Federal Trade Commission Returns More Than $164,000 To Consumers Harmed by Bogus Mortgage Relief Scam

The Federal Trade Commission is sending 2,155 checks totaling more than $164,000 to consumers who were harmed by a bogus mortgage relief scam that operated under the names Brookstone Law and Advantis Law.

California Regulator Seeks Comment on Reworking Consumer Complaint Rules

On May 20, the California DFPI released a Notice of Proposed Rulemaking seeking comment on implementing new rules to the California Consumer Financial Protection Law (CCFPL).

Proposed Rule on Supervisory Authority Over Certain Nonbank Covered Persons Based on Risk Determination; Public Release of Decisions and Orders, Docket No. CFPB-2022-0024

The American Financial Services Association (AFSA)1 appreciates the opportunity to comment on the procedural rule to establish supervisory authority based on a risk determination (the “Rule”).2 Specifically, the Rule implements § 1024(a)(1)(C) of Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which gives the Consumer Financial Protection Bureau (the “Bureau” or “CFPB”) the authority to supervise a nonbank covered person when the CFPB determines that such person is engaging in conduct that poses risks to consumers.

California Privacy Protection Agency Releases Draft CPRA Regulations

On May 27, 2022, the California Privacy Protection Agency (CPPA) released draft regulations for the California Privacy Rights Act (CPRA) (Draft Regulations). The Draft Regulations come roughly two months before the agency is required to adopt final regulations for the law (by July 31, 2022) and almost seven months before the CPRA is set to go into effect on January 1, 2023.

Merger Danger: New TCPA Decision Explores Successor Liability In the Wild West of TCPAWorld

The laws around corporate structure in TCPAWorld are a bit of a mess. In the first place, personal liability is available in most instances–even where a corporate officer director or employee is taking steps on behalf of their employer. Not good.

Congress should reject any expansion of CU-DoD land lease arrangement

The House Armed Services Committee should reject any bank attempts to share the land lease arrangement between the Department of Defense and credit unions, CUNA and other organizations wrote Tuesday. House Armed Services subcommittees are beginning markups of the FY23 National Defense Authorization Act (NDAA) this week.

Bank of America Credit and Debit Card Data Shows Continued Growth in Consumer Spending, up 9% year-over-year in May

NEW YORK, June 6, 2022 /PRNewswire/ -- The Bank of America Institute today released its findings from the latest Consumer Checkpoint, which aims to provide a holistic and real-time estimate of U.S. consumers' spending and their financial well-being, leveraging the breadth and depth of Bank of America proprietary data from its 67 million consumer and small business clients.

A top student-loan official says growing student debt loads for parents is ‘something we’re watching very carefully’ — but they may not be eligible for Biden’s impending forgiveness plan

A type of federal student-loan with the highest interest rate is very easy to acquire, but for many, quite difficult to pay off. A top education official for President Joe Biden says the issue is on his radar. "That's definitely something we're watching," Under Secretary of Education James Kvaal said during a virtual discussion on student debt on Monday, referring to growing debt loads from PLUS loans parents and graduates take out.

Governor Mills Announces $4 Million Maine Jobs & Recovery Plan Initiatives to Offer Student Loan Repayment Assistance & Bolster Scholarships for Health Care Careers

Coopers Mills, MAINE – Governor Janet Mills today announced two initiatives from her Maine Jobs & Recovery Plan to attract and retain health care professionals in Maine. The first initiative, offered through the Finance Authority of Maine (FAME), provides student loan repayment assistance to health care professionals in medicine, dentistry, behavioral health, and nursing education. Under the initiative’s programs, health care professionals can apply for up to $75,000 in relief for qualifying student loan debt while nursing educators can receive up to $40,000.

Connecticut Stops FinTech from Unlicensed Lending Activities

On May 4, the Connecticut Department of Banking issued a temporary cease and desist order directing a peer-to-peer lending platform that connected borrowers with third-party lenders to cease its lending-related activities on grounds that it was operating as an unlicensed small loan company.  The FinTech company was also cited for operating as an unlicensed consumer collection agency, and for engaging in deceptive acts or practices under consumer protection laws.

Navy Federal Again Ranked No. 1 Among Multichannel Banks For Customer Experience

VIENNA, Va.--(BUSINESS WIRE)--For the seventh year in a row, Navy Federal Credit Union ranks No. 1 among multichannel banks for customer experience (CX) quality in Forrester’s proprietary 2022 US Customer Experience Index (CX Index™). The ranking was based on responses from more than 96,000 survey respondents from 13 industries, including airlines, auto and home insurers, auto manufacturers (luxury and mass market), banks (direct and multichannel), credit card issuers, federal government agencies, health insurers, hotels, investment firms, retailers, and utilities. The credit union is also named a CX Elite brand (a top 5% brand in the entire CX Index) for banks (multichannel) and credit card issuers.

