California DFPI Affirms Employer-Integrated Earned Wage Access Is Not a Loan

In February 2022, a legal opinion issued by the California Department of Financial Protection and Innovation (“DFPI”) concluded that employer-provided earned wage access (“EWA”) transactions are not loans under the California Financing Law and California Deferred Deposit Transaction Law. 

Mortgage loan modifications rose 40% in 4Q: OCC

Serious delinquencies improved in the fourth quarter of 2021 but modifications and foreclosure starts rose as borrowers exited forbearance in droves, according to the Office of the Comptroller of the Currency.

CFPB’s overdraft fee research refuted by CBA president: ‘Not backed by reality’

The president of the Consumer Bankers Association (CBA) accused the Consumer Financial Protection Bureau (CFPB) of making "unsubstantiated claims" about overdraft fees after the federal agency released research on how much banks have relied on such charges over the last six years.

Return of student loan payments could spell trouble for borrowers

Tens of millions of Americans haven’t had to make payments on their student loans the last two years — and a new study suggests many could struggle when bills come due again. Why it matters: Payments are scheduled to resume May 1 on federal direct student loans. President Biden is weighing whether to extend the moratorium on payments again, while lawmakers debate the possibility of cancelling some student debts altogether. Driving the news: Nearly 37 million borrowers have saved about $195 billion from the moratorium through April 2022, according to a report released Tuesday by the Federal Reserve Bank of New York.

TCPA Regulatory Update — FCC Announces New State-Federal Partnerships to Combat Robocalls

In February, Federal Communications Commission Chairwoman Jessica Rosenworcel announced the addition of Colorado, North Carolina, Tennessee, and Vermont to the Commission’s list of robocalling investigatory partners, bringing the total number of states to 16. In addition, she announced the execution of two Memoranda of Understanding (“MOUs”) between the state attorneys general of Colorado and Vermont and the Commission’s Enforcement Bureau.

CFPB Director Chopra Statement on Appraisal Task Force Report

WASHINGTON, D.C. — Consumer Financial Protection Bureau Director Rohit Chopra issued a statement regarding the final report of the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE).

U.S. Department of Education Announces Steps to Hold Institutions Accountable for Taxpayer Losses

The U.S. Department of Education (Department) today announced updated steps to ensure that companies that own institutions are held responsible for funds owed to the federal government, including liabilities arising from closed school loan discharges and borrower defense to repayment claims. This will ensure that even if a school closes, the Department can recover funds from entities that had a direct or indirect ownership interest in the school instead of leaving the bill to taxpayers. These new procedures will protect taxpayers, students, and borrowers through incentivizing better performance by the schools and allowing the Department to recover liabilities from corporate owners.

CFPB Issues Policy on Contractual ‘Gag’ Clauses and Fake Review Fraud

WASHINGTON, D.C. — Today, the Consumer Financial Protection Bureau (CFPB) issued policy guidance regarding potentially illegal practices related to consumer reviews. The CFPB seeks to ensure that customers can write reviews, particularly ones posted online, about financial products and services that accurately reflect their opinions and experiences. The guidance also highlights that practices such as posting fake reviews or inserting clauses that forbid a customer from publishing an honest review may violate the Consumer Financial Protection Act.

Wells Fargo Sued Over Discriminatory Home Lending Practices

A Los Angeles based law firm says it is filing a federal lawsuit against Wells Fargo Bank, N.A., and Wells Fargo Home Mortgage, claiming discrimination against Black applicants for home mortgage refinancing through the bank's Home Mortgage lender service. The lawsuit will join others filed last month.

CFPB Expands Anti-Discrimination by Applying UDAAP to Credit and Non-credit Products

On March 16, 2022, the Consumer Financial Protection Bureau (CFPB) announced a significant expansion to its anti-discrimination oversight and enforcement of covered persons, stating expressly that it will now apply such scrutiny to all consumer finance products and services, regardless of whether they involve an extension of credit. The non-credit products and services the Bureau identified as ones it will prioritize during examinations and for enforcement include collections, servicing, consumer reporting, payments, remittances, and deposits.

