CFPB, Federal Agencies, State Agencies, and Attorneys General
The percentage of unbanked households in the U.S. fell to its lowest level in 2023—4.2%–, the FDIC recently reported.
The agency’s annual National Survey of Unbanked and Underbanked Households collected responses from almost 30,000 households in June 2023. In addition to issuing a full report on the Survey, the FDIC also issued an executive summary of the report [include link].… Continue Reading
A federal court has ordered Harris Jewelry to reopen its claims process and to again notify consumers that they may submit their claims for refunds from the jewelry company.
Most of the consumers affected are active-duty servicemembers.
The U.S. District Court for the Eastern District of New York found that Harris Jewelry violated its prior settlement with the Federal Trade Commission and a multistate group led by the New York Attorney General’s Office by prematurely shutting down the claims portal.… Continue Reading
On January 4 of this year, we released a podcast show entitled; “A look at a new approach to consumer contracts.” Our special guest at that time was Professor Andrea Boyack, a Professor at the University of Missouri School of Law. That podcast was based on a then recent law review article published by Professor Boyack entitled “The Shape of Consumer Contracts,” 101 Denv L.… Continue Reading
On November 13, 2024, the Financial Crimes Enforcement Network (FinCEN) issued FIN-2024-Alert004 to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (GenAI) in response to increased suspicious activity reporting. “Deepfake media” are a type of synthetic content that use artificial intelligence/machine learning to create realistic but inauthentic videos, pictures, audio, and text to circumvent identity verification and authentication methods.… Continue Reading
On November 12, 2024, the Consumer Financial Protection Bureau (CFPB) released a report examining the carve outs and limitations contained in comprehensive state privacy laws relating to financial institutions. In an accompanying press release, the CFPB stated that in its assessment, “privacy protections for financial information now lag behind safeguards in other sectors of the economy.”… Continue Reading
The Fifth Circuit Court of Appeals has denied a request by the Community Financial Services Association of America (CFSA) to hold a rehearing en banc on the group’s challenge of the CFPB’s payday loan rule.
The court simply said that no member of the panel had requested that the appeals court be polled, so the petition was denied.… Continue Reading
California Gov. Gavin Newsom has signed legislation covering a range of consumer protection issues. The bills aim to “strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”
The legislative package includes the following bills:
Sen. Elizabeth Warren, D-Mass., an advocate of a strict financial regulatory regime, will become the top Democrat on the Senate Banking, Housing and Urban Affairs Committee in the next Congress.
Sen. Sherrod Brown, D-Ohio., had been the chair of the Committee. However, Brown lost his bid for reelection and Democrats lost majority control of the Senate—resulting in Sen.… Continue Reading
In this podcast show, we explore with our repeat guest, Professor Dan Awrey of Cornell University Law School, his working paper “Money and Federalism” in which he advocates for the enactment of Federal legislation creating a Federal charter for non-banks engaged in the payments business, like PayPal and Venmo. The article may be accessed online at SSRN and will likely be published in a law review at some time in the future.… Continue Reading
The FTC has filed a complaint against the online cash advance app, Dave, charging that the company used misleading marketing to deceive consumers about the amount of its cash advances and charged consumers undisclosed fees and so-called “tips” without their consent.
The FTC noted that Dave describes the consumers it targets as “financially vulnerable” or “financially coping,” suggesting that Dave knew they were particularly vulnerable to its claims that they could instantly receive up to $500,
In its complaint, filed in the U.S.… Continue Reading
