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The Consumer Financial Protection Bureau (CFPB) today released the annual report of the CFPB Student Loan Ombudsman, highlighting the severe difficulties reported by student borrowers due to persistent loan servicing failures and program disruptions. The report details how millions of student borrowers have received relief through new income-driven repayment plans, cancellation programs, and various adjustments and program automation processes.

On November 13, the Consumer Financial Protection Bureau (CFPB or Bureau) released a pilot study titled “Matched-Pair Testing in Small Business Lending Markets” highlighting what the CFPB believes were two statistically significant disparities in the treatment of Black and white small business owners seeking loans. First, the secret shopping study indicated that Black entrepreneurs were less encouraged by small business lenders to apply for loans. Specifically, such lenders expressed interest in obtaining loan applications from 40% of white participants, but only 23% of Black participants.

In this podcast show, we explore with our repeat guest, Professor Dan Awrey of Cornell University Law School, his working paper “Money and Federalism” in which he advocates for the enactment of Federal legislation creating a Federal charter for non-banks engaged in the payments business, like PayPal and Venmo. The article may be accessed online at SSRN and will likely be published in a law review at some time in the future.

In banking and financial services, collections executives face the dual challenge of improving debt recovery and navigating an increasingly complex regulatory environment. Understanding recent advancements in debt recovery, together with the compliance factor shaping these developments, is crucial for professionals in this domain.

The Federal Trade Commission (FTC) has taken decisive action against Global Circulation, Inc. (GCI), a Georgia-based debt collection agency, accusing the company of using unlawful tactics to coerce consumers into paying more than $7.6 million in false debts. According to the FTC, GCI and its owner, Kenneth Redon III, misled consumers by making threats of jail time, harassing their family members, and using various other illegal practices to collect bogus debts.