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The House Financial Services Committee’s Financial Institutions Subcommittee will hold a hearing on Wednesday, March 26, to discuss possible changes to the structure and responsibilities of the CFPB.

“The Subcommittee will review the structure and funding of the Consumer Financial Protection Bureau (CFPB), in addition to statutory authorities granted to the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010,’ the subcommittee said, in a memo in advance of the hearing.… Continue Reading

A federal judge has granted the CFPB 30 days to try to settle the lawsuit challenging the bureau’s credit card late fee rule that was issued during the Biden Administration.

“The Bureau’s new leadership is currently reviewing and considering its positions on various agency actions, including the regulation at issue in this case,” the CFPB’s attorneys said, in filing the request with Judge Mark T.… Continue Reading

Today’s podcast show features a discussion with Professor Gregory Klass of Georgetown University Law School about an article he co-authored with Professor Ian Ayres, entitled “How to Use the Restatement of Consumer Contracts: A Guide for Judges.” The article will be published this year in the Harvard Business Law Review (vol 15), and is available here.… Continue Reading

Saying that the CFPB’s consideration of returning funds to the Federal Reserve is not a sign that the Trump Administration intends to abolish the bureau, a federal judge has refused to issue a preliminary injunction stopping those transfers.

“For the Court to intervene and entangle itself in the Bureau’s administrative processes before the agency has made any final decision about the disposition of its operating and reserve funds — and without clear indication that an unlawful and injurious decision will be made imminently — would exceed the bounds of the Court’s proper role and jurisdiction,” Judge Matthew Maddox, of the District of Maryland, wrote.… Continue Reading

On June 6 of last year, Prof. Hal Scott of Harvard Law School was our podcast guest. On that occasion he delved into the thought-provoking question of whether the Supreme Court’s decision on May 16 in the landmark case of CFSA v. CFPB really hands the CFPB a winning outcome, or does the Court’s validation of the agency’s statutory funding structure simply open up another question – namely, whether the CFPB is legally permitted under Dodd-Frank to receive funds from the Federal Reserve even though the Federal Reserve Banks have lost money on a combined basis since September 2022.… Continue Reading

State attorneys general are not waiting to see what the future holds for the CFPB.  With federal oversight receding, states are stepping up enforcement activities and strengthening their consumer protection laws.

This shift—accelerated by efforts to limit the CFPB’s authority under the Trump administration—creates a complex landscape where businesses must navigate a patchwork of state-level statutes, regulations, and enforcement priorities.… Continue Reading

The Senate Banking Committee on March 6 approved the nomination of Jonathan McKernan to be Director of the Consumer Financial Protection Bureau.

The committee voted 13-11; the nomination now goes to the full Senate. McKernan, a former FDIC Board Member, would replace Acting Director Russell Vought.

Support for McKernan has divided along party lines, with Democrats saying that he would help dismantle an agency that the Trump Administration has said no longer should exist.… Continue Reading

The House Financial Services Committee on March 5 took the first step toward repealing the CFPB’s overdraft rule, adopting a resolution under the Congressional Review Act.

The resolution, H. J. Res 59, sponsored by committee Chairman Rep. French Hill, R-Ark., was adopted, 30-19. The resolution simply repeals the overdraft rule.

As we previously noted, it now goes to the House floor, where it can be adopted by a simple majority.… Continue Reading

Our special guest is David Horton, Professor of Law at the University of California, Davis, who has written a creative and thought-provoking article analyzing how courts should interpret certain key provisions that are frequently used in consumer arbitration agreements. The article may be accessed online at SSRN and will be published in the Washington University Law Review later this year.… Continue Reading

The CFPB has extended the comment period for its Notice of Proposed Rulemaking on data brokers until April 2, 2025; the comment period had been slated to expire on March 3, 2025

The bureau said it was extending the comment period to allow interested persons more time to consider and submit their comments on the rule.… Continue Reading