Survey probes long-term impact of student loan debt

TD Bank’s Student Debt Impact Survey results have determined loan payments have a dramatic impact on young adults’ daily finances, placing their long term financial health in flux.© Shutterstock “The results of our survey show that student loans can have a ripple effect on borrowers’ financial futures,” Mike Kinane, head of US Bankcard at TD […]

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TD Bank’s Student Debt Impact Survey results have determined loan payments have a dramatic impact on young adults’ daily finances, placing their long term financial health in flux.

© Shutterstock

“The results of our survey show that student loans can have a ripple effect on borrowers’ financial futures,” Mike Kinane, head of US Bankcard at TD Bank, said. “Consumers owe money before they even earn their first paycheck, which is troubling.”

The analysis involved asking more than 1,000 Americans who paid off or are currently repaying student loan debt, ages 18 to 39, how the debt is impacting their lives and factors they considered before taking out the loan.

The average total student debt held by survey respondents is $26,495, officials said, with the average debt payment being $579 a month. The reported average monthly take-home pay is $2,689, which officials said translates to one-in-five take-home pay dollars being spent on repaying a student debt.

“The reality is many Americans need to take on student loan debt to finance higher education, but most are unaware of how it will impact their lives long-term,” Kinane said. “We’re seeing an alarming lack of education surrounding student loans, repayment terms and borrowers’ earning potential after graduation.”

The survey results indicated student loan borrowers overwhelmingly lack education about the impact of loans on credit health, as well as how to maintain payments and save for the future.

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Read more / Original news source: https://financialregnews.com/survey-probes-long-term-impact-of-student-loan-debt/

NASAA opens investigations into rise of crypto-related fraud

In the wake of regulators noticing a rise in potential crypto-related frauds, the North American Securities Administrators Association (NASAA) has opened probes into questionable cryptocurrency-related investment offerings.© Shutterstock NASAA officials said the 130 new investigations are in addition to 35 pending or completed enforcement actions since the beginning of this year. “Recent headlines of potentially […]

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In the wake of regulators noticing a rise in potential crypto-related frauds, the North American Securities Administrators Association (NASAA) has opened probes into questionable cryptocurrency-related investment offerings.

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NASAA officials said the 130 new investigations are in addition to 35 pending or completed enforcement actions since the beginning of this year.

“Recent headlines of potentially new cryptocurrency products and the near tripling in value of some cryptocurrencies and the sharp increase in market capitalization for all cryptocurrencies are again creating an environment that attracts white-collar criminals, bad actors, and other promoters of illegal and fraudulent securities schemes,” Michael S. Pieciak, NASAA president and Vermont Commissioner of Financial Regulation, said. “Investors should be mindful of the hype and be aware of the risks when considering whether to jump into cryptocurrency-related investment products.”

The NASAA said among the factors to be considered to address potential fraudulent activity are volatility. Cryptocurrency markets are highly volatile, making them unsuitable for most investors looking to meet long-term savings or retirement goals; cryptocurrency and many crypto-related investments are subject to little regulatory oversight, and there may be no recourse should the cryptocurrency disappear due to fraud or a cybersecurity breach; and cryptocurrency or crypto-related investments only exist on the internet – and issuers can be located anywhere in the world, so it may be impossible to trace and recover lost funds through the courts.

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Read more / Original news source: https://financialregnews.com/nasaa-opens-investigations-into-rise-of-crypto-related-fraud/

SEC looking to update Regulation S-K disclosures

The Securities and Exchange Commission (SEC) is seeking to update the disclosures that registrants are required to make under Regulation S-K. © Shutterstock Regulation S-K is a rule that provides requirements for public company disclosure. The proposed amendments are intended to simplify compliance efforts for registrants and improve disclosures for investors. “The world economy and […]

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The Securities and Exchange Commission (SEC) is seeking to update the disclosures that registrants are required to make under Regulation S-K.

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Regulation S-K is a rule that provides requirements for public company disclosure. The proposed amendments are intended to simplify compliance efforts for registrants and improve disclosures for investors.

