The FDIC has issued a proposed rule that would apply to practically all bank-fintech arrangements that use custodial deposit accounts to provide customers with transactional features (also called "FBO" accounts for short)....more
9/19/2024
/ Banking Sector ,
Banks ,
Comment Period ,
Compliance ,
Deposit Accounts ,
Depository Institutions ,
FBOs ,
FDIC ,
Financial Services Industry ,
FinTech ,
Proposed Rules ,
Recordkeeping Requirements ,
Reporting Requirements
The CFPB is expected to initiate a rulemaking process that would require companies under its jurisdiction to let customers talk to a human by pressing a single button.
The CFPB also has plans to issue rules or guidance...more
8/20/2024
/ Artificial Intelligence ,
Biden Administration ,
Bots ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Protection Laws ,
Customer Service Calls ,
Customer Service Standard ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
Proposed Rules ,
Rulemaking Process
On July 25, 2024, the federal banking agencies issued a joint statement flagging potential risks in bank-fintech arrangements, along with a request for public information (RFI) on the benefits, risks, and risk management...more
7/31/2024
/ Banking Sector ,
Comment Period ,
Compliance ,
Federal Bank Regulatory Agencies ,
Financial Institutions ,
FinTech ,
Joint Statements ,
Public Comment ,
Request For Information ,
Risk Assessment ,
Risk Management
In the last of a series of watershed opinions this term that curtail federal agency power, the Supreme Court in Corner Post, Inc. v. Board of Governors of the Federal Reserve System has ruled (6-3) that the statute of...more
7/3/2024
/ Administrative Procedure Act ,
Chevron Deference ,
Corner Post Inc v Board of Governors of the Federal Reserve System ,
Debit Cards ,
Dodd-Frank ,
Financial Institutions ,
FinTech ,
Interchange Fees ,
SCOTUS ,
Statute of Limitations ,
Treasury Regulations
In a move that's sure to make nonbank financial institutions even more uncomfortable, the Consumer Financial Protection Bureau (CFPB) has decided to shine a brighter light on those that have been alleged to violate consumer...more
6/11/2024
/ Compliance ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
EFTA ,
Enforcement Actions ,
Fair Credit Reporting Act (FCRA) ,
FDCPA ,
Financial Services Industry ,
FTC Act ,
NMLS ,
Nonbank Firms ,
Registration Requirement ,
Section 5 ,
Truth in Lending Act (TILA) ,
UDAP
Until recently, the most popular topic of discussion in the financial services world has been the outcome of the Supreme Court case CFPB v. Community Financial Services Association of America, regarding the constitutionality...more
5/24/2024
/ Banking Examinations ,
Constitutional Challenges ,
Consumer Financial Protection Bureau (CFPB) ,
Data Privacy ,
Dodd-Frank ,
Enforcement Priorities ,
Fair Lending ,
Federal Funding ,
Financial Institutions ,
Financial Services Industry ,
Funding ,
SCOTUS ,
Transparency ,
UDAAP
If you’ve been focused on only the high-level statements from the CFPB, you might already expect Rohit Chopra to fashion himself and the agency as “pro-consumer.” Consistent with that approach, the agency just signaled its...more
The Consumer Financial Protection Bureau (CFPB) released a procedural rule updating its supervisory process for institutions seeking to appeal a compliance rating or an adverse finding. Although the appeals process remains...more
In the evolving world of lead generation and performance-based customer acquisition, the quest for profits can lead to big legal risks, some of them too large for advertisers that buy leads through third parties. Advertisers...more
2/23/2024
/ Advertising ,
Business & Professions Code ,
CAN-SPAM Act ,
Consumer Financial Protection Bureau (CFPB) ,
Contract Formation ,
Do Not Call List ,
Endorsements ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
Lead Generators ,
Marketing ,
Prior Express Consent ,
Risk Mitigation ,
TCPA ,
Testimonial Statements ,
Third-Party ,
Third-Party Service Provider ,
Unfair or Deceptive Trade Practices
Listen to Episode 4 of our podcast, the Ad Law Tool Kit Show. In this episode, partners Jonathan Pompan and Ari Rothman talk to host Shahin Rothermel about lead generation. Check out the episode....more
Consumer use of "buy now, pay later" (BNPL) products and programs has proliferated over the last few years. While federal oversight has not been extensive to date, new guidance from the Office of the Comptroller of the...more
The Federal Communications Commission (FCC) adopted a revised rule to restrict forms of lead generation involving texts and calls to consumers on December 13, 2023. The revised rule implementing the Telephone Consumer...more
