On December 9, the CFPB entered into a consent order with a debt collection agency for alleged unlawful student loan debt collection practices against defaulted borrowers. The debt collection agency’s allegedly improper...more
On December 12, the CFPB released the final version of its overdraft rule that was first proposed in January. (We discussed it here.) Currently, financial institutions that extend overdraft protection are exempt from certain...more
12/16/2024
/ Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Unions ,
Disclosure ,
Financial Institutions ,
Financial Regulatory Reform ,
Loans ,
Overdraft Fees ,
Overdraft Rule ,
Popular ,
Regulation E ,
Regulation Z ,
Rulemaking Process ,
Truth in Lending Act (TILA)
Effective November 23, 2024, the Texas Department of Savings and Mortgage Lending (the “DSML”) adopted new rules affecting mortgage loan companies, mortgage bankers, individual residential mortgage loan originators, and...more
12/16/2024
/ Banking Sector ,
Department of Financial Protection and Innovation (DFPI) ,
Disclosure Requirements ,
Financial Services Industry ,
Lenders ,
Lending ,
Mortgage Lenders ,
Mortgage Loan Originators ,
Mortgage Servicers ,
Mortgages ,
Reporting Requirements ,
Residential Real Estate Market ,
Rulemaking Process ,
State and Local Government ,
Texas
On December 3, the CFPB filed a proposed settlement to resolve a long running lawsuit against a student loan relief company and its owner (collectively, the “Defendants”). The settlement bars the company from offering or...more
On December 3, the CFPB announced a proposed rule to enhance oversight of data brokers that handle consumers’ sensitive personal and financial information. The proposed rule would amend Regulation V, which implements the Fair...more
On November 26, the U.S. Fifth Circuit Court of Appeals overturned sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) against a decentralized cryptocurrency mixing service (a...more
12/9/2024
/ Blockchain ,
Blocked Person ,
Cryptocurrency ,
Hackers ,
International Emergency Economic Powers Act (IEEPA) ,
Money Laundering ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Reform ,
Sanctions ,
SDN List ,
Technology Sector ,
U.S. Treasury
On November 13, the Federal Reserve Board issued two cease and desist orders against a state-chartered bank and a bank holding company for alleged compliance deficiencies.
The Federal Reserve Board first order was against...more
On November 15, the U.S. District Court for the Southern District of Texas overseeing the ongoing legal challenge to the CFPB’s Section 1071 small business lending rule, issued an order denying the plaintiff trade groups’...more
11/25/2024
/ Commercial Loans ,
Compliance ,
Consumer Financial Protection Bureau (CFPB) ,
Deadlines ,
Disclosure Requirements ,
Lending ,
Oral Argument ,
Rulemaking Process ,
Small Business ,
Trump Administration ,
Truth in Lending Act (TILA)
Starting in February 2025, providers of (1) debt settlement services, (2) student debt relief services, (3) private postsecondary education financing, and (4) income-based advances (a/k/a earned wage access (EWA) products)...more
On November 21, the CFPB announced the arrival of its finalized larger participant rule (the “Rule”) regulating nonbank companies offering digital funds transfer and payment wallet applications to consumers....more
On November 13, the Consumer Financial Protection Bureau released a “pilot study” on the small business lending market revealing “significant disparities” in how lenders treat black and white small business owners. As part of...more
On November 12, the CFPB released a report analyzing federal and state-level privacy protections for consumer financial data.
The current federal framework for financial data privacy relies on the Gramm-Leach-Bliley Act...more
On November 14, the CFPB entered into a consent order with a telecommunications company and its subsidiaries (collectively, the “company”) for allegedly withdrawing millions of dollars from over half a million consumer...more
On November 5, the Federal Trade Commission (“FTC”) filed a complaint against a company in connection with its mobile banking app, alleging violations of Section 5(a) of the FTC Act and Section 4 of the Restore Online...more
On November 1, a debt collection trade group filed a complaint in federal court challenging an October 1 CFPB advisory opinion that warned debt collectors against seeking payment on unverified or potentially inflated medical...more
On November 1, the CFPB filed a proposed stipulated final order that would resolve the Bureau’s pending lawsuit in the Northern District of Illinois against a nonbank mortgage lender and broker for allegedly engaging in...more
On November 7, 2024, the CFPB ordered one of the largest credit unions in the nation to pay over $95 million for its practices related to the imposition of overdraft fees. The enforcement action addresses practices from 2017...more
On October 31, the CFPB entered into a consent order with a Florida-chartered credit union for harming consumers in connection with the botched launch of a new online banking system, in violation of the Consumer Financial...more
On October 24, the District of Columbia Office of the Attorney General (the “DCAG”) announced that it entered into a $500,000 settlement with a title insurance company following an investigation, alleging that the company...more
On October 22, the California DFPI announced the state’s approval of registration regulations enacted under the CCFPL, which will require providers of (1) debt settlement services, (2) education financing, (3) income-based...more
11/4/2024
/ California ,
California Consumer Financial Protection Law (CCFPL) ,
Credit Repair Services ,
Debt Collection ,
Debt Settlement Services ,
Department of Financial Protection and Innovation (DFPI) ,
Licensing Rules ,
Loans ,
New Legislation ,
New Regulations ,
Registration Requirement ,
Reporting Requirements ,
State Legislatures ,
Student Loans
On October 30, two leading fintech industry trade associations submitted comments (see comment letters here and here) in response to a joint Request for Information (RFI) issued by the Office of the Comptroller of the...more
11/4/2024
/ Banking Sector ,
Banks ,
FDIC ,
Financial Institutions ,
Financial Regulatory Agencies ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
OCC ,
Request For Information ,
Rulemaking Process
On October 22, the CFPB announced the finalization of its Personal Financial Data Rights Rule under Section 1033 of the Dodd-Frank Act. The rule aims to bring the U.S. closer to an “open banking” framework by making it easier...more
10/28/2024
/ Administrative Procedure Act ,
Consumer Financial Protection Bureau (CFPB) ,
Data Controller ,
Debt Collection ,
Debt Collectors ,
EFTA ,
Final Rules ,
Financial Institutions ,
Personal Data ,
Proposed Rules ,
Truth in Lending Act (TILA)
On October 18, a fintech trade group filed a complaint in a D.C. federal court challenging the CFPB’s interpretive rule on Buy Now, Pay Later (BNPL) products. The rule, released last May, treats BNPL providers as credit card...more
On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting...more
10/28/2024
/ Artificial Intelligence ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Reporting Agencies ,
Consumer Reports ,
Employer Liability Issues ,
Fair Credit Reporting Act (FCRA) ,
Personal Data ,
Popular ,
Privacy Laws ,
Regulatory Requirements ,
Surveillance
On October 3, the OCC issued Bulletin 2024-29, providing guidance for managing credit risk in connection with refinancing commercial loans.
The bulletin is directed at all banks with commercial loan portfolios, and...more