May 2021

Federal and state courts, lawmakers, and regulators are increasingly recognizing that, in contrast to large businesses, small businesses often lack the sophistication needed to operate on an equal footing with providers of commercial financing.  As a result, there has been a growing body of legislative, regulatory, and enforcement activity on the federal and state levels directed at protecting small businesses from practices that are targeted by consumer protection laws.… Continue Reading

The California Department of Financial Protection and Innovation announced earlier this month that it has hired Christina Tetreault to lead the new Office of Financial Technology and Innovation.  The hiring of Ms.Tetreault is particularly significant because, according to the DFPI’s press release, “[t]he announcement finalizes hiring for the most critical positions needed to stand up major offices and divisions to carry out the California Consumer Financial Protection Law which took effect Jan.… Continue Reading

Earlier this week, FTC Acting Chairwoman Rebecca Kelly Slaughter sent a letter to the Chair and Ranking Member of the House Commerce Committee responding to a letter sent to the lawmakers by the U.S. Chamber of Commerce regarding the legislation that has been introduced to amend Section 13(b) of the FTC Act. … Continue Reading

With the U.S. Treasury Department now completing the process of issuing the third round of EIPs, financial institutions must navigate a maze of federal and state garnishment protections.  After looking at the protection provided by the three federal pandemic relief laws, we discuss the actions states have taken to protect EIPs and offer our thoughts on the approach banks should take when responding to garnishment orders and analyzing the impact of state laws, executive orders, guidance, and directives.… Continue Reading

On May 17, 2021, the Consumer Financial Protection Bureau (“CFPB”) announced that it entered into a proposed settlement of its lawsuit filed in a Massachusetts federal district court against debt settlement company DMB Financial, LLC (“DMB”), alleging that the company engaged in deceptive acts or practices in violation of the Telemarketing Sales Rule (“TSR”) and the Consumer Financial Protection Act (“CFPA”).  … Continue Reading

The National Association for Latino Community Asset Builders (NALCAB) has filed its combined opposition to the motions of the CFPB and the Consumer Financial Services Association (CFSA) to dismiss NALCAB’s lawsuit challenging the CFPB’s rescission of the “ability-to-repay” (ATR) or “mandatory underwriting provisions” in its 2017 final payday/auto title/high-rate installment loan rule (2017 Rule).  … Continue Reading

The United States Supreme Court granted certiorari in Badgerow v. Walters, No. 20-1143 on May 17, 2021.  The question presented is “[w]hether federal courts have subject matter jurisdiction to confirm or vacate an arbitration award under Sections 9 and 10 of the [Federal Arbitration Act (“FAA”)] where the only basis for jurisdiction is that the underlying dispute involved a federal question.”… Continue Reading

The Federal Deposit Insurance Corporation (FDIC) recently issued a notice of proposed rulemaking (NPR) and request for information (RFI) addressing “False Advertising, Misrepresentation of Insured Status and Misuse of the FDIC’s Name or Logo”.

Under this NPR, the title of 12 CFR Part 328, currently “Advertisement of Membership” would be changed to “Advertisement of Membership, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo.”… Continue Reading

The Board of Governors of the Federal Reserve System recently issued and invited public comment on proposed guidelines to be used by Federal Reserve Banks to evaluate requests for master accounts and/or access to Federal Reserve Bank (Fed) financial services, in order to support a more “transparent and consistent” approach to such requests.… Continue Reading

On May 19, 2021, the House Financial Services Committee will hold a hearing, “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions.”  The scheduled witnesses are:

  • Todd Harper, Chairman, National Credit Union Administration
  • Michael Hsu, Acting Comptroller of the Currency, Office of the Comptroller of the Currency
  • Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation
  • Randal Quarles, Vice Chairman of Supervision, Board of Governors of the Federal Reserve System

Acting Comptroller Hsu is expected to be questioned about the OCC’s Community Reinvestment Act rule, its special purpose national bank charter for nondepository companies, and its fair access rule. … Continue Reading