By Melina Druga, Financial Regulation News
Less than half of Americans, 47 percent, have sufficient liquidity or access to funds to cover a $1,000 emergency expense, according to a survey-based report conducted by Bankrate and its polling partners.
When asked how they would pay for an emergency expense of $1,000 or more, 33 percent of survey participants said they would go into debt through a credit card, a personal loan or borrowing from family or friends; 30 percent would use their savings; 17 percent would rely on their regular income or cash flow, and 20 percent would reduce spending to pay for it or take a different approach.
“Most folks in America live paycheck-to-paycheck,” Mark Hamrick, Bankrate senior economic analyst, said. “This either results in, or coincides with, a lack of liquidity and lack of ability to achieve success with other key financial goals such as paying down debt or saving for emergencies and retirement.”
Other survey findings include:
- When asked what is causing them to save less for emergencies, 54 percent of respondents said inflation followed by changing income/unemployment, 26 percent, and recent interest rate cuts, 17 percent.
- If they were to lose their primary source of income tomorrow, 43 percent said they would be “very worried about covering living expenses.”
By Dave Kovaleski, Financial Regulation News
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U.S. Sens. Catherine Cortez Masto (D-NV) and Kevin Cramer (R-ND) introduced a bill that would give credit unions more flexibility when lending for non-primary loans.
The Expanding Access to Lending Options Act would permit federally chartered credit unions to permit loan maturity periods for up to 20 years.
Except for primary residences, federally chartered credit unions are not permitted to issue loans for a period longer than 15 years. However, banks and most state-chartered credit unions are not subjected to the same limitation.
“Credit unions provide essential services to communities across the Silver State, particularly in rural and underserved areas,” Cortez Masto said. “My bipartisan bill would provide a commonsense, simple fix that helps people finance their dreams.”
Nevada has two federally chartered credit unions that would be impacted by this bill — the Great Basin Federal Credit Union and the Elko Federal Credit Union.
“Increasing the loan maturity limit for federally chartered credit unions will greatly help the Elko Federal Credit Union,” Todd Sorenson, president and CEO of Elko Federal Credit Union, said. “When interest rates are low, consumers shop around: they want the certainty of a lower rate for a longer term. It’s in this environment that federal credit unions are less competitive. Many customers seeking loans at our credit union have pursued other loan options when we communicate the maturity date limitation.”
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By Amy Howe SCOTUS Blog
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Updated at 3:45 p.m. on Jan. 21
The Supreme Court on Wednesday appeared likely to leave Lisa Cook, a member of the Federal Reserve’s Board of Governors, on the job while her challenge to President Donald Trump’s attempt to fire her continues.
Although the Trump administration contends that the president acted within the law, a majority of the justices seemed ready to reject the government’s request to allow him to remove her, even if it was not clear whether the justices would send the case back to the lower courts or instead go ahead and rule that Trump does not have a good reason to fire Cook.
Wednesday’s arguments in Trump v. Cook implicated two related issues – the president’s power to fire the heads of multi-member, independent agencies and his ongoing frustration with the actions (or lack thereof) of the Federal Reserve. Since Trump took office last year, the court – on its interim docket – has allowed him to remove members of the National Labor Relations Board, Consumer Product Safety Commission, and the Merit Systems Protection Board. The justices also heard arguments in December in the case of Rebecca Slaughter, a member of the Federal Trade Commission whom Trump fired in March. They are expected to decide by summer whether a federal law that bars him from removing members of the FTC except in cases of “inefficiency, neglect of duty, or malfeasance in office” violates the constitutional separation of powers.
Trump has also been sharply critical of the Fed and its chair, Jerome Powell, since he was sworn in for a second term last year, particularly for its reluctance to lower interest rates. The Fed eventually lowered rates at meetings this fall.
Powell disclosed earlier this month that he is under investigation by Jeanine Pirro, the U.S. attorney for the District of Columbia, for alleged irregularities in the $2.5 billion renovation of the Fed’s headquarters and Powell’s statements to Congress about the renovation. The White House has said that Trump did not direct Pirro to investigate Powell, who attended Wednesday’s argument.
Cook was first appointed to the Fed in 2022; then-President Joe Biden reappointed her to serve a new 14-year term on the board in 2023. Under the Federal Reserve Act, Trump can only fire Cook “for cause” – a term that the law does not define.
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By Eric Steinhoff, Scienaptic AI; Published in CUInsight
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The answer isn’t complicated. The Honda holds its value more predictably, the monthly payments are more affordable across a broader range of incomes, default rates are lower, and recoveries are stronger when something goes wrong.
Yet at many credit unions, both loans are priced identically if the borrower has a 720 credit score. In some cases, the used Honda is even priced higher.
