Article archive
Every published article, newest first. Page 5 of 13.
LicensingState-by-State Licensing Challenges in Money Transmission
In money transmission, one of the most persistent challenges is meeting each state's licensing requirements. Money transmission is governed mostly at the state level, which creates a patchwork of rules, standards, and processes that vary widely from one jurisdiction to another. Working through these diverse frameworks is essential for transmitters that want to operate legally and efficiently across many states.
ComplianceNavigating CFPB's Proposed Rulemaking: Key Insights for Data Brokers
The Consumer Financial Protection Bureau (CFPB) has issued a Notice of Proposed Rulemaking (NPRM) that could reshape the landscape for data brokers and consumer reporting. The changes rest on expanded definitions and higher compliance requirements, signaling a new era of accountability in handling consumer data. Here are the key insights businesses need to work through them.
ComplianceCompliance Corner: No Place Like Home? Fine-Tuning Your Remote Work Strategies
Unbelievably it has been almost five years since the world undertook one of the largest work-from-home experiments ever. Ready or not, in the days and weeks following the World Health Organization's March 2020 declaration that COVID-19 was a pandemic, employers throughout the world grappled with how to securely and productively have their workforces work remotely. [...]
CompliancePreparing for the CFPB's 'Small-Dollar' Lending Rule
The regulatory landscape for payday lenders, auto title lenders, and high-cost installment lenders is facing a pivotal moment. The Consumer Financial Protection Bureau (CFPB)'s "Small-Dollar" Rule - designed to protect consumers from harmful lending practices - is now firmly on track to take effect. Recent court rulings in the litigation between the Community Financial Services Association (CFSA) and the [...]
ComplianceMedical Debt: A 2024 Year-End Legislative Overview
This year, the landscape of medical debt collection is undergoing major transformation. Significant new federal and state legislation is redefining how collectors can pursue medical debts, driven by increasing concerns about consumer protections and the broader financial impacts of medical debt. For debt collection professionals, understanding these changes and adapting processes accordingly is crucial to [...]
LendingEnhancing Mortgage Compliance and Risk Management with AI and Automation
The mortgage lending industry faces complex compliance requirements and heightened scrutiny. Artificial intelligence (AI) and automation are becoming powerful tools. AI-driven solutions can reduce operational costs, improve accuracy, and streamline labor-intensive processes. This article explains how AI and automation are reshaping compliance and risk management in mortgage lending, with use cases in loan origination, underwriting, and fraud prevention.
ComplianceKey Compliance Priorities for Mortgage Servicers in 2024
The mortgage servicing industry is constantly evolving, and the regulatory landscape is no exception. Staying compliant with the latest regulatory changes is both challenging and critical. In 2024, an increase in consumer protection focus, data privacy requirements, and environmental, social, and governance (ESG) initiatives mean that mortgage servicers must stay nimble and proactive. This article [...]
InsuranceThe Growing Threat of Cyber Attacks in the Financial Services Industry
As digital technology advances, the financial services industry faces growing cyber threats. Banks, insurance firms, and fintech companies handle huge amounts of sensitive data, which makes them prime targets. Understanding these risks and acting on them is essential to protect both customers and institutions.
LicensingAdapting to New Licensing Requirements for Digital-Only Financial Services
Digital-only financial services, such as fintechs, online lenders, and neobanks, have disrupted traditional finance. They use technology to offer banking, lending, and payment services online, with more convenience for customers. As these firms expand across jurisdictions, meeting licensing requirements gets more complex.
LicensingThe Intersection of Licensing and Cybersecurity
As fintech companies grow, licensing and cybersecurity compliance collide. Regulators now expect firms to prove strong data protection before they will grant or renew a license.
LicensingNew Money Transmitter Licensing Requirements Under the MTMA
Recent updates under the Uniform Money Transmission Modernization Act (MTMA) mean several states have significantly revised their licensing requirements. If you operate in financial services or virtual currency, note that money transmitter licensing may now be required where it was not before. Many businesses will need to reassess their compliance strategies to meet the new standards.
ComplianceSignificant Amendments to New York City Debt Collection Rule
On August 12, 2024, the New York City Department of Consumer and Worker Protection (DCWP) unveiled significant amendments to the city's Debt Collection Rule. These amendments take effect on December 1, 2024, and represent a substantial shift in the regulatory landscape for debt collectors. Here is what businesses need to understand and prepare for.
