Attorney General Bonta Files Brief in Defense of Local Prosecutors’ Authority to Enforce State Consumer Protection Laws

OAKLAND – California Attorney General Rob Bonta today filed an amicus brief in support of local prosecutors’ authority to enforce state consumer protection laws against national banks. In People v. Credit One, Credit One Bank filed a lawsuit in federal court seeking to throw out a lawsuit filed in California state court by the District Attorneys of Riverside, San Diego, Los Angeles, and Santa Clara. The district attorneys allege violations of California’s Unfair Competition Law relating to illegal debt collection practices. In today’s brief, Attorney General Bonta urges the Ninth Circuit to uphold the district court’s ruling in the district attorneys’ favor. 

CFPB Acts to Protect the Public from Black-Box Credit Models Using Complex Algorithms

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) confirmed that federal anti-discrimination law requires companies to explain to applicants the specific reasons for denying an application for credit or taking other adverse actions, even if the creditor is relying on credit models using complex algorithms. The CFPB published a Consumer Financial Protection Circular to remind the public, including those responsible for enforcing federal consumer financial protection law, of creditors’ adverse action notice requirements under the Equal Credit Opportunity Act (ECOA).

DFPI releases notice addressing processing delays for debt collection license applications

In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that changes mandated by the Federal Bureau of Investigation (“FBI’) to state agency protocols for requesting federal background checks have caused “unforeseen” and unavoidable processing

Credit disputes: getting a clear statement of results from your furnisher

If you’re trying to correct inaccurate or incomplete information on your credit report, the process can feel overwhelming. The communications you receive from the companies involved can be confusing, and the CFPB has found some companies have not handled consumer disputes in compliance with the law.

Director of government financial watchdog Rohit Chopra looks for signs of stress as consumers increase debt to deal with inflation

Rohit Chopra leads the Consumer Financial Protection Bureau, the federal agency whose mission is to protect consumers from “abusive and deceptive financial practices.” As the director of the CFPB, he is keeping a close eye on trouble spots that could potentially cause another financial crisis.

Scammers are offering student loan (un)forgiveness

The U.S. Department of Education recently announced another extension of the student loan payment pause. This time the pause runs through August 31, 2022. That news puts student loans back in the headlines, along with discussion of some possible, eventual loan forgiveness for all. So, can scammers be far behind? No. No, they can’t.

CFPB tells credit card CEOs: Practice of suppressing payment data has potential for consumer harm

Recently, our research uncovered that only about half of the largest credit card companies contribute data to credit reporting companies about the exact monthly payment amounts made by borrowers. It also showed that over a short period of time, several of the largest credit card companies began to suppress actual payment amount information that they had previously provided or furnished on consumers.

CFPB Targets Credit Card “Suppressed Data” Practices

The Consumer Financial Protection Bureau (CFPB) announced on Wednesday, May 25 in a blog post that it has sent letters to the nation’s biggest credit card companies to question them about why they are not regularly providing data to credit bureaus on the actual monthly payments their borrowers are making. 

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.

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