Articles

OCC Assesses $80 Million Civil Money Penalty Against Capital One

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed an $80 million civil money penalty against Capital One, N.A., and Capital One Bank (USA), N.A.

CFPB Seeks Input On Improving Access To Credit

On August 3, 2020, the Consumer Financial Protection Bureau (CFPB) published a Request for Information (RFI) that seeks comment on ways to clarify the Equal Credit Opportunity Act’s (ECOA) implementing regulation, Regulation B, to expand access to credit and improve protections against credit discrimination.

The Bank-FinTech Tie-Up Evolves

As bank-FinTech collaborations evolve, more traditional financial institutions (FIs) are not only implementing services and technologies developed by FinTech partners, but they’re also lending their own expertise to augment FinTech solutions. Also seen in this week’s roundup of the latest in open banking and bank-FinTech collaborations is an emerging use of application programming interfaces (APIs) to enhance payments via both new and legacy rails. PYMNTS rounds up the latest partnerships and initiatives below.

Attention ARM Leaders: Debt Collection Payment Portals are Communications Under the FDCPA

Consumer attorneys have found a new weakness in the debt collector’s compliance armor: consumer-facing websites.  As debt collectors increase their use of and reliance on consumer-facing websites to support their collection efforts and facilitate payments, the number of consumer lawsuits claiming these websites violate the FDCPA are also increasing. 

CFPB to Issue Notice on Consumer-Authorized Access to Financial Data

On July 24, 2020, the Consumer Financial Protection Bureau (CFPB) – a government agency that enforces federal consumer financial law –announced plans to issue an advance notice of proposed rulemaking (ANPR) later in 2020 on consumer-authorized access to financial records, according to a news release from the CFPB. The announcement follows a February 2020 CFPB symposium on “Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act” which included experts from consumer groups, fintechs, trade associations, financial institutions, and data aggregators. The CFPB has released a summary report of the symposium.

A running list of companies that have filed for bankruptcy during the coronavirus pandemic

For some, the pandemic was a chance to open a new chapter. But for many businesses, the swift and stark economic shutdown led straight to Chapter 11. “We are seeing an acceleration in bankruptcies that is unprecedented,” James Hammond, CEO of New Generation Research, which runs BankruptcyData, previously told FortuneFor 2020, he says, “I’m pretty confident we will see more bankruptcies than in any businessperson’s lifetime.” Ranked by assets alone, says Hammond, the magnitude of bankruptcies this year has already surpassed that of 2008.

7 groups caution lawmakers about possible ramifications of credit reporting prohibition during COVID-19

WASHINGTON, D.C. – The coronavirus pandemic certainly has disrupted so many parts of finance-company operations. But a group of seven industry organizations, including the American Financial Services Association, is urging federal lawmakers to make sure the pandemic impact doesn’t spread to one of the most important tools for underwriting and portfolio maintenance — credit reporting. The organizations sent a letter this week to the top two members of the Senate Banking Committee to refrain from adding new credit reporting provisions that may negatively affect consumers as federal lawmakers consider potential financial provisions for the COVID-19 response legislation now being discussed on Capitol Hill.

Attorney General Becerra Opposes Proposal by Consumer Financial Protection Bureau that Protects Debt Collectors at Consumers’ Expense

SACRAMENTO – California Attorney General Xavier Becerra, as part of a coalition of 23 attorneys general, submitted a comment letter opposing the Consumer Financial Protection Bureau’s (CFPB) proposed rule on the collection of time-barred debt. Time-barred debt is debt for which the statute of limitations has expired. The proposed rule follows up on the CFPB’s previously proposed Debt Collection Practices Rule, which fails to protect consumers from abusive and unscrupulous debt collectors. In the letter, the coalition argues that the proposed rule is contrary to both the Fair Debt Collection Practices Act (FDCPA) and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and also fails to adequately protect consumers’ rights.

The number of Americans skipping mortgage payments is falling — except among these borrowers

For nearly two months now, the share of mortgage borrowers who has received approval to skip their monthly loan payments has fallen precipitously.  But a new trend has begun to develop, which indicates that some homeowners are facing more financial pressure as the coronavirus pandemic continues.

Lending seized up in the second quarter: Morning Brief

Bank lending collapsed in the second quarter. According to the latest Senior Loan Officer Opinion Survey — or SLOOS report — from the Federal Reserve published Monday, bank lending during Q2 tightened by the most since the financial crisis. Across all parts of the commercial lending business and all ares of consumer lending except housing, banks tightened standards and saw demand plunge during the months covering the most acute phase of the pandemic crisis.