Minnesota Legislature Passes Work-From-Home Bill

Permanent remote work options for debt collectors are close to taking effect in Minnesota after the state’s House of Representatives passed SF 2922 on a near unanimous vote Tuesday and the Senate accepted the amended version on Wednesday.

Today in TechREG: CFPB Wants Other Agencies to Follow Its Views

Today in TechREG, Securities and Exchange Commission (SEC) Chair Gary Gensler reminded investors that crypto assets are “highly speculative” and the agency will continue policing the industry until better rules will be in place. The Consumer Financial Protection Bureau (CFPB) launched an initiative to promote consistent enforcement of consumer financial protection laws. 

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

NEW YORK, May 17, 2022 /PRNewswire/ -- S&P Dow Jones Indices and Experian released today data through April 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 two basis points to 0.50%.

$489 million in relief to victims of illegal internet payday loans approved by Virginia court

RICHMOND, Va. (WRIC) — The federal court in Richmond gave preliminary approval to a class-action settlement that would provide $489 million of relief to victims of illegal internet loans. The ruling was made Thursday, May 12, and will affect approximately 555,000 consumers that were charged over 600% interest on loans by predatory internet payday lenders.

CFPB Warns Businesses Not to Misrepresent FDIC Insurance

The Consumer Financial Protection Bureau (CFPB) is looking out for consumers at risk of succumbing to false advertising stemming from misusing the Federal Deposit Insurance Corporation (FDIC) name or logo, a CFPB press release said Tuesday (May 17).

AG Brnovich Obtains Judgment Permanently Banning Debt Collector & Awarding More Than $1.6 Million in Restitution

PHOENIX - Arizona Attorney General Mark Brnovich announced today a consent judgment against Mark Anthony Smith, the owner and manager of debt collection businesses CMS Financial Group, John Lee Group & Associates, and TD Financial Solutions Group AZ. The judgment permanently bars Smith from participating in any debt collection activities and requires Smith to pay more than $1.6 million for consumer restitution. The judgment includes up to $900,000 in civil penalties. The consent judgment is pending court approval.

CFPB Wants Other Agencies to Follow Its Enforcement Views

The Consumer Financial Protection Bureau (CFPB) announced in a Monday (May 16) blog post that it is launching a new initiative to ensure that other agencies with consumer financial protection responsibilities apply the rules in a consistent manner. The CFPB will issue Consumer Financial Protection Circulars to government agencies and other enforcers where it will explain how the CFPB intends to enforce federal consumer financial law.

Statement of CFPB Director Rohit Chopra, FDIC Board Member, Final Rule Regarding False Advertising, Misrepresentations of Insured Status, and Misuse of the FDIC’s Name or Logo

Today, the Federal Deposit Insurance Corporation (FDIC) Board of Directors is voting on a final rule to implement procedures regarding the Federal Deposit Insurance Act’s prohibition on false advertising through the misuse of the name or logo of the FDIC or making knowing misrepresentations about deposit insurance coverage.¹ I am voting in favor of the final rule to strengthen the FDIC’s ability to identify and investigate potential violations of the prohibition, to take enforcement actions against such violations, and to protect the overall integrity of the federal deposit insurance framework.

Treasury Department Proposes Non-Loan Status for Earned Wage Access

In March, U.S. Department of Treasury issued its annual General Explanations of the Administration’s Revenue Proposals, commonly known as the “Green Book.”  Among other revenue proposals, the Treasury addressed the treatment of on-demand pay arrangements or earned wage access (EWA) programs, which have risen in popularity in recent years (previously discussed in our Labor and Employment Blog) .  EWA programs generally allow employees to access accrued wages before the end of their regular pay cycle.

CFPB Takes Action to Protect Depositors from False Claims About FDIC Insurance

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) released an enforcement memorandum today that addresses prohibited practices on claims about Federal Deposit Insurance Corporation (FDIC) insurance. Specifically, firms cannot misuse the name or logo of the FDIC or make deceptive representations about deposit insurance. The issue has taken on renewed importance with the emergence of financial technologies – such as crypto-assets, including stablecoins – and the risks posed to consumers if they are lured to these or other financial products or services through misrepresentations or false advertising.

Legislation will enable CUs to serve ‘underserved, abandoned’ communities

The Expanding Financial Access to Underserved Communities Act (H.R. 7003) will enable credit unions to help communities in need, many of which banks have abandoned or shown little interest in serving. CUNA, the American Association of Credit Union Leagues (AACUL), and all Leagues wrote in support of H.R. 7003 in advance of the bill’s scheduled markup by the House Financial Services Committee.

Credit Unions Use Digital to Head Off Competition From Big Banks, FinTechs

By and large, credit unions (CUs) are weathering the pandemic well, but nimble FinTechs and resourceful big banks want those loyal CU members as their own, making digital investment and service offerings a hot priority for CUs as the world moves toward an endemic economy.

CFPB launches new system to promote consistent enforcement of consumer financial protections

To promote consistency among enforcers and fair competition in the market, the CFPB is launching a new system to provide guidance to other agencies with consumer financial protection responsibilities on how the CFPB intends to enforce federal consumer financial law. The CFPB will issue Consumer Financial Protection Circulars to the broad set of government agencies responsible for enforcing federal consumer financial law.

Maryland Prohibits Engaging in Certain Anticompetitive, Unfair, or Deceptive Acts

Maryland recently revised its Financial Institutions laws, effective July 1, 2022, to expand the coverage of prohibitions on acts or practices that are anticompetitive, unfair, deceptive, abusive, or injurious to the public interest. Specifically, the state will prohibit: (i) issuing an advertisement or making a representation that is false, misleading, or deceptive; (ii) imposing, as a condition for a loan, a restriction on obtaining credit, property, or service from a competitor unless the restriction is reasonably necessary to secure the loan; (iii) imposing, as a condition for a service, a restriction on obtaining credit, property, or service from a competitor; or (iv) engaging in an act or a practice that is anticompetitive, unfair, deceptive, abusive, or injurious to the public interest. 

