- New Principles for Fair Student Lending
Fox Business 13 Nov 2013
Most forms of consumer debt have shrunk since 2008, but student loan debt is still growing, creating potential long-term economic effects such as delaying investments and big-ticket purchases.
- Protections for Checking Customers Vary Widely Among States: Pew
American Banker 13 Nov 2013
Consumers in the Northeast and Southwest United States are more likely to receive consumer-friendly services with their checking accounts compared to residents in the Midwest and some Western states, a new analysis from Pew Charitable Trusts suggests.
- Cordray Vows 'Openness' with Auto Lenders
American Banker 13 Nov 2013
Consumer Financial Protection Bureau Director Richard Cordray acknowledged concerns Nov. 12 about how the agency is regulating indirect auto lenders, promising to be more transparent about its oversight.
- Student Loan Borrowers May Get Relief From For-Profit Colleges
Bloomberg Businessweek 12 Nov 2013
The U.S. Department of Education is proposing rules that would make it easier to cut off funding to low-performing for-profit schools or force colleges to help borrowers saddled with large debts and low earnings.
- Consumer Bureau: Prepaid Card Restrictions Coming
The Hill 12 Nov 2013
Responding to questions at a Nov. 12 hearing on Capitol Hill, the director of the Consumer Financial Protection Bureau pledged greater checks on the prepaid card business.
- Late-Payment Rate on Mortgages Down in 3Q
Associated Press 12 Nov 2013
Property price appreciation, favorable interest rates, and steady employment gains are helping more U.S. homeowners stay on top of their mortgage payments, reports TransUnion.
- Faith Groups Urge Stricter Rules on Payday Loans
Minneapolis Star Tribune 12 Nov 2013
The Joint Religious Legislative Coalition has released a report calling for a broad new crackdown on payday lending in Minnesota, arguing that current limits on the industry are inadequate.
- Mortgage-Credit Availability Rises for First Time in Three Months
MarketWatch 12 Nov 2013
The Mortgage Bankers Association said that, in October, its index of mortgage credit availability registered the first improvement in three months.
- AARP Looks to Legislate Payday Loans
The Advocate (LA) 12 Nov 2013
The AARP is preparing to propose legislation that would limit the long-term interest rates for “payday” loans in Louisiana, after a survey found support for this effort among 60 percent of voting-age state residents.
- U.S. Bank Regulator Refines Use of Independent Consultants
Reuters 12 Nov 2013
The Office of the Comptroller of the Currency (OCC) has issued new guidance on when it will tell banks to bring in outside consultants, partially a result of scrutiny over flubbed reviews of past foreclosures in 2009-2010.
- Area Bank Agrees to $2.5 Million Settlement of Debit Card Fee Lawsuit
Scranton Times-Tribune 12 Nov 2013
Pennsylvania-based First Liberty Bank & Trust has agreed to pay $2.5 million to settle charges that it juggled the order in which it posted debit card transactions.
- Credit-Card Application Rules Eased
Wall Street Journal 11 Nov 2013
The Consumer Financial Protection Bureau (CFPB) on Nov. 4 removed a provision, established under the Credit Card Accountability Responsibility and Disclosure Act, that had blocked many people with no individual income from applying for credit. The restriction was intended to keep young adults out of credit card debt, but the CFPB says it inadvertently led to "otherwise creditworthy" applicants being turned away.
- Louisiana Advocacy Group Seeks Limits on Payday Loan
The Advertiser (LA) 11 Nov 2013
Many consumers who take out a payday loan are put into even worse circumstances when forced to pay back more than they borrowed, according to David Gray, a policy analyst for the Louisiana Budget Project.
- CFPB Launches Tool to Match Consumers With Reverse Mortgage Counselors
Reverse Mortgage Daily 11 Nov 2013
The Consumer Financial Protection Bureau (CFPB) recently launched a tool to help people find local housing counseling agencies, including those that offer reverse mortgage counseling. The resource was released ahead of the January 2014 effective dates for the bureau’s new mortgage rules.
- Here’s How Veterans Are Being Targeted for Crippling Loans
Care2 11 Nov 2013
Although the nation's former enlisted personnel can receive a variety of benefits through the Veterans Administration (VA), many find themselves the targets of exploitative lending practices in the financial sector, such as bait-and-switch loan terms and 400 percent interest rates.
- Home Equity Lines Due for Reset May Be Looming Financial Disaster
Los Angeles Times 10 Nov 2013
A growing number of mortgage professionals are concerned that billions of dollars in home equity credit lines that were extended during the housing boom now could be on the brink of default. That is because the credit lines -- essentially second mortgages with floating rates and flexible withdrawal terms -- feature mandatory "resets" that require borrowers to begin paying both principal and interest on their balances after paying only interest for the first 10 years.
- Fight Against Illegal Payday Loans Turns to Banks
Minneapolis Star Tribune (MN) 09 Nov 2013
Regulators and lawmakers have long been attempting to limit payday loans, but the struggle is moving away from the companies that offer the loans and in the direction of the mainstream financial institutions that help process them. New Jersey borrower Angel L. Gordon, for example, has filed a potential class-action lawsuit against U.S. Bank for its role in processing allegedly illegal loans that she obtained last year from online lender National Opportunities Unlimited Inc. Gordon spent $1,814 over 10 weeks to repay an $800 advance.
- Mortgage Delinquencies Hit Five-Year Low
Wall Street Journal 08 Nov 2013
Some 5.7 percent of residential mortgages were 90 days or more past due or in the foreclosure process in the third quarter, down from 7 percent a year ago, according to the Mortgage Bankers Association.
- Is 18 Too Young for Credit Cards?
MarketWatch 08 Nov 2013
A new study on the credit card behavior of young adults suggests that a provision in the Credit Card Accountability, Responsibility and Disclosure Act of 2009 -- intended to keep many people under 21 years of age from getting a credit card -- was misguided and unnecessary.
- Card Act Cleared Up Credit Cards’ Hidden Costs
New York Times 08 Nov 2013
The 2009 Credit Card Accountability Responsibility and Disclosure Act, better known as the Card Act, was intended to force down the hidden fees that card issuers collect from customers. Researchers led by University of Chicago economist Neale Mahoney found that the law worked as intended, reducing the costs of credit cards -- especially for borrowers with flawed credit -- with no signs of higher interest charges or reduced access to credit.