Regulatory and Enforcement

On July 28, the U.S. House Committee on Financial Services passed H.R. 4277, the Overdraft Protection Act.  Introduced by Congresswoman Carolyn B. Maloney (D-NY), the bill would prohibit financial institutions from engaging in unfair or deceptive acts or practices in connection with overdraft coverage.

Specifically, the bill would require financial institutions that offer overdraft

The CFPB announced last week that it has entered into a settlement with Hyundai Capital America (Hyundai) to resolve alleged violations of the Fair Credit Reporting Act and Regulation V arising from Hyundai’s reporting of information on vehicle retail installment contracts and leases to consumer reporting agencies (CRAs) from 2016 to 2020.  The settlement requires

Last week, the CFPB published additional frequently asked questions on Regulation F, its debt collection rule.   The new FAQs address third-party communications, electronic communications, and unusual or inconvenient time and place provisions.

Prohibitions on Third-Party Communications.  The FAQs address the following questions:

  • What is the Debt Collection Rule’s general prohibition on third-party communications?
  • Are

On July 20, 2022, the Federal Trade Commission (“FTC”) and 18 state attorneys general led by New York Attorney General Letitia James announced that they have entered into a settlement with Harris Originals of NY, Inc. and related entities (collectively, “Harris Jewelry”), a national jewelry retailer that markets and sells military-themed gifts, to resolve their

Director Chopra gave interviews this week to several news reporting outlets including American Banker, Law 360, Politico, and Bloomberg.  Below are some of highlights of the interviews as reported by those outlets, several of which also provided interview transcripts.  We also share our reactions to Director Chopra’s comments.

CFPB priorities and status of rulemaking activity.

In a recent consent order with a national bank, the CFPB found that the bank committed UDAAP violations in its process for handling garnishment orders and by including certain waiver language in its deposit account agreements.  We discuss the specific aspects of the bank’s process that the CFPB found to be improper and what banks

The Federal Reserve Board issued a proposal last week that would establish default rules for benchmark replacements in certain contracts that use as a reference rate the London Interbank Offered Rate (LIBOR), which will be discontinued in 2023.  The proposal implements the Adjustable Interest Rate (LIBOR) Act, which was enacted in March 2022.  Comments

According to a WSJ report, the CFPB is preparing to release new guidance that would require banks to make refunds to victims of scammers who defraud consumers into sending money to a third party using an online money-transfer platform.  The WSJ indicates that the CFPB’s possible action is being driven by an increase in consumer

According to media reports, CFPB Deputy Director Martinez sent a memo to staff last week announcing the following organizational changes:

  • The work of the Students team and the Private Education Loan Ombudsman will be consolidated into a single Office for Student and Young Consumers that will be led by an Assistant Director for Students.
  • To

In West Virginia et al. v. Environmental Protection Agency et al., the U.S. Supreme Court ruled that the Environmental Protection Agency (EPA) exceeded its authority under the Clean Air Act by devising carbon emission limits for existing power plants based on an approach involving a shift in electricity generation to cleaner sources than coal.