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CFPB Mandates Additional Specificity in Adverse Action Communications Based on AI or Complex Credit Models

On September 19, 2023, the Consumer Financial Protection Bureau (CFPB) issued Circular 2023-03 to provide creditors additional guidance for communicating denials of credit to consumers based upon artificial intelligence (AI)...more

Texas Court Strikes Down CFPB Policy Expanding UDAAP Authority to Prohibit Discrimination in Noncredit Financial Products and...

On September 8, 2023, the US District Court for the Eastern District of Texas ruled that the Consumer Financial Protection Bureau (CFPB) exceeded its authority when it announced via an update to its exam manual a new policy...more

CFPB Announces Plans to Extend FCRA to Data Brokers Through Rulemaking

At an August 15, 2023, White House roundtable, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra announced plans to issue rules that would extend the Fair Credit Reporting Act (FCRA) to certain “data broker...more

Latest CFPB Supervisory Highlights Identify Novel Violations Across Host of Financial Products and Services

On July 26, 2023, the Consumer Financial Protection Bureau (CFPB) issued its Summer 2023 Supervisory Highlights describing key findings and violations identified during examinations conducted between July 2022 and March 2023....more

FCA, Federal Reserve Share Concerns About AI in Financial Services

Senior regulators at the Financial Conduct Authority (FCA) in the UK and at the Board of Governors of the Federal Reserve System (Federal Reserve Board) in the US publicly shared remarks regarding their concerns about...more

CFPB, European Commission Announce Cooperation to Strengthen Consumer Financial Protection

On July 17, 2023, US Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and Commissioner for Justice and Consumer Protection of the European Commission (EC) Didier Reynders published a joint statement...more

CFPB's Annual Fair Lending Report Highlights Robust Oversight of Traditional and Innovative Lending Practices

On June 29, 2023, the Consumer Financial Protection Bureau issued its annual fair lending report to Congress, confirming that although there was relatively little public fair lending enforcement in 2022, the CFPB and other...more

CFPB, Federal Agencies Warn of Obligations to Avoid Algorithmic Discrimination

On April 24, 2023, the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), Department of Justice (DOJ) and Equal Employment Opportunity Commission (EEOC) released a joint statement affirming that...more

CFPB Issues Policy Statement on CFPA’s Prohibition on ‘Abusive’ Conduct

On April 3, 2023, the Consumer Financial Protection Bureau released a policy statement articulating a new framework for analyzing conduct that it considers “abusive” in violation of federal law. The CFPB until now has...more

CFPB Finalizes Rule to Monitor Small Business Lending Practices

On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued its long-awaited small business lending rule, which requires companies issuing a wide array of commercial credit products to small businesses to begin...more

CFPB Launches Inquiry Into Data Broker Practices Ahead of Planned Rulemaking Under FCRA

On March 15, 2023, the Consumer Financial Protection Bureau (CFPB) launched an inquiry into the business practices of companies that “collect, aggregate, sell, resell, license, or otherwise share consumers’ personal...more

CFPB Issues Notice of Proposed Rulemaking on Credit Card Late Fees

On February 1, 2023, the Consumer Financial Protection Bureau announced a notice of proposed rulemaking to amend the provisions in Regulation Z governing credit card late fee charges permitted under Regulation Z, which...more

CFPB Proposes Public Enforcement Order Registry for Nonbank Financial Services Providers

On December 12, 2022, the Consumer Financial Protection Bureau published a proposed rule that would require nonbank covered persons to report certain public agency enforcement actions and court orders for publication in a...more

CFPB Publishes Bulletin Analyzing Rise in Crypto-Asset Complaints

On November 10, 2022, the Consumer Financial Protection Bureau issued a bulletin analyzing consumer complaints submitted to the CFPB over the past four years related to crypto-assets and platforms. According to the CFPB,...more

CFPB Reiterates Obligations of Credit Bureaus, Furnishers Under FCRA’s Dispute Provisions

On November 10, 2022, the Consumer Financial Protection Bureau (CFPB) issued Circular 2022-07, affirming the duty of consumer reporting agencies (CRAs) and furnishers to conduct reasonable investigations of consumer disputes...more

CFPB Takes Question of Its Constitutionality Straight to Supreme Court

As widely reported, on October 19, 2022, the US Court of Appeals for the Fifth Circuit struck down a Consumer Financial Protection Bureau rulemaking on the grounds that the mechanism for funding the CFPB’s operations is an...more

CFPB Targets Buy Now, Pay Later Lending

On September 15, 2022, the Consumer Financial Protection Bureau published a report analyzing trends in the buy now, pay later (BNPL) industry. In particular, the CFPB finds that the BNPL industry has experienced rapid growth...more

CFPB Bolsters Jurisdictional Claim Over Financial Services Industry’s Digital Marketing Vendors

On August 10, 2022, the Consumer Financial Protection Bureau issued an interpretive rule stating that digital marketing providers that “commingle” the targeting and delivery of advertisements to consumers on behalf of...more

CFPB Tightens Obligations of Credit Bureaus, Users Under FCRA’s ‘Permissible Purpose’ Provisions

On July 7, 2022, the Consumer Financial Protection Bureau issued an advisory opinion interpreting the “permissible purpose” provisions of the Fair Credit Reporting Act (FCRA). The advisory opinion states that consumer...more

CFPB Targets Convenience Fees

On June 29, 2022, the Consumer Financial Protection Bureau issued an advisory opinion declaring that the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from collecting “pay-to-pay” or convenience fees...more

CFPB Paves Way for Increased State Regulation, Enforcement of Credit Reporting Practices

On June 28, 2022, the Consumer Financial Protection Bureau issued an interpretive rule under the Fair Credit Reporting Act (FCRA) clarifying that states have the ability to protect their residents by enacting their own fair...more

CFPB Warns Complex Consumer Credit Decision Models May Violate ECOA

On May 26, 2022, the Consumer Financial Protection Bureau warned via Consumer Financial Protection Circular 2022-03 that creditors using complex algorithmic credit evaluation models are not shielded from complying with the...more

CFPB Targets Credit Card Issuers’ Payment Furnishing Practices

On May 25, 2022, the Consumer Financial Protection Bureau announced on its blog that it had sent letters to the chief executive officers of six major credit card issuers seeking information on their practice of withholding...more

CFPB Publishes Spring 2022 Supervisory Highlights

On May 2, 2022, the Consumer Financial Protection Bureau (CFPB or Bureau) published its spring 2022 Supervisory Highlights report. As discussed in more detail below, the report addresses observations made in examinations...more

CFPB Revives Its Dormant Nonbank Authority to Supervise High-Risk Institutions

On April 25, 2022, the Consumer Financial Protection Bureau announced that it will invoke its authority under the Dodd-Frank Act to supervise “nonbanks whose activities the CFPB has reasonable cause to determine pose risks to...more

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