FTC to Crack Down on Companies that Illegally Surveil Children Learning Online

The Federal Trade Commission announced today that it will crack down on education technology companies if they illegally surveil children when they go online to learn. In a new policy statement adopted today, the Commission made it clear that it is against the law for companies to force parents and schools to surrender their children’s privacy rights in order to do schoolwork online or attend class remotely. Under the Children’s Online Privacy Protection Act, companies cannot deny children access to educational technologies when their parents or school refuse to sign up for commercial surveillance. 

Connecticut Banking Dept. issues cease and desist order to stop fintech loan finder from operating without small loan license

The Connecticut Department of Banking (“Department”) has issued a temporary cease and desist order (“Order”) that directs SoLo Funds, Inc., (“SoLo”) a fintech company that uses peer-to-peer technology to assist consumers in obtaining small dollar loans from third-party lenders, to immediately stop engaging in such activity because it is not licensed as a small loan company in Connecticut.

CFPB Metrics Report Shows Increased Scrutiny of Borrower Access to Servicers, Information, and Loss Mitigation Opportunities

On May 16, 2022, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a report regarding COVID-19 response metrics based upon its “observations from data obtained by 16 large mortgage servicers” from May through December 2021 (Report). This report is a follow-up to an August 2021 report regarding the Bureau’s observations from data obtained from December 2020 through April 2021 (Reporting Period).

Subprime consumer borrower delinquency is rising toward prepandemic levels

Consumers with low credit scores are falling behind on paying off credit cards, personal and car loans, which may indicate that consumer delinquency patterns are nearing prepandemic levels.

House Financial Services Members McHenry, Luetkemeyer Express Concern with CFPB Policies in Letter to Director Chopra

The ranking member of the House Financial Services Committee, U.S. Rep. Patrick McHenry, R-N.C., and the ranking member of the Subcommittee on Consumer Protection and Financial Institutions, U.S. Rep. Blaine Luetkemeyer, R-Mo., sent a letter with House Financial Services Committee Republicans to Consumer Financial Protection Bureau Director Rohit Chopra regarding changes in the bureau’s supervisory procedures.

Federal Trade Commission Sends out Second Round of Redress Checks in Payday Lending Scheme Operated by AMG Services

The Federal Trade Commission, through its refund administrator, is mailing 690,000 checks totaling more than $152 million to consumers who lost money to a massive payday lending fraud scheme operated by AMG Services, Inc. and the company’s owner, Scott Tucker. This is the second distribution of refunds in this matter, bringing the total amount returned to consumers to more than $535 million. 

CFPB Bolsters Enforcement Efforts by States

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that describes states’ authorities to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. Because of the crucial role states play in protecting consumers, the Consumer Financial Protection Act grants their consumer protection enforcers the authority to protect their citizens and otherwise pursue lawbreakers.

More buyers opt for adjustable-rate mortgages as rates rise

LOS ANGELES -- Rising interest rates are making adjustable-rate mortgages an increasingly attractive alternative to common 30-year, fixed-rate home loans. ARMs made up 13% of all home loans by dollar volume in March, their highest share since January 2020, according to CoreLogic

Federal student loans are about to get more expensive

DENVER — The Federal Reserve increased the student loan interest rate for the upcoming 2022-2023 school year. According to Forbes, the rate will increase by 1.26 percentage points. That's a 34% increase in interest rate for undergraduate student loans compared to the rate last year.

Through the Principles of Excellence, ED Continues to Protect Military-Connected Students

Ten years ago this week, President Barack Obama issued an executive order that established guiding principles to protect veterans, service members, and their families who pursue higher education. These are known formally as the Principles of Excellence for Educational Institutions Serving Service Members, Veterans, Spouses, and Other Family Members. To apply these principles, the U.S. Department of Education (ED) works with the Departments of Defense (DoD) and Veterans Affairs (VA) and the Consumer Financial Protection Bureau (CFPB) to ensure colleges and career schools provide quality educational opportunities to military-connected students.

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.

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