WebRecon Mar 2024 Stats: Mixed March, YTD Complaints Still Historically High

Quick analysis: Mixed March, YTD Numbers Still Riding High It has been a robust Q1 in the world of consumer complaints. Similar to February, the consumer complaint/litigation numbers are mixed for March (TCPA +1.5%, FDCPA -13.1%, FCRA -30.6%), but the year to date numbers are all still way up in the double digits over the same period last year (TCPA +26.6%, FDCPA +12.9%, FCRA +28.4%). CFPB complaints were up both in March (+36%) and YTD (a dramatic +60.4%).

CFPB Highlights the Hidden Costs of Health Savings Accounts

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report detailing the complex costs and fees that many consumers with health savings accounts are forced to pay. There were approximately 36 million health savings accounts in 2023 – holding more than $116 billion.

Plaintiffs file brief in support of preliminary injunction and response to petition for panel rehearing in credit card late fee challenge

On April 26, 2024, Plaintiffs filed their response to the CFPB’s Petition for a Panel Rehearing with the Fifth Circuit in the lawsuit challenging the CFPB’s credit card penalty fees rule (Rule). On the same date, the Plaintiffs also filed their brief in support of their motion for a preliminary injunction with the Fifth Circuit.

FTC, DOJ, and HHS Extend Comment Period on Cross-Government Inquiry on Impact of Corporate Greed in Health Care

The Federal Trade Commission, the Department of Justice’s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services (HHS) are extending the deadline by 30 days for the public to comment on a tri-agency Request for Information (RFI) examining private-equity and other corporations’ increasing control over health care markets. The new deadline is now June 5, 2024.

FTC Finalizes Order with InMarket Prohibiting It from Selling or Sharing Precise Location Data | Federal Trade Commission

The Federal Trade Commission finalized a settlement with digital marketing and data aggregator InMarket Media over allegations the company unlawfully collected and used consumers’ location data for advertising and marketing.

The true cost of unpreparedness

Disasters and interruptions can strike at any time, and credit unions that are unprepared can pay a high price. From cyberattacks to natural disasters, the threats are real and the potential consequences severe. 

Biden-Harris Administration Approves $6.1 Billion Group Student Loan Discharge for 317,000 Borrowers Who Attended The Art Institutes

The Biden-Harris Administration today announced the approval of more than $6.1 billion in automatic student loan relief to nearly 317,000 borrowers who enrolled at any Art Institute campus on or after Jan. 1, 2004, through Oct. 16, 2017. The U.S. Department of Education (Department) found that The Art Institutes and its parent company, Education Management Corporation (EDMC), made pervasive and substantial misrepresentations to prospective students about postgraduation employment rates, salaries, and career services during that time.

Elder fraud tops $3.4 billion as schemes targeting people over 60 rise

CNN — People over the age of 60 in the US reportedly lost more than $3.4 billion in fraud schemes in 2023, a nearly 11% increase from the year before, according to a report from the FBI released Tuesday.

The Florida Consumer Collection Practices Act and What It Could Mean for All Self-Storage Operators

In mid-2023, the Florida legislature amended the state’s Consumer Collection Practices Act. One of the changes it made was to prohibit any debt-collection communication between the hours of 9 p.m. and 8 a.m.  

34% of Gen Z Consumers Say Splurging Contributes to Financial Distress

Spoiler alert: The title of PYMNTS Intelligence’s new report, “Why 60% of Gen Z’s Live Paycheck to Paycheck” gives away a key finding. Six in 10 Generation Z consumers say it’s a challenge to make ends meet. The report, which was based on surveys with 3,405 U.S. consumers, found that many Gen Z consumers (those born between 1997 and 2006) appear to be having a tough time in the current economy.

FTC Sued to Overturn Ban on Noncompetes

The United States Chamber of Commerce and other trade groups sued the Federal Trade Commission in the United States District Court for the Eastern District of Texas on April 24, in Chamber Of Commerce Of The United States Of America et al v. Federal Trade Commission et al, Case No. 6:24cv148. 

