Our special guest is Richard (“Rick”) Hackett, former Assistant CFPB Director responsible for auto finance regulation and presently a member of the Board of F&I Sentinel, which supports lender compliance in the auto finance and insurance industry.  In December 2023, the FTC announced its Combatting Auto Retail Scams Rule, otherwise known as the “CARS Rule,” which sets new requirements on the sale, financing, and leasing of new and used vehicles by motor vehicle dealers. … Continue Reading

The Federal Trade Commission (“FTC”) recently entered into proposed stipulations with a group of student loan debt relief providers to resolve allegations that the group conducted deceptive marketing and sales practices in collecting over $8 million in “junk fees” for nonexistent debt relief services.

Last August, the FTC filed a complaint against Express Enrollment LLC (d/b/a SLFD Processing), Intercontinental Solutions LLC (d/b/a Apex Doc Processing LLC), and their operators Marco Manzi, Ivan Esquivel, and Robert Kissinger alleging violations of the unfair or deceptive acts or practices (“UDAP”) prohibitions of Section 5(a) of the FTC Act , the FTC’s Telemarketing Sales Rule (“TSR”), and Section 521 of the Gramm Leach Bliley Act, which prohibits obtaining a person’s financial information by making false statements, in connection with their deceptive marketing and sale of student loan debt relief services.… Continue Reading

On January 11, 2024, the House Financial Services Committee announced the formation of a bipartisan Working Group on Artificial Intelligence (“AI”). The working group is to be led by the Chairman of the Digital Assets Financial Technology and Inclusion Subcommittee, French Hill, along with the Subcommittee ranking member Stephen Lynch. This group is designed to address a number of the directives contained in President Biden’s Executive Order on AI issued in October 2023.… Continue Reading

On January 18, 2024, the Federal Trade Commission’s (“FTC”) announced that it is postponing the effective date of the Combating Auto Retail Scams Rule (“CARS Rule”) in light of the legal challenge from industry trade associations seeking judicial review of the new rule.  In a 3-0 vote, the FTC’s commissioners approved an order that, while taking issue with the trade associations’ arguments in the petition for review that the FTC maintains are “mischaracterizations,”  stays the effective date pending the completion of that review “in the interests of justice.” … Continue Reading

On January 11, 2024, the Consumer Financial Protection Bureau (CFPB) issued two new advisory opinions: Fair Credit Reporting; Background Screening and Fair Credit Reporting; File Disclosure. The advisory opinions are part of the CFPB’s ongoing efforts to clean up what the CFPB describes in its press release as allegedly “sloppy” credit reporting practices and ensure credit report accuracy and transparency to consumers.… Continue Reading

On January 2, the Federal Trade Commission (FTC) filed a complaint against FloatMe Corp. (“FloatMe”), a fintech that offers short-term cash advances through its mobile app, alleging violations of the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA), and the Equal Credit Opportunity Act (ECOA). The complaint is similar in its language and allegations to one filed by the FTC against Bridge It, Inc.,… Continue Reading

On January 5, 2024, two trade groups representing auto dealers filed a petition for review challenging the Federal Trade Commission’s (“FTC”) new Combating Auto Retail Scams Rule (“CARS Rule”). In the petition, the National Automobile Dealers Association (“NADA”) and Texas Automobile Dealers Association (“TADA”) ask the United States Court of Appeals for the Fifth Circuit to vacate or modify the rule and stay its enforcement pending resolution of the petition.… Continue Reading

In December 2023, the Federal Trade Commission announced its Combatting Auto Retail Scams Rule, otherwise known as the “CARS Rule,” which sets new requirements on the sale, financing, and leasing of new and used vehicles by motor vehicle dealers.  The final rule prohibits certain misrepresentations in the financing process, sets disclosure requirements on dealers’ advertising and sales communications, mandates that dealers obtain consumers’ express, informed consent for charges, and prohibits the sale of add-on products or services if there is no benefit to the consumer.… Continue Reading

The FTC has extended by 30 days the deadline for submitting comments on its proposed “Rule on Unfair or Deceptive Fees” targeting what the FTC refers to as “junk fees.”  The new comment deadline is February 7, 2024. 

In October 2023, we released an episode of our Consumer Finance Monitor Podcast about the FTC’s proposal for which our special guest was Stacy Cammarano, Staff Attorney in the FTC’s Bureau of Consumer Protection, Division of Advertising Practices, and a lead attorney on the proposal. … Continue Reading