Attorney General Bonta Announces $34.2 Million Settlement with Jewelry Company that Deceived Military Service Members

OAKLAND – California Attorney General Rob Bonta today joined the Federal Trade Commission and 17 state attorneys general in announcing a $34.2 million settlement with Harris Jewelers for violations of state and federal consumer protection laws. Today’s settlement resolves allegations that Harris Jewelers targeted military service members with dishonest sales and financing tactics at now-shuttered stores located near military bases across the country, including Naval Base San Diego. As part of the settlement, Harris Jewelers will be required to write off $21.3 million in consumer debt nationwide, including more than $800,000 in debt owed by Californians, and provide nearly $12.9 million in consumer refunds, including more than $700,000 to service members in California.

CFPB Regulations Cost-Benefit Analysis Proposal Introduced in Senate

Legislation to ensure CFPB regulations do not include unreasonable costs or harms to taxpayers, financial entities or consumers was introduced last week by U.S. Sens. John Kennedy, R-La., Sens. Cynthia Lummis, R-Wyo., Tim Scott, R-S.C., and Bill Hagerty, R-Tenn.

Banks’ overdraft/NSF fee revenues evolve along with their policies

In this blog post, we examine the evolution of banks’ reliance on overdraft and NSF fees since the publication of our report “Overdraft/NSF Fee Reliance Since 2015 – Evidence from Bank Call Reports” last December. To do so, we rely on additional data from the call report from the last three available quarters – the third quarter of 2021 through the first quarter of 2022.

The CFPB Leans Into Privacy With FCRA Advisory Opinion

The Consumer Financial Protection Bureau (the “CFPB” or the “Bureau”) extended its reach into the realm of data protection with a recent advisory opinion interpreting the “permissible purpose” provision of the Fair Credit Reporting Act (the “FCRA”). The advisory (the “FCRA Advisory Opinion”), released on July 7, 2022, makes clear that consumer reporting companies and users of consumer reports have specific obligations to protect consumers’ data and that the CFPB will exert its regulatory power to enforce such obligations. As the FCRA impacts both financial and non-financial companies, the FCRA Advisory Opinion highlights the CFPB’s recent efforts to expand beyond its traditional jurisdiction over consumer financial products and services to protect consumer data. CFPB Director Rohit Chopra stated, “While Congress and regulators must do more to protect our privacy, the CFPB will be taking steps to use the Fair Credit Reporting Act to combat misuse and abuse of personal data on background screening and credit reports.”

Mortgage demand drops to a 22-year low as higher interest rates and inflation crush homebuyers

The pain in the mortgage market is only getting worse as higher interest rates and inflation hammer American consumers. Mortgage demand fell more than 6% last week compared with the previous week, hitting the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index.

Student loan repayment restarts in less than 50 days — here’s what borrowers should consider before Aug. 31

At this point, the federal student loan moratorium has been going on for more than two years, and it’s not yet clear what the Biden administration is planning to do about it. Between rumors of student loan forgiveness and questions about the possibility of extending the moratorium further into 2022, the fact remains that over 44 million student loan borrowers are currently without a clear direction as to what’s supposed to happen next.

This credit union wants to get into crypto

Decentralized finance (or DeFi)  was originally intended to cut out the middleman like a bank or credit union, but Mountain America Credit union wants in.

Blue Shield of California Promise Health Plan Announces Data Breach

Recently, Blue Shield of California Promise Health Plan confirmed that the company experienced a data breach related to a sub-contractor that works with one of Blue Shield’s third-party vendors. According to Blue Shield, the breach resulted in the following data types being leaked: names, subscriber ID numbers, diagnoses, medications, addresses, dates of birth, sex, advance directives, family history, social history, allergies, vitals, immunizations, encounter data, assessment ID numbers, and assessment dates. On July 11, 2022, Blue Shield filed official notice of the breach and sent out data breach letters to all affected parties.

Attorney General Bonta Leads Coalition Calling for Federal Privacy Protections that Maintain Strong State Oversight

OAKLAND – California Attorney General Rob Bonta today led a coalition of ten attorneys general in urging Congress to respect the role of states to enforce and provide for strong consumer privacy laws while advancing legislation enacting long-overdue privacy protections nationwide. The states call on Congress to create a baseline of consumer privacy laws that do not preempt states’ ability to respond with legislation to address changing technology and data protection practices.

Transcript Withholding & Debt Collection: Colleges and Universities Losing Some Leverage under Trending State Laws

In the past, it has been common for an institution of higher education to withhold a student’s transcript when the student had outstanding liability to the school. Bankruptcy and various loan collection laws have long placed some parameters around schools’ ability to do so. A swiftly growing crop of new state laws is taking restrictions a step further, often limiting or halting the practice altogether.