NJ Multi-Language Requirement Stands in Part for CRAs, Judge Rules

A federal district court partially vacated a New Jersey law requiring national credit reporting agencies (CRAs) to translate credit file disclosures into at least 10 foreign languages other than Spanish. CRAs are required to offer disclosures in English and Spanish, U.S. District Judge Georgette Castner decided.

Statement of CFPB Director Rohit Chopra on Medical Financial Products

In recent years, there are signs of increased involvement by financial institutions in the American health care system. Many medical procedures can be financed by Buy Now, Pay Later loans, medical credit cards, and other medical loans offered in conjunction with health care providers and facilities.

Use Pass It On to talk about fraud this Older Americans Month

This month, we join the nation to celebrate Older Americans Month. It’s also the 10^th anniversary of Pass It On, the FTC’s fraud education campaign for older adults.

FCC FINES AT&T, SPRINT, T-MOBILE, AND VERIZON NEARLY$200 MILLION FOR ILLEGALLY SHARING ACCESS TOCUSTOMERS’ LOCATION DATA

WASHINGTON, April 29, 2024—Today, the Federal Communications Commission fined the nation’s largest wireless carriers for illegally sharing access to customers’ location information without consent and without taking reasonable measures to protect that information against unauthorized disclosure. Sprint and T-Mobile – which have merged since the investigation began – face fines of more than $12 million and $80 million, respectively. AT&T is fined more than $57 million, and Verizon is fined almost $47 million.

Acting Comptroller Issues Statement on the FDIC’s Proposals Related to Change in Bank Control Act

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement at the Federal Deposit Insurance Corporation’s (FDIC) board meeting concerning the FDIC memorandum and resolution for proposals related to Change in Bank Control Act:

Price Complexity in Laboratory Markets

This paper provides new insights on how price complexity may affect markets for consumer goods. We report on two laboratory experiments that investigated the effects of price complexity on market outcomes. The experiments had human participants interact in basic markets.

Update for MOHELA student loan borrowers

The U.S. Department of Education, including its office of Federal Student Aid (FSA), is constantly working to improve the student loan borrower experience. FSA has worked tirelessly to give borrowers the information and support they need to take advantage of all of the benefits of the student loan repayment program.

CFPB Publishes Research Finding Higher Price Complexity Leads Consumers to Pay More

WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a new report that suggests consumers tend to pay more for products that have more complex pricing structures. The report is based on experiments with multiple rounds of buyers and sellers interacting in simple markets, and found that participants tended to pay more when prices were broken into sub-parts and were harder to understand. 

Financial Business and Consumer Solutions Announces Data Breach Affecting Over 1.9 Million Consumers’ SSNs

On April 26, 2024, Financial Business and Consumer Solutions, Inc. (“FBCS”) filed a notice of data breach with the Attorney General of Maine after discovering unauthorized access to certain systems in its network.

FTC Issues Rule Banning Employee Non-Compete Agreements

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 in favor of issuing a final rule that will essentially ban employers’ use of non-compete agreements in the workplace.

Maryland Legislature Passes Comprehensive Data Privacy Bill

On April 6, 2024, Maryland's legislature passed a comprehensive privacy bill, the Maryland Online Data Privacy Act (MODPA), and sent it to the state's governor for signature. If enacted, the law would take effect on October 1, 2025, and become one of the strictest to date compared to other recently passed privacy laws.