The same logic applies elsewhere in the portfolio. A 2019 pickup truck and a 2019 sedan frequently receive the same pricing treatment, even though pickup truck values have swung dramatically in recent years while sedan prices have remained comparatively stable.
These outcomes aren’t the result of poor underwriting or a misunderstanding of the variables that impact risk. They stem from a deeper issue: most institutions are still using static pricing frameworks to operate in highly dynamic markets.
The hidden cost of static pricing
Across the auto lending industry, a significant share of loans are mispriced, not because credit decisions are wrong, but because pricing systems lag reality. Quarterly rate sheets are being used to navigate markets that change weekly or even daily.
Vehicle values respond to forces well outside traditional credit models: supply chain disruptions, manufacturer incentives, fuel prices, regional demand shifts, and macroeconomic conditions. When pricing assumptions are built in January but loans are booked in June, institutions are effectively flying blind.
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By Cassandra Dumay and Irie Sentner, Politico
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Federal Housing Director Bill Pulte on Friday signaled that the Trump administration is moving past his widely criticized idea for 50-year mortgages in its broader effort to address housing affordability.
“I think we have other priorities,” Pulte told reporters, when asked if 50-year mortgages are still on the table.
President Trump rolled out other policy proposals earlier this week aimed at addressing the cost of home-buying, and said he’d share more affordability measures during the World Economic Forum in Davos, Switzerland, later this month. The administration is drafting an executive order targeted at affordability issues that are high on voters’ minds heading into a midterm election year.
Pulte’s comment indicates that the proposal for 50-year mortgages, which was panned by officials in the White House as well as industry experts, will not be among the actions in Trump’s order. POLITICO reported that Pulte had originally brought that proposal to the president.
Pulte on Friday said the president is reviewing a list of 30 to 50 home-cost solutions from himself and other top administration officials — including Vice President JD Vance, Treasury Secretary Scott Bessent, Housing and Urban Development Secretary Scott Turner, Commerce Secretary Howard Lutnick and National Economic Council Director Kevin Hassett.
Pulte also said Fannie and Freddie, the government-sponsored mortgage entities which his agency oversees, have started carrying out Trump’s direction Thursday to purchase $200 billion in mortgage bonds in an effort to lower home loan rates, starting with a $3 billion buy.
Mortgage bonds are comprised of home loans that government-controlled Fannie and Freddie, as well as private financial institutions, purchase and package into securities that are bought and sold by investors.
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National Consumer Law Center
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New Report Exposes the Unfair, Deceptive and Abusive Practices of Earned Wage Payday Lenders
Financial exploitation is unfortunately nothing new, but the methods used to extract money from people struggling paycheck to paycheck are constantly changing. A new report from the National Consumer Law Center (NCLC) delves into the latest face of payday loans – so-called “earned wage access” products.
Picking Workers’ Pockets: Unfair, Deceptive and Abusive Practices by Earned Wage Payday Lenders explores the tactics that earned wage payday lenders use to collect disproportionately high fees and trap consumers in a cycle of borrowing – just as traditional payday lenders do. While most of the debate around this new form of payday loan app has centered on whether the products are loans (they are), unfair, deceptive and abusive practices are unlawful no matter what kind of label they carry.
“Earned wage payday loans exploit low-income workers and are designed to extract high fees from those who can least afford them,” said Patrick Crotty, senior attorney at the National Consumer Law Center. “The earned wage payday loan industry is rife with unfair, deceptive and abusive practices. Enforcement authorities should address those practices, and legislators should reject exemptions from interest rate caps and other consumer protection laws.”
- Recent public enforcement actions by state attorneys general, the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and the City of Baltimore cited practices of earned wage payday lenders that are allegedly in violation of laws against unfair, deceptive or abusive acts or practices (UDAP). These practices include:
- Disclosing 0% APR, “no interest” or “interest free” for costly loans when up to 90% of users pay fees that frequently add up to $300 or more a year and as much as $1400 over two years;
Promoting “instant” or “fast loans” while hiding high “expedite” fees that far exceed the cost of instant delivery and that almost all borrowers pay; and - Dark patterns that are unfair or abusive tricks to coerce purportedly voluntary “tips” and “donations,” including adding “tips” automatically with complicated, obscure and time-consuming interfaces to remove them, repeat requests for “tips,” and implied threats of consequences for borrowers who do not tip.
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By CU Today
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The Senate Banking Committee on Wednesday postponed a planned discussion of draft legislation that would establish a regulatory framework for cryptocurrencies, hours after Coinbase CEO Brian Armstrong publicly opposed the bill, according to Reuters.
The legislation, unveiled Monday, would define when crypto tokens are treated as securities or commodities and would give the Commodity Futures Trading Commission authority over spot crypto markets. The markup had been scheduled for Thursday.
Committee Chairman Tim Scott said lawmakers and industry stakeholders remain engaged despite the delay. “Everyone remains at the table working in good faith,” Scott said in a statement announcing the postponement.
