Director Chopra’s Prepared Remarks at a Joint DOJ, CFPB Press Event on the Trident Enforcement Action

For many years, nonbank lenders have been able to avoid many of the legal obligations and responsibilities of traditional banks. Even the Community Reinvestment Act of 1977, specifically passed to address the consequences of redlining and one of our most important tools for encouraging financial institutions to meet the credit needs of low- and moderate-income neighborhoods, exempts nonbank lenders.

Office of Research blog: Housing inflation is hitting low-income renters

Inflation was higher over the last year than it’s been for nearly 40 years. Prices for many things have been rising. But not all prices rise at the same rate, so how someone experiences inflation depends on what they buy, how their income has changed, and what they own. This post considers one area where inflation experiences differ sharply: housing.

CFPB, DOJ Order Trident Mortgage Company to Pay More Than $22 Million for Deliberate Discrimination Against Minority Families

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) took action to end Trident Mortgage Company’s intentional discrimination against families living in majority-minority neighborhoods in the greater Philadelphia area. The CFPB and DOJ allege Trident redlined majority-minority neighborhoods through its marketing, sales, and hiring actions. Specifically, Trident’s actions discouraged prospective applicants from applying for mortgage and refinance loans in the greater Philadelphia area’s majority-minority neighborhoods

Debt Collection Rule FAQs

This is a Compliance Aid issued by the Consumer Financial Protection Bureau. The Bureau published a Policy Statement on Compliance Aids, available here, that explains the Bureau’s approach to Compliance Aids.

NCUA wants credit unions to join the cyber incident reporting game

The National Credit Union Administration, a small federal agency created in 1970 to supervise federal credit unions, will propose a new regulation this week that would compel federal insured credit unions to report “substantial” cyber incidents to the government within 72 hours. Such notification would function as an “early alert” to the government and would not require detailed incident assessments within that timeframe, according to a notice set to publish in tomorrow’s Federal Register.

Proposed California Commercial UDAAP and Annual Reporting Regs to be promulgated under California Consumer Financial Protection Law

Two weeks after the DFPI set a Dec. 9 effective date for its long-threatened commercial financing disclosure requirement (we discussed these regulations in a previous bog, here), the DFPI issued proposed commercial UDAAP and annual reporting regulations likely impacting many of the same companies. Specifically, the proposed regulations would apply to providers of commercial financing or other financial products and services to small businesses, nonprofits, and family farms, and would (i) expand the DFPI’s UDAAP authority, and (2) impose annual reporting requirements on covered providers (we briefly discussed these proposed regulations in a previous blog post here).

Eleventh Circuit Reiterates Availability of Postjudgment Rule 11 Sanctions

The Court of Appeals for the Eleventh Circuit recently reversed a district court’s denial of Rule 11 motions filed after final judgment had been entered. The Eleventh Circuit found the district court incorrectly read recent precedent as overruling earlier decisions that allowed postjudgment Rule 11 motions. In so doing, the Eleventh Circuit reiterated that simply because final judgment has been entered, this does not foreclose the availability of sanctions under Rule 11.

CFPB Extends RFI on Credit Card Fees and Late Payments

The Consumer Financial Protection Bureau’s recent advance notice of proposed rulemaking (ANPR) to examine credit card fees has been extended for comments through Aug. 1.

CFPB’s Chopra Defends Guidance Docs Targeted by Industry Critics

CFPB Director Rohit Chopra defended his policy-making through advisory opinions and other agency documents as an exercise in transparency, responding to charges that he makes unilateral decisions without industry input.

Tune into Military Consumer all year long

As Military Consumer Month comes to a close, the work doesn’t end here. While servicemembers, veterans, and their families do so much for our country, scammers continue to target their hard-earned salaries and benefits year-round.

