NY District Court Rules Consumer With No Intent to Pay a Debt Lacks Standing in FDCPA Claim for Conflicting Collection Letters

A consumer made charges on a credit card account, which she failed to pay as agreed. The creditor referred the account to a law firm, which served the consumer with a collection suit and obtained a default judgment for the balance. The law firm sent four post-judgment collection letters, demanding the $4,225.74 balance. In a fifth letter, it demanded a balance of $3,996.74.

Bank regulators’ heightened scrutiny of AI highlights third-party risk

As regulators signal a tighter focus on AI and machine learning, banks need to be vigilant about their internal models, as well as the models used by vendors, an expert says.

CFPB Moves to Reduce Junk Fees Charged by Debt Collectors

Today, the Consumer Financial Protection Bureau (CFPB) issued an advisory opinion affirming that federal law often prohibits debt collectors from charging “pay-to-pay” fees. These charges, commonly described by debt collectors as “convenience fees,” are imposed on consumers who want to make a payment in a particular way, such as online or by phone.

What Should We Do About the Draft CPRA Regulations?: Collection and Notice

The California Privacy Protection Agency (CPPA) recently released the draft proposed CCPA Regulations and draft initial statement of reasons. Importantly, these are draft regulations that are likely to be subject to extensive public comment and modification before they become final. At the June 8 meeting, the board moved to approve the draft regulatory text to begin the formal rule making process and public comment period.

Ninth Circuit Appeals Court Sets Oral Argument in Nevada Medical Debt Law Case

he 9th Circuit Court of Appeals has set a date for oral argument in the lawsuit challenging S.B. 248, the Nevada medical debt law that took effect in July 2021. The oral argument will be at 9 a.m. PST Sept. 2, in the 9th Circuit Court of Appeals in San Francisco.

New report explores the impact of credit card line decreases on consumers

When credit risk is on the rise, such as during an economic downturn, credit card companies may look at reducing consumers’ available credit limits to prevent against losses. Credit card line decreases are an industry practice where a company cuts a consumer’s credit limit on an existing account. A consumer’s available credit can disappear, sometimes without warning or subsequent explanation.

Deputy Director Zixta Martinez’s Prepared Remarks at the FDIC Meeting of the Advisory Committee on Economic Inclusion

Today, I will focus my remarks on the more general need to increase access to affordable payments, credit, and other financial products and services. One of the most significant drivers leading us to double down on our efforts to broaden access is the expansion of electronic payments. Electronic payments are quickly supplanting cash and are now an essential part of the economy. Their increasing omnipresence came into full view during the pandemic as the un- and under-banked faced considerable challenges making purchases and receiving payments, including the Economic Impact Payments.

Rogers v. LVNV Funding: Court Dismisses FDCPA Claims That Lack a Concrete Injury

A New York district court denied the plaintiff’s request for an injunction ordering a CRA to correct information in his credit report because the FCRA does not provide a private right of action for injunctive relief.

FTC Sues Walmart for Facilitating Money Transfer Fraud That Fleeced Customers Out of Hundreds of Millions

The Federal Trade Commission today sued Walmart for allowing its money transfer services to be used by fraudsters, who fleeced consumers out of hundreds of millions of dollars. In its lawsuit, the FTC alleges that for years, the company turned a blind eye while scammers took advantage of its failure to properly secure the money transfer services offered at Walmart stores. The company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores, according to the FTC’s complaint.

CFPB Affirms Ability for States to Police Credit Reporting Markets

Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule affirming states’ abilities to protect their residents through their own fair credit reporting laws. With limited preemption exceptions, states have the flexibility to preserve fair and competitive credit reporting markets by enacting state-level laws that are stricter than the federal Fair Credit Reporting Act (FCRA).

CFPB Turns to Credit Card Fees and Late Payments in Advanced Rulemaking Notice

The Consumer Financial Protection Bureau is doubling down on its focus on financial services fees with its latest advance notice of proposed rulemaking (ANPR), which will examine credit card fees.

Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation

Washington D.C., June 28, 2022 —

The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from the SEC’s Enforcement Division during the Division’s investigation of the matter. EY admits the facts underlying the SEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedial measures to fix the firm’s ethical issues.

