Collector, CRAs Sued Over Handling of ID Theft Dispute
- A collection operation and three credit reporting agencies are facing claims of violating the California Consumer Credit Reporting Agencies Act, the California Identity Theft Act, and the Rosenthal Fair Debt Collection Practices Act among other claims, for not believing the plaintiff’s claim that the underlying debt was the result of identity theft.
- More details here
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House GOP Bill Targets CFPB Complaint Database, Adds Attestation and Perjury Penalties
- A bill has been introduced in the House of Representatives by Rep. Andy Barr [R-Kent.] that would overhaul the CFPB’s public consumer complaint database as it exists today with a system that requires consumers to attest under penalty of perjury that their complaints are accurate, authorized, and raised with the company first, while also allowing financial institutions and collectors to close duplicative, frivolous, or unauthorized complaints and restricting the public release of complaint narratives. The proposal, H.R. 7588, branded as the “Eliminating Fraud in the CFPB’s Complaint Database Act,” would significantly change how complaints are submitted, verified, responded to, and disclosed, with direct implications for banks, fintechs, credit unions, and collection operations that regularly manage CFPB complaint workflows.
- More details here
New York Issues Wide-Ranging Proposal to Regulate Buy Now, Pay Later
- The New York Department of Financial Services has proposed a comprehensive new regulatory framework for Buy Now, Pay Later products that would impose licensing and supervision requirements on BNPL providers, cap fees and interest, mandate credit-like disclosures and dispute rights, and tighten data privacy rules. The proposed rules, would apply to both zero-interest “pay-in-four” products and interest-bearing installment BNPL loans.
- More details here
Judge Rejects Bid to Block Credit Reporting in FDCPA Case
- A District Court judge in New York has denied a plaintiff’s motion for a preliminary injunction that would have prohibited a defendant in a Fair Debt Collection Practices Act lawsuit from furnishing information about the debt to the credit reporting agencies. The request would have barred the defendant from reporting, furnishing, or re reporting a collection tradeline to the major consumer reporting agencies while the lawsuit proceeds. The plaintiff argued that continued credit reporting was causing ongoing harm through credit denials and adverse lending outcomes, and that the Court should step in to halt that activity during the litigation.
- More details here
Texas Court Tosses FCRA Case Over Settlement Dispute on Tradelines
- A District Court judge in Texas has granted a defendant’s motion for summary judgment in a Fair Credit Reporting Act case over a disagreement between the plaintiff and the defendant stemming from a settlement of a previous lawsuit that included details about how many of the tradelines in question would be closed.
- More details here
Controlytics Launches to Help Financial Institutions Build Scalable Compliance Programs
- Controlytics announced its official launch as a compliance services and technology company designed to help financial institutions assess, strengthen, and continuously manage their Compliance Management Systems (CMS) in an increasingly complex regulatory environment.
- More details here
WORTH NOTING: What Elon Musk gets right about risk … RevSpring has acquired TrustCommerce, a healthcare payment and security provider … Things the middle class won’t be able to afford in five years … The Court of Appeals for the D.C. Circuit will hear arguments today in the CFPB case … GetOutofDebt.org has released a free AI-powered debt advisor for consumers … AI isn’t the problem. People are the problem … Five ways to help preserve your vision as you get older … CarMax is paying $500k after claims it repossessed the vehicles of servicemembers on active duty.
Trailer Tuesday, part I
Trailer Tuesday, part II
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