Financial Business and Consumer Solutions Announces Data Breach Affecting Over 1.9 Million Consumers’ SSNs

On April 26, 2024, Financial Business and Consumer Solutions, Inc. (“FBCS”) filed a notice of data breach with the Attorney General of Maine after discovering unauthorized access to certain systems in its network

Two Supervisory Highlights for Spring 2024

The Consumer Financial Protection Bureau (CFPB) has released two Supervisory Highlights for Spring 2024, covering Fair Credit Reporting Act (FCRA) Compliance, Supervision, Credit Reports, Scores and Identity Theft and Mortgage Servicing, Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs), Deceptive Practices, and Mortgages. These Supervisory Highlights identify various issues and offer guidance to organizations on ensuring compliance with federal regulations concerning credit reporting and mortgage loan operations.  If your focus is on mortgage servicing or credit reporting, these two CFPB Supervisory Highlights are for you. 

Kansas Becomes Fourth State to Enact Earned Wage Access Legislation

On April 19, Kansas Governor Laura Kelly signed House Bill (HB) 2560 to regulate earned wage access (EWA) products and services. HB 2560 enacts the Earned Wage Access Services Act that requires EWA providers to be licensed by the state bank commissioner and comply with certain disclosure rules. Kansas follows Nevada, Missouri, and Wisconsin in enacting EWA legislation.

CFPB and DOT Hosting Joint Hearing on Credit Card and Airline Rewards Programs

In furtherance of the Biden Administration’s “junk fee” agenda, on Thursday, May 9, 2024, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs.

Here’s how much credit card debt the average American has (and how to pay it off)

The current high interest rate environment is putting a strain on many Americans' finances. After years of keeping rates near zero to stimulate the economy during the pandemic, the Federal Reserve aggressively increased rates starting in early 2022 to cool stubbornly high inflation. While the Fed has kept rate hikes paused for the last several meetings, the federal funds rate currently stands at its highest level in 23 years.

Nebraska Enacts Comprehensive Data Privacy Law

On 17 April, 2024, Nebraska Governor Jim Pillen signed into law omnibus Legislative Bill 1074, which includes the Nebraska Data Privacy Act, making Nebraska the seventeenth state to adopt comprehensive data privacy legislation.

doxo Responds to U.S. Federal Trade Commission’s Misguided Litigation

SEATTLE, April 26, 2024 /PRNewswire/ -- Yesterday, the U.S Federal Trade Commission filed a lawsuit against doxo, a company working to deliver a better bill-paying experience for consumers and billers, with a complaint that indicates a fundamental misunderstanding of the existing bill-pay market and the structural inefficiencies that work against consumers. 

CFPB Files Cross-Motion for Summary Judgment in Texas Small Business Lending Rule Lawsuit

The CFPB (or “Bureau”) filed a cross-motion for summary judgment in the lawsuit regarding the small business lending data collection and reporting rule, also known as the 1071 rule based on the Dodd-Frank section that requires the CFPB to adopt the rule (the “Rule”).

Colorado lawmakers consider landmark artificial intelligence regulations

Colorado could be one of the first states to broadly regulate generative artificial intelligence, as lawmakers consider the balance between setting guardrails on a potentially-harmful technology and stifling innovation and entrepreneurship.

CFPB Supervisory Highlights Reflect Continued Emphasis on “Junk Fees”

On April 24, 2024, the Consumer Financial Protection Bureau (CFPB) released the latest edition of its Supervisory Highlights, this time targeting so-called “junk fees” in the mortgage servicing industry. According to the CFPB, its examiners found that mortgage servicers continued to assess junk fees in a wide array of activities, including unnecessary property inspection fees and improper late fees

New York Broadly Revises Hospital Financial Assistance, Medical Debt Collection and Related Requirements

Effective October 20, 2024, New York hospitals must have in place State-mandated changes to their financial assistance (“FA”) programs (including FA eligibility criteria and debt collection practices) and their practices related to consent forms, and patient use of credit cards and medical financial products.

Recent Changes in Medical Collections on Consumer Credit Records

Medical collections on consumer credit reports have been an area of focus for CFPB research in recent years. In addition to studying trends in medical debt as a whole, CFPB reports have documented the burden of medical debt on older Americans, and the incidence of medical collections in rural counties in Appalachia and the Deep South region.