Merchant cash advance operators settle FTC charges for bilking small businesses

The dual dynamos that power our economy are America’s 32 million small businesses and the more than 60 million people they employ. So when small businesses become targets for misleading claims, deceptive tactics, and flat-out intimidation, the FTC takes notice. That’s the gist of the agency’s 2020 lawsuit against merchant cash advance outfit RCG Advances, LLC and owner Robert Giardina. A just-announced settlement will return more than $2.7 million to consumers and includes a key provision to protect small businesses in the future.

Topics for FTC PrivacyCon 2022 include commercial surveillance, automated decision-making

The FTC’s seventh annual PrivacyCon is scheduled for November 1, 2022. It’s not the upcoming Bonnaroo festival, and it won’t be headlining Stevie Nicks, J. Cole, Herbie Hancock, and Robert Plant. But then again, how much can you learn about the latest privacy- and security-related trends and research from “Landslide”? Follow the Business Blog for updates about the agenda for the November 1st virtual event. And keep in mind another important date that’s just seven weeks away.

CFPB Strengthens Enforcement Efforts by States

Recently, the CFPB issued an interpretive rule providing further clarity concerning the scope of State enforcement under Section 1042 of the Consumer Financial Protection Act (CFPA).  Specifically, the CFPB issued three interpretations: (1) States are permitted to enforce any provision of the CFPA, including provisions that make it unlawful for covered persons or service providers to violate federal consumer financial laws; (2) limitations on the CFPB’s enforcement authority do not constrain enforcement authority of the States; and (3) States are not prohibited from bringing concurrent enforcement actions with the CFPB.

CFPB Warns Complex Consumer Credit Decision Models May Violate ECOA

On May 26, 2022, the Consumer Financial Protection Bureau warned via Consumer Financial Protection Circular 2022-03 that creditors using complex algorithmic credit evaluation models are not shielded from complying with the Equal Credit Opportunity Act (ECOA) requirement that consumers receive notice of the reasons why a lender took adverse action on an application or existing credit account. If a model is complex to the point that the creditor cannot articulate the reason a consumer was denied credit, use of the model may violate ECOA.

Reported crypto scam losses since 2021 top $1 billion, says FTC Data Spotlight

Let’s call it The Recliner Interval – the time it takes for an obscure niche product to start running prime time TV commercials. It’s a made-up metric, of course, but a few hours in front of the TV will demonstrate that advertising for cryptocurrency has gone mainstream. Now here’s a metric that isn’t made up. According to the latest FTC Consumer Protection Data Spotlight, since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams. That’s about one out of every four dollars reportedly lost to fraud during that period.

Debt Collectors Beware: Court Certifies TCPA Suit Involving ATDS Calls to Skiptraced Numbers—And There’s a Twist

As TCPA becomes more advanced recently with issues like Berman and Javier popping up, we still need to keep in mind the basics. Don’t call skip trace numbers using an ATDS—nothing more basic that that.

WHITEHOUSE, MERKLEY INTRODUCE BILL TO SIMPLIFY, STRENGTHEN THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM

Washington, DC – Senators Sheldon Whitehouse (D-RI) and Jeff Merkley (D-OR) unveiled today the Simplifying and Strengthening PSLF Act, to streamline and improve the troubled federal program to help Americans pursuing careers in public service – like firefighters, teachers, police officers, and those working for nonprofits – have their student loan debt forgiven.

FTC Staff Provides Annual Report to CFPB On 2021 Activities Regarding Financial Acts

The staff of the Federal Trade Commission has provided its annual report to the Consumer Financial Protection Bureau on its enforcement and related activities in 2021 regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA).

CFPB Diversity, Equity, Inclusion, and Accessibility Strategic Plan FY 2022 – FY 2026

The Diversity, Equity, Inclusion, and Accessibility (DEIA) Strategic Plan covers the period of FY 2022-2026. The Plan guides CFPB’s efforts in promoting diversity, equity, inclusion, and accessibility in its workforce, supplier diversity, and work to promote diversity and inclusion in Financial Services. The Plan centers around six principal DEIA goals and identifies goals and actions the Bureau seeks to advance. The five-year DEIA Strategic Plan is grounded in the work CFPB does in compliance with Section 342 of the Dodd-Frank Act.

CFPB Interpretative Rule Clarifies States’ Enforcement Authority

The Consumer Financial Protection Bureau has published an interpretive rule in the Federal Register, effective May 26, to provide clarity on states’ enforcement authority under the Consumer Financial Protection Act (CFPA).

