The Federal Trade Commission issued a statement regarding its referral to the Department of Justice of a complaint against Snap Inc., which operates the Snapchat application. During a closed meeting, the Commission voted 3-0-2 to authorize the issuance of the statement. Commissioners Melissa Holyoak and Andrew Ferguson were recorded as absent. Commissioner Ferguson issued a statement on the matter.
Today, the Consumer Financial Protection Bureau (CFPB) took action against Equifax, the nationwide consumer reporting agency, for its failure to conduct proper investigations of consumer disputes. The CFPB found Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing and conflicting letters to consumers about the results of its investigations, and used flawed software code which led to inaccurate consumer credit scores. The order requires Equifax to comply with federal law, and Equifax must pay a $15 million civil money penalty, which will be deposited into the CFPB’s victims relief fund.
Collections exists in a digital landscape today, and ensuring compliance in data security is a critical priority. As financial institutions increasingly rely on digital collections, the challenges of maintaining consumer privacy while adhering to strict regulations have intensified. Navigating these complexities requires a comprehensive understanding of regulatory requirements and the implementation of robust data security measures.
The National Credit Union Administration today released a Research Note that provides an analysis of statistics for overdraft and non-sufficient funds fees, and observations on the relationship between overdraft and non-sufficient funds fees and other revenues.
Earlier this week, the CFPB issued a proposed rule. Among other things, the proposed rule would “forbid covered persons from including in their consumer contracts any terms or conditions that purport to waive substantive legal rights and protections” or that “reserve to the covered person the right to unilaterally amend a material term of the contract.” The CFPB states that it “has preliminarily concluded that use of these clauses may constitute an unfair or deceptive act or practice” because they are contained in so-called “contracts of adhesion”—particularly electronic contracts which, the CFPB argues, are often unread or misunderstood by consumers.
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