CFPB, Federal Agencies, State Agencies, and Attorneys General
In today’s episode, we discuss the CFPB’s recent proposed data broker rule—a proposal that would greatly expand the reach of the Fair Credit Reporting Act.
On December 3, the CFPB issued a proposed rule promoted as one that would require companies that sell data about income or financial tier, credit history, credit score or debt payments to comply with the Fair Credit Reporting Act.… Continue Reading
The CFPB has published a proposed rule that would ban companies from using contract clauses that the bureau said limit fundamental freedom, including those that waive a consumer’s legal rights and fine print that suppresses speech.
“For decades, companies have slowly eroded Americans’ rights by slipping clauses into take-it-or-leave-it contracts that seek an unfair leg up by attempting to deny individuals the benefits of a free market,” the bureau said, in releasing the proposed rule.… Continue Reading
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
Borrowers with subprime or deep subprime credit scores make up the majority of Buy Now, Pay Later (BNPL) originations, the CFPB said, in a new report.
From 2021 to 2022, borrowers with deep subprime credit scores accounted for 45% of BNPL originations, while people with subprime credit cards were responsible for 16% of originations.… Continue Reading
In a letter to President-Elect Donald Trump, the American Bankers Association and its 52 affiliates are calling for a halt to all regulatory actions affecting banks and an extension of all effective dates for final regulations impacting financial institutions.
Such a pause is needed “to ensure that the incoming teams in each of these [financial regulatory] agencies has the time and opportunity to review years of rulemaking, guidance, and other policy actions that have the effect of constraining market participants,” the 50 state banking associations and ones representing the District of Columbia and Puerto Rico, wrote, in their letter.… 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 National Credit Union Administration has issued guidance to federal credit unions regarding the consumer harm stemming from certain overdraft and non-sufficient funds (NSF) fee practices. The NCUA will continue to review credit union overdraft programs and will pay particular attention to overdraft fees for authorize positive and settle negative transactions and NSF fees for represented items, NCUA Chairman Todd Harper recently warned credit unions.… Continue Reading
The CFPB has issued its final rule that will prohibit the inclusion of medical debts in credit reports lenders use to make credit decisions and that will also generally prohibit lenders from using medical debt information in making credit decisions.
But the rule faces challenges on several fronts.
“People who get sick shouldn’t have their financial future upended,” said CFPB Director Rohit Chopra, in issuing the rule.… Continue Reading
Today’s podcast episode is part two of our December 16th webinar, where we discussed the impact of the election on CFPB rulemaking. Part one consisted of a “fireside chat” with David Silberman, who held several senior-level positions at the CFPB for almost ten years under both Democratic and Republican administrations.
In part two, Ballard Spahr partners John Culhane and Joseph Schuster address the following questions:
The CFPB recently issued a rule to adjust maximum penalty amounts under various statutes that it administers. Included among the adjustments are the amounts for the three tiers of civil money penalties that the CFPB may impose for violations of consumer financial protection laws under the Dodd-Frank Act. Specifically, the Dodd-Frank Act initially provided for the following tiers of civil money penalties:
For any violation of a law, rule, or final order or condition imposed in writing by the CFPB, a civil money penalty of up to $5,000 for each day during which such violation or failure to pay continues.… Continue Reading