The State of Low-Income America: CREDIT ACCESS & DEBT PAYMENT

The data are primarily sourced from the New York Fed’s Consumer Credit Panel, which is derived from anonymized Equifax credit data and is the source for the Bank’s Quarterly Report on Household Debt and Credit, which reports on these concepts nationally. Credit report data do not provide information on income: for this, we use geographic information on the borrowers’ census tracts and merge it with income data from the American Community Survey. The definitions of low- and moderate-income levels are taken from the Federal Financial Institutions Examination Council (FFIEC), using data from the American Consumer Survey (ACS).

Court Imposes Restrictions on Credit Repair Company to Protect Consumers

The Justice Department and the Federal Trade Commission (FTC) announced that a federal court in Houston, Texas, entered a permanent injunction barring a credit repair company and its CEO from representing that it can repair or improve consumers’ credit scores. The court also entered a preliminary injunction that prohibits the defendants from making large or non-essential expenditures to preserve assets for consumer redress.

Senior Housing Lending on the Upswing, Underwriting Focuses on Operating Margins

The lending environment within the senior housing sector became more competitive, with borrowing activity increasing in 2021. Banks returned to the market during the second half of 2021 in particular, according to lender survey results released Friday by Chicago-based speciality investment bank Ziegler. One respondent noted $700 million 2021 volume, compared to $600 million in 2020, with the lending environment becoming more competitive.

Utah inches closer to becoming fourth state to pass privacy law

Last week, the Utah House of Representatives unanimously passed a consumer privacy bill -- the Utah Consumer Privacy Act -- moving it one step closer to becoming the fourth state to enact privacy legislation in the US. 

Most medical debt will be wiped from consumer credit reports

A large number of U.S. consumers will have their medical debt wiped from their credit reports, the nation’s largest credit reporting agencies announced Friday. Equifax, Experian and TransUnion said in a joint statement they would remove nearly 70% of medical collection debt accounts from consumer credit reports after conducting months of market research. The changes will start to take place this summer.

AG Donovan Sues Illegal Robocall Carrier TCA VOIP

Attorney General T.J. Donovan today filed a federal lawsuit against a California-based company, Telecom Carrier Access doing business as TCA VOIP, and its owner, Dominic Bohnett, for knowingly bringing thousands of robocalls into Vermont. The Attorney General’s Office began its investigation after receiving reports of a robocall displaying an 802-area code, impersonating the Social Security Administration. A traceback investigation, conducted with assistance from the Social Security Administration Office of Inspector General, revealed TCA VOIP to be the source of the call. The complaint alleges that the Defendants violated Vermont’s Consumer Protection Act, as well as other state and federal laws, by knowingly bringing millions of illegal robocalls into the U.S., and thousands, if not hundreds of thousands, of illegal robocalls into Vermont, including government imposter and business imposter scams.

Equifax, Experian, and TransUnion Support U.S. Consumers With Changes to Medical Collection Debt Reporting

The three nationwide credit reporting agencies (NCRAs) – Equifax (NYSE: EFX), Experian (LON: EXPN), and TransUnion (NYSE: TRU) – today announced significant changes to medical collection debt reporting to support consumers faced with unexpected medical bills. These joint measures will remove nearly 70% of medical collection debt tradelines from consumer credit reports, a step taken after months of industry research.

70% of medical collection debt will soon be removed from credit reports—and it could boost your credit score

The three major credit reporting agencies announced Friday that they will strip 70% of medical debt information out of consumers’ credit reports, starting July 2022.

Regulation by Definition: CFPB Broadens Definition of “Unfairness” to Rein in Discrimination

In a significant move, the CFPB announced on March 16 a revision to its supervisory operations to address discrimination outside of the traditional fair lending context, with future plans to scrutinize discriminatory conduct that violates the federal prohibition against “unfair” practices in such areas as advertising, pricing, and other areas to ensure that companies are appropriately testing for and eliminating illegal discrimination.  Specifically, the CFPB updated its Exam Manual for Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs) noting that discrimination may meet the criteria for “unfairness” by causing substantial harm to consumers that they cannot reasonably avoid.

CFPB: Over 4 million U.S. seniors affected by medical debt

4.5 million U.S. adults at or over the age of 65 had medical debt, many with significant hardships in 2018. This is according to data from the FINRA Foundation National Financial Capability Study (NFCS), compiled and released by the Consumer Financial Protection Bureau (CFPB) Office of Older Americans.

