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Countering an Executive Order issued by President Trump  and the adoption by the CFPB of its final rule revising Regulation B, the New York Department of Financial Services recently issued an Industry Letter warning the financial institutions that it regulates that they must consider disparate impact when lending.

“Regulated Entities are reminded that under Section 296-a, covered credit decisions that result in a disparate impact may constitute an unlawful discriminatory practice,” the agency wrote in a letter to financial institutions.… Continue Reading

After attempting to amend its first-in-the-nation AI law for two years and three legislative sessions, on May 9, 2026, the Colorado legislature passed SB 26-189. It now awaits the governor’s signature and is expected to be signed into law, which will go into effect January 1, 2027.

SB 26-189 replaces the original law’s broad “high-risk artificial intelligence system” and “algorithmic discrimination” framework with a narrower regime focused on “automated decision-making technology” (ADMT) that processes personal data used to “materially influence” a “consequential decision.”… Continue Reading

On April 22, 2026, the House Energy & Commerce Committee released the “Securing and Establishing Consumer Uniform Rights and Enforcement over Data Act” (the “SECURE Data Act”). The SECURE Data Act seeks to establish a comprehensive federal framework for consumer privacy rights and the protection of personal data. Subject to certain exemptions, the SECURE Data Act applies to businesses subject to the FTC Act or common carriers subject to title II of the Communications Act of 1934 that either (a) collect and process personal data of more than 200,000 consumers annually and have an annual gross revenue of $25 million or more, or (b) collect and process personal data of 100,000 consumers annually and “derive[] 25 percent or more of the[ir] annual gross revenue .… Continue Reading

FinCEN has published a Notice of Proposed Rulemaking (“NPRM”) that would formalize and expand its whistleblower program, offering potentially substantial financial payouts to whistleblowers reporting certain financial crimes. According to FinCEN’s announcement, this initiative is designed to incentivize and protect individuals who report violations of major financial crime laws—specifically, the Bank Secrecy Act (“BSA”), the International Emergency Economic Powers Act (“IEEPA”), the Trading With the Enemy Act (“TWEA”), and the Foreign Narcotics Kingpin Designation Act (the “Kingpin Act”).… Continue Reading

On March 20, 2026, the White House released its National Policy Framework for Artificial Intelligence. This Framework contains a sweeping set of legislative recommendations intended to establish a coherent, nationally unified approach to AI governance. While the Framework does not itself create binding legal obligations, it is likely to shape federal AI legislation in the months and years ahead.… Continue Reading

Following New York City Mayor Zohran Mamdani’s Executive Orders cracking down on so-called “junk fees” and “subscription traps,” city officials have begun taking action against companies and industries they say abuse consumers by imposing such fees, create such traps or otherwise violate the consumer protection laws under DWCP’s jurisdiction. While most of these actions did not involve consumer financial services as such, we felt it important for our readers to be aware of how aggressive and active this agency has become. … Continue Reading

Effective April 1, 2026, California Senate Bill 22 (SB 22) will now require businesses to provide cash back on gift cards with a balance under $15 (up from $10 under current law) upon a consumer’s request. Given the nearly twenty-year history of plaintiffs’ firms targeting retailers in class actions for failure to comply with California’s current gift card law, businesses should expect that the plaintiffs’ bar will be ready to test compliance with the new threshold shortly after the law takes effect.… Continue Reading

Although an interpretive rule that made Buy Now Pay Later (BNPL) services subject to the Truth in Lending Act has been withdrawn, the issue remains a flashpoint in the industry and among policymakers, according to the Congressional Research Service (CRS).

“Whether BNPL providers should be subject to the Truth in Lending Act (TILA, 15 U.S.C.… Continue Reading

The Federal Reserve is requesting comments on a proposal to remove reputation risk from the supervision of banks it oversees. Comments on the Fed proposal are due April 27, 2026.

“We have heard troubling cases of debanking—where supervisors use concerns about reputation risk to pressure financial institutions to debank customers because of their political views, religious beliefs, or involvement in disfavored but lawful businesses,” Vice Chair for Supervision Michelle W.… Continue Reading