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
For financial technology and nonbank financial services providers, obtaining state licenses can be a critical step toward establishing credibility, expanding business opportunities, and ensuring compliance with regulatory...more
The Consumer Financial Protection Bureau ("CFPB" or "Bureau") recently published a Small Entity Compliance Guide (the "Guide") regarding Section 1071 of the Dodd-Frank Act, which amended ECOA to require that financial...more
6/13/2023
/ Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Covered Entities ,
Dodd-Frank ,
ECOA ,
Fair Lending ,
Final Rules ,
Financial Institutions ,
Lenders ,
Reporting Requirements ,
SBA ,
Small Business
Financial technology companies (fintechs) and other third parties in bank partnerships are routinely subject to scrutiny by their banking partner customers. The Federal Reserve System, the Federal Deposit Insurance...more
6/9/2023
/ Banking Sector ,
FDIC ,
Federal Reserve ,
Final Guidance ,
Financial Institutions ,
Financial Regulatory Agencies ,
FinTech ,
OCC ,
Proposed Guidance ,
Risk Management ,
Third-Party Relationships ,
Third-Party Service Provider
The Consumer Financial Protection Bureau (CFPB) issued a statement in collaboration with federal partners, including the Federal Trade Commission (FTC) and the Department of Justice (DOJ), emphasizing that advanced technology...more
The Consumer Financial Protection Bureau (CFPB) finalized a new Rule aimed at improving the transparency of and access to credit for small businesses on March 30, 2023. The Rule requires financial institutions to report data...more
The Consumer Financial Protection Bureau (CFPB) has issued a request for information (RFI) to examine the practices of data brokers and businesses involved in the collection, use, and sale of consumer information on March 15,...more
Providers of commercial financing that are subject to the New York State Commercial Finance Disclosure Law (CFDL) must provide disclosures to potential recipients of commercial financing at the time a specific offer of...more
On February 27, 2023, the Supreme Court granted the certiorari petition of the Consumer Financial Protection Bureau (CFPB) to hear a case that could cast doubt on all of the regulations that have been promulgated by the...more
The Consumer Financial Protection Bureau (CFPB) has moved to curb digital mortgage comparison-shopping platforms from receiving referral fees, issuing an advisory opinion that outlines how companies violate the Real Estate...more
2/10/2023
/ Advertising ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Digital Platforms ,
Financial Services Industry ,
Mobile Apps ,
Mortgages ,
NTIA ,
Online Platforms ,
Pay-To-Play ,
Referral Fees ,
RESPA
The CFPB unveiled a far-reaching proposal to require certain nonbank financial firms to register with the CFPB on December 13, 2022, which is meant to enhance market monitoring and risk-based supervision efforts. The deadline...more
The Consumer Financial Protection Bureau (CFPB) has once again been found to be unconstitutionally structured. The ruling is a win for CFPB critics and calls into question most actions taken by the agency....more
The Biden administration's new Blueprint for an AI Bill of Rights to enhance protections for Americans elevates recent federal regulatory and enforcement actions related to consumer protection, financial services, and...more
Non-depository financial institutions - including fintechs and other alternative lenders - may be able to apply for new Small Business Lending Company (SBLC) licenses to participate in the Small Business Administration (SBA)...more
A recent action by the Office of the Comptroller of the Currency (OCC) highlights how banks need to ensure that they have robust compliance programs for managing risks posed by their banking as a service (BaaS)...more
The FDIC has issued cease and desist letters (C&Ds) to five companies and their officers, directors, and employees for making crypto-related false or misleading representations about deposit insurance and to take immediate...more
Through a new interpretive rule announced this week, the Consumer Financial Protection Bureau (CFPB) has declared that digital marketing providers can be held liable under the Consumer Financial Protection Act (CFPA)...more
8/15/2022
/ Advertising ,
Banks ,
Behavioral Advertising ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Covered Entities ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
Internet Marketing ,
Marketing ,
Nonbank Firms ,
UDAAP ,
Unfair or Deceptive Trade Practices
Under many federal and state laws, the owner or operator of a consumer financial services provider is responsible for complying with numerous statutes and regulations. The failure to comply with legal requirements can lead to...more
The California Department of Financial Protection and Innovation (DFPI) recently issued an invitation for comments on a proposed second rulemaking to implement aspects of California's Debt Collection Licensing Act (DCLA)...more
The Consumer Finance Protection Bureau ("CFPB") issued an advisory opinion warning debt collectors that they may be collecting illegal fees from consumer-borrowers. Specifically, the Bureau has interpreted Section 808(1) of...more
Todays Discussion -
..CFPB and Regulator Leadership Set the Agenda.
..What is AI, Machine Learning, and Alternative Data?
..Key Areas of Regulatory Risk.
..Fair Lending.
..Marketing / Lead...more
The California Office of Administrative Law (OAL) has approved the California Department of Financial Protection and Innovation's (DFPI) final regulations, which require providers of commercial financing, including nonbank...more
Anti-discrimination law applies to companies with black-box credit models using complex algorithms, according to a circular issued by the Consumer Financial Protection Bureau (CFPB) on May 26, 2022. According to the CFPB, the...more
6/16/2022
/ Adverse Action ,
Algorithms ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
ECOA ,
Emerging Technologies ,
Fair Lending ,
Financial Services Industry ,
Machine Learning ,
UDAAP ,
Whistleblowers
The Consumer Financial Protection Bureau ("the Bureau" or CFPB) released an Interpretive Rule - which is exempt from notice-and-comment requirements of the Administrative Procedure Act - that sets out its view on the power of...more