According to an exclusive Bloomberg Law report, the Federal Deposit Insurance Corporation is considering plans to work with banking and financial technology industry groups to establish a new standard-setting organization. The report is based on a term sheet that would establish a Banking Industry Standards Development Organization (BISDO) to develop standards and issue standard certifications to third-party service providers that partner with banks.… Continue Reading
NYC’s SHIELD Debt Collection Rule: DCWP’s New FAQ Clarifies Key Compliance Questions
In March, we reported on New York City’s new Stopping Harassment and Intimidation and Ensuring Lawful Debt Collection Rule (the “SHIELD Rule”), which substantially expands the Department of Consumer and Worker Protection’s (“DCWP”) regulation of debt collection in New York City and goes beyond the federal Fair Debt Collection Practices Act (“FDCPA”) and Regulation F. … Continue Reading
FTC Abandons Disparate Impact and “Unfair Discrimination” Theories: A Major Shift in Federal Consumer-Protection Law
The Federal Trade Commission (FTC) has taken a major step toward dismantling two theories of discrimination.
In a new Policy Statement Regarding Disparate-Impact Claims and “Unfair Discrimination” Claims, the FTC announces that it will no longer pursue disparate-impact claims under the FTC Act or the Equal Credit Opportunity Act (ECOA). Just as significantly, although less prominently emphasized in the Policy Statement, the FTC has now repudiated its position that the “unfairness” prong of Section 5 of the FTC Act independently authorizes the Commission to pursue discrimination claims.… Continue Reading
Senate Judiciary Hearing Reveals Bipartisan Support for Federal Action on AI-Driven “Surveillance Pricing”
The Senate Judiciary Committee’s Subcommittee on Crime and Counterterrorism held an unusually consequential hearing on August 4 entitled “Your Data, Their Profit: The Consumer Cost of AI Surveillance Pricing.”
The hearing produced something that has become increasingly rare in Washington: substantial bipartisan agreement that Congress should do something about the use of consumers’ personal data to set individualized prices.… Continue Reading
Illinois Enacts Disparate Impact Standard for Credit Decisions: What Lenders Need to Know
Introduction
Illinois has joined a growing number of states that are expanding fair lending obligations at the state level even as the federal government moves in the opposite direction. On July 31, 2026, SB 3777 became Public Act 104-0744, amending the Illinois Human Rights Act (Act) to prohibit not only intentional discrimination in lending and credit card issuance, but also the use of facially neutral underwriting criteria or methodologies that produce discriminatory effects.… Continue Reading
NFHA Amends Challenge to CFPB’s Regulation B Rule, Adding New Attack on Agency’s Rulemaking Process
The National Fair Housing Alliance (“NFHA”) and three other plaintiffs have amended their lawsuit challenging the CFPB’s recently issued amendments to Regulation B under the Equal Credit Opportunity Act (“ECOA”). The amended complaint, filed August 11, makes several important changes to the complaint originally filed on May 27.
The amendments do not fundamentally alter the plaintiffs’ challenge to the Regulation B rule.… Continue Reading
Seventh Circuit Upholds FDIC’s Use of In-House Enforcement Proceedings After “Close and Challenging” Constitutional Analysis
In a closely watched decision with potentially significant implications for federal banking enforcement, the U.S. Court of Appeals for the Seventh Circuit has upheld the Federal Deposit Insurance Corporation’s authority to adjudicate certain enforcement actions through its own administrative process rather than in federal court. In Bonan v. FDIC, No.… Continue Reading
Today’s Podcast Episode: CFPB’s Immigration Status Guidance Creates a Compliance Catch-22 for Creditors
CFPB guidance on ability to repay, immigration status, and fair lending creates a difficult compliance dilemma for creditors.
The CFPB’s June 5, 2026 statement on “Ability to Repay and Immigration Status” presents creditors with a difficult, and potentially unprecedented, compliance dilemma. The Bureau says that when creditors are required to assess a consumer’s ability to repay, they may, and in some circumstances may be required to, consider information about the consumer’s immigration status if that information bears on the consumer’s current or reasonably expected future income.… Continue Reading
Crews confirmed as member of NCUA board
The Senate has confirmed John Crews to serve on the NCUA board. Crews will replace Kyle Hauptman as the sole board member of the agency and is expected to become chairman.
Hauptman’s term expired in August 2025, but he stayed on the board as permitted by section 102(c) of the Federal Credit Union Act, which allows any board member to continue to serve after the expiration of their term until a successor has qualified.… Continue Reading
Colorado Publishes Draft ADMT Regulations
On August 11, 2026, the Colorado Department of Law published its much anticipated Automated Decision-Making Technology (ADMT) and Conversational AI Service Rules (the “Draft Rules”). The ADMT Draft Rules provide guidance on the newly amended Colorado AI Act.
The Draft Rules – which were required to be written on an expedited basis by the amended Act – cover various different issues that will be critical to deployer and developer compliance.… Continue Reading