Attorney General James Secures More than $700,000 from Pathward Bank for Illegally Freezing Bank Accounts and Turning Over Consumer Funds to Debt Collectors

NEW YORK – New York Attorney General Letitia James today secured more than $700,000 from Pathward, National Association (Pathward), a national bank formerly known as MetaBank, for unlawfully freezing customer accounts and illegally transferring money to debt collectors.

CFPB Finds 15 Million Americans Have Medical Bills on Their Credit Reports

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released research showing that 15 million Americans still have medical bills on their credit reports despite changes by Equifax, Experian, and TransUnion.

Pay your bills, not impersonators

If you’re paying a medical, utility, or other bill online, you probably expect to wind up on the that company’s website. What might you not expect? An impersonator tricking you into paying them instead. But that’s what the FTC says a company called Doxo did. Here’s what you need to know.

FTC Takes Action Against Bill Payment Company Doxo for Misleading Consumers, Tacking on Millions in Junk Fees

The Federal Trade Commission is taking action against bill payment company Doxo and two of its co-founders, charging that the company uses misleading search ads to impersonate consumers’ billers and deceptive design practices to mislead consumers about millions of dollars in junk fees they tacked on to consumers’ bills.

CFPB Head Says FDIC Should Review More Changes in Bank Control

The Federal Deposit Insurance Corp. (FDIC) should change its rules to ensure that it reviews any “suspicious changes” in bank control, FDIC board member Rohit Chopra said Thursday (April 25). Chopra, who is also director of the Consumer Financial Protection Bureau (CFPB), said during an FDIC board meeting that changes to the Bank Control Act are needed because bank takeovers can currently evade FDIC oversight.

DOE Releases Update on Student Loan Repayment – ACA International

More borrowers made payments on their loans in January and February of this year than in any previous month since data collection began in 2018.

25 States With the Highest Credit Card Debt in the US

In this piece, we will take a look at the 25 states with the highest credit card debt in the US. If you want to skip our overview of US consumer spending and recent economic trends that should worry consumers, analysts, and policy makers, you can take a look at the 10 States With the Highest Credit Card Debt in the US.

Missouri Federal Court Finds Plaintiff Lacks Standing to Challenge Compliance Condition Code on Consumer Report

A U.S. District Court in the Eastern District of Missouri recently granted a defendant’s summary judgment motion in a Fair Debt Collection Practices Act (FDCPA) case, holding that the plaintiff lacked standing because she did not show an injury in fact traceable to the defendant’s alleged consumer reporting.

Save the Date: CFPB and DOT to Hold Joint Hearing on Airline and Credit Card Rewards Programs

On Thursday, May 9, 2024, at 10:00 am ET, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs. Members of the public will hear from CFPB Director Rohit Chopra and Secretary of Transportation Pete Buttigieg, who will moderate a discussion with industry representatives, labor leaders, and consumer advocates about competition issues and challenges that consumers are experiencing with airline and credit card rewards programs.

From the Web: Rising Inflation, Debt Call for Adaptable Collection Approaches

A recent TrueAccord blog post reviewing industry insights from the first quarter of 2024 found that high inflation and mounting debt burdens may have an impact on the most effective consumer communication strategies in the months ahead.

FTC is sued by business groups over its ban on noncompete agreements, which may delay enforcement

New YorkCNN — 

Less than 24 hours after the Federal Trade Commission issued a final rule this week banning employers from using noncompete agreements in the United States, the US Chamber of Commerce and the Business Roundtable filed a lawsuit against the agency in federal court in the Eastern District of Texas.

Nationstar Mortgage Convenience Fee Settlement

A $3,587,254 Settlement has been reached in a class action lawsuit alleging that Nationstar Mortgage, LLC d/b/a Mr. Cooper (“Nationstar”) improperly charged fees to borrowers who made mortgage payments by telephone or IVR (“Convenience Fees” or “Fees”). Nationstar denies any wrongdoing. The Court has not decided who is right.