Reuters noted that earlier Wednesday, Armstrong said on X that Coinbase could not support the bill in its current form, arguing it had “too many issues,” including what he described as a de facto ban on tokenized equities, an erosion of CFTC authority, and draft provisions that would “kill rewards on stablecoins.”
Without Coinbase’s backing, it is unclear whether the markup can move forward. The company has been a major stakeholder in the negotiations and donated millions of dollars to political action committees backing pro-crypto candidates in 2024, Reuters said.
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By Rex Richardson, Quavo Fraud & Disputes/CUInsight
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As the holiday decorations come down and statements post, many of your members are finally getting a clear look at holiday season costs.
They are scrolling back through weeks of transactions, checking for refunds, and reconciling payments. That is often when they spot something that does not look right: an unfamiliar merchant, a duplicate charge, a return that never hit, or a card purchase they are sure they did not make.
This makes January a critical moment in the member relationship. Your team is catching its breath after the rush, budgets are resetting, and back‑office workloads are heavy. At the same time, as dispute volumes spike, member satisfaction can quickly drop. How you handle those first‑of‑the‑year disputes can have an outsized impact on member trust, card usage, and long‑term loyalty.
January is when members reassess trust
The start of the year is often when people make new financial decisions, including what card they use and which one earns the top spot in their physical and digital wallet. Industry analysts estimate that average annual member attrition for credit unions sits in the low double digits, and research shows credit union members are more likely to switch institutions than their bank‑customer counterparts.
These moments of risk are also an opportunity. When members reach out because something has gone wrong, they are not just asking you to fix a transaction; they are asking if you are on their side. If the answer feels slow, opaque, or bureaucratic, the goodwill you built through the holiday season can evaporate quickly. A clunky dispute experience—long hold times, repetitive questions, confusing timelines—can become the final push that sends a member to a competitor promising faster, more digital support.
On the other hand, a clear, empathetic, efficient resolution process can turn a stressful experience into proof that their credit union truly acts as an advocate.
What the data shows about disputes and loyalty
New research from Cornerstone Advisors highlights how tightly dispute resolution is linked to member engagement and growth. Members who experience effective dispute resolution do not just walk away satisfied; they deepen their relationship…
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By Aaron Passman, Callahan/CreditUnions.com
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After an anxious 2025, CFOs and observers across the industry are preparing for the year ahead — for better or for worse.
2025 was a whirlwind year, but from a balance sheet perspective, it could’ve been a whole lot worse.
That’s the consensus from a variety of credit union leaders who braved a year of economic anxiety and come out intact on the other side. The task ahead? Maintain that momentum as they head into another year of uncertainty.
“I feel like there’s more certainty this year compared to [at the end of 2024],” says Seth Rudd, chief financial officer at Leaders Credit Union ($1.3B, Jackson, TN). “Saying that, the way we approach every year, regardless of what’s going on, is we’re going to reach our goals. We take economic indicators into account, but for the most part we know what we need to accomplish next year.”
Lending Landscape
Leaders isn’t expecting any major balance sheet changes in the year ahead. Rudd says he believes it’s unlikely mortgage business will pick up significantly, but he expects another strong year. He also expects auto lending rates to remain steady. Although he bases his prognostication on rate forecasts for the Fed, local forecasting also plays a major role.
“We mostly pay attention to our local market and what we’re seeing,” he says. “We’re not seeing bankruptcies increase significantly. It’s in line with where we’ve been the past 12 to 24 months.”
Rudd says Leaders intends to stay “laser-focused” on its current product mix, blending 65% auto lending with 25% real estate and consumer lending rounding out the remainder.
“We’re committed to our model,” the CFO says. “We don’t expect a change.”
EFCU Financial ($1.2B, Baton Rouge, LA) is taking a similarly optimistic approach, understanding that it could need to pivot quickly if things go south.
“We’re positioned to handle any economic uncertainty within reason,” says Tom Kuslikis, president and CEO. “If there’s something catastrophic, we’d feel pain because of that. Now that we’re going into a declining rate environment, we’ll be keeping a close eye on our expenses and managing appropriately.”
More than 40% of EFCU’s loan portfolio is auto loans, which Kuslikis says still has room to reprice. Margins have increased a lot and financials are strong, and with a lower rate environment expected in 2026, it’s likely the credit union will begin to see some margin compression, he says.
If rates go down as expected, notes William Hunt, director of industry analytics at Callahan & Associates, it could spark mortgage activity as purchase activity picks up from consumers looking for cheaper housing options.
At Leaders, third quarter credit card growth stood at 11.49%, about half of where it was three years ago, and Rudd says delinquencies and charge-offs are picking up in lower credit tiers.
That’s in line with the K-shaped recovery many Americans have been feeling but also reflects a resilient consumer, Hunt says.
