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

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

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

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

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

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

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

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

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has issued an Alert “urging financial institutions to detect, prevent, and report suspicious activity connected to fraud schemes targeting student aid programs administered by the Federal government.” 

“Every dollar stolen from Federal student aid is a dollar taken from taxpayers and deserving students,” said Secretary of the Treasury Scott Bessent.… Continue Reading

President Trump is renewing his effort to oust Lisa D. Cook from the Federal Reserve Board.

In a letter to Cook, a Biden Administration nominee, Daniel Scavino, Assistant to the President and Deputy Chief of Staff and Director of the Office of Presidential Personnel, repeated allegations that Cook may have made false statements on one or more mortgage applications and stated that the President is considering removing her from her position as a result.… Continue Reading