“The world economy and our markets have changed dramatically in the more than 30 years since the adoption of our rules for business disclosures by public companies. Today’s proposal reflects these significant changes, as well as the reality that there will be changes in the future,” SEC Chairman Jay Clayton said. “I applaud the staff for their efforts to modernize and improve our disclosure framework, including recognizing that intangible assets, and in particular human capital, often are a significantly more important driver of value in today’s global economy. The proposals reflect a thoughtful mix of prescriptive and principles-based requirements that should result in improved disclosures and the elimination of unnecessary costs and burdens.”

Specifically, the proposed amendments would revise Items 101(a) (description of the general development of the business), 101(c) (narrative description of the business), and 105 (risk factors) to emphasize a more principles-based approach. This is because businesses differ in terms of which aspects of these disclosures are material to them. A more flexible approach may elicit more relevant disclosures, the SEC says. There is also a proposed amendment of Item 103 (legal proceedings).

“We invite further engagement from market participants on these proposals and any other areas where our approach to ensuring investors have the appropriate mix of information to make investment decisions can be improved,” Clayton said.

The proposal will be open for public comment for 60 days after it is published in the Federal Register.

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Read more / Original news source: https://financialregnews.com/sec-looking-to-update-regulation-s-k-disclosures/

OCC to Host Innovation Office Hours in Washington, D.C.

The Office of the Comptroller of the Currency (OCC) today announced it will hold Innovation Office Hours, October 8-10, in Washington, D.C., to promote responsible innovation in the federal banking system.

The Office of the Comptroller of the Currency (OCC) today announced it will hold Innovation Office Hours, October 8-10, in Washington, D.C., to promote responsible innovation in the federal banking system.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-89.html

OCC to Host Innovation Office Hours in Washington, D.C.

The Office of the Comptroller of the Currency (OCC) today announced it will hold Innovation Office Hours, October 8-10, in Washington, D.C., to promote responsible innovation in the federal banking system.

The Office of the Comptroller of the Currency (OCC) today announced it will hold Innovation Office Hours, October 8-10, in Washington, D.C., to promote responsible innovation in the federal banking system.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-89.html?utm_source=RSS_feed&utm_medium=RSS

ABA report examines banks’ social media use

A newly released American Bankers Association (ABA) report maintains just over eight in 10 banks believe social media is important and are active on their social media accounts.© Shutterstock “It’s remarkable how much bank social media engagement has evolved and matured since we first conducted this survey two years ago,” Jim Edrington, ABA’s chief member […]

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A newly released American Bankers Association (ABA) report maintains just over eight in 10 banks believe social media is important and are active on their social media accounts.

© Shutterstock

“It’s remarkable how much bank social media engagement has evolved and matured since we first conducted this survey two years ago,” Jim Edrington, ABA’s chief member engagement officer, said. “Bankers overwhelmingly recognize the power of social media to increase visibility and humanize their brand as they connect directly with their customers on a personal level.”

The State of Social Media in Banking report showed 40 percent of institutions revealed they have used social media for five years or more, which represents a rise from 25 percent two years ago. In addition, only 6 percent of banks do not currently use social media and 3 percent indicated they plan to begin social media engagement within the next one to two years.

The most preferred social media platforms are Facebook, LinkedIn and Twitter, Instagram, YouTube and blogs.

An examination of the numbers also determined 52 percent of survey respondents planned to increase spending on social media resources this year and an additional 8 percent sought to increase that budget.

“Social media engagement is rewarding in so many ways, and can provide a big return on a modest investment,” Edrington added.

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Read more / Original news source: https://financialregnews.com/aba-report-examines-banks-social-media-use/

NY leads multistate probe of payroll advance industry

New York’s Department of Financial Services (DFS) said last week it is leading a multistate investigation of the payroll advance industry as a means of examining unlawful online lending allegations.© ShutterstockLinda A. Lacewell “High-cost payroll loans are scrutinized closely in New York, and this investigation will help determine whether these payroll advance practices are usurious […]

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New York’s Department of Financial Services (DFS) said last week it is leading a multistate investigation of the payroll advance industry as a means of examining unlawful online lending allegations.

© Shutterstock
Linda A. Lacewell

“High-cost payroll loans are scrutinized closely in New York, and this investigation will help determine whether these payroll advance practices are usurious and harming consumers,” Financial Services Superintendent Linda A. Lacewell said. “Protecting consumers is our top priority and New York is leading the charge to expand the investigation of illegal online lending by including regulators from ten additional states and Puerto Rico.”

