California Governor Gavin Newsom has appointed former CFPB Director Rohit Chopra to be the inaugural Secretary of a new cabinet-level agency that he created last year — the Business and Consumer Services Agency (“BCSA”). Although the appointment must be confirmed by the California Senate, the move is already generating significant attention within the financial services industry because it may signal California’s intent to assume a substantially larger role in consumer financial regulation and enforcement at a time when many expect reduced federal regulatory activity.… Continue Reading
Alan S. Kaplinsky
CFPB Surprisingly Appeals Judge Davila’s Funding Decision to the Ninth Circuit
By Alan S. Kaplinsky on
Posted in CFPB
Just when the conventional wisdom seemed to be that the CFPB was no longer going to assert that it could not request funding from the Federal Reserve because of combined losses at the Federal Reserve Banks, things have once again been thrown into a cocked hat. On May 11, 2026, the CFPB filed a notice of appeal to the U.S.… Continue Reading
Seventh Circuit Hits Reset Button in Illinois Interchange Fee Litigation After OCC “Doubles Down” on Federal Preemption under the National Bank Act
The U.S. Court of Appeals for the Seventh Circuit issued a highly significant order on May 8, 2026 in the closely watched litigation challenging the Illinois Interchange Fee Prohibition Act (“IFPA”), vacating the district court’s judgment and remanding the case for further proceedings in light of the OCC’s recently issued Interim Final Rule and preemption order.… Continue Reading
Second Circuit Reaffirms Preemption of New York’s Mortgage Escrow Interest Law, Setting Stage for Potential Supreme Court Rematch with First Circuit
By Alan S. Kaplinsky on
In a decision issued May 5, 2026, a Second Circuit Court of Appeals panel in Cantero v. Bank of America, N.A., August Term 2024, Nos. 21-400, 22-403, once again held that New York’s General Obligations Law § 5-601, which requires mortgage lenders to pay at least 2% interest on escrow accounts is preempted by the National Bank Act (NBA) as applied to national banks like Bank of America.… Continue Reading
CFPB’s OIG investigating current workforce and contracting developments plus interpretations adopted and enforcement actions taken under then Director Chopra
The CFPB’s Office of Inspector General is still investigating the agency’s workforce and contracting moves to see what impact it has had on agency actions.
“We are reviewing the CFPB’s workforce and contracting actions to determine their high-level effects on mission-related activities and support functions,” the OIG said, in an update of its activities.… Continue Reading
Maryland Targets “Surveillance Pricing” Is It a Warning Shot for AI-Driven Pricing Across Industries, Including Consumer Financial Services
Posted in State Regulation
On April 28, 2026, Governor Wes Moore of Maryland has signed into law the nation’s most aggressive state law aimed at so-called “surveillance pricing” and algorithmic price-setting. House Bill 895, titled the Protection From Predatory Pricing Act, will become effective on October 1, 2026. It restricts the use of personalized pricing, consumer data-driven pricing, and certain AI-enabled pricing practices, particularly in the food retail (operating establishments of at least 15,000 square feet) and delivery sectors.… Continue Reading
Virginia Moves Toward State-Court Class Actions: A Major Shift with Significant Business Implications
By Thomas Burke, Alan S. Kaplinsky & John Sadler on
Posted in State Regulation
Virginia is on the verge of making a consequential change to its civil justice system. Legislation now pending before Governor Abigail Spanberger would authorize private class actions in Virginia state courts and make significant amendments to the Virginia Consumer Protection Act (“VCPA”). If signed, Virginia would join virtually every other state in expressly permitting class action procedures in its own courts.… Continue Reading
CFPB’s Final Rule Recalibrates Fair Lending Enforcement: A Return to Clarity and Core Statutory Principles
By Alan S. Kaplinsky on
Posted in CFPB Rulemaking, Fair Lending
On April 22, 2026, the Consumer Financial Protection Bureau (CFPB), under Acting Director Russell Vought, issued a significant final rule reshaping the agency’s approach to fair lending enforcement under the Equal Credit Opportunity Act (ECOA) and Regulation B. While early commentary has been sharply divided, a closer reading of the final rule itself reveals a thoughtful and disciplined effort to realign enforcement with statutory text, evidentiary rigor, and practical compliance realities.… Continue Reading
OCC Doubles Down on Interchange Fee Preemption Against the Backdrop of High-Stakes Seventh Circuit Litigation and a Post-Loper Bright World
By Alan S. Kaplinsky, Adam Maarec & Ronald K. Vaske on
In a pair of coordinated actions on April 24, 2026, the Office of the Comptroller of the Currency (OCC) moved to reaffirm and expand the scope of National Bank Act (NBA) preemption to credit and debit card interchange fees and the use of electronic payment transaction data.
The OCC issued (i) an interim final rule clarifying that interchange fees are protected “non-interest charges,” and (ii) an interim final order expressly preempting the Illinois Interchange Fee Prohibition Act (IFPA).… Continue Reading
Introducing the Institute for Consumer Financial Choice: A New Voice for Research, Policy, and Consumer Choice
By Alan S. Kaplinsky on
Posted in General
At a time when consumer financial regulation is both rapidly evolving and deeply contested, the launch of the Institute for Consumer Financial Choice (ICFC) represents a significant and timely development. Housed within the Law & Economics Center at George Mason University Antonin Scalia Law School, the ICFC is designed to bring rigorous, evidence-based analysis to some of the most important questions in consumer finance.… Continue Reading