On March 23, 2023, the Federal Trade Commission (“FTC” or “Commission”) issued a Notice of Proposed Rule Making (“NPRM”) seeking comment on proposed amendments to the Commission’s Negative Option Rule. The proposed amendments, which would expand the scope of the rule’s coverage to all forms of negative option marketing and consolidate various requirements dispersed across various statutes and regulations, include a “click to cancel” provision which would require a simple cancellation mechanism for consumers to easily cancel subscriptions by using the same method they used to initially enroll.… Continue Reading
John C. Grugan
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GOP lawmakers question CFPB’s relationship with state attorneys general and take aim at interpretive rule on state enforcement authority
By John C. Grugan on
Posted in CFPB Enforcement, State Enforcement
Three Republican House members sent a letter last week to CFPB Director Chopra raising questions about the Bureau’s relationship with state attorneys general and its interpretive rule issued in May 2022 regarding the authority of state attorneys general and state regulators (State Officials) to enforce the Consumer Financial Protection Act (CFPA).… Continue Reading
CFPB updates Rules of Practice for Adjudication Proceedings
By Thomas Burke & John C. Grugan on
Posted in CFPB
The CFPB has issued a procedural rule that updates its Rules of Practice for Adjudication Proceedings (Rules of Practice) and a request for comment. The procedural rule is effective February 22, 2022. However, the Bureau indicates that it “may make further amendments if it receives comments warranting changes.” Comments must be submitted by April 8, 2022.… Continue Reading
Delaware federal district court certifies questions regarding CFPB’s enforcement authority and constitutionality to Third Circuit for interlocutory appeal
By John C. Grugan & Thomas Burke on
Posted in CFPB, Regulatory and Enforcement
In CFPB v. National Collegiate Master Student Loan Trust et al., the district court rejected the Trusts’ arguments that they were not “covered persons” under the CFPA and that because the enforcement action was filed by an unconstitutionally structured CFPB, it was void when filed and could not stop the statute of limitations from running. … Continue Reading
CT federal district court rules state’s demands to PHEAA for federal student loan documents preempted by federal law
By John C. Grugan & Thomas Burke on
The Connecticut federal district court has ruled in Pennsylvania Higher Education Assistance Agency v. Perez that demands by the Connecticut Department of Banking (DOB) to the Pennsylvania Higher Education Assistance Agency (PHEAA) for federal student loan documents are preempted by federal law. PHEAA was represented by Ballard Spahr.
PHEAA services federal student loans made by the Department of Education (ED) under the Direct Loan Program pursuant to a contract between the ED and PHEAA. … Continue Reading