CFPB, Federal Agencies, State Agencies, and Attorneys General
Using the Congressional Review Act, the Senate has voted to nullify a CFPB final rule that would subject large cash apps to the bureau’s supervision.
The Senate voted 51-47 to adopt S.J. Res 28, a resolution that under the CRA, was not subject to a filibuster. The House has not yet considered a companion resolution.… Continue Reading
Chairman Kyle S. Hauptman announced that the National Credit Union Administration (NCUA) will no longer publish overdraft and non-sufficient fund (NSF) fee income for individual credit unions with more than $1 billion in assets. Instead, under the new policy effective with the March 31, 2025 call reporting, the NCUA will collect the data during supervisory examinations.… Continue Reading
The Federal Deposit Insurance Corporation (FDIC) is further postponing the compliance date requirements to display the FDIC official digital sign on an insured depository institution’s (IDI) digital channels, as well as on the screen of an IDI’s automated teller machine (ATM) and like devices. The new mandatory compliance date for these requirements is March 1, 2026.… Continue Reading
In the latest edition of its Consumer Compliance Outlook, the Federal Reserve (Fed) identified the four most significant fair lending violations that it found in examining state member banks in 2022. These are violations that were typically identified in examinations as matters requiring attention or as matters requiring immediate attention.
Fair Lending Risk Assessment.… Continue Reading
In a significant ruling on February 18, 2025, the Wisconsin Court of Appeals determined that the National Bank Act (NBA) does not preempt the procedural “right to cure” notice requirements mandated by the Wisconsin Consumer Act (WCA), reversing a judgment in two debt collection actions.
The court, thereby, determined that this state-level consumer protection was not preempted by the NBA.… Continue Reading
Oregon may become the latest state attempting to stop out-of-state banks from “exporting” home-state interest rates on loans made to Oregon consumers. Like similar legislation adopted by Colorado in 2023, House Bill 2561 explicitly provides that the state does not want certain provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) to apply to loans made in Oregon.… Continue Reading
Chief Judge Virginia Kendall of the Northern District of Illinois has extended her preliminary injunction prohibiting Illinois from enforcing the Illinois Interchange Fee Prohibition Act (the “IFPA”) to cover out-of-state banks conducting business in the state.
Judge Kendall already had ruled that Illinois could not enforce the IFPA on nationally chartered banks and federal savings associations but requested additional briefing with respect to federal credit unions and out-of-state banks.… Continue Reading
House Republicans appear ready to start the Congressional Review Act (CRA) process to attempt to repeal the Biden Administration’s controversial overdraft rule.
The rule is scheduled to go into effect Oct. 1, but Acting CFPB Director Scott Bessent has ordered a halt to all work at the agency, and a suspension of the effective dates for all rules that have not yet taken effect, so it is unclear when the overdraft rule might take effect.… Continue Reading
The New York State Department of Financial Services has released a proposed rule that would regulate overdraft, non-sufficient funds (NSF), and return deposit item fees charged by banks, trust companies, savings banks, savings and loan associations, credit unions and investment companies.
Under the proposal, announced by Gov. Kathy Hochul, state-chartered banking institutions would be prohibited from charging:
In an effort to foster innovation in financial services, the CFPB is reinstituting its programs that allow companies to obtain regulatory safe harbors through no-action letters and sandboxes to test new products and services.
The CFPB had such programs during the first Trump Administration, but the Biden Administration scrapped them, saying that they were ineffective and unfair.… Continue Reading
