables Management Certification Program (RMCP) after a seven-month development and review process. Several significant enhancements were added to the program in version 10.0, including requiring Certified Businesses to:

Banks are offering bigger loans than ever to keep up with the housing crisis

As housing prices soared in 2021, lenders have had to adapt to keep pace. And that has resulted in the largest one-year increase in conforming loan limits in history. That jargon-y term, which generally represents the maximum amount consumers can borrow under a typical 30-year mortgage, jumped $100,000 in the past year to $647,200 in most of the nation’s counties.

Education Department sends another sign that student loan payments may not restart in May

The U.S. Department of Education has directed the companies that service federal student loans not to send out notices about payments restarting in May, according to two people familiar with the matter.

Utah Legislature Passes Consumer Privacy Law

Following the lead of California, Colorado, and Virginia, Utah is set to become the fourth state to pass a comprehensive privacy law. As of March 4, the Utah Consumer Privacy Act (SB 227) cleared both houses of the Utah legislature. 

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