IBM Report: Consumers Pay the Price as Data Breach Costs Reach All-Time High

CAMBRIDGE, Mass., July 27, 2022 /PRNewswire/ -- IBM (NYSE: IBM) Security today released the annual Cost of a Data Breach Report,¹ revealing costlier and higher-impact data breaches than ever before, with the global average cost of a data breach reaching an all-time high of $4.35 million for studied organizations. With breach costs increasing nearly 13% over the last two years of the report, the findings suggest these incidents may also be contributing to rising costs of goods and services. In fact, 60% of studied organizations raised their product or services prices due to the breach, when the cost of goods is already soaring worldwide amid inflation and supply chain issues

California Privacy Protection Agency Issues Notice of Proposed Rulemaking

The California Privacy Protection Agency (Agency) recently issued a notice of proposed rulemaking to amend the California Consumer Privacy Act (CCPA) regulations to make them consistent with amendments to the CCPA and to implement provisions under the Consumer Privacy Rights Act (CPRA) establishing new rights for consumers and requirements on businesses.  The Agency was established by the CPRA and tasked with implementing and enforcing the CCPA, including promulgating regulations on specific topics.

CFPB Orders Hyundai to Pay $19 Million for Widespread Credit Reporting Failures

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) penalized Hyundai Capital America (Hyundai) for repeatedly providing inaccurate information to nationwide credit reporting companies and failing to take proper measures to address inaccurate information once it was identified between 2016 and 2020. The CFPB found that Hyundai used manual and outdated systems, processes, and procedures to furnish credit reporting information—which led to widespread inaccuracies—and resulted in negative inaccurate information being placed on consumers’ credit reports through no fault of their own.

U.S. Foreclosure Starts Up More Than 440% Year-Over-Year

Black Knight Inc. has released a “first look” the latest iteration of its Mortgage Monitor Report for June 2022, which looks at delinquency and foreclosure rates across the U.S. 

CFPB Imposes Several New Duties on Big Data Brokers

The Consumer Financial Protection Bureau (“CFPB”) has issued several statements affecting the credit reporting industry in the last few months, including one on medical debts and one on auto financing, while at the same time emphasizing that the definition of a consumer reporting agency (“CRA”) should be interpreted broadly to include not just credit reporting companies and tenant screeners but also “other data brokers.” 

Pyramid Federal Credit Union Partners with Asa to Modernize the Member Experience

PROVO, Utah--(BUSINESS WIRE)--Asa connects financial institutions with customer-facing fintechs in a secure, compliant and easy to implement marketplace. The company today announced that Tucson, Ariz-based Pyramid Federal Credit Union has selected the Asa platform, embracing collaborative banking to quickly introduce new technologies.

CT Consumers To Get Refund From Payday Loan Collection Agency

CONNECTICUT — The state Department of Banking came to an agreement with a consumer collection agency that was trying to collect on payday loans that can't be enforced in Connecticut.

CFPB expected to issue new guidance requiring banks to repay more fraud victims

According to a WSJ report, the CFPB is preparing to release new guidance that would require banks to make refunds to victims of scammers who defraud consumers into sending money to a third party using an online money-transfer platform.  The WSJ indicates that the CFPB’s possible action is being driven by an increase in consumer complaints to the CFPB about such scams.  

Credit union loans increased 2.3% in May

Credit union loans outstanding increased 2.3% in May, compared to a 1.9% increase in April of 2022 and a 0.8% increase in May of 2021, according to CUNA's latest Monthly Credit Union Estimates.

CFPB to make organizational changes

According to media reports, CFPB Deputy Director Martinez sent a memo to staff last week announcing the following organizational changes:

Time is running out for student loan servicers to help servicemembers with student loans get debt relief

In 2007, Congress created the Public Service Loan Forgiveness (PSLF) program to encourage citizens to serve their communities and their country through public interest work—including military service. For years military borrowers have complained to the CFPB about sloppy student loan servicing practices that have kept them from getting the benefits PSLF promised. And in 2020, the GAO reported that 176,906 active-duty servicemembers had federal loans eligible for the PSLF program or that could be consolidated into eligible loans, but that only 124 servicemembers had received loan forgiveness under PSLF.

