Rethinking the approach to regulations

Markets work best when rules are simple, easy to understand, and easy to enforce. The CFPB is seeking to move away from highly complicated rules that have long been a staple of consumer financial regulation and towards simpler and clearer rules. In addition, the CFPB is dramatically increasing the amount of guidance it is providing to the marketplace, in accordance with the same principles.

California DFPI issues final regulations implementing 2018 law requiring consumer-like disclosures for commercial financing

The California Department of Financial Protection and Innovation (DFPI) has issued final regulations to implement SB 1235, the bill signed into law on September 30, 2018 that requires consumer-like disclosures to be made for certain commercial financing products, including small business loans and merchant cash advances. 

Measuring the impact of financial institution overdraft programs on consumers

In December 2021, the CFPB released two research reports on checking account overdraft fees, detailing how banks continue to rely on these fees as a major source of revenue and how they do not compete on transparent, upfront pricing. At that time, CFPB Director Rohit Chopra announced that financial institutions with a higher share of frequent overdrafters or a higher average fee burden for overdrafts should expect the Bureau to be paying them close supervisory attention. These often exploitative and hidden fees can have a significant impact on a family’s bank account, and as a result, we have been closely monitoring those institutions.

FFIEC Announces Availability of 2021 Data on Mortgage Lending

Washington, D.C. – The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data on 2021 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA) by 4,338 U.S. financial institutions. Covered institutions include banks, savings associations, credit unions, and mortgage companies.

California lawmakers urge FDIC to rein in bank partnerships

Four Democratic members of the California state legislature recently sent a letter to the Federal Deposit Insurance Corporation (FDIC) urging the agency to take action against FDIC-supervised banks that partner with non-bank lenders to originate high-cost installment loans.

100 Million Americans Have Medical Debt: Poll

More than four in 10 American adults — or more than 100 million people in total — say they are carrying medical or dental debt, according to a new nationwide poll conducted by the Kaiser Family Foundation.

FTC Report Warns About Using Artificial Intelligence to Combat Online Problems

Today the Federal Trade Commission issued a report to Congress warning about using artificial intelligence (AI) to combat online problems and urging policymakers to exercise “great caution” about relying on it as a policy solution. The use of AI, particularly by big tech platforms and other companies, comes with limitations and problems of its own.

Firstmark Credit Union Named a 2022 ‘Best Places to Work’

Firstmark Credit Union is excited to announce that it has been voted a 2022 “Best Places to Work in San Antonio” by the San Antonio Business Journal for the third consecutive year. Firstmark was chosen among hundreds of leading companies for its commitment to fostering growth and employee well-being and cultivating an engaging workplace culture.

Mortgage loan critical defects reached high point in 2021

Last year was the worst ever for critical defects on mortgage applications, as pandemic-related stress on lender operations in the first half resulted in high rates of material misstatements slipping through, according to Aces Quality Management.

Fed interest rate hike will make credit card debt more expensive

The Federal Reserve on Wednesday raised its key interest rate by three-quarters of a point — its largest hike in nearly three decades — in an effort to tame inflation. Most credit card interest rates are tied to the Fed's benchmark rate. If you have a variable rate, it's headed higher.

Food stamps, credit card debt: Record high inflation forces some older Americans to make tough financial choices

For many older Americans, record high prices are jeopardizing their financial security just as they approach or live in retirement, according to a recent survey from The Senior Citizens League, a nonpartisan senior group.

CFPB issues order terminating Upstart no-action letter

The CFPB issued an order last week terminating the no-action letter issued to Upstart Network, Inc. on November 30, 2020 for a 36-month term (NAL).  The NAL was essentially a renewal of the no-action letter issued to Upstart in September 2017, which was the first no-action letter issued by the CFPB.

CFPB Wants Credit Reporting Standards in BNPL Sector

The Consumer Financial Protection Bureau (CFPB) published a blog post on Wednesday, June 15, indicating that Buy Now, Pay Later (BNPL) lenders and Nationwide Consumer Reporting Companies (NCRCs) may need to work more closely together to standardize BNPL payment data to ensure adequate credit reports. 

Buy Now, Pay Later and Credit Reporting

In December 2021, the Consumer Financial Protection Bureau (CFPB) launched a market monitoring inquiry into Buy Now, Pay Later (BNPL). Buy Now, Pay Later is a short-term, no-interest consumer credit product that has become nearly ubiquitous at the point of purchase online and, increasingly, in brick-and-mortar stores. Issued to five BNPL firms, the inquiry ordered information and data on several key areas of consumer impact, including data furnishing by BNPL firms to consumer reporting companies for inclusion in credit reports. We noted that BNPL credit is fast-growing and expressed concerns about the potential for people to accumulate debt by making multiple BNPL purchases with multiple companies.

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%. 

RMAi Executive Summit 2022

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DCS2022 – Debt Connection Symposium and Expo 2022