Professional Finance Company, one of the leading debt collection agencies in the United States, has agreed to settle a class action lawsuit that alleged negligence for failing to implement reasonable and appropriate measures to protect the sensitive data provided by its healthcare clients. The Greeley, CO-based company suffered a ransomware attack on February 26, 2022. The attack was blocked but not in time to prevent unauthorized access to sensitive data.
On January 15, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a Compliance Aid to clarify the requirements under the Electronic Fund Transfer Act (EFTA) and Regulation E. Electronic Fund Transfers (EFTs) are defined as “any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer’s account.” The Compliance Aid, presented in a Frequently Asked Questions (FAQs) format, addresses various aspects of EFTs, including coverage, financial institutions’ obligations, and error resolution processes.
The auto finance market represents a significant component of consumer credit in the United States, with outstanding auto loan balances exceeding $1.64 trillion through the third quarter of 2024. This accounts for more than 100 million active auto finance accounts and $63 billion in new monthly originations as of April 2024. Despite its size, detailed data on the auto finance market remains limited.
Today, the Consumer Financial Protection Bureau (CFPB) published a report showing that the rate of auto repossessions at the end of 2022 surpassed pre-pandemic levels. Additionally, lenders were increasingly more likely to use third parties, called forwarders, to manage the repossession process. The use of a third party generally increases consumer costs. The CFPB analyzed data from nine major auto lenders covering accounts with activity between 2018 and 2022. This data show increasing consumer risk in the $1.64 trillion auto loan market.
New York State Department of Financial Services Superintendent Adrienne A. Harris today announced that PayPal, Inc. (PayPal) will pay a $2 million penalty to New York State for violations of DFS’s Cybersecurity Regulation. An investigation determined PayPal failed to use qualified personnel to manage key cybersecurity functions and failed to provide adequate training to address cybersecurity risks. These failures led to sensitive customer information, including social security numbers (SSNs), being left unredacted and easily accessible to cybercriminals.
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