Federal Trade Commission Returns More Than $970,000 To Consumers Harmed by Deceptive Payday Lending Operation

The Federal Trade Commission is sending 26,698 checks totaling more than $970,000 to consumers who were harmed by a deceptive payday lending scheme that operated under the names Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending.

CFPB’s tactics in Fifth Third lawsuit called ‘pretty aggressive’

The Client Monetary Safety Bureau is getting blowback from a federal decide and banking specialists for techniques utilized in its lawsuit accusing Fifth Third Bancorp of opening phony client accounts.

DFPI’s Commercial Financing Disclosure Regulations Approved to Become Effective as of December 9, 2022

SACRAMENTO – On June 9, 2022, the California Office of Administrative Law (OAL) approved the Department of Financial Protection and Innovation’s (DFPI) proposed commercial financing disclosure regulations. The regulations extend disclosure protections to California small businesses when those businesses seek commercial financing. When the disclosures take effect on Dec. 9 of this year, California small businesses will be better-equipped to understand the costs and benefits of commercial financing offers, and to compare different offers to find the best financing solution to meet their needs. The final regulations and Final Statement of Reasons are posted to the DFPI websit

CFPB Seeks Public Comment on Big Bank Customer Service

“In today’s Request for Information, the CFPB seeks data about, and consumer experiences with, the obstacles that may prevent people from receiving high standards of customer service and high-quality human interactions with their banks or credit unions,” the agency wrote in a public statement.

CFPB Launches Initiative to Improve Customer Service at Big Banks

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) is seeking public input on how bank customers can assert their rights to better customer service with big banks. A 2010 federal law specifies that consumers have rights to obtain timely responses to requests for information about their accounts from large depository institutions. In today’s Request for Information, the CFPB seeks data about, and consumer experiences with, the obstacles that may prevent people from receiving high standards of customer service and high-quality human interactions with their banks or credit unions. CFPB Director Rohit Chopra announced the Request for Information at a public town hall today in Great Falls, MT.

TransUnion and Bilt Rewards Bring Free Rent Payment Reporting to Renters and Property Managers at More Than Two Million Apartments

Renters in more than two million apartments will now be eligible for free rent payment reporting through a partnership between TransUnion (NYSE: TRU) and Bilt Rewards, the largest rewards platform for renters.

Cities Where College Students Are Most Burdened By Debt

Student debt, incurred as a result of getting a college education, is a burden not just for young Americans, but it has negative repercussions for the economy overall. Debt hampers recently graduated students from buying homes and home furnishings, and it delays them from starting families. In some parts of the country, student debt is more of an albatross than others. It is less of an issue in one part of the nation in particular.

$1 billion has been lost in cryptocurrency scams since 2021, FTC warns

New YorkCNN — Cryptocurrency scammers have stolen over $1 billion from 46,000 people since the start of 2021, a new Federal Trade Commission report says. The FTC rang the alarm bells on Friday, saying crypto-related crimes amount to about one out of every four dollars reported lost to fraud – more than any other payment method. The median individual reported loss was $2,600.

CFPB Expansion of States’ Enforcement Authority May Be Illegal

The Consumer Financial Protection Bureau recently released a rule outlining the powers of states to enforce federal consumer financial laws. Dorsey & Whitney partner Joe Lynyak says the rule, which allows state attorneys general to bring simultaneous independent enforcement actions, sidesteps the importance of federal agencies interpreting federal law and may violate the notice-and-comments requirements of the Administrative Procedures Act.

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).

U.S. banks finally see upturn in credit-card borrowing

NEW YORK (Reuters) - Big U.S. banks including JPMorgan Chase & Co and Citigroup appear set for some earnings boost from a pick-up in the battered credit-card business, but a possible recession would pull consumers back and bring losses on outstanding loans.

Mortgage Lending Plummets Across U.S. In Q1

The first quarter of 2022 was one of the worst in years for mortgage originations, according to a report released today by ATTOM, the real estate data curator. That severely contradicts industry expectations.

Credit card balances spike to $841 billion after stimulus checks helped reduce debt

Government stimulus checks and fewer opportunities for spending drove the personal savings rate to a level not seen since World War II, with many consumers using the extra cash to pay down debt — primarily their credit card balances, which have the highest interest rates, averaging more than 16%. 

CFPB Reminds State Regulators Of Enforcement Powers

The Consumer Financial Protection Bureau (CFPB) recently announced and issued a new Interpretive Rule that delineates states’ authority to enforce federal consumer financial protection laws. Citing the crucial role states play in protecting consumers, the CFPB made it plain that state attorneys general play an integral role in oversight and enforcement of the Consumer Financial Protection Act (the Act).

Credit card balances spike to $841 billion after stimulus checks helped reduce debt

For many Americans, the pandemic-induced slowdown offered a rare opportunity to better their financial standing. Government stimulus checks and fewer opportunities for spending drove the personal savings rate to a level not seen since World War II, with many consumers using the extra cash to pay down debt — primarily their credit card balances, which have the highest interest rates, averaging more than 16%. 

Education Department Not Ready For Student Loan Forgiveness, Says Top Lawmaker

The U.S. Department of Education is not ready for student loan forgiveness — a top lawmaker says — and the results could be a disaster for student loan borrowers.

Credit Card Debt on the Rise as Americans Continue Spending Despite Rising Inflation

Consumer credit card debt rose once again in April 2022, according to the latest Consumer Credit Report released by the U.S. Federal Reserve. Revolving credit card debt rose from $1,023.6 billion in March 2022 to $1,040.7 billion in April. It has been steadily increasing since the first quarter of 2021, when it had dropped to $911.1 billion, the report showed.

