The briefing on the CFPB’s certiorari petition seeking review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB was distributed to the Supreme Court yesterday for consideration at its February 17 conference. In that decision, the Fifth Circuit panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading
Ninth Circuit holds mortgage servicer’s reporting of Covid-19 forbearance plan complied with FCRA and CARES Act
In a win for Ballard Spahr client Specialized Loan Servicing LLC (SLS), the U.S. Court of Appeals for the Ninth Circuit recently held that SLS, a mortgage servicer, properly reported a Covid-19 forbearance plan under the CARES Act amendments to the Fair Credit Reporting Act (FCRA). The amendments require furnishers to “report [a consumer’s] credit obligation or account as current” if the furnisher agreed to provide forbearance or other relief on a consumer’s loan.… Continue Reading
This week’s podcast episode: How the New York Department of Financial Services (DFS) regulates virtual currency, a close look with special guest Kaitlin Asrow, Executive Deputy Superintendent of Research and Innovation, DFS
After reviewing the licensing/chartering/approval structures that DFS uses for entities seeking to engage in virtual currency activities, we discuss the role of guidance in DFS’s regulation and oversight of virtual currency, particularly new DFS guidance on digital asset custody practices and DFS expectations for how entities acting as digital asset custodians can better protect customers in the event of an insolvency or similar proceeding. … Continue Reading
CFPB proposes significant changes to credit card late fee rules, including reduction in late fee safe harbor amounts and elimination of annual inflation adjustments
We suspected something was afoot when December 2022 came and went without the CFPB announcing its annual inflation adjustments to the credit card late fee safe harbor amounts set forth in Regulation Z (which implements the Truth in Lending Act). With the CFPB’s issuance yesterday of a proposal to substantially reduce the safe harbor amounts, eliminate the annual inflation adjustments, and make other significant changes to the Regulation Z rules for credit card late fees, we now know the reason for the CFPB’s inaction on the adjustments.… Continue Reading
California Enforcement Sweep Targets Mobile Apps – With a Focus on Honoring “Permission Slip” App
On Friday, January 27, California Attorney General Rob Bonta announced an investigative sweep of businesses that provide mobile apps, issuing warning letters to those that AG Bonta alleges failed to comply with the California Consumer Privacy Act (CCPA). This sweep focused specifically on “popular retail, travel, and food service industry apps” that failed to comply with consumer opt-out requests or otherwise failed to offer mechanisms for consumers to stop the sale of their personal information. … Continue Reading
FDIC extends comment period for proposed signage and advertising rule
The FDIC has announced that it is extending by 45 days the comment period for proposed changes to its signage and advertising rule. Several banking trade groups sent a letter to the FDIC requesting the 45-day extension. Originally set for February 21, the comment deadline is extended to April 7, 2023.… Continue Reading
White House issues Blueprint for Renters Bill of Rights: Will the CFPB and FTC stay in their lanes?
Last week, the Biden Administration released a “Blueprint for a Renters Bill of Rights” (Blueprint), which sets forth five principles intended to “create a shared baseline for fairness for renters in the housing market” and directs various federal agencies, including the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), to take various actions to further those principles. … Continue Reading
Study of Illinois 36% interest rate cap finds reduced access to credit
Over the past few years, numerous states have imposed interest rate caps on consumer credit. In recent blog posts, we discussed the efforts of both Michigan and New Mexico to impose a 36% annual interest rate cap. Last year, Congress took up the discussion of a national 36% annual interest rate cap.… Continue Reading
Justice Department finalizes compliance metrics for Meta’s (formerly Facebook) target advertising system pursuant to settlement
As discussed in our prior post, the Department of Justice (DOJ) entered into a settlement with Meta Platforms Inc., formerly known as Facebook Inc. (Meta), to resolve allegations that Meta engaged in discriminatory advertising in violation of the Fair Housing Act (FHA). A key part of that settlement was Facebook’s agreement to build a new Variance Reduction System (VRS) to address disparities for race, ethnicity, and sex between the housing advertisers’ targeted audiences and the group of Facebook users to whom Facebook’s internal personalization algorithms actually deliver the ads. … Continue Reading
CFPB files opposition to CFSA cross-petition for certiorari; payment processor trade group files amicus brief in support of cross-petition
The CFPB has filed its brief in opposition to the cross-petition for certiorari filed by Community Financial Services Association (CFSA). The CFPB’s certiorari petition seeks review of the Fifth Circuit panel decision in Community Financial Services Association of America Ltd. v. CFPB. In that decision, the panel held the CFPB’s funding mechanism violates the Appropriations Clause of the U.S.… Continue Reading