Ford Credit Announces Effort To Open Online Bank In U.S.

Ford Credit – the automaker’s financing arm – has earned its fair share of accolades recently, including scoring the top spot among mass-market brands in J.D. Power’s 2021 U.S. Consumer Financing Satisfaction Study, as well as first place in the 2022 Canada Dealer Financing Satisfaction Study and the 2022 U.S. End of Lease Satisfaction Study. Even amid concerns that we’re in a bit of an automotive bubble, Ford Credit isn’t expecting an influx of delinquencies this year, either. Now, the finance company is aiming to expand its scope considerably after seeking to establish an industrial bank subsidiary in the United States dubbed Ford Credit Bank.

Proposed New Data Security Rules Could Prove Duplicative, Forcing Banks to Turn Over Dangerous Amounts of Secured Data

An amendment to the National Defense Authorization Act passed by the House in July would create a “systemically important entity” designation, applying new regulations and offering priority aid to certain critical infrastructure companies. But the American Bankers Association and Bank Policy Institute say the amendment as applied to financial institutions would duplicate existing regulations under the Dodd-Frank Act, while also requiring the turnover of a substantial amount of cybersecurity-related data that could prove dangerous in the wrong hands.

DCS Features “Battle of the Brokers” – Sept 8th

Battle of the Brokers - at Debt Connection Symposium, Sept 7-9 at the Red Rock in Las Vegas. Don't miss this super addition to the Debt Connection Symposium agenda. Three leaders of the industry take the stage - Lou DiPalma of Garnet Capital Advisors, Dave Ludwig of NLEX, and Bob Picone of Connect1 LLC. Hear competitors in the space each offering unique and different perspectives on topics including historical perspectives on debt purchasing, importance of relationships, technological innovation, and company culture. An unscripted panel discussion, guaranteed to deliver benefit to creditors, servicers, and debt buyers equally.  More details at: www.dcs2022.com

US national trade groups petition CFPB for data aggregation

The eight associations are the American Bankers Association, Consumer Bankers Association, Credit Union National Association, Housing Policy Council, Independent Community Bankers of America, National Association of Federally-Insured Credit Unions, National Bankers Association, and The Clearing House Association. 

U.S. Senate bill seeks to protect credit union members from cyber threats

U.S. Sens. Jon Ossoff (D-GA), Mark Warner (D-VA), and Cynthia Lummis (R-WY) introduced legislation in the U.S. Senate this week that seeks to protect credit union members from cybersecurity threats.

CFPB Probes Goldman’s GM, Apple Credit Card Business Practices

Goldman Sachs said Thursday (Aug. 4) it is cooperating with an investigation by the Consumer Financial Protection Bureau (CFPB) into its credit card business. In a regulatory filing Thursday, the investment banker said the CFPB probe was looking at Goldman’s “credit card account management practices, including with respect to the application of refunds, crediting of nonconforming payments, billing error resolution, advertisements, and reporting to credit bureaus.”

CFPB, State Regulators, and Courts Take Aim at Convenience Fees

The first half of 2022 has seen a flurry of activity at the state and federal level attempting to reign in "convenience fees" - fees charged by a creditor, debt collector, or third party to a consumer for making a payment via some means other than a check or cash, such as over the phone, online, or in some other expedited manner. Although state and federal regulators have scrutinized convenience fees in the past, the recent overt hostility at the state and federal level creates risk for creditors, servicers, and debt collectors who might ask a customer to pay those fees.

Lawmakers Seek Clarity on CFPB’s Rule to Expand States’ Enforcement Authority

In a letter to CFPB Director Rohit Chopra, GOP lawmakers on the House Financial Services Committee question the reach of the bureau’s interpretive rule on states’ enforcement authority—adding to concerns on the bureau’s recent approach from both sides of the aisle.

Attorney General James Stops New York City Landlords That Harassed Rent-Stabilized Tenants and Lied to Banks

NEW YORK – New York Attorney General Letitia James today announced a settlement with Ink Property Group LLC (Ink) for violating rent stabilization laws and illegally harassing tenants. Ink — managed by Eden Ashourzadeh, Alex Kahen, and then-Public Advocate James’ 2016 Worst Landlords List offender Robert Kaydanian — bought dozens of rent-stabilized buildings in low-income communities of color with the intention of illegally deregulating affordable housing for profit.

Kinecta Recognized as the #1 Credit Union Provider in the South Bay

MANHATTAN BEACH, Calif., Aug. 5, 2022 /PRNewswire/ -- The LA Times hosted the second annual reader's choice poll and Kinecta Federal Credit Union, a leading financial services provider based in the South Bay area of Los Angeles, was voted the number one credit union provider in the South Bay. This means Kinecta's members in the South Bay, Long Beach, South Los Angeles and the Southeast Los Angeles region made Kinecta their first choice for their banking needs. 