Protecting servicemembers from abuses of the military allotment system

For years, we’ve warned of how companies position themselves just outside the gates of military bases to target servicemembers with costly loans and expensive contracts for items like cars, furniture, and electronics.

LAWSUITS & COMPLAINTS MOSTLY DOWN: WEBRECON STATS FOR APRIL 2022

In April, CFPB complaints (-2.4%) and consumer lawsuits (TCPA -2.5%, FDCPA -24.2%) were mostly down, with the exception being FCRA litigation (+4.0%) which was up. This closely follows the YTD trend so far, with TCPA (-35.2%) and FDCPA (12.4%) down and FCRA (+6.7%) up, while CFPB complaints (-.7%) are down a sliver.

The CFPB’s New Focus on Medical Debt Collection

Medical service providers who engage in medical billing, debt collection, and credit reporting are the focus of new regulations and regulatory enforcement efforts.  Civil litigation is sure to follow.  Under the direction of its new Director, Rohit Chopra, the Consumer Financial Protection Bureau “is working to stop unfair medical debt collection and coercive credit reporting practices that add to the strain on American families.

California Supreme Court Expands Remedies Available Against Companies that Finance Consumer Purchases of Automobiles or Other Durable Goods

The Federal Trade Commission requires that certain consumer sales contracts contain specific language allowing the consumer to assert any claims or defenses, against a creditor financing the purchase, that the consumer could assert against the seller of the goods. This is known as the “Holder Rule,” 16 C.F.R. § 433.2, and it is intended to protect consumers against having to repay money borrowed to finance the purchase of goods that ultimately turn out to be shoddy.

California Privacy Protection Agency Board Takes Steps Toward First Official Rulemaking

On June 8, 2022, the California Privacy Protection Agency (CPPA) Board, will meet to discuss and take potential action regarding a draft of its proposed regulations. The June 8^th public meeting includes an agenda item where the CPPA Board will consider “possible action regarding proposed regulations … including possible notice of proposed action.”

DFPI Seeks Public Comment on Oversight of Crypto Asset-Related Financial Products and Services Under the California Consumer Financial Protection Law

SACRAMENTO – Governor Gavin Newsom issued Executive Order N-9-22 (Executive Order) on May 4, 2022, to foster responsible innovation, bolster California’s innovation economy, and protect consumers. In his announcement, Governor Newsom outlined his aim to create a transparent regulatory and business environment for web3 companies which harmonizes federal and California approaches, balances the benefits and risks to consumers, and incorporates California values such as equity, inclusivity, and environmental protection.

Attorney General Bonta: Borrowers Defrauded by Corinthian Colleges Will Receive $5.8 Billion in Student Loan Debt Relief

OAKLAND – California Attorney General Rob Bonta today celebrated the Department of Education’s (ED) decision to grant federal student loan debt relief to 560,000 borrowers who attended Corinthian Colleges, a now-defunct for-profit college that operated dozens of campuses across California. Today’s decision is the culmination of a decade-long legal battle by the California Department of Justice (CADOJ) to hold Corinthian Colleges accountable for its predatory conduct and to compel ED to process debt relief claims submitted by students who took out federal student loans to attend Corinthian Colleges.

Credit Unions Amass Largest Share of the Automotive Finance Market in Five Years

SCHAUMBURG, Ill., June 02, 2022--(BUSINESS WIRE)--Through the first three months of 2022, there were some shifts in the automotive finance market, most notably, significant growth for credit unions. According to Experian’s State of the Automotive Finance Market: Q1 2022 report, credit unions amassed 22.06% of the total automotive finance market, up from 18.55% a year prior.

Education Department Approves $5.8 Billion Group Discharge to Cancel all Remaining Loans for 560,000 Borrowers who Attended Corinthian

Today, the U.S. Department of Education (Department) announced it will discharge all remaining federal student loans borrowed to attend any campus owned or operated by Corinthian Colleges Inc. (Corinthian) from its founding in 1995 through its closure in April 2015. This will result in 560,000 borrowers receiving $5.8 billion in full loan discharges. This includes borrowers who have not yet applied for a borrower defense discharge, who will have their Corinthian loans discharged without any additional action on their part.

BayPort Credit Union Wins Industry CUNA Marketing Award for Checking Campaign

NEWPORT NEWS, Va., June 1, 2022 /PRNewswire/ -- BayPort Credit Union is pleased to announce it was honored with a Diamond Award by the Credit Union National Association (CUNA) Marketing and Business Development Council for Excellence in Marketing at the March 2022 Council Conference.

California Privacy Bill Draft Sidesteps Key Personal Data Collection Issues

The California Privacy Protection Agency unveiled a preliminary draft of its proposed privacy regulation on May 27, hidden in the announcement of its next public meeting on June 8.

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.

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