Eleventh Circuit Addresses Potential Conflict Between FDCPA and TILA, Holds That Debt Collector Must Comply With Both

On July 1, 2022, the Eleventh Circuit Court of Appeals issued a published decision in Lamirand v. Fay Servicing LLC that addressed an asserted conflict between the Fair Debt Collection Practices Act (FDCPA) and the Truth in Lending Act (TILA).

MD|DC Credit Union Association hosts roundtable with CFPB director

The MD|DC Credit Union Association hosted the first industry in-person roundtable discussion with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and local credit union executives Friday. Chopra has called it a key priority to engage with small banks and credit unions that are not directly supervised by the CFPB.

Banks Tell CFPB No Card Late Fee Data Unless Rulemaking Deadline Extended

The Consumer Financial Protection Bureau (CFPB) may need to extend the deadline to submit comments on its Advance Notice of Proposed Rulemaking (ANPR) about credit card late fees if it wants to have meaningful feedback from stakeholders. 

TCN Operator Shortlisted for 2022 SaaS Awards for Best SaaS Product for Customer Service/CRM

TCN, Inc., a global provider of a comprehensive cloud-based call center platform for enterprises, contact centers, BPOs, and collection agencies, today announced its TCN Operator platform has been named as a finalist for the second year in a row in the 2022 SaaS Awards in the Best SaaS Product for Customer Service/CRM category.

California DFPI Seeks Comments on Debt Collection Licensing; Sets Advisory Committee Meeting

The California Department of Financial Protection and Innovation (DFPI) is seeking comments on new draft text of the Debt Collection Licensing Act (DCLA) that took effect in January this year. The draft text is related to the scope, annual report, and document retention requirements of the DCLA.

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.

GoDaddy Reports Data Breach: Impacted Customer Data from 1.2 Million Individuals

GoDaddy reported the breach to the Securities and Exchange Commission (SEC) on November 17, revealing that suspicious activity in its managed WordPress hosting environment was observed on that date. Using a stolen password, an unauthorised third-party obtained access to the Managed WordPress environment on September 6 and remained there until November 17 for nearly 70 days, according to the investigation.

CFPB Advisory Opinion: Pay-to-Pay, “Convenience” Fees Prohibited by FDCPA

On June 29, the CFPB issued an advisory opinion affirming that the Fair Debt Collection Practices Act (FDCPA) and Regulation F prohibit debt collectors from collecting pay-to-pay or “convenience fees” imposed for making a payment in a particular way, such as by phone or online, when such fees are not expressly authorized by the underlying agreement or otherwise permitted by law. In interpreting FDCPA Section 808, the Bureau’s advisory opinion explains that:

DC Circuit Affirms Exemption for Certain Commercial Non-Telemarketing Calls

The U.S. Court of Appeals for the District of Columbia Circuit (D.C. Circuit) recently denied a petition to review a 2020 Federal Communications Commission (FCC) order that permitted callers to place commercial non-telemarketing robocalls to residential phone numbers and that established uniform call limits for such calls. The D.C. Circuit’s decision ensures that consumers will continue to receive calls for important services, such as prescription refill reminders, power outage updates, and data security breach notifications.

Meeting evolving expectations for an unparalleled member experience

Credit unions are unique among the plethora of options when it comes to financial services. The core values of credit unions—service, trust, and community—have remained unchanged for more than 100 years. 

Student Loan Forgiveness: As Biden’s Education Department Urges PSLF Inquiries, You Can Make Reform Suggestions Too

Department of Education Secretary Miguel Cardona is urging Americans to apply to the Public Service Loan Forgiveness program (PSLF) to see if they’re eligible. At the same time, the Biden administration is seeking public comment on a new set of proposals.

New York Financial Dept. Announces Guidance on Fees

New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris recently announced new DFS Guidance for New York-regulated banking institutions. The guidance aims to promote financial inclusion by prohibiting unfair and deceptive overdraft and non-sufficient funds (NSF) fee practices, according to a news release.

Protecting servicemembers from costly auto loans and wrongful repossessions

If you take a drive down the main road leading to most military bases in the country, you’ll likely see car dealerships lining both sides of the street. The CFPB’s prior research has shown that young servicemembers tend to take out auto loans soon after joining the military and carry more auto debt than their civilian peers. This isn’t altogether surprising. When many servicemembers finish basic training, their first duty station is often in an area where a car is needed to get around or leave the base.

NY Regulator and Lawmakers Join CFPB in Push to Ban Overdraft Fees

Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), has made it a priority for the bureau to fight against “junk fees,” overdraft fees, non-sufficient fund (NSF) fees and credit card late fees. He has also encouraged state regulators to take a more active role in applying consumer finance protection rules, as federal law doesn't prevent them from applying certain rules.