Lacewell said the agency would also partner with peer regulators to safeguard consumers from predatory lending and scams ensnaring families in endless cycles of debt.

The scope of work, officials said, is rooted in determining whether companies are in violation of state banking laws, including usury limits, licensing laws and other applicable laws regulating payday lending and consumer protection laws.

The following regulators have joined DFS in investigating the payroll advance industry:

Connecticut Department of Banking;
Illinois Department of Financial Professional Regulation;
The Office of the Commissioner for Financial Regulation in the State of Maryland;
New Jersey Department of Banking and Insurance;
North Carolina Office of the Commissioner of Banks;
North Dakota Department of Financial Institutions;
Oklahoma Department of Consumer Credit;
Puerto Rico Comisionado de Instituciones Financieras;
South Carolina Department of Consumer Affairs;
South Dakota Department of Labor and Regulation’s Division of Banking; and
Texas Office of Consumer Credit Commissioner.

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Read more / Original news source: https://financialregnews.com/ny-leads-multistate-probe-of-payroll-advance-industry/

Comptroller of the Currency Tours Atlanta Areas Where the Community Reinvestment Act Has Benefitted the Community and Where More Can Be Done

Comptroller of the Currency Joseph Otting, today visited Atlanta to tour neighborhoods that have benefitted from activities encouraged by the Community Reinvestment Act (CRA) and areas that could benefit from additional CRA activity.

Comptroller of the Currency Joseph Otting, today visited Atlanta to tour neighborhoods that have benefitted from activities encouraged by the Community Reinvestment Act (CRA) and areas that could benefit from additional CRA activity.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-88.html?utm_source=RSS_feed&utm_medium=RSS

Comptroller of the Currency Tours Atlanta Areas Where the Community Reinvestment Act Has Benefitted the Community and Where More Can Be Done

Comptroller of the Currency Joseph Otting, today visited Atlanta to tour neighborhoods that have benefitted from activities encouraged by the Community Reinvestment Act (CRA) and areas that could benefit from additional CRA activity.

Comptroller of the Currency Joseph Otting, today visited Atlanta to tour neighborhoods that have benefitted from activities encouraged by the Community Reinvestment Act (CRA) and areas that could benefit from additional CRA activity.

Read more / Original news source: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-88.html

ICI study shows retirement plan participation continues to increase

A recently released Investment Company Institute (ICI) study has found that workers’ participation in employer-sponsored retirement plans is significantly higher than suggested by some commonly cited statistics.© Shutterstock The analysis showed nearly two-thirds of workers between ages 26 and 64 are participating in such plans, either directly or through a spouse, according to the study, […]

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A recently released Investment Company Institute (ICI) study has found that workers’ participation in employer-sponsored retirement plans is significantly higher than suggested by some commonly cited statistics.

© Shutterstock

The analysis showed nearly two-thirds of workers between ages 26 and 64 are participating in such plans, either directly or through a spouse, according to the study, Who Participates in Retirement Plans, 2016.

“By the time they retire, the vast majority of American workers will accumulate resources in employer plans,” Peter Brady, ICI senior economic adviser, said. “This is not well understood for two reasons. First, participation is often understated in household surveys, which are used to study participation. Second, many younger and lower-income workers who are not participating in retirement plans today will do so later in their careers.”

The ICI said younger and lower-income workers are the least likely to want to save for retirement, and thus less likely to search for an employer who offers a retirement plan or participate in a plan if given the choice. ICI’s study also noted that among workers between 26 and 64 years old in 2016, the probability an employee participated in a retirement plan at his or her workplace spanned the range of 22 percent for those who earned less than $20,000; 67 percent for those who earned $40,000 to $50,000; and 85 percent for those who earned $100,000 or more.

ICI said the study used tax data published by the Internal Revenue Service (IRS) Statistics of Income Division (SOI), with the tabulations including data on all taxpayers who were wage and salary workers in 2016.

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Read more / Original news source: https://financialregnews.com/ici-study-shows-retirement-plan-participation-continues-to-increase/