CFPB Delays Proposals on Overdraft, Payday Lending and Debt Collection
The Consumer Financial Protection Bureau has pushed back three key rulemakings - including the highly anticipated proposal on payday lending - until next year.
“We are evaluating what types of rules would be appropriate and warranted under CFPB authorities” to restrict payday lending, wrote Kelly Cochran, the CFPB’s assistant director for regulation, in a blog post.
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The defendants in a federal court action brought by the Federal Trade Commission agreed Thursday to stop running an advance fee recovery scheme for the duration of the ongoing litigation. more »
The founder of DECA Financial Services, once a fast-growing debt collection agency in Fishers, Ind., is facing federal charges in a $5 million fraud case. more »
Michael Levitis, the owner of a New York debt settlement company, was sentenced to nine years in prison Wednesday after pleading guilty in a fraud scheme that law enforcement officials said victimized 1,200 people with false promises of relief from credit card companies and banks. more »
Federal and state regulators on Wednesday stopped an online scheme that allegedly lured consumers with offers of free credit scores. more »
A Georgia-based collection agency and seven employees are facing fraud charges after a federal investigation revealed tactics that prosecutors believe convinced more than 6,000 people to pay the firm an estimated $4.1 million in purported debts, according to a criminal complaint filed Tuesday. more »
Law enforcement officials in the Albany, N.Y. area are warning people about a collection scam involving an operation that claims to be from the IRS. more »
Pennsylvania regulators filed a lawsuit against an operation that allegedly ran an illegal online payday loan scheme. The suit names several collection agencies as defendants. more »
A suburban Chicago collection agency was the subject of a television news report after a former employee spoke out about alleged collection tactics the agency uses to target unsuspecting consumers. more »
A federal court has ordered two debt sellers that posted the sensitive personal information of more than 70,000 consumers online to notify the consumers and explain how they can protect themselves against identity theft and other fraud as a result of the disclosures. more »
Benjamin Lawsky
New York's top banking regulator Benjamin Lawsky, who used his leverage to stiffen penalties against some of the world's largest financial institutions, will probably step down next year to take a job in the private sector, said a person familiar with the matter. more »
Florida Attorney General Pam Bondi’s office has sued Consumer Collection Advocates Corp. and Michael Robert Ettus, principal, for allegedly targeting consumers who were victims of previous frauds or scams. more »
Three Colorado law firms accused of inflating foreclosure costs charged to homeowners and padding bills with unauthorized expenses agreed Thursday to settle lawsuits filed by outgoing Colorado Attorney General John Suthers. more »

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