CFPB, Federal Agencies, State Agencies, and Attorneys General
Citing cutbacks at the federal level, Pennsylvania Governor Josh Shapiro has launched a new centralized consumer protection hotline, website and email address to make it easier for state residents to report allegations of scams and resolve financial and insurance issues.
Officials said the effort is part of the Shapiro Administration’s initiative to fill a void left by weakened federal consumer protection.… Continue Reading
New York Attorney General Letitia James has sued payday lenders MoneyLion Inc. and DailyPay Inc. in New York state court, alleging that the two companies took advantage of tens of thousands of New Yorkers.
Both companies make paycheck advance loans to hourly workers in exchange for tips and fees.
The short-term nature of the loans results in “outrageous” interest rates, frequently reaching 750%, according to James, who added that both companies allegedly push workers to take out frequent loans to cover gaps created by their prior loans.… Continue Reading
Our podcast show today features Professor Dan Awrey of Cornell Law School, and Matt Lambert, Deputy General Counsel of the Conference of State Bank Supervisors (“CSBS”) who discuss the pros and cons of Congress enacting a statute which would require federal charter for non-banks engaged in the payments business. At present, such non-banks are generally required to be licensed by state departments of banking under money transmitter laws.… Continue Reading
As the Trump Administration attempts to drastically cut CFPB funding and staffing, New York regulators and legislators are attempting to fill what could be a void in consumer protection efforts.
“We’re hiring,” Adrienne A. Harris, the state’s Superintendent of the Department of Financial Services, said during a presentation on March 12 at the Brookings Institution.… Continue Reading
State attorneys general are not waiting to see what the future holds for the CFPB. With federal oversight receding, states are stepping up enforcement activities and strengthening their consumer protection laws.
This shift—accelerated by efforts to limit the CFPB’s authority under the Trump administration—creates a complex landscape where businesses must navigate a patchwork of state-level statutes, regulations, and enforcement priorities.… Continue Reading
In a significant ruling on February 18, 2025, the Wisconsin Court of Appeals determined that the National Bank Act (NBA) does not preempt the procedural “right to cure” notice requirements mandated by the Wisconsin Consumer Act (WCA), reversing a judgment in two debt collection actions.
The court, thereby, determined that this state-level consumer protection was not preempted by the NBA.… Continue Reading
Oregon may become the latest state attempting to stop out-of-state banks from “exporting” home-state interest rates on loans made to Oregon consumers. Like similar legislation adopted by Colorado in 2023, House Bill 2561 explicitly provides that the state does not want certain provisions of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) to apply to loans made in Oregon.… Continue Reading
Alleging that a Boston company “pervasively and systematically violated the state’s consumer protection laws, including mortgage and foreclosure prevention laws, putting financially vulnerable homeowners at high risk of losing their homes,” Massachusetts Attorney General Andrea Joy Campbell has filed suit against the firm and its holding company.
The AG alleged that Hometap Equity Partners LLC–and HomeTap Management Systems, LLC–engaged in illegal and predatory practices targeted for financially vulnerable homeowners, according to the suit filed in Suffolk County Superior Court.… Continue Reading
In this episode of the Consumer Finance Monitor Podcast, Ballard Spahr partners Mike Kilgarriff and Joseph Schuster break down the seismic shifts in consumer financial regulation following the dramatic changes at the CFPB. With the Bureau’s enforcement and supervisory activities on hold, state attorneys general are stepping in to fill the regulatory void.… Continue Reading
Today’s podcast show is a repurposing of the second half of a webinar we produced on January 17, 2025. That webinar was Part 3 of our webinar series entitled “The Impact of the Election on the CFPB and Others.” In Part 3, we focus on the role of state attorneys general in a rapidly shifting CFPB environment.… Continue Reading
