The Federal Trade Commission announced today that it will crack down on education technology companies if they illegally surveil children when they go online to learn. In a new policy statement adopted today, the Commission made it clear that it is against the law for companies to force parents and schools to surrender their children’s privacy rights in order to do schoolwork online or attend class remotely. Under the Children’s Online Privacy Protection Act, companies cannot deny children access to educational technologies when their parents or school refuse to sign up for commercial surveillance.
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Connecticut Banking Dept. issues cease and desist order to stop fintech loan finder from operating without small loan license
The Connecticut Department of Banking (“Department”) has issued a temporary cease and desist order (“Order”) that directs SoLo Funds, Inc., (“SoLo”) a fintech company that uses peer-to-peer technology to assist consumers in obtaining small dollar loans from third-party lenders, to immediately stop engaging in such activity because it is not licensed as a small loan company in Connecticut.
CFPB Metrics Report Shows Increased Scrutiny of Borrower Access to Servicers, Information, and Loss Mitigation Opportunities
On May 16, 2022, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a report regarding COVID-19 response metrics based upon its “observations from data obtained by 16 large mortgage servicers” from May through December 2021 (Report). This report is a follow-up to an August 2021 report regarding the Bureau’s observations from data obtained from December 2020 through April 2021 (Reporting Period).
House Financial Services Members McHenry, Luetkemeyer Express Concern with CFPB Policies in Letter to Director Chopra
The ranking member of the House Financial Services Committee, U.S. Rep. Patrick McHenry, R-N.C., and the ranking member of the Subcommittee on Consumer Protection and Financial Institutions, U.S. Rep. Blaine Luetkemeyer, R-Mo., sent a letter with House Financial Services Committee Republicans to Consumer Financial Protection Bureau Director Rohit Chopra regarding changes in the bureau’s supervisory procedures.
Federal Trade Commission Sends out Second Round of Redress Checks in Payday Lending Scheme Operated by AMG Services
The Federal Trade Commission, through its refund administrator, is mailing 690,000 checks totaling more than $152 million to consumers who lost money to a massive payday lending fraud scheme operated by AMG Services, Inc. and the company’s owner, Scott Tucker. This is the second distribution of refunds in this matter, bringing the total amount returned to consumers to more than $535 million.
CFPB Bolsters Enforcement Efforts by States
Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that describes states’ authorities to pursue lawbreaking companies and individuals that violate the provisions of federal consumer financial protection law. Because of the crucial role states play in protecting consumers, the Consumer Financial Protection Act grants their consumer protection enforcers the authority to protect their citizens and otherwise pursue lawbreakers.
More buyers opt for adjustable-rate mortgages as rates rise
LOS ANGELES — Rising interest rates are making adjustable-rate mortgages an increasingly attractive alternative to common 30-year, fixed-rate home loans. ARMs made up 13% of all home loans by dollar volume in March, their highest share since January 2020, according to CoreLogic
Federal student loans are about to get more expensive
DENVER — The Federal Reserve increased the student loan interest rate for the upcoming 2022-2023 school year. According to Forbes, the rate will increase by 1.26 percentage points. That’s a 34% increase in interest rate for undergraduate student loans compared to the rate last year.
Through the Principles of Excellence, ED Continues to Protect Military-Connected Students
Ten years ago this week, President Barack Obama issued an executive order that established guiding principles to protect veterans, service members, and their families who pursue higher education. These are known formally as the Principles of Excellence for Educational Institutions Serving Service Members, Veterans, Spouses, and Other Family Members. To apply these principles, the U.S. Department of Education (ED) works with the Departments of Defense (DoD) and Veterans Affairs (VA) and the Consumer Financial Protection Bureau (CFPB) to ensure colleges and career schools provide quality educational opportunities to military-connected students.