CFPB, NY Attorney General look to settle case with New York debt collection enterprise

The judgment would order all participants in the scheme to exit the debt collection market and shutter their businesses due to their history of deception and harassment. Their debt collection companies would also be required to pay a total of $4 million in penalties.

TransUnion Study Examines the Risk Profile of BNPL Applicants and the Financial Inclusion Opportunities that Exist for Both Consumers and Lenders

As both awareness and usage of Buy Now, Pay Later (BNPL) and Point-of-Sale (POS) financial offerings continue to grow, a new study from TransUnion (NYSE: TRU) examined the risk profiles of consumers who use these products and found that in comparison to the general credit population, BNPL/POS consumers tend to be younger and belong to below prime risk tiers.  These consumers are also likely to be more active during the holiday season and tend to use the same POS lenders multiple times.

Deputizing State AGs: CFPB Issues Broad New Interpretive Rule on States’ Ability to Enforce Federal Consumer Protection Laws

On May 19, 2022, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an interpretive rule (Section 1042 Interpretive Rule 5 19 2022) confirming that the Consumer Financial Protection Act of 2010 (CFPA) provides states with wide-ranging powers—independent of the Bureau—to enforce federal consumer protection laws. 

Licensing Delay in California: Department Encourages Applicants to Continue the Process

The California Department of Financial Protection and Innovation (DFPI) announced this week that the issuance of licenses under the Debt Collection Licensing Act is “unavoidably delayed” at this time. Prospective licensees are encouraged to continue submitting applications through the Nationwide Multistate Licensing System.

CFPB’s Administrative Changes to Enforcement Raise Industry Concerns

Consumer finance industry groups are sounding an alarm about what they see as a power grab at the Consumer Financial Protection Bureau (the “CFPB”) that risks exacerbating the agency's advantage in its in-house enforcement proceedings. The American Bankers Association, the Bank Policy Institute, Consumer Bankers Association, Mortgage Bankers Association, and the U.S. Chamber of Commerce (together, the “Industry Groups”) urged the CFPB in a letter to "immediately" rescind changes that it quietly made earlier this year to its Rules of Practice for Adjudication Proceedings (the “Rules of Practice”) that govern its administrative process for adjudicating enforcement cases. 

New publication offers guidance on revised FTC Safeguards Rule

It’s short, to the point, and – as these things go – we think readable. It’s a new publication calledFTC Safeguards Rule: What Your Business Needs to Know and it may be the resource you’re looking for to help your company comply with the revised Safeguards Rule.

FDIC-Insured Institutions Reported Net Income of $59.7 Billion in First Quarter 2022

WASHINGTON— Reports from 4,796 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reflect aggregate net income of $59.7 billion in first quarter 2022, a decline of $17.0 billion (22.2 percent) from a year ago.  An increase in provision expense drove the annual reduction in net income.  These and other financial results for first quarter 2022 are included in the FDIC’s latest Quarterly Banking Profile released today.

CFPB wins bid to seek restitution in CashCall case

(Reuters) - The Consumer Financial Protection Bureau can renew its bid for $200 million in restitution from CashCall Inc over the lender's practices, the 9th U.S. Circuit Court of Appeals said on Monday.

CFPB Launches New Effort to Promote Competition and Innovation in Consumer Finance

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) is opening a new office, the Office of Competition and Innovation, as part of a new approach to help spur innovation in financial services by promoting competition and identifying stumbling blocks for new market entrants. The office will replace the Office of Innovation that focused on an application-based process to confer special regulatory treatment on individual companies. The new office will support a broader initiative by the CFPB to analyze obstacles to open markets, better understand how big players are squeezing out smaller players, host incubation events, and, in general, make it easier for people to switch financial providers.

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. 

MARKETERS BEWARE– Oklahoma Governor Stitt Signs Oklahoma’s Mini-TCPA, One of the Fiercest in the Nation, Into Law

Here’s your headline: May 20, 2022 Oklahoma Governor Stitt officially signs the Oklahoma Mini TCPA into law.

CFPB’s newest existential hazard: Legal challenges to its financing

The Consumer Financial Protection Bureau once again deals with an existential hazard in the courts — this time over whether the company’s financing by the Federal Reserve System is constitutional. Earlier this month, 5 judges on the U.S. Court of Appeals for the Fifth Circuit indicated their view that the CFPB’s financing system breaks the Constitution’s separation of powers due to the fact that it takes place beyond the Congressional appropriations procedure.

CFPB and New York Attorney General Shut Down Debt Collection Ring

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB), in partnership with the New York Attorney General, filed a proposed stipulated judgment in federal court to settle its case against a debt collection enterprise and its owners and managers. The judgment would order all participants in the scheme, based in upstate New York, to exit the debt collection market after their history of deception and harassment. Their debt collection companies would also be shuttered and required to pay a total of $4 million in penalties.

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.

Navient agrees to cancel millions in student loans: Who’s affected and what happens next

Navient Corp. and student loan servicer Navient Solutions agreed to a settlement that will result in the cancelation of more than $3.5 million in student debt for New Hampshire student loan borrowers, according to the state's Department of Justice.

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).

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.

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%.

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