Americans are falling behind on their payments

Chicago Federal Reserve President Austan Goolsbee said Friday that while consumer debt levels aren’t yet “especially” high, the Fed is concerned about the rate of consumer delinquencies, or missed or late payments on expenses such as auto loans, credit card bills and rent.

Attorney General Bonta Announces $4.5 Million Settlement with University of Phoenix for Unlawful Military Student Recruitment Tactics

OAKLAND — California Attorney General Rob Bonta today announced a settlement with the University of Phoenix, and its parent company Apollo Education Group, Inc (Apollo), resolving an investigation into the University of Phoenix’s use of aggressive and unlawful military student recruitment tactics from 2012 through 2015. These recruitment tactics violated California’s Unfair Competition Law (UCL) and False Advertising Law (FAL). Under the settlement, the University of Phoenix must pay $4.5 million in penalties and other monetary relief and comply with strong injunctive terms.

Consumer Facing Applications: A Quote Book from the Tech Summit on AI

The FTC’s Tech Summit on AI¹ convened three panels that highlighted different layers of the AI tech stack: hardware and infrastructure, data and models, and consumer-facing applications. This third Quote Book is focused on consumer-facing applications. This post outlines the purpose of the quote book, a summary of the panel, and relevant topics and actions raised by the FTC.

Virginia Legislative Updates Impacting Collection Agencies: A Closer Look

Virginia’s legislative session resumed this week, representing an important moment for collection agencies as they navigate amendments proposed by Governor Glenn Youngkin. One of the significant changes under scrutiny is the reevaluation of HB 34 concerning the statute of limitations for medical debt. 

California Attorney General Warns California-Chartered Banks and Credit Unions On Surprise Overdraft Fees and Returned Deposited Item Fees

On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code, § 17200 et seq., and the federal Consumer Financial Protection Act (CFPA), 15 U.S.C., § 5536.

CFPB Backs Connecticut and California Bills to Prohibit Medical Debt Reporting

Recently, the Consumer Financial Protection Bureau (CFPB or Bureau) submitted letters to senators in Connecticut and California supporting their proposals to prohibit medical debt reporting.

ARM Industry Claims a Mixed Bag in February – ACA International

FDCPA and TCPA cases fell, while FCRA and CFPB complaints increased in February, according to the latest report from WebRecon.

Acting Comptroller Issues Statement on the FDIC’s Proposals Related to Change in Bank Control Act

WASHINGTON—Acting Comptroller of the Currency Michael J. Hsu today issued the following statement at the Federal Deposit Insurance Corporation’s (FDIC) board meeting concerning the FDIC memorandum and resolution for proposals related to Change in Bank Control Act:

DFPI Takes Action Against MOHELA to Protect California Student Loan Borrowers

SACRAMENTO – The California Department of Financial Protection and Innovation (DFPI) announced today it has entered into a consent order with Higher Education Loan Authority of the State of Missouri (MOHELA) for failing to timely provide contact information for Californians with older student loans, whose last chance to qualify for debt relief ends on April 30. As part of the settlement, MOHELA agreed to pay administrative penalties of $27,500.

Statement of CFPB Director Rohit Chopra, Member, FDIC Board of Directors, on Reviewing Investments in and Takeovers of Banks

Thank you, Mr. Chairman, for holding this meeting today. It is particularly timely. This is our first board meeting since Sam Bankman-Fried was sentenced to twenty-five years in prison. Bankman-Fried was convicted on seven counts of fraud and conspiracy in a multibillion-dollar scheme involving FTX and an investment fund known as Alameda Research. During the sentencing process, the court heard compelling stories from victims who suffered enormous losses. It’s critical we make sure we truly understand the implications for the FDIC from this massive fraud and take appropriate action.

Collection and Recovery Solutions 2024

CRS2024

Webinar – Bankruptcy Filings: The New Normal or the Calm Before the Storm?

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RMAI 2024 Executive Summit