Using data for the last quarter of 2020 and first three quarters of 2021, the study examined the effects of the 36% rate cap imposed by the Illinois Predatory Loan Prevention Act which became effective in March 2021. The study found that the cap significantly decreased the availability of small-dollar credit in Illinois. … Continue Reading
D.C. Circuit rules CFPB prepaid card rule does not mandate use of “model clause”
By Ballard CFS Group on
The U. S. Court of Appeals for the D.C. Circuit held that the CFPB’s prepaid card rule (Prepaid Rule) does not mandate a “model clause.” The ruling was made in the lawsuit that PayPal, one of the largest digital wallet providers, filed against the CFPB in December 2019 to challenge the Prepaid Rule. … Continue Reading
New CFPB report and blog post look at third-party debt collections tradeline reporting and medical debt furnishing
By John L. Culhane, Jr. on
The CFPB issued a new report, “Market Snapshot: An Update on Third-Party Debt Collections Tradelines Reporting,” that looks at trends in credit reporting of debt in collections from 2018 to 2022. It also published a new blog post, “Debt collectors re-evaluate medical debt furnishing in light of data integrity issues,” that looks at factors that create challenges for medical collections reporting.… Continue Reading
FTC issues annual ECOA report to CFPB
By John L. Culhane, Jr. on
The FTC recently sent its annual letter to the CFPB reporting on the FTC’s activities related to the Equal Credit Opportunity Act (ECOA) and Regulation B. The new letter reports on the FTC’s activities in 2022. The Bureau includes the FTC’s annual letter in its own annual report to Congress on the ECOA.… Continue Reading
CFPB Issues 2023 Reportable HMDA Data Chart
By Richard J. Andreano, Jr. on
The CFPB recently issued a chart entitled Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart for HMDA Data Collected in 2023.
The chart was updated from the 2022 version to reflect the 2022 court decision in NCRC v. CFPB [Link: https://www.consumerfinancemonitor.com/2022/10/03/federal-dc-court-overturns-closed-end-loan-hmda-reporting-threshold/] invalidating the part of an April 2020 final Home Mortgage Disclosure Act (HMDA) rule issued by the CFPB that increased the HMDA reporting threshold for closed-end mortgage loans from 25 covered loans originated in each of the prior two years to 100 covered loans originated in each of the prior two years. … Continue Reading
CFPB report of decline in bank revenues from overdraft and NSF fees follows President Biden’s targeting of “junk fees” State of the Union address
By John L. Culhane, Jr. on
In a new report published last week titled “Banks’ overdraft/NSF fee revenue declines significantly compared to pre-pandemic levels,” the CFPB reported that its most recent analysis found that bank overdraft/NSF fee revenue was 43% lower in the third quarter of 2022 than in the third quarter of 2019 before the COVID-19 pandemic onset – suggesting $5.1 billion less in fees on an annualized basis. … Continue Reading
New York Department of Financial Services issues final regulations for consumer-like disclosures for commercial financing
By John Sadler & Ballard CFS Group on
The New York Department of Financial Services (DFS) has issued final regulations implementing the state’s Commercial Finance Disclosure Law (CFDL) which requires consumer-like disclosures for “commercial financing” transactions of $2.5 million or less. The regulations became effective on February 1, 2023, the date a Notice of Adoption was published in the New York State Register. … Continue Reading
CFPB addresses “pay-to-play” mortgage loan digital comparison-shopping platforms under RESPA
By Richard J. Andreano, Jr. on
The CFPB recently issued an advisory opinion entitled Real Estate Settlement Procedures Act (Regulation X); Digital Mortgage Comparison-Shopping Platforms and Related Payments to Operators. The CFPB states that it issued the advisory opinion “to address the applicability of the Real Estate Settlement Procedures Act (RESPA) section 8 to operators of certain digital technology platforms that enable consumers to comparison shop for mortgages and other real estate settlement services, including platforms that generate potential leads for the platform participants through consumers’ interaction with the platform (Digital Mortgage Comparison-Shopping Platforms).” … Continue Reading
ABA files amicus brief in support of bank’s position that TILA credit card offset prohibition does not apply to amounts owed on a HELOC
By John L. Culhane, Jr. on
The issue of whether a home equity line of credit (HELOC) that can be accessed using a credit card is a “credit card plan” subject to the Truth in Lending Act’s setoff prohibition is currently before the U.S. Court of Appeals for the Fourth Circuit. The American Bankers Association recently filed an amicus brief in the case in support of the appellee bank’s position that the prohibition does not apply to HELOCs. … Continue Reading
This week’s podcast episode: A close look at the Federal Trade Commission’s proposal to ban non-compete agreements
By Barbara S. Mishkin on
Posted in FTC, Regulatory and Enforcement
With one Republican Commissioner dissenting, the FTC has issued a notice of proposed rulemaking that would ban non-compete agreements between employers and workers nationwide, both prospectively and retroactively. If finalized, the proposal would impact nearly all nonbanks in the consumer financial services industry. We first review the practices that the proposal would prohibit, the types of employers and categories of workers it covers, and the types of agreements it covers, including the proposal’s narrow exceptions. … Continue Reading