The Department of Justice (DOJ) announced that Patriot Bank (Patriot or Bank) has agreed to pay $1.9 million to resolve allegations that the Bank engaged in a pattern or practice of redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee from 2015 to at least 2020, in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA).… Continue Reading
House members urge CFPB to define “risk to consumers” in procedural rule on risk-based supervisory authority
By Alan S. Kaplinsky on
Posted in CFPB Supervision
A bi-partisan group of House members has sent a letter to CFPB Director Chopra to express concern about the CFPB’s rule setting forth its procedures for establishing supervisory authority over nonbanks engaged in conduct that poses risk to consumers.
The Dodd-Frank Act provides that the CFPB can supervise a nonbank covered person that the CFPB “has reasonable cause to determine, by order, after notice to the covered person and a reasonable opportunity for such covered person to respond .… Continue Reading
Ballard Spahr to hold Feb. 28 webinar on FTC developments
By Barbara S. Mishkin on
Posted in FTC, Regulatory and Enforcement
In recent years, the Federal Trade Commission (FTC) has been active in enforcement and policy initiatives in a number of developing consumer financial areas. Based on its active agenda in 2023, 2024 promises to be another year of significant activity for the FTC.
On February 28, 2024, from 1:30 p.m. to 2:30 p.m.… Continue Reading
New research suggests proposed Regulation II revisions lowering debit card interchange fees will cost consumers up to $2 billion annually
By Ballard CFS Group on
In October 2023, the Federal Reserve Board issued a proposal to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction. The due date for comments on this proposal, originally February 12, 2024, has been extended to May 12, 2024. The Consumer Bankers Association (CBA) recently commissioned research on debit card interchange fee limits and the potential implications if the proposal to reduce debit interchange caps is finalized.… Continue Reading
Pennsylvania AG Settles with Law firms over Alleged Deceptive Debt Settlement Services
By Kimberly Carabotta on
Posted in Debt Relief, State Enforcement
On January 24, 2024, Pennsylvania Attorney General, Michelle Henry announced a settlement with attorney Erik M. Helbing and his businesses Helbing Law, LLC, and Consumer Law Relief, LLC. (Respondents) to resolve alleged violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL), the Pennsylvania Debt Settlement Services Act (DSSA), and the federal Telemarketing Sales Rule (TSR).… Continue Reading
CFPB proposes rule to ban “rarely charged” NSF fees for declined transactions based on wildly expansive view of “abusive” prong
On January 24, 2024, a week after issuing its proposed rulemaking for overdraft services, the Consumer Financial Protection Bureau (“CFPB”) issued its proposed rulemaking on non-sufficient funds (NSF) fees.
NSF Fee Proposal
Banks typically charge NSF fees when an item is submitted for payment against a consumer’s account and returned unpaid due to insufficient funds.… Continue Reading
Bank of America files merits brief with SCOTUS in National Bank Act preemption case; DOJ seeks leave to participate in oral argument
Bank of America, N.A. has filed its merits brief in Cantero v. Bank of America, N.A., the case currently before the U.S. Supreme Court dealing with the scope of national bank preemption. The petitioners must file their reply brief by February 16, 2024. (The petitioners’ merits brief is available here.) … Continue Reading
CFPB Agrees to Pay $6M to Settle Discrimination Claims by Black and Hispanic Employees
By Elliot Johnson on
Posted in CFPB
After nearly a decade of litigation, Judge Beryl A. Howell of the U.S. District Court for the District of Columbia has approved the Consumer Financial Protection Bureau’s $6.0 million settlement of class claims of alleged discrimination by the CFPB against 85 Black and Hispanic employees. The class consists of all “minority employees and women who work or worked as Consumer Response Specialists and have been subjected to and harmed by the Bureau’s agency-wide pattern or practice of discrimination and retaliation and discriminatory policies and practices,” according to the complaint.… Continue Reading
OIG report finds CFPB can enhance certain aspects of its enforcement investigations process
By Michael Gordon on
Posted in CFPB Enforcement
The Office of Inspector General (OIG) for the Federal Reserve Board and CFPB has issued a report on its evaluation of the CFPB’s process for conducting enforcement investigations. OIG concluded that the CFPB can enhance certain aspects of that process as described below.
In its evaluation, OIG focused on the efficiency of the Office of Enforcement’s process for conducting investigations, and reviewed Enforcement’s practices for tracking and monitoring matters. … Continue Reading
This week’s podcast episode: Understanding the Federal Reserve Board proposal to lower interchange fee cap for debit card transactions
By Barbara S. Mishkin on
Our special guest is Zarik Khan, Founder of Finsolute Advisors. In October 2023, the Federal Reserve Board issued a proposal to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction. We first look at the roles of the various parties involved in a typical transaction in which a consumer uses a debit card to make a purchase from a merchant and the various fees imposed in connection with the transaction. … Continue Reading