SACRAMENTO – Governor Gavin Newsom on Monday signed a package of consumer financial protection legislation to expand consumer rights and increase transparency, protecting Californians from scams and unscrupulous practices in automatic renewal subscriptions, debt settlement and collection and other financial services. “These bills curb predatory and abusive practices used to target vulnerable Californians, and empower consumers to make informed decisions with their hard-earned money,” said Governor Newsom. “With the nation’s strongest state consumer financial protection watchdog and these new measures, California continues to have the backs of working families recovering from the pandemic.”
House Financial Services Committee Democrats and Republicans have found initial common ground on the need for stronger protections for consumer financial data used by third-party companies that share the data across bank accounts, payment apps and other services. Financial Services Chairwoman Maxine Waters, D-Calif., said she will work closely with the Consumer Financial Protection Bureau as it works to issue regulations on financial data. However, Congress should act on the issue, she said. The Senate confirmed Rohit Chopra on Sept. 30 to be the new director of the CFPB.
California had been one of 16 states that did not require licensing of debt collectors. That changed last year with the enactment of the Debt Collection Licensing Act. 2020 Cal. Stats. ch. 163 (SB 908). The DCLA will effect at the beginning of next year and provides for the licensing and regulation of debt collectors.
The California Privacy Protection Agency (CPPA) announced Monday the appointment of Ashkan Soltani to the position. Soltani was among the architects of the California Consumer Privacy Act (CCPA), which the CPPA will enforce until the enhanced California Privacy Rights Act (CPRA) takes effect Jan. 1, 2023.
Consumer notification requirements for debt collectors were part of consumer financial protection legislation signed by Gov. Gavin Newsom in California on Monday, according to a news release from the governor’s office .
The Federal Trade Commission put 70 for-profit higher education institutions on notice that the agency is cracking down on any false promises they make about their graduates’ job and earnings prospects and other outcomes and will hit violators with significant financial penalties.
The Maryland office of the Commissioner of Financial Regulation announced it will host a free virtual information session Oct. 26 for Maryland consumer debt collection agencies.
Deadline to request initial forbearance for HUD/FHA, USDA, or VA backed loans is extended until National Emergency ends
If the coronavirus pandemic has made it difficult for you to make your mortgage payments, it’s not too late to request COVID hardship forbearance from your mortgage servicer. Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time while you build back your finances.
Payments observers are expecting a tougher regulatory approach from the Consumer Financial Protection Bureau with the confirmation on Thursday of Rohit Chopra as executive director of the 10-year old federal agency. “The agency will likely return to the days of director Cordray,” predicts one close observer who asked not to be named. Richard Cordray served as the CFPB’s first director before stepping down in 2017. His aggressive enforcement approach came in for frequent criticism from the financial-services industry.