The CFPB published its Consumer Response Annual Report for 2023, which discusses the consumer complaints received by the CFPB in that year and how companies responded to those complaints. The CFPB monitors consumers’ complaints and companies’ responses in order to glean information about the types of challenges consumers are experiencing with financial products and services.… Continue Reading
Walden University Agrees to Proposed Settlement to Resolve Reverse Redlining Claims
On March 28, 2024, four former Walden University students (“Plaintiffs”) filed a proposed settlement both individually and on behalf of a putative class of current and former Walden University (“Walden”) students with the Federal District Court for the District of Maryland to resolve allegations first raised against Walden in a complaint more than two years ago.… Continue Reading
DC federal court vacates CFPB’s prepaid card short-form disclosure for digital wallet products
The D.C. federal district court has granted PayPal’s motion for summary judgment in its lawsuit challenging the CFPB’s prepaid card rule (Prepaid Rule) and vacated the Prepaid Rule’s short-form disclosure requirement as applied to digital wallets.
In 2016, the CFPB promulgated the Prepaid Rule, which requires a short- form and long- form account disclosure and requires an issuer to disclose its “most important fees” in the short-form disclosure.… Continue Reading
Fifth Circuit extends stay of district court order transferring to D.C. lawsuit challenging CFPB final credit card late fee rule; CFPB files opposition to petition for writ of mandamus
The U.S. Court of Appeals has extended until 5 p.m. CT tomorrow its administrative stay of the district court’s order transferring the case to the U.S. District Court for the District of Columbia. This is the Fifth Circuit’s second extension of its stay order, with the first extension having expired at 5 p.m.… Continue Reading
This week’s podcast episode: The Federal Trade Commission: Looking back at 2023 and looking ahead to 2024 and beyond
By Barbara S. Mishkin on
Posted in FTC, Regulatory and Enforcement
Our special guest is Malini Mithal, Associate Director of the FTC’s Division of Financial Practices. In this episode, which repurposes a recent webinar, we review highlights of FTC regulatory and enforcement activity in 2023 directed at protecting consumers and small businesses and discuss what to expect from the FTC in 2024 and beyond. … Continue Reading
Third Circuit Holds Securitized Trusts Are Covered Persons Under CFPA
On March 19th, the United States Court of Appeals for the Third Circuit issued an opinion in CFPB v. National Collegiate Master Student Loan Trust et al. (the “Trusts”). The issue before the Third Circuit was whether certain Trusts are “covered persons” subject to the Consumer Financial Protection Act (“CFPA”) and whether the CFPB was required to ratify the underlying action.… Continue Reading
TX federal court enjoins enforcement of CRA final rules against plaintiffs
On February 5, 2024, several national and Texas banking and business trade groups (Plaintiffs) filed a lawsuit challenging the final regulations (Final Rules) implementing the Community Reinvestment Act of 1977 (CRA) that were jointly adopted in October 2023 by the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Federal Reserve Board (Agencies).… Continue Reading
Are four digits enough? FinCEN seeks comments on CIP rule’s SSN collection requirement
By Beth Moskow-Schnoll on
On March 28, 2024, the Financial Crimes Enforcement Network (FinCEN), in consultation with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Board of Governors of the Federal Reserve System, issued a request for information (RFI).
The RFI seeks information and comment regarding the Customer Identification Program (CIP) Rule requirement that banks collect a full Social Security number (SSN) prior to account opening from a customer who is an individual and a U.S.… Continue Reading
Texas federal court enters order transferring to D.C. federal court lawsuit challenging CFPB final credit card late fee rule; Fifth Circuit stays transfer order until April 2
Last week ended with an intense flurry of activity in the lawsuit challenging the CFPB’s final credit card late fee rule (Rule). The flurry followed the plaintiffs’ March 25 filing of a Notice of Appeal after the district court denied their motion for expedited consideration of their preliminary injunction motion. In their Notice of Appeal, the plaintiffs assert that the denial of their motion for expedited consideration effectively denied their request for meaningful preliminary injunctive relief.… Continue Reading
FDIC final Signage and False Advertising Rule will be effective April 1, 2024, with an extended full compliance date of January 1, 2025
By Mindy Harris & Ronald K. Vaske on
Posted in FDIC, Regulatory and Enforcement
The final rule issued in December 2023 by the Federal Deposit Insurance Corporation (FDIC) amending its regulations at 12 CFR Part 328 (“Final Rule“), which address use of the official FDIC sign and banks’ advertising statements as well as misrepresentations of insured status and misuse of the FDIC’s name or logo, will take effect April 1, 2024, with full compliance required by January 1, 2025.… Continue Reading