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California Seeks to Expand DFPI’s Consumer Finance Enforcement Authority with Senate Bill 825

California Senate Bill 825 is aimed at expanding the state’s authority to enforce its consumer finance laws by eliminating an existing exemption for persons licensed by the Department of Financial Protection and Innovation...more

CFPB Shifts Course on Buy Now, Pay Later: Interpretive Rule Revoked, Legal Challenge Implications

The Consumer Financial Protection Bureau (CFPB) recently announced a significant change in its approach to the burgeoning "buy now, pay later" (BNPL) market. The Bureau has announced plans to revoke its May 2024 interpretive...more

Mind the Fine Print: CFPB Warns Against Use of Unenforceable Terms and Conditions

In a move that underscores the importance of clarity and accuracy in consumer-facing terms and conditions, the Consumer Financial Protection Bureau recently issued Circular 2024-03, addressing the use of unlawful or...more

New CFPB Rule Classifies “Buy Now, Pay Later” Lenders as Credit Card Issuers

On May 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that redefines the regulatory framework for Buy Now, Pay Later (BNPL) lenders, aligning them with traditional credit card providers...more

CFPB Considering Increased Regulation of Credit Card Rewards Programs

On May 9, 2024, the CFPB released a comprehensive report detailing its findings on challenges reported by consumers regarding their credit card rewards programs. This report, as well as remarks made by CFPB Director Rohit...more

Consumer Financial Protection Bureau Releases Final Rule Limiting Credit Card Late Fees

In March the Consumer Financial Protection Bureau (CFPB) announced a final rule intended to limit late payment fees on consumer credit cards distributed by the larger credit card issuers (the “Final Rule”). The Final Rule,...more

CFPB Aiming to Regulate Non-bank Payments Providers

With a proposed rule released last month (the “Proposed Rule”), the Consumer Financial Protection Bureau (“CFPB”) aims to regulate larger nonbank providers of digital wallets, payment apps, and similar services. The Proposed...more

Creditors Using AI Underwriting Must Provide Specific Reasons for Adverse Action

Artificial intelligence (“AI”) and complex credit models may help lending institutions make decisions on credit applications more efficiently, but they’re also inviting increased scrutiny from regulators. On September 20,...more

CFPB Publishes Outline Detailing Planned Data Broker Rule

On September 15, 2023, the CFPB issued an outline of its proposal to promulgate a rule under the Fair Credit Reporting Act (“FCRA”) which would regulate the consumer data collection and selling activities of data brokers. The...more

Banks that Reopen Closed Deposit Accounts May Be Engaged in Unfair Practices

The Consumer Financial Protection Bureau (“CFPB”) has issued a warning to financial institutions regarding the reopening of deposit accounts that had been closed by consumers. In Circular 2023-02 (the “Circular”), the CFPB...more

Silicon Valley Bank and the Impact of FDIC Bank Receiverships

On March 10, 2023, the California Department of Financial Protection and Innovation announced that it had closed down Silicon Valley Bank (“SVB”), a financial institution known for its services to start-ups and the venture...more

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