CFPB, Federal Agencies, State Agencies, and Attorneys General
In a blog post published earlier this month, the CFPB warns consumers of the risks of buy-now-pay-later (BNPL) credit. The blog post was likely triggered by the spike in the use of BNPL during the COVID-19 pandemic referenced in the blog post.
In explaining how BNPL works, the CFPB indicates that when making a purchase…
On Thursday, July 29, the Senate Banking Committee will hold a hearing entitled, “Protecting Americans from Debt Traps by Extending the Military’s 36% Interest Rate Cap to Everyone.”
The scheduled witnesses for the first panel are Republican Congressman Glenn Grothman and Democratic Congressman Jesús G. “Chuy” García. The scheduled witness for the second panel are:…
The Department of Defense (DoD) has issued a report to the House Committee on Armed Services regarding the impact of a Military Annual Percentage Rate (MAPR) cap lower than 30% on military readiness and servicemember retention. The DoD, in consultation with the Treasury Department, was required to provide the report by the National Defense Authorization…
Last week, the OCC, Federal Reserve Board, and FDIC issued proposed guidance for banking organizations on managing risks associated with third-party relationships, including those with financial technology-focused entities such as bank/fintech sponsorship arrangements. The agencies have made clear that if banks have ineffective risk management processes, agency examiners will closely scrutinize their third-party risk management…
At her first FTC meeting earlier this month, newly-confirmed FTC Chair Lina Khan moved, and the Commission approved (by a 3-2 vote), changes to the FTC’s rulemaking process. The changes could assist the efforts of Democratic FTC Commissioners to further White House policy goals and lead to new UDAP rules.
Pursuant to the 1975 Magnuson-Moss…
The Federal Housing Financing Agency (FHFA) announced on July 16, 2021 that effective August 1, 2021 it is eliminating the 50 basis point Adverse Market Refinance Fee for refinance mortgage loans. The FHFA notes that the fee imposed on lenders originally was designed to cover losses projected as a result of the COVID-19 pandemic. However,…
The Federal Reserve, FDIC, and OCC have released proposed interagency guidance for banking organizations on managing risks associated with third-party relationships, including relationships with financial technology-focused entities such as bank/fintech sponsorship arrangements. The proposal is the first time that the three agencies have proposed third-party risk management guidance on an interagency basis. Comments on the…
The CFPB announced earlier this week that it has issued a consent order against GreenSky, LLC that finds GreenSky engaged in unfair acts and practices in connection with its origination and servicing activities related to its point-of-sale financing program. The consent order requires GreenSky to refund or cancel up to $9 million in point-of-sale loans…
Tom Vartanian is a former federal banking regulator and law professor. In Part II of this two-part podcast, we discuss technology’s impact on the banking system, how a new cyberspace infrastructure can increase security, the current financial conditions that could spark the next financial crisis, cryptocurrency’s role in building new networks for the creation and…
Last Friday, President Biden issued an Executive Order on Promoting Competition in the American Economy. Much of the Order is directed at increasing competition in the labor market, transportation, agriculture, healthcare, and technology. It calls on the FTC, the DOJ, and other agencies to pursue vigorous enforcement of the antitrust laws. The Order also…
