FTC Refunded $4.86 Million to Victims of Abusive Debt Collectors in 2021

The Federal Trade Commission has provided the Consumer Financial Protection Bureau (CFPB) with its annual summary of activities to protect consumers from abusive and predatory debt collectors. The CFPB requested the summary for its annual report to Congress on the activities of both agencies annual report to Congress on the activities of both agencies, who share law enforcement responsibility in this area, to put a stop to unlawful debt collection that harms consumers.

Justice Department Files Suit Against Virginia Towing Company for Unlawfully Auctioning Off Servicemembers’ Vehicles

The Justice Department today filed a lawsuit in the U.S. District Court for the Eastern District of Virginia alleging that Steve’s Towing Inc. in Virginia Beach, Virginia, violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy Seal team who was deployed overseas. The SCRA, which provides a variety of financial and housing protections to members of the military, prohibits towing companies from auctioning off servicemembers’ vehicles without a court order.    

Credit unions seek injunction blocking enforcement of NY law reducing debt judgment interest rate

Three credit unions have filed a federal class action lawsuit in the Southern District of New York seeking to halt the enforcement or implementation of New York’s recently passed S.B. 5724A which would retroactively and prospectively lower the statutory annual interest rate on  consumer debt judgments from 9% to 2%.  The credit unions allege that the change in rates – set to take effect April 30, 2022 – violates the United States Constitution’s due process and property protections and should be struck down in its entirety.

Some medical debt will continue to haunt consumers despite moves by White House and credit bureaus

In addition to the March announcement by the three big credit-reporting firms that they will limit when such debt ends up on credit reports, the White House on Monday outlined steps intended to further prevent past medical bills from haunting consumers.

Cybersecurity Class Actions Drawing a Split Among Circuit Courts

Takeaway: In the wake of a data breach, a class of Plaintiffs whose personal and/or financial information is disseminated to third parties all share the same concern – the risk of future harm. But in order for these Plaintiffs to have standing to sue over the wrongful dissemination of their information resulting from the breach, the mere threat of future harm may not be enough.

Fair Debt Collection Practices Act Annual Report 2022

The Bureau’s annual report to Congress summarizes the Bureau’s activities to administer the Fair Debt Collection Practices Act (FDCPA) in 2021 as the primary federal regulator of the consumer debt collection industry. This report also includes activities conducted by the Federal Trade Commission (FTC) in 2021 in relation to debt collection.

Protecting families and honest businesses from debt collection abuses

Financial companies that collect and process loan payments play a critical role in consumer finance markets. The Consumer Financial Protection Bureau (CFPB) is the primary federal regulator of the consumer debt collection industry, and today, we submitted our annual report to Congress on the Fair Debt Collection Practices Act (FDCPA).

24% of Credit Union Members Would Switch FIs for Digital Innovations

When consumers are picking a financial institution, digital features make a difference. In fact, 24% of credit union members would consider switching to new financial institutions over innovation, according to “Credit Union Innovation,” a PYMNTS and PSCU collaboration based on a survey of 4,832 U.S. consumers, 101 credit union decision-makers and 51 FinTech executives.

Federal Trade Commission Takes Action Against For-Profit Medical School for Using Deceptive Marketing to Lure Students

The Federal Trade Commission has taken action against a for-profit medical school in the Caribbean and its Illinois-based operators, alleging they deceptively marketed the school’s medical license exam test pass rate and residency matches to lure prospective students. The school and its operators are also charged with violating the Holder Rule, which preserves rights for injured consumers, and the Credit Practices Rule, which protects consumers in credit contracts.

Virginia Governor Signs VCDPA Amendment Bills into Law

On April 11, 2022, Virginia Governor Glenn Youngkin signed three Virginia Consumer Data Protection Act (VCDPA) amendment bills into law. The three bills will go into effect July 1, 2022. With the signing of the bills, the VCDPA’s text is now finalized in advance of its January 1, 2023 effective date.

Nevada Hospital Association Files Amicus Brief in Support of 9th Circuit Appeal

The Nevada Hospital Association has filed an amicus brief in support of the 9th Circuit appeal taken by the Nevada Collectors Association and other stakeholders (plaintiff-appellants) arguing that the U.S. District Court for the District of Nevada erred in denying the plaintiff-appellants’ motion to enjoin the effect of Nevada S.B. 248, the state’s medical debt law that took effect in July 2021.

