Search Results: CFPB

CFPB Reports Troubling Trends in Credit Card Rewards Programs

On May 9, 2024, the Consumer Financial Protection Bureau (CFPB) issued a new Issue Spotlight regarding growing problems in the credit card rewards program industry. Credit card rewards programs have become increasingly complex in recent years.  Especially for credit cards with high annual fees, a key part of attracting interest…

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CFPB and European Commission Release Report Regarding “Critical” Priority Areas for Consumer Financial Protection Issues

In April 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Commissioner for Justice and Consumer Protection of the European Commission (European Commission) announced that three meetings had been convened with senior staff and subject matter experts to discuss “shared priority areas” of concern for consumer financial protection…

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CFPB Enters Into Consent Order With Financial Technology Company

On May 7, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had entered into a consent order with a financial technology company, resolving allegations that the company committed unfair acts or practices in violation of the Consumer Financial Protection Act (CFPA), by failing to provide consumers who closed their accounts with timely…

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CFPB Files Complaint and Proposed Final Judgments Against Higher Education Assistance Agency and National Collegiate Student Loan Trusts

On May 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a complaint ​and two proposed stipulated final judgments to resolve its claims against the National Collegiate Student Loan Trusts (the Trusts) and the Pennsylvania Higher Education Assistance Agency​ d/b/a American Education Services (PHEAA). The CFPB alleges that the Trusts and PHEAA violated…

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CFPB Updates its Procedures for Determining Which Nonbanks it Can Supervise

The Consumer Financial Protection Bureau (CFPB) recently issued a new procedural rule to streamline how it determines which nondepository institutions it has the authority to supervise.  According to the CFPB, the new rule coincides with a change in organizational structure.  But it also indicates an affirmative broadening of its regulatory reach….

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California Attorney General Warns California-Chartered Banks and Credit Unions On Surprise Overdraft Fees and Returned Deposited Item Fees

On February 20, 2024, California Attorney General Rob Bonta issued a letter warning California-chartered banks and credit unions with assets under $10 billion that charging surprise overdraft fees and returned deposited item fees is likely an unfair business practice that violates California’s Unfair Competition Law (UCL), Bus. & Prof. Code,…

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CFPB Enters Into Consent Order with For-Profit Coding School

Piggy Bank with a Graduation Cap

​On April 17, 2024, the Consumer Finance Protection Bureau (CFPB) announced ​that it had entered into a consent order​ with BloomTech Inc., d/b/a Bloom Institute of Technology (BloomTech), and BloomTech’s CEO, Austen Allred, resolving allegations that the company’s practices with respect to income-share agreements (ISAs) violated various consumer protection statutes.  BloomTech, formerly known…

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Interpretable Algorithms as a Potential Solution to CFPB’s Guidance on AI-driven Credit Denials

In September 2023, the Consumer Financial Protection Bureau (CFPB) issued guidance on the use of artificial intelligence in issuing credit denials, a prevalent practice among lenders.  The CFPB explained that when denying a credit application, lenders must provide a substantive reason behind the denial.  The guidance further explains that the…

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Chamber of Commerce Sues CFPB To Eliminate or Enjoin $8 Late Fee Cap

Last week, the U.S. Chamber of Commerce (Chamber) joined five other trade associations to sue the Consumer Financial Protection Bureau (CFPB) and its director Rohit Chopra in Texas Federal District Court, seeking a court order declaring a recent CFPB rule arbitrary and capricious, vacating the rule, and enjoining its enforcement. In…

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CFPB Announces New Proposed Rule to Target Junk Fees

On January 24, 2024, the Consumer Financial Protection Bureau (CFPB) announced a new proposed rule as part of the CFPB’s broader strategy of targeting junk fees.  This proposed rule would “prohibit non-sufficient funds (NSF) fees on transactions that financial institutions decline in real time.” These fees apply to “transactions declined…

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CFPB and Several States Order Vocational Education Company to Pay Fines, Cancel Loans, and Cease Operations After Allegedly Deceptive Loan Practices

On November 20, 2023, the Consumer Financial Protection Bureau (CFPB) announced that, in conjunction with 11 states, it entered into a stipulated final judgment with a Delaware-based vocational education company that advertises itself as a “workplace accelerator” and its affiliates for alleged violations of the Consumer Financial Protection Act (CFPA), the Truth…

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CFPB and DOJ Sue Land Developer Over Allegations of Discriminatory Lending

​On December 20, 2023, the CFPB announced that, along with the DOJ, it had filed suit against a Texas-based developer and lender for operating an allegedly illegal land sales scheme that targeted Hispanic borrowers. ​The complaint, filed in the U.S. District Court for the Southern District of Texas, alleges that the lender sells…

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CFPB Issues Consent Order Against Third-Party Debt Collector

On December 15, 2023, the CFPB announced​ that it entered into a consent order​ with a medical debt collector resolving allegation​s that the debt collector tried to collect unverified medical debts after consumers disputed the validity of those debts. The CFPB alleges that the company failed to conduct reasonable investigations of disputed debts and failed to inform consumer reporting companies…

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