The underemployment rate for recent college graduates is higher today than it was in the early 2000s. More people are working in jobs they’re overqualified for in order to make ends meet, taking jobs that don’t require a college degree. That’s despite a decade of low unemployment and economic growth and stock market highs. As of March, the underemployment rate for workers aged 22 to 27 stands at 41.3%, according to the Federal Reserve Bank of New York.
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Spring 2019 rulemaking agenda
The Bureau is publishing its Spring 2019 Agenda as part of the Spring 2019 Unified Agenda of Federal Regulatory and Deregulatory Actions, which is coordinated by the Office of Management and Budget. As an independent regulatory agency, the Bureau voluntarily participates in the Unified Agenda. The agenda lists the regulatory matters that the Bureau reasonably anticipates having under consideration during the period from May 1, 2019, to April 30, 2020, as described further below
California Senate passes legislation to create state-chartered cannabis banks
LOS ANGELES — The California Senate on Tuesday approved legislation to create state-chartered cannabis banks to help the industry get around restrictions on access to banking services. Under the state legislation, which was approved by a vote of 35 to 1, private banks or credit unions can apply for a limited-purpose state charter so they can provide depository services to licensed cannabis businesses. The measure, Senate Bill 51, still requires approval of the Assembly and California Gov. Gavin Newsom to become law. Marijuana businesses, including pot shops, are forced to deal predominantly in cash due to continued federal banking restrictions that make it nearly impossible for them to have bank accounts with federally chartered financial institutions. Passage in the nation’s most populous state could add pressure on the U.S. Congress to legalize banking for the marijuana industry.
Operators of Payment Processing Firm Settle Charges for Assisting Fraudulent Schemes that Took More than $110 Million from Consumers
Payment processor Allied Wallet, its CEO and owner Ahmad (“Andy”) Khawaja, and two other officers, Mohammad (“Moe”) Diab and Amy Rountree, have agreed to settle Federal Trade Commission charges that they assisted numerous scams by knowingly processing fraudulent transactions to consumers’ accounts. According to the FTC’s complaint, the operators of Allied Wallet knowingly processed payments for merchants that were engaged in fraud. These include merchants that were subject to law enforcement action by the FTC and the SEC, such as Stark Law, a phantom debt collection scheme; TelexFree, a pyramid scheme; and MOBE and Digital Altitude, two business coaching schemes that defrauded consumers with claims they would make substantial income.
NAFCU files amicus supporting FCUs’ ability to bring suit in federal court
NAFCU yesterday announced that it has filed an amicus brief in support of Navy Federal Credit Union as the credit union appeals a lower-court decision that determined it did not have diversity jurisdiction to file a federal lawsuit. In order to sue in federal court, certain criteria must be met: the plaintiff and defendant either have to have a federal case or controversy, or be citizens of different states. If this criteria is not met, then the lawsuit must be filed in state court.
FCC’s Call Blocking Plans Could Create Problems for Collections
Plans announced on May 15 by the FCC to empower voice service providers to offer more aggressive call-blocking programs could create significant problems for creditors and debt collectors. In addition to allowing providers to block unwanted calls by default, the FCC plans to allow providers to offer opt-in blocking in which a consumer can elect to block calls from any numbers that are not on the consumer’s own contact list. Such opt-in blocking could result in the blocking of legitimate communication attempts, such as collection calls from creditors or debt collectors.
CFPB: Proposed rule with request for public comment.
The Bureau of Consumer Financial Protection (Bureau) proposes to amend Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection Practices Act (FDCPA) and currently contains the procedures for State application for exemption from the provisions of the FDCPA. The Bureau’s proposal would amend Regulation F to prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The Bureau’s proposal would, among other things, address communications in connection with debt collection; interpret and apply prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection; and clarify requirements for certain consumer-facing debt collection disclosures.
Fed Chair Powell: Business debt is rising but does not pose a threat to the system
Federal Reserve Chairman Jerome Powell said rising levels of corporate debt need watching but so far do not pose a threat to the financial system. The central bank chief spoke Monday at the Financial Markets Conference in Amelia Island, Florida, on assessing risks to the financial system a decade after the end of the financial crisis that caused the economy to sink into its worst downturn since the Great Depression.
Fannie Mae and Freddie Mac are refinancing fewer mortgages than at any point since the crisis
Recently released data from the Federal Reserve Bank of New York’s Center for Microeconomic Data revealed that the first quarter of this year was the mortgage business’ worst quarter in more than four years, but a deeper dive into the data shows that on the refinance side of things, it may have been the worst quarter since the financial crisis.
Servicemembers exhibit higher levels of financial well-being than the U.S. population over
Recently, the Department of Defense (DoD) released its Annual Report on the Financial Literacy and Preparedness of Members of the Armed Forces, which shows that servicemembers exhibit slightly higher levels of financial well-being compared to the general U.S. population. Last month, the CFPB’s Office of Servicemember Affairs (OSA) released a research brief on the financial well-being of veterans. The research showed that veterans, similarly to servicemembers, experience somewhat higher levels of financial well-being than non-veterans.