TransUnion Responds to Litigation Filed by CFPB

In response to a complaint filed today by the Consumer Financial Protection Bureau, TransUnion issued the following statement: The claims made by the CFPB against TransUnion and John Danaher, a former executive, are meritless and in no way reflect the consumer-first approach we take to managing all our businesses. 

The student loan pause was extended—three things to keep in mind

Earlier this month, the Department of Education announced that federally-held student loan payments will continue to be paused through August 31, 2022. This extension provides welcome relief to student loan borrowers who are still finding their footing in an economy recovering from the pandemic. As we look toward repayment, here is what the CFPB’s research, supervision, and enforcement work tells us about the risks student loan borrowers might face.

Connecticut federal court allows CFPB claims to proceed against mortgage company and principals for alleged licensing and other violations

A Connecticut federal district court has refused to dismiss claims filed by the CFPB against a mortgage company and three of its principals for alleged Truth in Lending Act (TILA), Mortgage Act and Practice (MAP) Rule, and Consumer Financial Protection Act (CFPA) violations.

Mortgage Delinquencies Drop Again, Reach Another Historic Low in January, CoreLogic Reports

In January, 3.3% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 2.3 percentage point decrease compared to January 2021, when it was 5.6%. This again marks the lowest recorded overall delinquency rate in the U.S. since at least January 1999.

FTC Chair Wants to Step up Privacy Protection With New Rules

Federal Trade Commission (FTC) Chair Lina Khan said on Monday (April 11) that it is time for the agency to “reassess” rules around what data companies can collect from consumers. She called for a new approach to consumer data protection to replace the companies’ privacy policies on collection and use of consumer data.

Attorney General Tong Calls on CFPB to Prohibit Mortgage Servicers from Charging Convenience Fees

(Hartford, CT) – Attorney General William Tong today joined a coalition of 22 attorneys general urging the Consumer Financial Protection Bureau (CFPB) to prohibit mortgage servicers from charging convenience fees. According to the coalition, convenience fees charged by mortgage servicers are one of the more exploitative “pay to pay” fees consumers face.

FHA Temporarily Shuts Down Loan Review System

The Federal Housing Administration (FHA) has shut down its digital Loan Review System (LRS) for up to two weeks in an effort to resolve “various document errors” that have occurred recently, the agency said Monday.

Student loan payments won’t be due until September. Here’s what borrowers need to know

The U.S. Department of Education has extended the payment pause on federal student loans for the sixth time since the pandemic began more than two years ago.

Consumers on course to save $1 billion in NSF fees annually, but some banks continue to charge these fees

In recent months, a number of large banks have announced that they are eliminating non-sufficient fund (NSF) fees on their checking accounts. This is a positive development. We estimate that these changes mean that consumers will pay about 50% less in these fees each year, an annual savings of about $1 billion.

FCC Announces More State Robocall Investigation Partnerships

Federal Communications Commission (“FCC”) Chairwoman Jessica Rosenworcel announced on April 7, 2022, that “five more state Attorneys General are partnering with the FCC in robocall investigations.” As a result, a majority of states (some 27 plus the District of Columbia) have now signed Memoranda of Understanding (“MOU”) with the FCC’s Enforcement Bureau.

Seventh Circuit Dismisses FDCPA Claim for Lack of Standing

In Pierre v. Midland Credit Management, Inc., — F.4th —, 2022 WL 986441 (7th Cir. Apr. 1, 2022), the Seventh Circuit affirmed the dismissal of a claim under the Fair Debt Collection Practices Act (“FDCPA”), finding that the plaintiff and the putative class which she represented suffered no concrete injury and therefore lacked Article III standing under the framework set out in Spokeo, Inc. v. Robins, 578 U.S. 330 (2016) and TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2021). Plaintiff Renetrice Pierre filed a class action lawsuit, seeking to represent a class of Illinois residents who had received letters from the defendant offering to resolve debts long after the statute of limitations on the debt had run. 

70% of Complaints Filed With the CFPB Are About Credit or Consumer Reporting 

The Consumer Financial Protection Bureau (CFPB) published its semi-annual report on April 6, detailing everything what the agency has done for most of the last year. In a 100-page document, the agency explains its advocacy efforts to help consumers, the enforcement actions taken against companies and individuals, the data generated for different industries or the proposed rulemaking.

How will the sharpest rise in mortgage rates in three decades affect home prices?

