Covid-19 Infobytes
CFPB provides update on student loan borrowers
On November 2, the CFPB’s Office of Research released an update showing that student loan borrowers are increasingly likely to struggle to make monthly payments when federal Covid-19 payment suspensions end in January 2023. The findings follow a report issued in April discussing the credit health...
InfoBytesCFPB releases education ombudsman’s annual report
On October 20, the CFPB Education Loan Ombudsman published its annual report on consumer complaints submitted between September 1, 2021 and August 31, 2022. The report is based on approximately 8,410 complaints received by the Bureau regarding federal and private student loans—a 59 percent increase...
InfoBytesFTC reports on actions to protect seniors
On October 18, the FTC issued a report titled Protecting Older Consumers, 2021-2022, A Report of the Federal Trade Commission on measures taken to protect older adults from scams. Using data from the FTC’s Consumer Sentinel Network, which is a secure online database that provides law enforcement...
InfoBytesVA clarifies Covid-19 forbearance timeline
On September 19, the Department of Veterans Affairs issued a change to Circular 26-21-20 extending the rescission date to align with the end of Covid-19 pandemic, including conforming changes to VA’s expectation as to the completion of a forbearance period. As previously covered by InfoBytes , the...
InfoBytesFTC, DFPI shut down operation offering mortgage relief
On September 19, the FTC and the California Department of Financial Protection (DFPI) announced a lawsuit against several companies and owners for allegedly operating an illegal mortgage relief operation. (See also DFPI’s announcement here .) The filing marks the agencies’ first joint action, which...
InfoBytesDOJ fines bank in "first-ever" FCA settlement over PPP loan
On September 13, the U.S. Attorney’s Office for the Southern District of Texas announced an agreement with a bank to pay approximately $18,600 to resolve allegations that it violated the False Claims Act (FCA). This “is believed to be the nation’s first settlement with a Paycheck Protection Program...
InfoBytesWA Superior Court: Insurance commissioner overstepped in banning credit scoring in underwriting
On August 29, the Washington State Superior Court entered a final order declaring that the Washington Insurance Commissioner exceeded his authority when he issued an emergency rule earlier this year banning the use of credit-based insurance scores in the rating and underwriting of insurance for a...
InfoBytesDistrict Court dismisses EFTA claims concerning fraudulent transactions
On August 18, the U.S. District Court for the Eastern District of Michigan dismissed a class action alleging violations of the EFTA brought against a national bank on behalf of consumers who were issued prepaid debit cards providing Covid-19 pandemic unemployment insurance payments. Two of the...
InfoBytesFHFA updates FAQs and clarifies Covid-19 tenant protections
On August 25, FHFA updated its Frequently Asked Questions (FAQ) regarding Fannie Mae and Freddie Mac assistance options for families impacted by the Covid-19 pandemic. Additionally, FHFA revised its “Tenant Protections for Enterprise-Backed Rental Properties in Response to COVID-19,” which is...
InfoBytesDistrict Court dismisses EFTA claims over prepaid debit card fraud
On August 11, the U.S. District Court for the District of Maryland dismissed a putative class action alleging violations of the EFTA and state privacy and consumer protection laws brought against a national bank on behalf of consumers who were issued prepaid debit cards providing pandemic...
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