CFPB, Federal Agencies, State Agencies, and Attorneys General
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
In a 37 page order, Chief Judge Virginia M. Kendall in the Northern District of Illinois determined that the Illinois Bankers Association, American Bankers Association, America’s Credit Unions, and Illinois Credit Union League have standing to bring their claims challenging the Illinois Interchange Fee Prohibition Act (the “IFPA”) and sovereign immunity does not apply to the federal claims.… Continue Reading
The Justice Department is asking a federal court to issue a permanent injunction against cash advance firm Dave Inc. and its CEO Jason Wilk, alleging that the company uses misleading marketing tactics to deceive consumers about the amount of its cash advances, charges consumers undisclosed fees, and charges so-called “tips” to consumers without their consent.… Continue Reading
Some credit card companies operating rewards programs may be violating the law by failing to provide promised rewards, the CFPB said, in a circular to law enforcement agencies.
“When credit card issuers promise cashback bonuses or free round-trip airfares, they should actually deliver them,” CFPB Director Rohit Chopra said, in issuing the circular.… Continue Reading
Mississippi Bankers Association, the American Bankers Association, the Consumer Bankers Association, America’s Credit Unions, and three banks are seeking a preliminary injunction blocking the CFPB from implementing the bureau’s controversial overdraft rule finalized just a month prior to the Trump Administration change and expected CFPB leadership change.
We suspect that the plaintiffs will be able to easily establish the factors necessary for the court to grant a preliminary injunction in this case.… Continue Reading
The CFPB has issued its long-awaited final rule that covers overdraft policies at financial institutions with at least $10 billion in assets. The final rule offers those financial institutions three options for designing their overdraft programs.
The rule came one day after Senate Banking Committee ranking Republican Sen. Tim Scott, R-S.C.… Continue Reading
The FTC filed a complaint in the U.S. District Court for the Central District of California against Seek Capital and its CEO, Roy Ferman, alleging that the company operated a bogus business finance scheme that cost small business owners more than $37 million. The FTC alleges violations of the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, and Consumer Review Fairness Act of 2016, and requests a temporary, preliminary and permanent injunction, monetary damages and other relief.… Continue Reading
The CFPB has taken action against Global Tel Link Corporation (GTL) over allegations that the company took millions of dollars from a half-million accounts and blocked money transfers to consumers who are incarcerated. Those prisoners relied on those funds for food, medicine and clothing.
The CFPB is ordering GTL and its subsidiaries to stop the allegedly illegal activity, pay at least $2 million in redress to victims and pay $1 million civil monetary penalty.… Continue Reading
