FTC says credit repair business doubled as a pyramid scheme

For the second time this month, the FTC has sued a credit repair operation that it says combined fake promises to swiftly and substantially boost people’s credit scores with the offer of a bogus money-making opportunity selling credit repair services. In this latest case, the FTC says the supposed money-making opportunity was a pyramid scheme.

CFPB, NY Reach $4M Settlement with Debt Collection Operation

On May 23, the CFPB and the New York Attorney General’s office filed a proposed stipulated judgment in federal district court against a debt collection operation, including several companies and individuals, to resolve allegations that the operation engaged in deceptive tactics to induce consumer payments. The complaint, filed in 2020, alleged that the defendants violated the CFPA, FDCPA, and various New York laws to induce consumer payments by (i) falsely claiming arrest and imprisonment for failure to pay, (ii) falsely threatening legal action, (iii) inflating debt amounts owed, (iv) harassing debt collection victims by contacting family members, coworkers, employers, and friends, (v) placing harassing phone calls to debtors, and (vi) failing to provide statutorily required notices.

A Note on the Expected Expiration of Federal Student Loan Forbearance

On April 6, 2022, the Department of Education (DoEd) announced a new extension on the forbearance provision for federal student loans, which is now set to expire on August 31, 2022, almost 30 months after being set for the first time.² These measures—originally intended for a period of 60 days—applied exclusively to federal student loans owned by the Department of Education, a little more than 80 percent of the current $1.75 trillion outstanding student loan debt.

60 percent of student loan borrowers made no payments during the pandemic freeze

Almost 60 percent of borrowers with loans from the Department of Education did not make any payments on their loans during a freeze officials instituted in response to the COVID-19 pandemic. 

BLACK KNIGHT’S FIRST LOOK AT APRIL 2022 MORTGAGE DATA

JACKSONVILLE, Fla. – May 20, 2022 – Black Knight, Inc. (NYSE:BKI) reports the following “first look” at April 2022 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

Federal Trade Commission Returns More Than $255,000 To Consumers Harmed by Abusive Debt Collector Vantage Point Services

The Federal Trade Commission is sending 5,726 checks totaling more than $255,000 to consumers who were harmed by Vantage Point Services’ illegal debt collection practices.

Common Cybersecurity Terms That Are Often Confused

The jargon around cybersecurity is cryptic and confusing, which is exactly what criminals want. But understanding these terms can help you keep safe.

New laws and more affordable lenders could upend the payday loan market

Inflation has come down especially hard on people already struggling to put gas in their tanks and groceries in their refrigerators. For many, a payday loan may seem like the only way to get necessary cash. In recent years, however, as more states set restrictions on risky, short-term loans, new lenders offering lower-cost small loans have cropped up, making it easier than before to find an affordable loan that won’t drag you into unmanageable debt.

NCUA Issues Two Prohibition Orders, One Notice in May 2022

ALEXANDRIA, Va. (May 31, 2022) – The National Credit Union Administration issued two prohibition orders and one notice of prohibition in May. These individuals are prohibited from participating in the affairs of any federally insured depository institution.

TCN Celebrates Three Industry Award Wins for 2021 Consumer Insights About Customer Service Survey

TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, announced that it has won three industry awards for its “2021 Consumer Insights about Customer Service” survey. TCN was recognized by 2022 Hermes Creative Awards as a platinum winner in both “Best eBook” and “Best Research/Study” categories. TCN also received a gold award, the highest honor, in “Best Branded Content (eBook)” category for the eBook by 2022 Communicator Awards.

Utah and Connecticut enact comprehensive data privacy laws

Connecticut and Utah both enacted comprehensive privacy laws this spring. On March 24, 2022, Utah became the fourth state to enact a comprehensive data privacy law when Governor Spencer Cox signed Senate Bill 227, known as the Utah Consumer Privacy Act (“UCPA”). Connecticut Governor Ned Lamont signed Public Act No. 22-15, “An Act Concerning Personal Data Privacy and Online Privacy” on May 10.

Defendants in CFPB Case Argue that Debt Buyers are not “Covered Persons” and the CFPB’s Vague Allegations are Unfair

Defendants in a Fair Debt Collection Practices Act and Consumer Financial Protection Act case filed by the Consumer Financial Protection Bureau have filed motions to dismiss the complaint on the grounds that the bureau has not established standing for its claims and its vague allegations are unfair under court procedure and the Fifth Amendment.

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. 

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