Regulatory and Enforcement

Last week, the CFPB simultaneously filed a lawsuit against American Advisors Group (AAG) in a California federal district court and a proposed stipulated final judgment and order to settle the lawsuit.  The lawsuit alleged that AAG inflated estimated home values in marketing its reverse mortgage product and made false representations about AAG’s effort to ensure

We discuss recent developments concerning fair lending and ancillary products, including the potential industry-wide implications of recent New York and Massachusetts consent orders and our expectations for future CFPB scrutiny in these areas.   We also discuss the CFPB’s recent report that looks at whether the variation in interest rates among subprime auto loans can be

Hawaii recently enacted significant changes to its small-dollar lending law that repeals existing Hawaii law on deferred deposits and creates a new regime for installment loans.  Although H.B. 1192 took effect on July 1, the repeal of the existing law on deferred deposits is effective January 1, 2022 as is the new licensing requirement for

The Consumer Bankers Association has sent a letter to Rohit Chopra, the incoming CFPB Director, in which it urges the CFPB to adopt a larger participant rule for fintech consumer lenders.

Under the Dodd-Frank Act, in addition to authority to supervise nonbank entities in the residential mortgage, private student lending, and payday lending markets, the

More than a month after it was issued, the CFPB’s notice of proposed rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act was published in the Federal Register on Friday, October 8.  Section 1071 amended the ECOA to require financial institutions to collect and report certain data in connection with credit applications made by

On October 4, California Governor Gavin Newsom signed into law amendments to California’s existing law on automatic subscription renewals.  The law applies to all businesses that make automatic renewal or continuous services offers to California consumers.  The amendments are effective July 1, 2022.

The amendments include new notice requirements that apply:

  • when a consumer

The FTC announced yesterday that it has sent a “Notice of Penalty Offenses” to 70 for-profit higher education institutions that outlines a number of practices that the FTC has previously found to be unfair or deceptive.

The seven practices outlined in the Notice generally relate to claims made by schools about their graduates’

The CFPB has released frequently asked questions on the limited-content message and call frequency provisions of its debt collection rule (Regulation F) that becomes effective on November 30, 2021.  While many of the FAQs repeat what is stated in the rule, they do provide some clarifying information which we highlight below.

Limited content message (LMC). 

We look at the issues creditors and debt collectors should be considering in preparation for the surge in delinquencies that is expected to occur once consumers are required to fully resume making payments that had been suspended or reduced during the pandemic, including: operational and compliance considerations arising from increased delinquencies, likely sources of regulatory