Court decision muddles proposed FDCPA rule

A ruling from the Seventh Circuit Court of Appeals could complicate the Consumer Financial Protection Bureau’s proposed guidelines for the Fair Debt Collection Practices Act as it relates to electronic validation notices, Chris Willis, a partner at Ballard Spahr LLP, told Auto Finance News. “[The decision] is throwing a fly in the CFPB’s ointment for […]

• Joey Pizzolato
• August 16, 2019
• Auto Finance Excellence, Compliance & Regulation, Risk Management

CFPB extends FDCPA comment period

Sentiment among consumer advocacy groups is split on the Consumer Financial Protection Bureau’s announcement of the 30-day extension on the comment period for its proposed debt collection rule. Last month a group of consumer advocacy groups and industry trade groups sent separate letters to the CFPB requesting a 60- to 90-day extension on the comment […]

• Joey Pizzolato
• August 2, 2019
• Compliance & Regulation

Consumer groups seek extension of FDCPA comment period

Consumer advocacy groups have formally requested a two-month extension — to Oct. 21 — on the comment period for the Consumer Financial Protection Bureau‘s proposed debt collection rule. The comment period is currently set to expire Aug. 19. Seven advocacy groups signed the letter, citing the long and complicated nature of the proposal. “The proposal’s […]

• Joey Pizzolato
• July 31, 2019
• Compliance & Regulation

House Financial Services Committee urges oversight of alt-data

The use of alternative data by lenders could expand access to credit to more than 40 million consumers. Likewise, banks and credit unions are using alternative data to fight fraud and provide faster access to funds. However, regulatory uncertainty surrounds the use of alternative data in making lending decisions, according to the U.S. House Committee on […]

• Nicole Casperson
• July 25, 2019
• Compliance & Regulation, Risk Management

Reconciling refunds: Why aftermarket products became an afterthought

From the July issue: State and federal regulators are ratcheting up enforcement of ancillary product refunds. In the past few years, auto lenders have faced heightened scrutiny related to the percentage of consumers buying ancillary products, how the products are offered, and what disclosures are provided. But compliance examinations of late have veered in another […]

• Nicole Casperson and Joey Pizzolato
• July 23, 2019
• Compliance & Regulation, Features, Risk Management

CFPB, FTC fine Equifax $700M for data breach

Equifax has been ordered to shell out $700 million in fines and financial relief after 147 million consumer identities were compromised in a data breach nearly two years ago. A global settlement was announced today in a proposal filed by the Consumer Financial Protection Bureau, Federal Trade Commission, and 48 states, the District of Columbia […]

• Nicole Casperson
• July 22, 2019
• Risk Management

CFPB outlines auto finance plans

While the Consumer Financial Protection Bureau focused supervisory and enforcement activity last year on mortgage lending, small business lending and student loan servicing, it hasn’t forgotten about the auto finance industry, according to the agency’s 2018 Fair Lending Report to Congress. In fact, several of the hot-topic issues the bureau has highlighted will have implications […]

• Joey Pizzolato
• July 10, 2019
• Auto Finance Excellence, Compliance & Regulation

Comments pour in on CFPB’s debt collection proposal

With 41 days left to submit feedback on the Consumer Financial Protection Bureau’s proposed amendments to the Fair Debt Collection Practices Act, more than 1,100 comments already have been filed. Of those comments, 469 were sent today. Many of the consumer comments claim that the number of contact attempts is too high and that allowing texts and emails […]

• Nicole Casperson
• July 9, 2019
• Compliance & Regulation