BNPL inclusion in credit reports causes growing consumer concerns, survey claims

Equifax recently announced that it will begin including BNPL information in consumer credit reports in an attempt to make these products safer for consumers and ensure they are not being overloaded with debt. 

CFPB Tightens Obligations of Credit Bureaus, Users Under FCRA’s ‘Permissible Purpose’ Provisions

On July 7, 2022, the Consumer Financial Protection Bureau issued an advisory opinion interpreting the “permissible purpose” provisions of the Fair Credit Reporting Act (FCRA). The advisory opinion states that consumer reporting agencies (CRAs) may not share consumer reports unless they have reason to believe a user has a legally permissible purpose for requesting the information, and that the information it provides relates to the consumer subject to the request. 

CFPB Advisory Opinion: Pay-to-Pay, “Convenience” Fees Prohibited by FDCPA

On June 29, the CFPB issued an advisory opinion affirming that the Fair Debt Collection Practices Act (FDCPA) and Regulation F prohibit debt collectors from collecting pay-to-pay or “convenience fees” imposed for making a payment in a particular way, such as by phone or online, when such fees are not expressly authorized by the underlying agreement or otherwise permitted by law. In interpreting FDCPA Section 808, the Bureau’s advisory opinion explains that:

OCC Assesses $125 Million Civil Money Penalty Against Bank of America, Orders Restitution for Unfair and Deceptive Practices

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $125 million civil money penalty against Bank of America, N.A., for violations of law and unsafe or unsound practices relating to the bank’s administration of a prepaid card program to distribute unemployment insurance and other public benefit payments. The OCC also ordered the bank to provide remediation to consumers harmed by the bank’s practices and violations of law.

Federal Regulators Fine Bank of America $225 Million Over Botched Disbursement of State Unemployment Benefits at Height of Pandemic

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) fined Bank of America $100 million for botching the disbursement of state unemployment benefits at the height of the pandemic. Bank of America automatically and unlawfully froze people’s accounts with a faulty fraud detection program, and then gave them little recourse when there was, in fact, no fraud. Today’s order requires Bank of America to undertake a process that is estimated to result in hundreds of millions of dollars in redress to consumers. In a separate order, the Office of the Comptroller of the Currency (OCC) is also fining the bank $125 million.

Attorney General James Delivers $230,000 to New York City to Support Consumer Financial Literacy Programs

NEW YORK – New York Attorney General Letitia James today delivered more than $230,000 to the New York City Department of Consumer and Worker Protection (DCWP) to support free financial literacy programs for New Yorkers.

CFPB highlights impact of credit card line decreases on consumers

A new report by the CFPB uses over five million credit records from one of the three nationwide consumer reporting agencies to examine how credit card companies have used credit line decreases throughout the Great Recession and the early stages of the COVID-19 pandemic.  As a general trend, the report found issuers used credit line decreases during broad economic downturns as a way to decrease overall risk.

Recent CFPB Advisory Opinion Puts Pay-to-Pay Fees in Crosshairs

“Convenience” fees charged to consumers for the use of certain debt payment options have come under increased scrutiny, as regulators have sought to limit charges and other back-end fees that may come as a surprise to consumers.

CFPB Agrees to March 31, 2023 Deadline for Final Rule Under Section 1071

The Consumer Financial Protection Bureau (CFPB or Bureau) agreed to a March 31, 2023 deadline to issue a final rule under Section 1071 of Dodd-Frank. Section 1071 amended the Equal Credit Opportunity Act (ECOA) to impose significant data collection requirements on small business creditors.

FTC Details Its Enforcement Actions to Crack Down on Fraud Against the Military Community in Testimony Before House Oversight Subcommittee

The Federal Trade Commission testified before the House Committee on Oversight and Reform Subcommittee on National Security today about the aggressive action the agency is taking to crack down on fraud and related threats against servicemembers and the broader military community.

Written Testimony of James S. Rice, Assistant Director, Office of Servicemember Affairs, before the House Committee on Oversight and Reform Subcommittee on National Security

Chairman Lynch, Ranking Member Grothman, and distinguished Members of the Subcommittee, it is my pleasure to appear before you today to discuss the work of the Consumer Financial Protection Bureau (CFPB or Bureau) Office of Servicemember Affairs (OSA) and the recent actions we have taken to protect servicemembers, veterans, and their families from scams and harmful practices as they navigate the financial marketplace.

Afni, Inc. Announces Data Breach

Recently, Afni, Inc. filed official notice of a data breach that impacted the sensitive information of certain individuals. According to the Afni, the breach resulted in the names, addresses, Social Security numbers, and dates of birth being compromised. On June 14, 2022, Afni, Inc. filed an official notice of the breach and sent out data breach letters to all affected parties.

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