CPPA Holds First Public Meeting Following Publication of First Draft of Proposed Regulations and Initial Statement of Reasons

The California Privacy Protection Agency (“CPPA” or “Agency”) hosted its first public meeting yesterday following publication of the first draft of proposed regulations (“Regs”) (on May 27) and the initial statement of reasons (“ISOR”) on June 3.

Maryland Regulator Puts Lenders and Servicers on Notice Regarding the Assessment of So-Called “Convenience Fees”

On May 12, 2022, the Maryland Office of the Commissioner of Financial Regulation (the “OCFR”) issued an Industry Advisory (the “Advisory”) “put[ting] [the] industry on notice” of the recent decision issued by the 4th Circuit Court of Appeals in Ashly Alexander, et. al. v. Carrington Mortgage Services, LLC. 

Rules on mortgage servicing

On June 9, 2022, the Bureau provided flyers on the Homeowner Assistance Fund (HAF) programs that mortgage servicers may voluntarily provide to their borrowers. The flyers are provided in English as well as six other languages.

Some medical debt will soon disappear from consumer credit reports. What to know

Changes to when such debt will go on credit reports are scheduled to take effect July 1, as announced by the three large credit reporting firms — Equifax, Experian and TransUnion — in March. The upshot should be improved credit scores among the consumers who are affected by the revised reporting policies.

CFPB Seeks Ban Against Operator of Student Loan Debt Relief Scam Reboot

Washington, D.C. – Today the Consumer Financial Protection Bureau (CFPB) took action against the owner of a student-loan debt relief company for allegedly withdrawing hundreds of thousands of dollars from student borrowers’ bank accounts, without authorization. The CFPB alleges that Frank Gebase, Jr. controlled a company that took the borrowers’ money after obtaining their names and account information from a previous student-loan debt-relief scammer that the CFPB shut down. The CFPB’s proposed settlement, if entered by the court, would ban Gebase from the debt-relief industry and order him to pay a penalty.

CFPB Launches Inquiry into Practices that Leave Workers Indebted to Employers

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) has launched an inquiry into practices and financial products that may leave employees indebted to their employers. In today’s Request for Information, the CFPB seeks data about, and worker experiences with, these emerging practices and financial products referred to as employer-driven debt. 

OCC wants to start collecting cannabis, crypto business data from banks

The Office of the Comptroller of the Currency (OCC) is proposing adding cannabis and digital currency activities to the list of business data it collects from banks in an attempt to better identify areas of risk in the financial system, according to a notice the agency posted in the Federal Register on Wednesday.

CFPB Announces New Office of Competition and Innovation

On May 24, 2022, the Consumer Financial Protection Bureau (CFPB) ) announced it opened 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

PayPal Launches Crypto Payment, Transfer Function For US Users

PayPal has recently announced that it will now be supporting the native transfer of Bitcoin, Ethereum, Bitcoin Cash, and Litecoin to and from accounts on their platform.

City of Boston Credit Union Earns Three MAC Awards

City of Boston Credit Union, one of the oldest Credit Unions in the United States, announced its marketing team was selected for two gold and one silver award by the Marketing Association of Credit Unions (MAC). 

NCUA sets June 22 webinar on challenges facing small credit unions

Nearly two-thirds of all federally insured credit unions have less than $100 million in assets, and they face an array of challenges in a rapidly changing financial services market. Staff from NCUA will discuss strategies for addressing these issues at a June 22 webinar, “Small Credit Union Challenges.”

OnDeck Announces Data Breach Impacting Social Security Numbers and Financial Account Information

Recently, the business lending company OnDeck announced that the company experienced a data breach after an unauthorized party gained access to the company’s computer network and transferred sensitive consumer data to a private cloud storage account. According to OnDeck, the breach resulted in the following data being compromised: names, Social Security numbers, tax ID numbers, driver’s license numbers, passport numbers, financial account/payment card account numbers,

New Manhattan Beach Kinecta Federal Credit Union flagship evokes past and future

The word Kinecta appeared on Redondo Police chief Keith Kauffman’s skate helmet at the 2017 King Harbor Skateboard Championships. It appears regularly on pop-ups at South Bay Boardrider and Jimmy Miller Foundation surf contests. It appears on team T-shirts at the Skechers Friendship Walk and the Tour de Pier. It’s on checks totalling nearly $1 million annually to nonprofits, such as the Richstone Family Center and Beach City education foundations. Most famously, Kinecta is on the ice cream truck that gives out ice cream bars at just about every community event in the South Bay.

Bankruptcy Legislation Update: House Passes Bill Preserving $7.5 Million Eligibility Threshold for Subchapter V; Legislation Ready for Biden’s Signature

The House has passed a bill that will now go to the President to sign into law that raises the eligible debt ceiling for Subchapter V of Chapter 11 to $7,500,000. Small businesses with up to $7,500,000 in noncontingent, liquidated debts will once again be eligible for relief under Subchapter V for another two years. The ceiling was previously raised to $7,500,000 as part of the CARES Act in 2020, but lapsed back to $3,024,725 as of April 1, 2022.

PYMNTS Intelligence: The Challenges of Complying With Digital Identity Regulations

Technologies designed to authenticate identities are being introduced around the world to replace cumbersome procedures involving usernames, passwords and paper-based identification documents. Biometrics, such as facial recognition, fingerprint and iris scans, and voice recognition technologies, are increasingly being used in everything from accessing devices and financial accounts to airport check-in and security processes.

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