Last week, we blogged about arguments by Colorado and the FDIC in their briefs opposing a motion for preliminary injunction that would enjoin application of Colorado’s opt-out statute with respect to loans by FDIC-insured state banks located outside of Colorado. We promised to blog again this week with a more detailed discussion of why their arguments are off base.… Continue Reading
Fifth Circuit directs Texas federal court to rule by May 10 on plaintiffs’ preliminary injunction motion in lawsuit challenging CFPB credit card late fee final rule
A surprising development took place yesterday in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule). The Fifth Circuit entered an order vacating the district court’s order denying the plaintiffs’ motion for expedited consideration of their preliminary injunction motion and remanding the case to the district court with instructions to rule on the plaintiffs’ preliminary injunction motion by May 10, 2024. … Continue Reading
FTC votes to ban noncompete agreements in employment contracts
Posted in FTC, Regulatory and Enforcement
The Federal Trade Commission (FTC) voted last week to issue a final rule that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior executives and noncompetes made in connection with the bona fide sale of a business.
As we previously reported, on January 5, 2023, the FTC issued a Notice of Proposed Rulemaking aimed at categorically banning noncompete agreements nationwide. … Continue Reading
Districts of Wyoming and Idaho affirm broad Fed powers over master accounts
By Kelly Lin on
Components of the U.S. Federal Reserve System recently prevailed in two lawsuits in which both plaintiffs – Custodia Bank and PayServices Bank – alleged the defendants were required to grant the plaintiffs’ master account requests and wrongfully denied them master accounts. Both the United States District Court for the District of Wyoming and the United States District Court for the District of Idaho rejected these claims and instead ruled as a matter of law that the respective regional Federal Reserve Banks had discretion to deny the plaintiffs’ requests for a master account. … Continue Reading
Plaintiffs file brief in support of preliminary injunction and response to petition for panel rehearing in credit card late fee challenge
On April 26, 2024, Plaintiffs filed their response to the CFPB’s Petition for a Panel Rehearing with the Fifth Circuit in the lawsuit challenging the CFPB’s credit card penalty fees rule (Rule). On the same date, the Plaintiffs also filed their brief in support of their motion for a preliminary injunction with the Fifth Circuit.… Continue Reading
Department of Veterans Affairs Enacts Sweeping Loss Mitigation Program Changes
By Ballard CFS Group on
The Department of Veterans Affairs (VA) made significant changes to its loss mitigation program this month, launching its awaited Veterans Affairs Servicing Purchase Program, and implementing a 40-year loan modification term. Details of those developments are provided below.
Extension to 40-Year Loan Modification Term
On April 17, 2024, the VA issued Circular 26-24-8, which extends the available term of its loan modification option.… Continue Reading
CFPB and DOT Hosting Joint Hearing on Credit Card and Airline Rewards Programs
Posted in CFPB, Credit Cards
In furtherance of the Biden Administration’s “junk fee” agenda, on Thursday, May 9, 2024, the Consumer Financial Protection Bureau and the U.S. Department of Transportation will host a hearing on airline and credit card rewards programs. CFPB Director Rohit Chopra and Secretary of Transportation Pete Buttigieg will moderate a discussion with the following industry representatives, labor leaders, and consumer advocates:
- Scott DeAngelo, Executive Vice President and Chief Marketing Officer, Allegiant Air
- Morgan Harper, Director of Policy and Advocacy, American Economic Liberties Project
- Andrew Grimm, President and CEO, Apple Federal Credit Union
- Sara Nelson, International President, Association of Flight Attendants
- Lukas Johnson, Chief Commercial Officer, Breeze Airways
- Erin Witte, Director of Consumer Protection, Consumer Federation of America
- Robert Patrick Cooper, Senior Vice President and General Counsel, OneUnited Bank
We will attend the joint hearing and blog about it thereafter. … Continue Reading
CFPB Files Cross-Motion for Summary Judgment in Texas Small Business Lending Rule Lawsuit
The CFPB (or “Bureau”) filed a cross-motion for summary judgment in the lawsuit regarding the small business lending data collection and reporting rule, also known as the 1071 rule based on the Dodd-Frank section that requires the CFPB to adopt the rule (the “Rule”). Last month, the plaintiffs and intervenors in the lawsuit challenging the Rule filed a consolidated motion for summary judgment.… Continue Reading
CFPB Takes Action Against BloomTech, Inc. for ISAs that Violate TILA, UDAAP, and the FTC’s Holder Rule
On April 17th, the CFPB issued a consent order to a for-profit training school alleging numerous violations of law related to its use if income share agreements (“ISAs”). According to the Bureau, BloomTech, Inc. (“BloomTech”) and the company’s founder and CEO engaged in deceptive and abusive acts or practices, violated the Truth in Lending Act (“TILA”) and Regulation Z, and violated the Federal Trade Commission’s (“FTC”) Holder Rule.… Continue Reading
Update on Petition to Review FTC’s CARS Rule
By Brian Turetsky on
Petitioners in the challenge to the Federal Trade Commission’s (“FTC”) Combating Auto Retail Scams Rule (“CARS Rule”) filed their Petitioners’ Brief on March 15, 2024 in support of their petition for review, and a who’s who of interested auto industry trade associations have filed amicus briefs in support of the petition.… Continue Reading