CFPB, Federal Agencies, State Agencies, and Attorneys General
The Department of Housing and Development is seeking information about the impact that the frequent use of Buy Now, Pay Later (BNPL) products may have on borrowers’ ability to meet housing-related expenses, including rent or mortgage payments. Comments are due on or before August 25, 2025.
“The rise of BNPL lending raises important questions about how it may impact housing affordability and stability,” the department said, in issuing a Request for Information.… Continue Reading
The Federal Reserve Board has announced that it will eliminate reputational risk as a component of examination programs in its supervision of banks.
The Fed joins the OCC in eliminating reputational risk as a part of their examinations.
The Fed stated it has commenced the process of reviewing and eliminating references to reputational risk from its supervisory materials, including examination manuals.… Continue Reading
Accusing the Trump Administration of “dismantling” the CFPB, New York City Comptroller Brad Lander is calling on city and state officials to fill the void by strengthening consumer protection laws and rules in the city and state.
“The Trump Administration’s dismantling of the Consumer Financial Protection Bureau (CFPB)—including the elimination of 90 percent of its staff—will leave millions of Americans more vulnerable to unfair, deceptive, and abusive business practices from lenders and financial institutions of all types,” the comptroller’s office said in releasing a new report.… Continue Reading
Effective May 1, 2025, the American Arbitration Association (“AAA”) amended its Consumer Arbitration Rules, including Rule 12 dealing with the registration of consumer arbitration clauses. The AAA stated that its goal was to “clarify” the rules in order to maintain “fairness” and “transparency.” Nevertheless, the recent Eleventh Circuit in its opinion Merritt Island Woodwerx, LLC v.… Continue Reading
A new Maryland law deems certain earned wage access (EWA) services to be loans. It then subjects those EWA services to the Maryland Consumer Loan Law and other consumer credit provisions, restricts the acceptance of tips by certain lenders, requires licensing or registration of certain entities offering EWA services, regulates EWA service agreements, and limits the costs and fees associated with obtaining EWA services.… Continue Reading
New York Gov. Kathy Hochul has signed legislation that, among other things, imposes new licensing requirements on Buy Now, Pay Later services.
In touting the FY26 budget bill that contained the consumer protection provisions, Hochul commented, “Our tax cuts, credits, and rebates won’t be much help if bad actors are able to scam or mislead New Yorkers.… Continue Reading
The short answer is that the outcome of the Supreme Court hearing (whose oral argument is scheduled for May 15 at 10 am) is of immense importance to all stakeholders in the consumer financial services industry. We will explain why that is the case.
The Fourteenth Amendment states: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.”… Continue Reading
The two Democratic NCUA board members ousted by President Trump have filed suit, arguing that their firings violated federal law.
Todd Harper and Tanya Otsuka filed suit in the U.S. District Court for the District of Columbia, naming President Donald Trump, Treasury Secretary Scott Bessent, NCUA Chairman Kyle Hauptman and others as defendants.… 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
Chief Justice John Roberts has issued a temporary stay of a decision by the U.S. Court of Appeals for the District of Columbia that barred the Trump Administration from firing members of two independent agency boards.
The stay follows a 7-4 appeals court decision that Cathy Harris, the chairwoman of the Merit Systems Protection Board, and Gwynne Wilcox, a member of the National Labor Relations Board, should return to their jobs.… Continue Reading