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By Lu-Hai Liang, Biometric Update
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New analysis from AMLTRIX shows booming trade in stolen and fabricated identities on the dark web, which the anti‑money‑laundering firm believes is exposing weaknesses in biometric verification systems.
Researchers examined 25 widely accessible dark web markets and forums and found that the cost of assembling a package capable of defeating standard KYC checks has fallen to as low as $30. What once required specialist skill has become a cheap, industrialized service.
For the price of a takeout, criminals can now buy a high‑resolution ID scan along with a matching selfie and package of personal data designed to override first‑line checks at banks, fintechs and cryptocurrency platforms. Systems that need live video verification are now being spoofed using ever more advanced camera‑emulation tools.
Gabrielius Erikas Bilkštys, co‑founder of AMLTRIX, said the illicit market has become both abundant and automated. “A full identity pack with ID scan and selfie is now cheap enough and accessible for criminals to buy in bulk,” he said.
Once an identity enters the underground economy, it can be reused repeatedly to open bank accounts, payment profiles or crypto wallets, and victims unaware until debt collectors or law enforcement get in touch.
Unlike stolen card details, which quickly lose value, a “Full Identity Package” can underpin mule accounts capable of laundering significant sums before detection. Prices vary by jurisdiction. U.S. profiles typically sell for $45–$100, UK identities for $30–$35, and Australian, Russian or French profiles for $20–$30. High‑priced listings for ID such as Irish or UK passports, which can exceed $2,500, are often scams targeting other criminals.
A striking shift is the rising premium on pre‑verified accounts. Verified crypto accounts now sell for $200–$400, almost ten times costlier than raw identity data. The markup is indicative of the high failure rate among criminals attempting to bypass biometric verification themselves, according to AMLTRIX. In effect, criminals are forking out a $270 risk premium to outsource the difficulty of defeating live verification systems.
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By Wesley Grant, Payments Journal
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When the latest iteration of the settlement involving Visa, Mastercard, and various merchants was proposed in November, there was speculation that the deal could reshape the credit card rewards model. However, a group of retailers led by Walmart argued that the settlement doesn’t go far enough to create a meaningful impact for merchants.
Under the proposed deal, Visa and Mastercard would lower the credit card interchange fees that merchants have increasingly criticized, reducing fees from roughly 2%-2.5% to about 0.1% over several years.
Perhaps the more impactful part of the settlement is that merchants would gain the ability to decline certain credit cards—particularly high-fee rewards cards—that they were previously required to accept. Still, Walmart and other retailers emphasized that this latest settlement doesn’t sufficiently address the ongoing challenges merchants face.
“What’s being offered to merchants is not really a practical solution, allowing them to not accept higher-cost rewards cards,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “That defeats the purpose of having a shared acceptance mark like Visa or Mastercard—that was the whole power of the brands when they started. For a store to say, ‘We accept some Visa cards, here’s a list of Visa cards we do and do not accept,’ is ridiculous.”
“Retailers don’t want to be put in a position of instituting fragmented payment policies that disadvantage consumers and add friction to the shopping experience,” he said. “Merchants, for the most part, acknowledge that card payments are fast and convenient, but the rising cost of interchange and network fees has damaged the value proposition for merchants.”
Perks with Payment
One of the factors driving calls for change is that rewards cards have shifted from being the exception to the rule. Once the domain of luxury credit cards—such as those issued by American Express—more card issuers have added benefits to attract cardholders.
As consumers have come to expect perks with their payments, rewards programs have become an integral part of the credit card landscape. However, even as consumers enjoy cash back and discounts, credit card companies pass a portion of these costs to merchants. This has intensified merchants’ calls for a reduction in interchange fees.
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By Priya, CyberPress
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A recent phishing campaign disguised as a purchase order PDF is targeting business users with well-crafted lures designed to harvest corporate credentials and system data.
The malicious file, titled “NEW Purchase Order #52177236.pdf”, was first flagged after Malwarebytes blocked access to a suspicious link embedded within the document.
Malicious PDF Targets Business Emails
The PDF appeared to contain a purchase order button labeled “View Document”, adding a sense of legitimacy. However, hovering over the button revealed a long, deceptive URL hosted on the ionoscloud.com subdomain, a legitimate European cloud service provider.
Attackers are increasingly abusing reputable infrastructure such as IONOS Cloud, AWS, and Azure because domains from trusted providers are less likely to be automatically blocked by security software.
When the victim clicks the button, the link redirects to a fake PDF viewer hosted on a compromised website, which pre-fills the recipient’s email address in a login form. The page prompts users to log in with a “business email login,” tricking them into providing corporate credentials.
This broad prompt is meant to capture credentials that could unlock valuable enterprise accounts, such as Microsoft Outlook, Google Workspace, VPNs, or file-sharing systems.