CFPB Classifies Buy Now, Pay Later Lenders as Credit Card Providers: What It Means for Consumers

The Consumer Financial Protection Bureau (CFPB) has recently issued an interpretive rule that classifies Buy Now, Pay Later (BNPL) lenders as credit card providers. This decision, announced through a press release, mandates that BNPL lenders extend key consumer rights and legal protections typically associated with traditional credit cards. This move aims to address growing concerns about consumer protection in the rapidly expanding BNPL market.  Key Protections Under the New Rule  […]

Supreme Court Upholds Consumer Financial Protection Bureau’s Funding 

In a notable ruling, the U.S. Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), concluding that it does not violate the Constitution’s separation of powers clause. Justice Clarence Thomas authored the decision, which passed with a 7-2 majority. Justices Samuel Alito and Neil Gorsuch dissented.  The case, Community Financial Services Association of America Ltd. (CFSA) v. CFPB, revolved around whether funding the CFPB through […]

Sample Size for Oversight – Call Monitoring 

Back in school during statistics class, I remember thinking, “When will I ever use this stuff?” Population size, variance, and margin of error—all critical components of establishing a statistically valid sample size—seemed like distant concepts at the time. That convoluted formula we had to memorize felt more like a test of endurance than a practical tool.  Yet, here I am in the world of collections, realizing the importance of those […]

Wisconsin’s Debt Collection Laws Get an Update: What You Need to Know 

In a notable development for debt collection in Wisconsin, the Great Lakes Credit & Collection Association (GLCCA) has played a pivotal role in securing updates to the state’s debt collection statutes after several years of collaboration with the Wisconsin Department of Financial Institutions (WDFI). The result of this collaborative effort is Wisconsin Act 267, formerly Senate Bill 668, signed into law by Wisconsin Governor Tony Evers on April 4, with […]

Navigating Florida’s New Healthcare Pricing and Medical Debt Legislation 

In an important move affecting healthcare services and the collection of medical debts, Florida Governor Ron DeSantis signed legislation into law on May 10th. The bill, known as H.B. 7089/S.B. 1640, was unanimously approved by the Florida Senate and House on March 8th, marking the conclusion of Florida’s legislative session.  This legislative development, which brings with it many implications, has garnered attention from various parties, including the Florida Collectors Association (FCA), […]

Empowering Privacy: FTC’s 2023 Update on Safeguarding Consumer Data 

The Federal Trade Commission (FTC) has recently released its Privacy and Data Security Update for 2023, offering insights into its efforts to safeguard consumer privacy in an era of rapidly evolving data usage. The report highlights the FTC’s proactive stance in protecting consumers against indiscriminate data collection and exploitation by companies.  Key highlights from the report include:  Enforcement Actions: The FTC has been proactive in taking legal action against companies […]

Federal Court Ruling on Language Accessibility in New Jersey’s Fair Credit Reporting Act 

A federal district court recently addressed a complex issue involving New Jersey’s Fair Credit Reporting Act and its implications for national credit reporting agencies (CRAs). The law, amended in 2019, mandated that CRAs provide credit file disclosures in English, Spanish, and at least 10 other languages upon consumer request.   However, this requirement faced legal challenge from the Consumer Data Industry Association (CDIA), representing major CRAs like Equifax, Experian, and TransUnion. […]

Auditing Policy and Procedures of Collection Service Providers

The Consumer Financial Protection Bureau (CFPB) emphasizes the importance of institutions managing relationships with service providers to ensure compliance with Federal consumer laws. Verification of an established Compliance Management System (CMS) is crucial, as it serves as the framework for compliance oversight at the service provider. A robust CMS relies on effective policy and procedure management to guide all employees on adhering to the service provider’s processes.  Let us look […]

Two Supervisory Highlights for Spring 2024

The Consumer Financial Protection Bureau (CFPB) has released two Supervisory Highlights for Spring 2024, covering Fair Credit Reporting Act (FCRA) Compliance, Supervision, Credit Reports, Scores and Identity Theft and Mortgage Servicing, Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs), Deceptive Practices, and Mortgages. These Supervisory Highlights identify various issues and offer guidance to organizations on ensuring compliance with federal regulations concerning credit reporting and mortgage loan operations.  If your focus […]

California Attorney General Takes Aim at Surprise Bank Fees: A Breakdown of the Letter

In a move aimed at protecting consumers, California Attorney General Rob Bonta issued a letter on February 20, 2024, directed at California-chartered banks and credit unions with assets under $10 billion. The letter highlighted the potential violation of California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA) by charging surprise overdraft fees and returned deposited item fees. Understanding the Legal Framework California’s UCL prohibits any business […]