On August 8, 2024, the CFPB filed its Appellant Brief with the Fifth Circuit, appealing the September 2023 decision by the Federal District Court for the Eastern District of Texas that vacated the March 2022 changes to the CFPB’s unfair, deceptive or abusive acts or practices (UDAAP) Exam Manual. In the 2022 amendments to the Exam Manual, the CFPB purported to use the unfair prong of UDAAP under the Consumer Financial Protection Act (CFPA) to prohibit discriminatory conduct, whether or not it is covered by fair lending laws.… Continue Reading
CFPB
Plaintiffs declare that Fort Worth Chamber is the CFPB’s “natural adversary” in their opposition brief to the CFPB’s motion to dismiss
On August 12, 2024, the plaintiffs filed their brief in opposition to the CFPB’s motion to dismiss Plaintiff Fort Worth Chamber of Commerce (Fort Worth Chamber) for lack of standing and if granted, transfer the case to the Federal District Court for D.C. in the lawsuit challenging the CFPB’s credit card late fee final rule (“Rule”).… Continue Reading
CFPB to Issue Proposal to Make It Easier for Consumers to Reach ‘Real Person’ When Seeking Assistance
Posted in Artificial Intelligence, CFPB
Many financial services providers would be required to allow consumers seeking assistance to be connected to a “real person” by clicking on one button, under a new Biden Administration “Time is Money” initiative.
“Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for consumers, in order to deter them from getting a rebate or refund they are due or canceling a subscription or membership they no longer want—all with the goal of maximizing profits,” the administration said in a fact sheet.… Continue Reading
Kentucky Court Grants a Stay of Case Pending a Decision in the Texas Small Business Lending Lawsuit
By Loran Kilson on
On August 7, 2024, the U.S. District Court for the Eastern District of Kentucky granted the CFPB’s motion to stay the small business lending rule litigation before the court until resolution of the similar case pending in the Southern District of Texas.
In 2023, a group of Kentucky banks and the Kentucky Bankers Association brought suit against the CFPB challenging the Small Business Lending Rule, which amends Regulation B and creates data collection and reporting requirements pertaining to credit extended to small businesses.… Continue Reading
CFPB: Payday Plaintiffs Not Entitled to En Banc Rehearing
The plaintiffs challenging the CFPB payday lending rule should not be entitled to an en banc rehearing because the issues they cite already have become final and the time for rehearing has lapsed, the CFPB said last week responding to a request for such a rehearing. The rule prohibits lenders from continuing to attempt to withdraw money from a borrower’s account after two prior attempts failed for lack of sufficient funds, unless the lender obtains new authorization from the borrower.… Continue Reading
Plaintiffs file their brief in opposition to CFPB’s motion to dissolve the preliminary injunction in the credit card late fee lawsuit
On August 8, 2024, the plaintiffs filed their brief in opposition to the CFPB’s motion to dissolve the preliminary injunction in the lawsuit challenging the CFPB’s credit card late fee final rule (“Rule”). In their brief, the plaintiffs renew their arguments that the CFPB exceeded its authority under Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) and the Truth in Lending Act (TILA) in promulgating the Rule.… Continue Reading
Financial Regulators Propose Standards to Promote Interoperability of Data
On August 2, 2024, the CFPB, the OCC, the Federal Reserve Board, the FDIC, the NCUA, the FHFA, the CFTC, the SEC and the Treasury Department proposed a joint rule intended to establish standards to promote the ability of each of the agencies to exchange and use the data that the other agencies collect (referred to as the “interoperability” of financial data across the agencies).… Continue Reading
This week’s podcast episode: Credit Card and Other Rewards Programs in the Crosshairs
By Mindy Harris on
Posted in CFPB, Credit Cards
Rewards programs drive consumer choice and activity in connection with credit cards and other financial services. The CFPB has reported the most important element by far that influences a consumer’s decision to apply for a specific credit card is the rewards program associated with the card. Further, rewards can affect the consumer’s choice at the point of sale as to which card to use.… Continue Reading
Another target of CFPB enforcement action argues that lawsuit filed on August 23, 2023 must be dismissed because the CFPB lacked Constitutionally-authorized funds to prosecute the case
By Alan S. Kaplinsky on
Posted in CFPB, Regulatory and Enforcement
We have recently blogged about two other actions in which this issue has been raised (one being a declaratory judgment action filed against the CFPB on July 23, 2024 in the E.D. Tex. and the other being an enforcement action filed in the N.D. Tex. in which a motion to dismiss was filed on July 31, 2024).… Continue Reading
Is your direct-to-consumer company using “dark patterns” on its website?
By Kimberly W. Klayman & Gregory Jarmas on
Navigating the virtual marketplace has become an integral part of the consumer experience in the digital age. Lurking behind the convenience and accessibility of e-commerce websites, however, lies a subtle yet pervasive tactic known as “dark patterns.”
Dark patterns are generally understood to mean practices that mislead or manipulate consumers into taking actions that do not reflect their true intent, choices or consent.… Continue Reading