The CFPB's latest regulatory agenda signals that the Bureau expects final rules on several key regulatory initiatives to move forward in the next several months. The agenda lists the regulatory matters that the CFPB...more
Non-bank financial institutions will have a new data breach disclosure requirement effective May 13, 2024. The Federal Trade Commission (FTC) recently updated the Gramm-Leach-Bliley Safeguards Rule (“Safeguards Rule”), adding...more
The Consumer Financial Protection Bureau (CFPB) has proposed a rule to define a market for general-use digital consumer payment applications. Larger participants in this market would be subject to CFPB supervision and...more
11/15/2023
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Digital Assets ,
Digital Wallets ,
Financial Services Industry ,
Merchants ,
Mobile Apps ,
Multi-Factor Test ,
Nonbank Firms ,
p2p ,
Proposed Rules
Large banks and credit unions must provide certain information to customers free of charge, such as account balances, transaction history, and fees, according to an advisory opinion issued by the Consumer Financial Protection...more
10/17/2023
/ Advisory Opinions ,
Banks ,
Biden Administration ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Unions ,
Excessive Fees ,
Federal Trade Commission (FTC) ,
Fees ,
Financial Services Industry ,
Hidden Fees ,
Supervisory Highlights
The Consumer Financial Protection Bureau (CFPB) is currently considering a rulemaking to address various consumer reporting topics under the Fair Credit Reporting Act (FCRA) and has released an Outline of Proposals and...more
9/28/2023
/ Consumer Financial Protection Bureau (CFPB) ,
Credit Reporting Agencies ,
Credit Reports ,
Data Breach ,
Data Brokers ,
Data Collection ,
Data Security ,
Fair Credit Reporting Act (FCRA) ,
Financial Services Industry ,
Marketing ,
Medical Debt ,
SBREFA ,
Small Business
The CFPB has issued a Circular addressing adverse action notification requirements and the proper use of the CFPB's sample forms provided in Regulation B when using artificial intelligence (AI) and complex credit models, and...more
9/25/2023
/ Adverse Action ,
Artificial Intelligence ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Discriminatory Lending Practices ,
ECOA ,
Fair Credit Reporting Act (FCRA) ,
Fair Lending ,
Financial Services Industry ,
Model Forms ,
Notice Requirements ,
Regulation B
A study in the Finance and Economics Discussion Series (FEDS) by the Federal Reserve Board on consumer lending found that financial technology (FinTech) lenders are able to take advantage of federal preemptions from state...more
Commercial financing in California will be subject to a new rule prohibiting unfair, deceptive, and abusive acts and practices (UDAAPs) effective October 1, 2023. The prohibition extends federal UDAAP restrictions to small...more
Marketers and lead generators have new guidance in the form of enforcement orders on what the Federal Trade Commission (FTC) appears to consider required practice when obtaining consumer consent prior to the sale, transfer,...more
8/1/2023
/ Consent ,
Enforcement Actions ,
Enforcement Priorities ,
Federal Trade Commission (FTC) ,
Lead Generators ,
Marketing ,
Personal Information ,
Prior Express Consent ,
Settlement ,
Telemarketing Sales Rule ,
Unfair or Deceptive Trade Practices
Multiple government agencies are scrutinizing medical payment products. On July 7, 2023, the Consumer Financial Protection Bureau (CFPB), U.S. Department of Health and Human Services (HHS), and U.S. Department of Treasury...more
Colorado has passed a law that amends the Colorado Uniform Consumer Credit Code (UCCC) to extend state interest rate limits on certain consumer loans made by out-of-state state-chartered banks, which caps rates at a maximum...more
6/30/2023
/ Banks ,
Consumer Financial Products ,
Consumer Lenders ,
Financial Services Industry ,
Interest Rates ,
Loans ,
National Bank Act ,
New Legislation ,
Opt-Outs ,
Preemption ,
Standard Chartered Bank ,
State Charters
On June 16, 2023, the Federal Deposit Insurance Corporation (FDIC) released an update to its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) (the "Guidance"), to provide additional guidance for...more
The CFPB's latest regulatory agenda signals that it is considering rules to define larger participants in markets for consumer payments, to be published in July 2023. This action, if implemented, would represent a sea change...more
6/20/2023
/ Automotive Loans ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Consumer Reporting Agencies ,
Debt Collectors ,
Dodd-Frank ,
Financial Services Industry ,
Market Participants ,
Money Services Business ,
Nonbank Firms ,
Payment Systems ,
Regulatory Agenda ,
Supervision ,
Technology Sector