Military families combat identity theft amid life transitions

It’s summer, peak moving season for military servicemembers and their families. You’ve got enough on your plate without having to worry about identity theft. But the reality is scammers are getting more and more clever with their tactics to swindle members of the military community.

43% of Americans plan to go into debt soon, even as it gets more expensive

The cost of borrowing is increasing, but Americans aren’t slowing down their spending. Forty-three percent of Americans expect to take on new debt in the next six months, according to a new LendingTree survey that polled over 1,000 U.S. consumers. But Americans aren’t spending frivolously: most are going into debt over necessities like a house or car (30%), unexpected emergencies (26%), and healthcare expenses (25%).

FCC orders phone companies to block auto warranty robocalls

The Federal Communications Commission’s (FCC) Robocall Response Team announced on Thursday that the agency’s Enforcement Bureau has ordered phone companies to block scam robocalls promoting auto warranties.

Limited waiver for student loan forgiveness ends October 31

Do you have federal student loans? Have you worked in public service (for a government agency, the military, or a non-profit organization)? If so, find out whether you’re eligible for the Public Service Loan Forgiveness (PSLF) Limited Waiver, which expires on October 31, 2022. Thousands of federal student loan borrowers have used the waiver to get closer to total loan forgiveness.   

Student Loan Forgiveness: Navigating the Maze

The Department of Education announced a short-term opportunity for expanded loan forgiveness in an effort to remedy the past administrative failures and inaccuracies of the federal forgiveness program. The changes, which will impact the Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) or long-term forgiveness programs, are expected to bring millions of borrowers closer to student loan forgiveness. However, deciphering the eligibility requirements can be very confusing for borrowers.

MENENDEZ, REED, WARREN, BROWN, CORTEZ MASTO, WARNOCK URGE CFPB TO HOLD BANKS THAT OWN ZELLE ACCOUNTABLE FOR FACILITATING FRAUDULENT PAYMENTS TO CROOKS

WASHINGTON, D.C. – U.S. Senator Bob Menendez (D-N.J.), a senior member of the Senate Banking Committee, alongside Sens. Jack Reed (D-R.I.), Elizabeth Warren (D-Mass.), Sherrod Brown (D-Ohio), Catherine Cortez Masto (D-Nev.), and Raphael Warnock (D-Ga.) today urged the Consumer Financial Protection Bureau (CFPB) to do more to protect consumers and hold banks accountable for fraud conducted using bank-owned instant digital payment networks like Zelle. The senators called on the CFPB to update and clarify its rules and guidance for peer-to-peer payments regarding fraudulently induced transactions.

Redwood Credit Union Makes Forbes’ List of America’s Best Credit Unions for Third Consecutive Year

Santa Rosa, CA – For the third year in a row, Redwood Credit Union has been recognized as a top credit union in California in Forbes’ list of America’s Best Credit Unions in Each State.

TCPA: Text Messages Still Hot-Button Issue After Furniture Companies Resolve Class for Millions

On July 6, the U.S. District Court for the Middle District of Florida granted final approval of a multimillion-dollar, class-action settlement in Parker v. Stoneledge Furniture, LLC, et al., No. 21-740 (M.D. Fla.) to resolve claims brought under the Telephone Consumer Protection Act (TCPA) against furniture companies Stoneledge Furniture LLC and Southwestern Furniture of Wisconsin LLC d/b/a Ashley Furniture.

FTC and 18 States Sue to Stop Harris Jewelry from Cheating Military Families with Illegal Financing and Sales Tactics

The Federal Trade Commission and a group of 18 states sued national jewelry retailer Harris Jewelry to stop the company from cheating military families with illegal financing and sales practices. According to the complaint, the jewelry company deceptively claimed that financing jewelry purchases through Harris would raise servicemembers’ credit scores, misrepresented that its protection plans were not optional or were required, and added the plans to purchases without consumers’ consent.

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.

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