Average U.S. mortgage rates rise; 30-year loan breaches 4%

The increase came amid expectations that with inflation at a four-decade high, the Federal Reserve would raise its benchmark short-term interest rate at its policy meeting this week to cool the economy. That action came Wednesday, as the Fed increased the key rate - which it had kept near zero since the pandemic recession struck two years ago - by a quarter point. And the central bank signaled potentially up to seven additional rate hikes this year.

OCC Assesses $60 Million Civil Money Penalty, Issues Cease and Desist Order Against USAA

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $60 million civil money penalty against USAA, Federal Savings Bank, for violations of the OCC’s Bank Secrecy Act regulations. The OCC also issued a Cease and Desist Order against the bank based on its failure to establish and maintain an effective Bank Secrecy Act/Anti Money Laundering (BSA/AML) program

FinCEN Announces $140 Million Civil Money Penalty against USAA Federal Savings Bank for Violations of the Bank Secrecy Act

WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) today announced that it has assessed a $140 million civil money penalty against USAA Federal Savings Bank (USAA FSB) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations.

AG Ferguson files lawsuits against two companies for sending more than 200,000 deceptive letters to Washington small business owners

SEATTLE — Attorney General Bob Ferguson today filed consumer protection lawsuits against two companies and their owners for sending more than 210,000 deceptive letters to small business owners in Washington. The letters deceptively appear to originate from the government, and demand payment for a “Certificate of Status” or a workplace poster that are available from the government free of charge or for a fraction of the monetary demand. More than 15,000 Washington businesses paid these two defendants more than $1.2 million in response to their deceptive letters.

FTC Imposes Restrictions on Electronic Payment Systems for Opening Merchant Accounts for Fictitious Companies, Assisting a Business Opportunity Scam

The Federal Trade Commission has filed an administrative complaint against Electronic Payment Systems and its owners, John Dorsey and Thomas McCann, for allegedly opening credit card processing merchant accounts for fictitious companies on behalf of Money Now Funding, a business opportunity scam that the FTC previously sued. By ignoring warning signs that the merchants were fake, Electronic Payment Systems assisted Money Now Funding in laundering millions of dollars of consumers’ credit card payments to the scammers from 2012 to 2013.

Major U.S. banks raise base lending rate after Fed’s interest rate move

March 16 (Reuters) - Big U.S. banks said on Wednesday they were raising their base lending rates by a quarter of a percentage point each, hours after the U.S. Federal Reserve increased its benchmark interest rate in a bid to contain stubbornly high inflation.

FCC Announces New Prices for Reassigned Numbers Database

The Federal Communications Commission announced changes to subscriber options and pricing for the Reassigned Numbers Database (RND). The changes, which will go into effect April 27, 2022, add more subscription tiers, agent discounts and pricing options.

What to know about the Teacher Loan Forgiveness Program

Student loan debt can be overwhelming, especially for borrowers who aren’t in a high-paying field. If you’re a teacher with student loans, you may have loan forgiveness options. Here’s what you need to know about the Teacher Loan Forgiveness Program.

Nearly 1 in 10 Americans carry medical debt

The Kaiser Family Foundation (KFF) performed the analysis, which was based on data from the 2020 Survey of Income and Program Participation, a nationally representative survey that asks every adult in a household whether they owed money for medical bills in 2019 and how much they owe. It looked at people with medical debt of more than $250.

Legal aid firm goes after California ‘junk’ debt buyer for illegal debt collection practices

OAKLAND, Calif. (CN) — Bay Area Legal Aid is taking debt collector Achievable Solutions, Inc. to court over allegations of abuse and illegal debt collection practices that “exploit and manipulate the normal operation of California’s overburdened courts” for a quick payday.

Nevada Transiting Collection Agency Related Licenses to NMLS

On February 3, the Nevada Financial Institutions Division (NFID) issued a bulletin, stating that any licensed collection agency or manager must transition their license to the Nationwide Multistate Licensing System (NMLS) by June 30. Licensees that do not submit a request to transition by June 30 will see their licenses expire without an option for reinstatement.

The Fed is raising interest rates. What does that mean for borrowers and savers?

As the economy recovers from the global pandemic, American families and businesses are experiencing higher prices. The Federal Reserve’s Federal Open Market Committee announced that it would seek to adjust interest rates higher to address inflation. The Committee also indicated that it will likely continue to raise interest rates in the future, based on market conditions. These interest rate adjustments by the Fed tend to flow through the economy in ways that may impact borrowers and savers.

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