CFPB extends comment
The CFPB has announced the extension of the deadline to
September 22, 2014, for comments regarding the Bureau's proposal to give consumers the option to share
the stories behind their complaints in the CFPB's public Consumer Complaint
Database. This extends the comment period from the original 30 days to 60 days.
Servicemembers to get relief from predatory lender
The CFPB has announced that it and 13 state attorneys
general obtained a Consent Order providing approximately $92
million in debt relief from Colfax Capital Corporation and Culver Capital, LLC,
also known as "Rome Finance," for about 17,000 U.S. servicemembers
and other consumers harmed by the company's predatory lending scheme.
The relief comes in the
form of termination of servicemembers' obligations under current Rome Finance
financing agreements. Portions of the order calling for reimbursements will be
suspended because Rome Finance is in bankruptcy. However, a $1 million civil
penalty is to be paid under the order.
Study: More than 35% of Borrowing Americans in
More than 35% of Americans with credit files have debt in collections, according to a report
prepared by the Urban Institute in conjunction with the Consumer Credit
Research Institute. The study defines debt in collections as a debt involving a nonmortgage bill—such as a credit card balance, medical or utility bill—that is more than 180 days past due and has been placed in collections. The study found that 5.3 percent of Americans with a credit file have a report of past due debt, indicating they are between 30 and 180 days late on a nonmortgage payment. Both debt in collections and debt past due are concentrated in the South.
The Urban Institute called the statistics alarming. However, the organization also
determined the percentage of Americans with debt in collections is remarkably
stable; a study conducted for the Federal Reserve in 2004 found 36.5% of
Americans had debt in collections, the institute said.