Search Results: Consumer Protection

Busy Month for CFPB with Rules Rescinded and Guidance Withdrawn

Over the past month, the Consumer Financial Protection Bureau (CFPB) took a slew of actions with the apparent aim to decrease the CFPB’s regulatory authority. On May 14, 2025, the CFPB proposed rescinding the “NBR Rule” which requires nonbanks to register certain agency enforcement and court orders with the CFPB related to…

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CFPB Dismisses Deposit Account Lawsuit Against National Retailer and Fintech Company

The Consumer Financial Protection Bureau voluntarily dismissed its lawsuit with prejudice against a major retailer and a fintech company in the District of Minnesota. One of the last actions filed during the Biden administration, the Bureau originally brought claims on December 23, 2024 under the Consumer Financial Protection Act (“CFPA”),…

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FTC Settles with Cash Advance Company to the Tune of $17 Million

On March 27, 2025, the FTC announced that an online cash advance company had agreed to pay $17 million to resolve allegations that it deceived consumers regarding the amount of money they could receive and the speed at which they would receive it. The complaint alleges the company, despite advertising that consumers could receive access…

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New York Seeks to Expand Consumer Protections by Proposing New Legislation and by Increasing Recruitment at its Department of Financial Services

As we recently reported, there have been rollbacks of consumer protections on the federal level, including the curtailing of enforcement activity at the CFPB.  In response to this activity, on March 13, 2025, the New York Office of the Attorney General (OAG) announced its support of new legislation to enable…

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Washington Attorney General Sues Collections Agency for Alleged Failure to Advise Consumers

​On March 5, 2025, the Washington Attorney General announced that he had filed a complaint in the King County Superior Court against a licensed debt collection agency based in King County, Washington. In his complaint, the Attorney General alleges that the collection agency violated the Washington Collection Agency Act and the state Consumer Protection Act through its…

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NY Attorney General Enters into $1 Billion Consent Order with Small-Business Lender

​The New York Attorney General entered into two related Consent Order and Judgments on January 16, 2025, the first with a financial company offering short-term loans to small businesses and the second with several of the company’s officers. The Consent Orders combine for an aggregate settlement amount in excess of $1 billion,…

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NY Department of Financial Services Announces $2 Million Settlement with Peer-to-Peer Payment Processor Over Data Breach

​On January 23, 2025, the New York Department of Financial Services​ announced that it had entered into a Consent Order​ with a Peer-to-Peer Payment Processor for alleged violations of New York’s Cybersecurity Regulation. This regulation requires all financial and banking entities operating in New York to establish and maintain adequate cybersecurity controls and protections…

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Massachusetts Division of Banks Issues Consent Orders Over Vehicle Repossession Practices

In late 2024, the Massachusetts Division of Banks (the “Division”) announced consent orders with four auto finance companies resolving allegations of improper repossession of motor vehicles. On November 4, 2024, the Division announced that it had entered into a consent order with a motor vehicle sales finance company that also operates as…

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DFPI Obtains $300,000 in Refunds and Penalties from Crypto Lending Platform

On December 23, 2024, The California Department of Financial Protection and Innovation (DFPI) announced a consent order with a crypto lending platform (the Company)​​​​ that provides financial services to retail and institutional customers to resolve the Department’s investigation into the Company’s lending program. The DFPI alleged that the Company breached the California…

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CFPB Sues Bank Regarding Allegations of Fraud Against Benefit Recipients

​On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms ​​of service on consumers seeking to stop payments, failing to investigate account…

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Minnesota AG Enters into Consent Order Over High-Cost Online Lenders, Discharging Over $1 Million in Loans

On Tuesday, November 26, the Minnesota Attorney General’s office (AG) announced it filed a consent order to resolve allegations that online lenders were charging interest on loans in excess of the amounts prescribed under Minnesota usury laws.  Under the consent order, over $1 million in allegedly illegal loans were discharged….

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D.C. Attorney General Sues Online Lender Over Alleged Illegal High-Interest Loans

On November 19, 2024, the District of Columbia’s Attorney General (DC AG) announced ​that it had filed a complaint ​in the ​Superior Court of the District of Columbia ​against an online lender for alleged violations of the District of Columbia Consumer Protection Procedures Act (CPPA).  According to the DC AG’s complaint, the company, which operates both a website and…

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Ninth Circuit Strikes Mass Arbitration Agreement as Unenforceable under California Law

On October 28, 2024, the Ninth Circuit struck a mass arbitration agreement as unconscionable and unenforceable under California law in Heckman v. Live Nation Ent., Inc., No. 23-55770.  The three-judge panel affirmed the district court’s decision holding that the arbitration agreement’s delegation clause was unconscionable under California law.  The panel…

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CFPB Enters into Consent Orders with Tech Company and Bank Over Credit Card Allegations

On October 23, 2024, the CFPB announced that it had entered into separate consent orders with a large tech company and a bank over a joint credit card venture. The CFPB alleges that the credit card, which combined the tech company’s software with the credit-backing of the bank, ​was launched prematurely, which…

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Connecticut AG Enters Into Settlement With Banking Fraud Prevention Company

​On October 21, 2024, Connecticut Attorney General William Tong announced ​a settlement with a banking fraud prevention company (the Company), resolving allegations related to a data breach that impacted the personal information of a Connecticut Bank’s customers. ​ The Company uses behavioral analytics and machine learning to help prevent banking fraud for its…

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CFPB Issues Guidance Emphasizing the Importance for Banks to Maintain Sufficient Proof of Customers’ Affirmative Consent to Overdraft Services

In recent discussions surrounding banking practices, the issue of overdraft fees, particularly for ATM and one-time debit card transactions, has gained significant attention.  On September 17, 2024, the Consumer Financial Protection Bureau (Bureau) issued Consumer Financial Protection Circular 2024-05 asserting that “[a] bank or credit union can be in violation…

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