- Credit Card Delinquency Rate Declines
Central Valley Business Times (CA) 20 Nov 2013
Figures compiled by TransUnion LLC show that both the credit card delinquency rate and the average credit card debt per borrower declined on a annual basis during the third quarter. Card delinquency fell to 1.36 percent, down 14 basis points from 1.50 percent a year earlier.
- Senate Aging Committee Launches Anti-Fraud Hotline for Seniors
Reverse Mortgage Daily 20 Nov 2013
The U.S. Senate Special Committee on Aging recently went live a new anti-fraud hotline that older Americans can contact if they believe they have fallen prey to a financial scam. The toll-free number will put callers in touch with committee investigators who can hear their complaints about payday loans, identity theft, bogus sweepstakes and lottery schemes, abusive reverse mortgage deals, investment scams, Social Security and Medicare fraud, and other elder financial abuse problems.
- Markey Introduces Bill to Protect Troops From Predatory Lenders
Hispanic Business 20 Nov 2013
Enlisted persons and their families are three times as likely as civilian households to turn to predatory payday loans when in financial distress and also are more likely to carry heavy credit card debt, but new legislation promises to give them alternative choices. The Military Savings Act, introduced Nov. 20 by Sen. Edward Markey (D-Mass.), creates a pilot program under which financial institutions on base offer innovative products to help members of the Armed Services and their families get on more stable financial ground.
- Jay Blasts 'Scumbags' Who Prey on Veterans
Charleston Gazette (West Virginia) 20 Nov 2013
Because they are at high risk of predatory or fraudulent lending and debt collection, enlisted persons should be wary of high-pressure sales, said witnesses at a U.S. Senate Commerce Committee hearing on Nov. 20. Sen. Jay Rockefeller (D-W.Va.) called the meeting to address why military members have higher credit card debt and why they are more likely to use high-interest loans such as payday lenders.
- For Those in Their 20s, A Finding That They Don’t Manage Debt Well
New York Times 20 Nov 2013
Although young adults in their 20s and early 30s have been cutting back on most forms of debt -- except student loans -- an analysis by Experian suggests that they still could manage their debt more responsibly.
- Student Loan Market Headed for Crisis, CFPB Warns
American Banker 19 Nov 2013
The student loan market lacks the data and regulations that could prevent another financial crisis, according to Rohit Chopra with the Consumer Financial Protection Bureau.
- Lawrence Co. Fined $240K for Predatory Lending
Banker & Tradesman 19 Nov 2013
Pinnacle Financial Consulting, based in Lawrence, Mass., and its owner, Robert Burton, have been fined $240,000 by a Suffolk Superior court for violating an order to stop its predatory lending practices. The office of Massachusetts Attorney General Martha Coakley filed charges against the firm in March.
- Democrats Call on Regulators to Report on Foreclosure Review
American Banker 19 Nov 2013
Democratic legislators are prodding federal regulators to give details from an independent audit of millions of borrowers who faced foreclosure, even though the review process ended prematurely.
- JPMorgan's $13 Billion Settlement to Include Deadline for Assisting Homeowners
Washington Post 19 Nov 2013
As part of a tentative $13 billion settlement, sources say the U.S. government is set to impose a deadline for JPMorgan Chase to deliver consumer relief.
- HOPE NOW: Foreclosure Starts Down 42 Percent Compared to Last Year
MortgageOrb.com 19 Nov 2013
Lenders initiated an estimated 290,000 foreclosure proceedings in the third quarter, reports mortgage industry alliance HOPE NOW. The number is down more than 10 percent from 323,000 foreclosure starts in the previous three-month period and down about 42 percent from 499,000 in the 2012 third quarter.
- US CFPB Penalizes Republic Mortgage Insurance Over Illegal Kickbacks Practices
Insurance Business Review 18 Nov 2013
Republic Mortgage Insurance Corp. (RMIC) has drawn a $100,000 fine for allegedly feeding illegal kickbacks to home lenders under an arrangement that had gone on for more than 10 years.
- Community Trust in Ky. Faces Sanctions Tied to Overdraft Fees
American Banker 18 Nov 2013
Community Trust Bancorp (CTBI) in Pikeville, Ky., disclosed in a recent regulatory filing that it could face sanctions from the Federal Reserve Board tied to its overdraft policy.
- Tennessee Regulators to Back Off Some Payday Lenders
Nashville Business Journal 18 Nov 2013
Payday lenders in good standing with the Tennessee Department of Financial Institutions will enjoy a larger gap between inspections, according to WPLN Nashville Public Radio.
- Finally, A Chance to Curb the Abuses of For-Profit Colleges
Huffington Post 18 Nov 2013
Waste, fraud, and abuse have been uncovered at many for-profit colleges; but the question remains whether federal and state authorities can drive out the worst offenders and reform the entire sector. For-profit colleges have been found to be a major factor in the $1 trillion student debt crisis, accounting for just 13 percent of U.S. college students but about 47 percent of all student loan defaults.
- Reining in Payday Lenders
New York Times 17 Nov 2013
Earlier this month, the Consumer Financial Protection Bureau (CFPB) announced that it will start to collect complaints from borrowers who may have experienced unreasonable fees, unauthorized withdrawals from their checking accounts, or other abuses from payday lenders.
- More Cities Consider Using Eminent Domain to Halt Foreclosures
The New York Times 16 Nov 2013
Cities hard hit by the housing crash are showing interest in using eminent domain to halt foreclosure activity locally. Yonkers, near New York City, is expected to soon take up a resolution to study the use of eminent domain to reduce debt. Meanwhile, support for the practice is growing in Newark, N.J., and in the California markets of Oakland and Pomona.
- Homeowner Tax Benefits Seem Unlikely to Get Congress's Attention Before They Expire
Washington Post 16 Nov 2013
For the second consecutive year, key federal tax breaks for homeowners are about to expire; but little effort is being made to extend mortgage-forgiveness debt relief and deductions for mortgage insurance payments and home energy-efficiency retrofits beyond Dec. 31.
- Average Payday Loan in Utah Has Triple-Digit Interest
Salt Lake Tribune 15 Nov 2013
There are now 565 payday lending and title loan locations in Utah, providing short-term advances at an average interest rate of nearly 500 percent.
- Justice Department Teams With CFPB in Probe of Possible Discriminatory Auto Financing
Washington Post 15 Nov 2013
Government regulators are launching efforts to prevent car dealers from jacking up the cost of financing to women and minorities. Dealers can mark up the interest rate on vehicle loans arranged through lenders, which can increase the profit on a sale by hundreds of dollars. Advocacy groups have been warning, however, of disparities in the number of black and Latino borrowers subjected to these higher fees; and they question whether the practice is tantamount to illegal, unfair lending.
- U.S. Consumer Borrowing Increases
Wall Street Journal 15 Nov 2013
Americans increased their borrowing in the third quarter -- a trend that could boost the economy -- while at the same time the nation's student loan tab also surpassed $1 trillion.