Mortgage rates are climbing fast. The average rate on a 30-year mortgage rose to 4.95 percent this past week, surging from just 3 percent in August 2021, according to Bankrate’s national survey of lenders.

Biden administration will give millions of student loan borrowers in default a fresh start — here’s what you need to know

Along with the announcement last week that the ongoing payment pause on federal student loans would be extended for another four months, the Biden administration also offered good news to borrowers who were behind on their debt payments prior to the pandemic.

CFPB Charges TransUnion and Senior Executive John Danaher with Violating Law Enforcement Order

Today, the Consumer Financial Protection Bureau (CFPB) is filing a lawsuit against TransUnion, two of its subsidiaries, and longtime executive John Danaher for violating a 2017 law enforcement order.

Attorney General Bonta Urges CFPB to Prohibit Mortgage Servicers From Charging “Pay to Pay” Fees

OAKLAND – California Attorney General Rob Bonta today, as part of a multistate coalition, urged the Consumer Financial Protection Bureau (CFPB) to prohibit mortgage servicers from charging excessive payment fees. Currently, many mortgage servicers charge “pay to pay” fees for payments made online, by phone, or through a third-party service, with fee amounts often exceeding the actual cost to the servicer to process the payments. In today’s letter, the coalition argues that these fees are excessive and exploitative because homeowners are unable to choose their servicer and thus are a captive market.

NCUA Releases OMWI Annual Report to Congress

ALEXANDRIA, Va. (April 11, 2022) – Today, the National Credit Union Administration released its Office of Minority and Women Inclusion (OMWI) annual report, which provides an overview of the NCUA’s diversity and inclusion programs and initiatives in 2021. The report also highlights the agency’s efforts to ensure fair and inclusive business practices as well as assess the diversity policies and practices of the entities it regulates.

Recent Report Acuses Aidvantage of Misleading Student Loan Borrowers: What to Know

Maximus, which manages federal student loans under the name Aidvantage, has been accused of mismanaging some borrowers' student loan accounts. A March 2022 report from the Student Borrower Protection Center and the Communications Workers of America accuses the loan servicer of engaging in "unfair debt practices."

Colorado Attorney General Seeks Rulemaking Comments for the Colorado Privacy Act

With the Notice of Proposed Rulemaking set for fall 2022, Colorado’s Attorney General office is currently inviting preliminary comments for the Colorado Privacy Act. Specifically, the office is interested in comments related to dark patterns, data brokers, and opt-out mechanisms. For those interested in submitting comments, the comment form is here.

FCC Confirms Price Changes for Reassigned Numbers Database; Clarifies Safe Harbor

The Federal Communications Commission issued a news release Friday announcing that it is improving its Reassigned Numbers Database (RND) by making it more “affordable and valuable for callers as a resource to reduce the number of unwanted phone calls Americans receive.”

U.S. consumers up view of inflation, spending in coming year, NY Fed survey finds

(Reuters) - U.S. consumers boosted their expectations for inflation and household spending in the year ahead as the price of gas and food steepens, but tempered their view of inflation over the medium-term, according to a survey released on Monday by the New York Federal Reserve.

Know your rights and protections when it comes to medical bills and collections

Medical billing and collections can hurt people when they are already struggling with a health crisis. If this sounds like you or a loved one, help is available. We are on your side to make sure you are treated fairly. Here are some steps you can take.

US consumer debt jumped by $40 billion in February

New York (CNN Business)Americans got into a lot more debt in February as rampant inflation kept up the pressure, the Federal Reserve's consumer credit report showed Thursday.Debt levels jumped by nearly $42 billion to a total of almost $4.5 trillion. That's an annual increase of 11.3%, seasonally adjusted, far outperforming economists' expectations and setting a new high. In January, total credit had grown only 2.4%.

Average mortgage debt

Many Americans begin taking on debt in early adulthood, and for those who become homeowners, this eventually includes mortgage debt. When evaluating a borrower for a home loan, mortgage lenders look at the borrower’s debt-to-income (DTI) ratio, the percentage of gross monthly income that goes toward paying debt. This is an indicator of how much additional debt a borrower can reasonably take on before it becomes unaffordable. Too much debt, and the borrower might not be able to get approved for a mortgage. For borrowers with too much mortgage, a higher DTI ratio could make it harder to obtain other forms of credit, like a car loan or personal loan, in the future.

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