Federal Trade Commission Returns More Than $1 Million To Consumers Harmed by Global Asset Financial Services’ Phantom Debt Collection Scheme

The Federal Trade Commission is sending payments totaling more than $1 million to 1,966 consumers who were harmed by a debt collection scheme that conned consumers into paying debts they did not owe. The defendants used several names including GAFS Group, Global Mediation Group, and Mediation Services.

Buy Now, Pay Later Company Agrees to Cease Illegal Loans, Pay Refunds in Settlement

The DFPI has entered a settlement with Florida-based point-of-sale lender Four Technologies, Inc., in which the company has agreed to stop making loans, pay $2,500 in penalties, get a license, and refund $13,065 in illegal fees. 

AG Ferguson announces latest action in statewide initiative to reform towing industry and protect active duty service members’ rights

VANCOUVER — Attorney General Bob Ferguson announced today a court order will require Chuck’s Towing, a Clark County towing company, to pay three service members for illegally selling their cars at auction. The order also requires it to implement specific policies so it will not harm service members in the future.

DOJ and CFPB send notification letter to auto finance companies regarding SCRA protections

On July 29, 2022, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a notification letter (the “joint letter”) to “remind” auto lenders and leasing companies of the protections provided to servicemembers and their dependents under the Servicemembers Civil Relief Act (SCRA).  The joint letter provides a very basic overview and reminder of the vehicle repossession protections, early vehicle lease termination rights, and interest rate cap available to eligible servicemembers under the SCRA.

The Convergence of Payments and Commerce: Implications for Consumers

In recent years, the payment space has moved from an ecosystem with clear constraints and established players to a rapidly evolving environment. While there has been significant attention paid to specific technologies and solutions (e.g., blockchain), there has been less attention paid to the broader changes occurring across the ecosystem. Retail banks, established payment networks, and online and physical world commerce organizations are creating new consumer experiences.

New risks emerge as line between payments and commerce blurs

Recent innovations across the payments ecosystem include the growing presence of Buy Now, Pay Later (BNPL) offerings, embedded commerce, and integrated “super apps.” Families, businesses, and the economy benefit when payments are fast and frictionless, and these emerging payment systems do make the user experience more “seamless” by integrating commerce and financial services. However, they also have the capacity to harvest user behavioral data to enhance their value propositions.

TCH Asks CFPB to Define Larger Participants in Aggregation Services Market

The Clearing House has petitioned the Consumer Financial Protection Bureau (CFPB) to make new rules around aggregation services, or third-party companies dealing with peoples’ financial data, many of which aren’t looked into closely by the CFPB.

Eleventh Circuit Requires Standing for All Class-Action Members, Decertifying TCPA Class Settlement

Class-action plaintiffs do not get a free pass on constitutional standing requirements, as the Eleventh Circuit Court of Appeals reminded litigants sua sponte in Drazen and Godaddy.com, LLC v. Pinto last week when it vacated a district court’s approval of a $35 million class-action settlement.

Agencies Invite Comment on Proposed Commercial Real Estate Loan Workouts and Accommodations Statement

ALEXANDRIA, Va. (August 2, 2022) – The National Credit Union Administration, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, in consultation with state bank and credit union regulators, are inviting public comment on a proposed policy statement(opens new window) for prudent commercial real estate (CRE) loan accommodations and workouts.

National Credit Union Administration Issues New Proposed Rule Requiring 72-Hour Cyber Incident Reporting

On July 27, 2022, the National Credit Union Administration (NCUA) issued a proposed rule requiring federally insured credit unions (FICUs) to notify the NCUA within seventy-two (72) hours of discovering a reportable cyber incident.

CUNA issues action alert to oppose interchange bill

CUNA issued an action alert Tuesday calling on credit unions to share their concerns with the interchange bill introduced by Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan. The bill would allow merchants to route payments through an unaffiliated network.

Report: Equifax Glitch Sent Millions of Wrong Credit Scores to Lenders, Impacted Loan Rates

Equifax provided inaccurate credit scores for millions of Americans seeking loans over a three-week period in the spring, The Wall Street Journal (WSJ) reported Tuesday (Aug. 2). The credit bureau sent the scores to banks and nonbank lenders in response to people applying for car loans, credit cards and mortgages, according to the report, which was based on interviews with unnamed bank executives and other sources.

DCS2022 Continues The Great Debate

DCS2022 – September 7 – 9 – where the Great Debate continues!  The Debt Connection symposium is known for both great sessions, as well as great networking. One session that always gets high marks is – The Great Debate. The perspectives of Originators, Agencies, Debt Buyers, and Law Firms allows for a lively, unscripted session often times highlighting the subtle differences in approach and implementation. www.dcs2022.com

Americans are piling up credit card debt as they struggle to keep up with the high cost of living

Americans are piling up credit card debt as they struggle to keep up with the high cost of living. US household debt surpassed $16 trillion for the first time ever during the second quarter, the New York Federal Reserve said Tuesday. Even as borrowing costs surge, the NY Fed said credit card balances increased by $46 billion last quarter.