ComplianceCompliance Corner: An Apple a Day Isn't Keeping Changes to Laws Affecting Medical Debt Away
While the August 12, 2024 deadline for comments on the proposed rules published by the Consumer Financial Protection Bureau ("CFPB") is quickly approaching, the landscape for vendors of all sorts working on the revenue cycle side of healthcare continues to change. A key priority in Washington, D.C. has been to address the issue of roughly [...]
ComplianceStrategic Responses to Brokered Loan Modifications in California
California's commercial and consumer lending landscape faces a significant challenge after a 9th Circuit Court of Appeals decision. The ruling strips brokered loans of their exemption from usury limits once a loan is extended. But there is a possible fix: California Senate Bill 1146 would amend the current statute to restore these exemptions.
ComplianceCFPB Releases Supervisory Highlights Focusing on Debt Collection and Loan Servicing Practices
The CFPB's latest Supervisory Highlights flags problems in auto and student loan servicing, debt collection, and medical payment products. Here is what examiners found and how firms responded.
LicensingTrends and Challenges in the Debt Buying Industry
The debt buying industry keeps the financial system liquid by helping lenders recover unpaid debts. As the sector changes, it faces several trends and challenges. This article covers what debt collectors, debt buyers, accounts receivables management professionals, directors of risk, and compliance directors need to know.
ComplianceRhode Island Introduces Comprehensive Data Privacy Law with Key Exemptions
On June 28, Rhode Island became the nineteenth state to enact a comprehensive consumer data privacy law. The Rhode Island Data Transparency and Privacy Protection Act (Senate Bill 2500) takes effect on January 1, 2026. Here is who it covers, its key exemptions, and what businesses must do to comply.
LicensingMinnesota Debt Collection Reforms
Minnesota Governor recently signed into law Senate Bill 4097 introducing a series of reforms for Debt Collection relating to collection agency licensing, coerced debt, medical debt limitations, property exemptions, and wage garnishment. The provisions that were passed into law affecting the receivables industry are summarized as follows: Waiver of Collection Agency License Requirement The Commissioner [...]
ComplianceCFPB Issues Interpretive Rule on Buy Now Pay Later Services
In an era where the convenience of digital transactions intersects with the needs of immediate gratification, the rise of buy now pay later (BNPL) services has reshaped the financial landscape. These services, offering an alternative to traditional credit card usage, promise a simplified purchasing process with deferred payments. BNPL firms have seen a rapid increase [...]
ComplianceNew Minnesota Data Privacy Law: What You Need to Know
Minnesota has taken major steps to protect consumer rights and secure the handling of personal data. New privacy legislation puts a spotlight on the duties of financial services businesses, lenders, and debt collectors. It underscores how important compliance with these new Minnesota laws has become and sets a benchmark for protecting sensitive data.
ComplianceUS Supreme Court Upholds CFPB Funding: Key Consequences
In a landmark ruling, the US Supreme Court upheld the legal foundation and funding of the Consumer Financial Protection Bureau (CFPB). It was a decisive moment for regulatory oversight in the financial sector. The decision shapes the immediate landscape and sets a precedent for the independence of similar federal agencies.
ComplianceCompliance Corner: Updates to FTC's Safeguards Rule
The FTC has now updated its Safeguards Rule to add breach notification requirements. It plans to host a new public database of instances in which consumers' nonpublic information has been subjected to unauthorized access. Effective May 13, 2024 Key features Financial institutions subject to the FTC's jurisdiction, which include mortgage lenders, payday lenders, collection agencies, [...]
ComplianceNavigating the New FTC Safeguards Rule: Essential Compliance Tips
The Federal Trade Commission (FTC) Safeguards Rule, a mandate under the Gramm-Leach-Bliley Act, plays a crucial role in ensuring that financial services, including those beyond traditional banking sectors like debt collection, uphold stringent data security measures to protect customer information from data breaches. This regulation necessitates a comprehensive approach to safeguard consumer data, stretching its [...]
Debt Collection & BuyingData Privacy Laws: Implications for Fintech and Debt Collection
As the digital landscape continues to evolve, data protection laws have become the foundation in fortifying consumer privacy and reshaping how businesses manage and protect personal information. The enactment and subsequent amendments of the California Consumer Privacy Act (CCPA) signify a pivotal shift towards more rigorous consumer protection in the digital age. This legislation, emblematic [...]