Big 3 credit bureaus to erase most medical debts from reports

The three major credit bureaus are erasing most medical debts from credit reports, and the Biden administration is reducing or eliminating medical debt as a factor in government lending decisions.

DFPI Proposes Rules For Commercial Financial Products And Services

In 2020, California enacted the California Consumer Financial Protection Law, Cal. Fin. Code § 90000 et seq.  The CCFPL authorizes the Department of Financial Protection & Innovation to define unfair, deceptive, and abusive acts and practices in connection with the offering or provision of commercial financing or other financial products and services to small businesses, nonprofits, and family farms.

CFPB takes aim at card late fees

The Consumer Financial Protection Bureau is sharpening its focus on exorbitant credit card late fees, issuing a new proposal Wednesday to review rules governing the charges.

Florida mortgage delinquency, foreclosure rates slightly worse than national average

In the first quarter of 2022, Florida ranked almost exactly in the middle of the pack in three key categories of the national homeowner economy: delinquent mortgages, total non-current mortgages, and foreclosure rates, according to a report issued by Jacksonville-based Black Knight Data & Analytics, Inc., a mortgage and loan data broker.

58% of Americans are living paycheck to paycheck after inflation spike — including 30% of those earning $250,000 or more

As of May, 58% of Americans — roughly 150 million adults — live paycheck to paycheck, according to a new LendingClub report. That’s down slightly from 61% who reported living paycheck to paycheck in April but up from 54% in May 2021.

Identifying and addressing the financial needs of immigrants

The Consumer Financial Protection Bureau is working to identify and address the financial needs of immigrants and their families.

CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking

Today, the Consumer Financial Protection Bureau (CFPB) issued a final rule to help survivors avoid some of the financial consequences of human trafficking. The CFPB has established, among other things, a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.

79% of Consumers Have at Least 1 Commerce Relationship With a Merchant

Commerce relationships — including retail subscriptions, memberships and loyalty programs — are extremely popular with consumers. In fact, 79% of all consumers have at least one of these commerce relationships with merchants, and 17% have all three, according to “Relationship Commerce,” a PYMNTS and Ordergroove collaboration based on a survey of 2,826 consumers.

Maryland Amends Data Security and Breach Notice Obligations

Maryland recently passed two companion bills amending the state’s Personal Information Protection Act. The bills modify the data breach notification requirements and scope of businesses subject to the data security requirements.

Citadel Credit Union’s Business Banking Team Ready for August Launch

EXTON, Pa., June 23, 2022 /PRNewswire/ -- Citadel Credit Union is prepared to officially launch its new Business Banking division this August. Earlier this year, the company onboarded a team of business banking experts to build the new division and establish partnerships with clients around the region. Over the past three months, Citadel piloted its business banking offering with multiple organizations ranging from $1 million to $100 million in annual revenue.

Credit Card Issuer Wins Big ATDS Ruling in TCPA Suit Arising out of Debt Collection Calls

On or about March 7, 2014, Plaintiff David Barnett applied for and received a FNBO credit card account. When applying for the account, Barnett provided his cellular number as way for FNBO to contact him. At some point, Barnett stopped making his minimum monthly payments. As a result, FNBO began to contact him via telephone to discuss his missed payments. Over a 7-month period, FNBO contacted Barnett via phone call, text message or prerecorded message 574 times—an average of 3.2 times a day (excluding Sundays)

Final rule: Prohibition on Inclusion of Adverse Information in Consumer Reporting in Cases of Human Trafficking (Regulation V)

Consumer Financial Protection Bureau is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to address recent legislation that assists consumers who are victims of trafficking. This final rule establishes a method for a victim of trafficking to submit documentation to consumer reporting agencies, including information identifying any adverse item of information about the consumer that resulted from certain types of human trafficking, and prohibits the consumer reporting agencies from furnishing a consumer report containing the adverse item(s) of information

Renter Migration Patterns Drive 42% Increase in Out-of-State Applicants as Renters Seek Sunnier, Rural Environments

Out-of-state applicants for rental properties increased 42% from 2020 to 2021, according to a new analysis of TransUnion (NYSE: TRU) data. In that same period, rental applications in rural areas increased 28%, while urban rental application volume rose just 10%. The primary driver of these trends appears to be rising housing costs and the widespread availability of remote work, which began during the COVID-19 pandemic.

FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car Buyers

The Federal Trade Commission has proposed a ruleto ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges. The proposed rule would protect consumers and honest dealers by making the car-buying process more clear and competitive. It would also allow the Commission to recover money when consumers are misled or charged without their consent.

OCC Reports on Key Risks Facing Federal Banking System

As banks continue to navigate the operational- and market-related impacts of the pandemic along with substantial government stimulus, current geopolitics have tightened financial conditions and increased downside risk to economic growth. The OCC highlighted operational, compliance, interest rate, and credit risks, among the key risk themes in the report.

Rent-a-Bank Payday Loans Have Highest Loss Rates in Banking System

Federal regulators have long expected banks to issue loans with a high degree of confidence that borrowers will repay them. But some banks supervised by the Federal Deposit Insurance Corp. (FDIC) are issuing loans, on behalf of payday lenders, that have dangerously high levels of default. These loans, known as “rent-a-bank" loans, have loss rates much higher than those of other products in the banking system, including small loans that banks directly offer their own customers with low credit scores.

CFPB, NCUA rules on Spring 2022 Unified Agenda

Federal regulators, including the Consumer Financial Protection Bureau and NCUA—issued the Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions. The agendas identify projects under consideration from the agencies from June 1 to May 31, 2023.

62% of Consumers Made Credit Card Payments in Last 90 Days

Credit cards are the most common credit products that U.S. consumers use. In fact, 62% of consumers made credit card payments in the last 90 days, according to “The New Reality Check,” a PYMNTS and LendingClub collaboration based on a survey of 2,326 U.S. consumers.

Biden Signs Grassley-Led Bankruptcy Bill Into Law

WASHINGTON – President Joe Biden today signed into law a bipartisan bill authored by Sen. Chuck Grassley (R-Iowa) to help small businesses and individuals stay afloat during bankruptcy. The Bankruptcy Threshold Adjustment and Technical Corrections Act (S. 3823) becomes law at a time when Americans are battling 40-year high inflation, rising interest rates and fears of a looming recession. As Judiciary Committee’s ranking member, Grassley partnered with Sens. Sheldon Whitehouse (D-R.I.), Dick Durbin (D-Ill.) and John Cornyn (R-Texas) to advance the bill, which unanimously cleared the Senate and passed in the House of Representatives with an overwhelmingly bipartisan vote of 392-21.

200,000 student-loan borrowers are getting their debt wiped out through a settlement with Biden’s Education Department

President Joe Biden's Education Department has agreed to give thousands of student-loan borrowers relief after they said they were defrauded by a for-profit school. In 2019, Harvard Law School's Project on Predatory Student Lending brought a lawsuit against then-Education Secretary Betsy DeVos — known as Sweet vs. DeVos — representing thousands of student-loan borrowers who filed borrower defense claims with the department that had been pending for years.

CFPB Helps Survivors Mitigate the Financial Consequences of Human Trafficking

Today, the Consumer Financial Protection Bureau (CFPB) issued a final rule to help survivors avoid some of the financial consequences of human trafficking. The CFPB has established, among other things, a method for survivors of trafficking to submit documentation to credit reporting companies that identifies any adverse item of information that resulted from human trafficking. The rule prohibits credit reporting companies from providing a report containing the adverse items of information.

FTC Takes Action Against Harley-Davidson and Westinghouse for Illegally Restricting Customers’ Right to Repair

The Federal Trade Commission is taking action against motorcycle manufacturer Harley-Davidson Motor Company Group, LLC and Westinghouse outdoor generator maker MWE Investments, LLC for illegally restricting customers’ right to repair their purchased products. The FTC’s complaints charge that the companies’ warranties included terms that conveyed that the warranty is void if customers use independent dealers for parts or repairs.

CUNA Board and CFPB’s Chopra Talk Credit Union Priorities

The Credit Union National Association (CUNA) board of directors hosted Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra Wednesday to discuss credit union priorities and how the Bureau can support credit unions in their mission to promote financial well-being for all.

RMAi Executive Summit 2022

RMAi

DCS2022 – Debt Connection Symposium and Expo 2022