Understanding Employer Obligations: How the FCRA Regulates Background Checks and Algorithmic Scores in Employment Decisions 

Employers increasingly rely on third-party background checks, algorithmic assessments, and consumer reports when making decisions about hiring, promotions, and evaluating current employees. This reliance raises a critical question: Can an employer utilize these reports without following the Fair Credit Reporting Act (FCRA) guidelines? According to the Consumer Financial Protection Bureau (CFPB), the answer is no. The FCRA, originally established to regulate credit reporting, also extends protections to employees, ensuring that […]

Exploring Cybersecurity Trends and Innovation at the Flyover Fintech Conference 

On October 21, financial technology experts gathered at the Nebraska Innovation Campus in Lincoln, Nebraska, for the second annual Flyover Fintech conference. Hosted by U.S. Representative Mike Flood, R-Neb., the event spotlighted cutting-edge trends in cybersecurity, AI, and digital assets, with panels exploring innovations in Nebraska’s economy and housing sectors. Here’s a look into the key takeaways from the cybersecurity discussions at the conference.  Addressing Cybersecurity Risks in a Rapidly […]

A New Era for Personal Financial Data Rights: Insights from CFPB’s Rohit Chopra

Recently, at the Federal Reserve Bank of Philadelphia, CFPB Director Rohit Chopra delivered important remarks about the newly finalized Personal Financial Data Rights rule. This landmark regulation is a significant development for consumers, promoting freedom, decentralization, and competition within our financial system.  Acknowledging the Past and Present  Chopra opened by expressing gratitude to the Federal Reserve Bank of Philadelphia and its President, Patrick Harker, for their commitment to the region […]

New Legislation Could Help Consumers Build Credit Through Medical Debt Payments 

A new bill introduced on Capitol Hill seeks to change how medical debt is reflected on credit reports, offering consumers the opportunity to improve their credit scores by including positive medical debt payments.  Currently, medical debt can negatively impact credit scores, but paying off this debt doesn’t contribute to improving them. In response, U.S. Representatives Don Bacon and Marie Gluesenkamp Perez have introduced the bipartisan Reporting Medical Debt Payments as […]

FTC’s New Rule Makes Subscription Cancellations Easier for Consumers 

The Federal Trade Commission (FTC) has introduced a new “click-to-cancel” rule designed to simplify the process of canceling subscriptions and recurring payments. Under this rule, businesses must provide consumers with a cancellation process as straightforward as the one used for signing up. The rule, which aims to protect consumers from deceptive practices, will take effect 180 days after its publication in the Federal Register.  FTC Chair Lina M. Khan emphasized […]

CFPB’s Oversight of the Auto-Finance Market: Key Findings 

The latest edition of the Consumer Financial Protection Bureau’s (CFPB) Supervisory Highlights focuses on issues within the auto-finance market, emphasizing efforts to address deceptive practices, improper repossessions, and violations of consumer protection laws. Auto loans are crucial for millions of American families, with debt in this sector reaching $1.616 trillion as of mid-2024, second only to mortgage debt. The CFPB’s report examines auto-finance companies’ practices and their impact on consumers, […]

New Data Broker Regulations: What’s on the Horizon? 

For over a year, the Consumer Financial Protection Bureau (CFPB) has been gearing up for a major rulemaking under the Fair Credit Reporting Act (FCRA) to regulate data brokers and their business practices. The proposal, initially tied to rules on medical debt credit reporting, has since been separated, with both rules expected to have significant effects on their respective industries.  While the medical debt credit reporting rule is still under […]

California Strengthens Consumer Protections with New Legislation on Medical Debt, Subscriptions, and Financial Fees 

As anticipated, Governor Gavin Newsom recently signed several key bills into law, focusing on consumer protections and financial fairness. These new laws are set to safeguard Californians from the burdens of medical debt, misleading subscription services, and unfair banking fees.  Medical Debt Relief and Credit Reporting Reform  Senate Bill 1061 (SB 1061), championed by State Senator Monique Limón (D-Santa Barbara) and supported by Attorney General Rob Bonta, was passed with […]

Understanding the Minnesota Debt Fairness Act: Medical Debt Collection Reforms Effective October 2024 

As of October 1, 2024, significant reforms related to medical debt collection under the Minnesota Debt Fairness Act are set to take effect. Here’s an overview of the critical components and how they will impact healthcare providers, debt collectors, and consumers.  Key Sections Taking Effect in October  Publicly Available Medical Debt Collection Policies (Section 26 [62J.806])    This section mandates that healthcare providers must make their medical debt collection policies […]

Agency Selection:  Fallacies, Theories & Fundamentals

Selecting the right recovery agency is a critical decision for any creditor, but it’s easy to fall into common traps that lead to suboptimal results. From assuming bigger is better to thinking aggressive sales tactics reflect the agency’s collection abilities, many misconceptions influence the selection process. This blog explores the fallacies that often cloud agency selection, the theories guiding agency performance, and the fundamentals you should consider to ensure you’re […]