Attorney General Bonta Announces $15.5 Million Judgment Against Rent-A-Center

OAKLAND – California Attorney General Rob Bonta today announced a $15.5 million settlement against Rent-A-Center, one of the nation’s largest rent-to-own companies, for violations of state consumer protection laws relating to unlawful leasing practices and deceptive marketing. An investigation into Rent-A-Center’s “kiosk” business that operates out of traditional retail stores found that the company used an inflated “cash price” for products that was 15% higher than the retail price, potentially costing consumers hundreds of extra dollars, among other violations. As part of the stipulated judgment resolving the Attorney General’s investigation, Rent-A-Center will be required to comply with significant injunctive terms to deter future misconduct, pay $13.5 million in restitution to California consumers, and pay $2 million in civil penalties.

CFPB adds new debt collection rule FAQs

Last week, the CFPB published additional frequently asked questions on Regulation F, its debt collection rule.   The new FAQs address third-party communications, electronic communications, and unusual or inconvenient time and place provisions.

Attorney General James Takes Action to Crack Down on Rampant Robocalls and Protect Consumers Nationwide

NEW YORK – New York Attorney General Letitia James today took action to crack down on rampant robocalls and protect consumers nationwide. Attorney General James joined a coalition of 50 attorneys general to form a nationwide, bipartisan Anti-Robocall Litigation Taskforce to investigate and take legal action against telecommunications companies responsible for enabling a majority of foreign robocalls into the United States. The taskforce will work to cut down on illegal robocalls made to consumers nationwide. 

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.

Spokane-based Global, Alaska USA become one in credit union merger

Spokane-based Global Credit Union has merged with Alaska USA Federal Credit Union, making it one of the largest financial cooperatives in the country. Under the merger, which closed Monday, the combined organization will have 760,000 members, more than 2,000 employees and hold $12 billion in assets.

WEBRECON STATS: JUNE LITIGATION SLOG

June 2022 wasn’t particularly robust, nor lackluster, nor surprising. FDCPA lawsuits were down a bit (-3.7%) while TCPA and FCRA lawsuits were up a bit (+4.8% and +.9% respectively). FDCPA and TCPA suits are still down double digits YTD (-20.7% and -28.8% respectively) while FCRA suits are still up YTD (+4.4%). CFPB complaints against debt collectors were down a bit (-1.3%) for the month and down a bit more YTD (-10.1%).

CFPB Publishes RFI and Launches Initiative Focused on Relationship Banking

The CFPB recently published a Request for Information (RFI) “seeking comments related to relationship banking and how consumers can assert the right to obtain timely responses to requests for information about their accounts from banks and credit unions with more than $10 billion in assets, as well as from their affiliates.”

First Tech Federal Credit Union Raises more than $1.6 million to Support Children’s Hospitals

SAN JOSE, Calif. & HILLSBORO, Ore.--(BUSINESS WIRE)--Always eager to "chip" in, First Tech Federal Credit Union—the nation’s eighth largest credit union—together with First Tech employees and members, business leaders and credit unions from across the region raised more than $1.6 million dollars as part of the annual Credit Unions for Kids fundraising campaign, benefiting children and families served at Children’s Miracle Network Hospitals.

CFPB Clarifies Stance on Electronic Communications and Time and Place Restrictions Through Updated Debt Collection FAQs

The CFPB has updated its Frequently Asked Questions (FAQs) to its Debt Collection Rule (Regulation F), 12 C.F.R. § 1006; Consumer Financial Protection Bureau, Debt Collection Rule FAQs, (last updated July 27, 2022), https://www.consumerfinance.gov/compliance/compliance-resources/other-applicable-requirements/debt-collection/debt-collection-rule-faqs/, which address questions related to the electronic communications and restrictions on communications at unusual or inconvenient times.  Both debt collectors and creditors should take notice. 

Class-Action Settlement Approved in TransUnion v. Ramirez Article III Standing Case

A California district court has granted the plaintiff’s motion seeking approval of a class-action settlement in TransUnion v. Ramirez after the U.S. Supreme Court issued a ruling regarding the issue of Article III standing last June.

FTC Takes Action to Stop Payment Processor First American from Trapping Small Businesses with Surprise Exit Fees and Zombie Charges

The Federal Trade Commission today took action against payment processing company First American Payment Systems and two of its sales affiliates for trapping small businesses with hidden terms, surprise exit fees, and zombie charges. The FTC alleges that the defendants made false claims about fees and cost savings to lure merchants, many of whom had limited English proficiency.

DCS2022 – Debt Connection Symposium and Expo 2022