The Data Point: 85% of Consumers Pay Credit Card Surcharges Without Issue

A source of controversy over the years, credit card surcharges are accepted as fair — and fairly set — by law, and by a surprising percentage of consumers as well. That’s a ripe opportunity for merchants to recoup card processing fees that eat into profits, and well worth a closer look.

TCN to Demonstrate Its Advanced Contact Center Compliance Solutions at Collection and Recovery Solutions 2022

Created for senior-level collection executives, Collection and Recovery Solutions (CRS) 2022, is a content-rich educational conference that displays the techniques, strategies and resources for maximizing collection and recovery outcomes. It is an invite-only event to enrich the intensity of the conference for the exhibitor, attendee and sponsor alike with an unparalleled learning experience.

Member Alert: Maryland Commissioner States That Fees For Loan Payments Might Not Be Collectible

On May 13, the Maryland Commissioner of Financial Regulation issued an “Industry Advisory Regulatory Guidance” (notice) that interprets a January federal appellate court decision and directs lenders and servicers—ostensibly including debt collectors—to review their practices in charging consumer borrowers loan payment fees, i.e., “convenience fees.”

CFPB Releases Report on Mortgage Servicing Metrics

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) published a report examining mortgage servicers’ responses to the COVID-19 pandemic. The data, collected across 16 large servicers from May through December 2021, reveal homeowners continue to face significant risks and challenges connected to working with their mortgage servicers. This problem is particularly acute for those borrowers struggling to make their mortgage payments after exiting COVID-19 hardship forbearances.

Despite a Series of Challenges, Consumer Credit Health Remains Relatively Strong in Opening Quarter of 2022

Rising interest rates and the increased prices of goods and services placed pressure on the consumer wallet in the opening quarter of 2022. Despite the challenges, consumers remain well positioned from a consumer credit perspective, according to TransUnion’s (NYSE: TRU) newly released Q1 2022 Quarterly Credit Industry Insights Report (CIIR).

Connecticut Fifth State to Pass a Comprehensive Privacy Law

Connecticut just joined California,  Colorado, Utah, and Virginia in passing a comprehensive privacy law. The Connecticut Data Privacy Act (CTDPA) goes into effect July 1, 2023, the same time as Colorado’s very similar law. Companies preparing for these new laws (Virginia goes into effect January 1, 2023 and Utah December 31, 2023) will want to keep in mind the following five things about this fifth general US state privacy law.

Attorney General Bonta Urges FTC to Examine Deceptive Claims by For-Profit Colleges Relating to Student Earning Potential

OAKLAND – California Attorney General Rob Bonta today joined 24 attorneys general in supporting the Federal Trade Commission’s (FTC) efforts to address misleading claims made by certain industries, including for-profit schools about earning potential. State attorneys general have long been at the forefront of efforts to hold predatory for-profit colleges accountable for defrauding its students, investigating and taking enforcement action against schools like Ashford University and Corinthian Colleges for misrepresentations related to post-graduation earning potential. In today’s letter, the attorneys general encourage the FTC to look at the harm these schools can and often do inflict on students, as well as the variety of ways in which for-profit schools misrepresent future earnings, as part of its rulemaking to strengthen its ability to obtain restitution in cases involving misleading earnings claims.

Improving how the CFPB gathers feedback

At the CFPB, we are committed to delivering trustworthy, impartial, accurate and timely information to the people we serve. To maintain this commitment we provide clear, impartial answers to hundreds of financial questions on Ask CFPB. Ask CFPB offers information you can use to make more informed choices about your money. Ask CFPB helps more than 6 million people do so each year and has helped more than 43 million lifetime users.

CFPB and FTC Urge Second Circuit to adopt expansive interpretation of CRA Reasonable Procedures for Maximum Accuracy Requirement

The CFPB and the FTC recently filed an amicus brief in an appeal to the Second Circuit, arguing that the Court should reject the District Court’s “unduly narrow” interpretation of the FCRA requirement that consumer reporting agencies (CRAs) follow reasonable procedures to assure accuracy of information included in consumer reports.

The Consumer Financial Protection Bureau Under Rohit Chopra is Harming Competition and Consumer Choice

The Consumer Financial Protection Bureau is departing from its core responsibilities by attempting to regulate market competition, shunning procedural requirements under the Administrative Procedure Act, and devising new enforcement powers for the director, writes Bill Hulse, vice president at the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness.

Student Loan Debt Becomes Second-Largest Consumer Debt Category Behind Mortgages

In the first quarter of 2022, student loan debt reached an all-time high of $1.59 trillion, according to the Federal Reserve Bank of New York and as reported by CNBC. Student loan debt accounts for 10% of total household debt, making it the second-largest category of consumer debt behind mortgages.

New report finds half of all credit union industry assets at risk from climate change

BOSTON, May 11, 2022 /PRNewswire/ -- Ceres and the Filene Research Institute have released a new report that finds thousands of U.S credit unions have significant unaddressed risk arising from the climate crisis. This first-of-its-kind analysis provides insights on how credit unions can respond to the climate crisis, mitigate their risks, and become part of a system-wide solution. 

Consumer credit card debt and annual percentage rates are heading to an all-time high

Credit card balances rose year over year, reaching $841 billion in the first three months of 2022, according to data released Tuesday from the Federal Reserve Bank of New York.

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