On May 20, 2025, the New York Court of Appeals agreed to hear constitutional challenges to one aspect of New York’s Foreclosure Abuse Prevention Act (FAPA). In two separate cases — Van Dyke v. U.S. Bank, N.A. and Article 13 LLC v. Ponce de Leon Fed. Bank – at issue…
On April 15, 2025, the U.S. District Court for the Northern District of Texas vacated a Consumer Financial Protection Bureau (CFPB) rule that capped credit card late fees at $8. The decision granted a joint motion, brought by the CFPB and the coalition of trade associations that had sued it,…
On March 28, the FTC announced that it had named five additional corporate defendants and two individuals to its ongoing case against student loan servicers, which alleges the servicers and their operators mislead consumers into thinking they were receiving student debt relief and forgiveness. The original complaint alleges a Nevada-based servicer and its operator falsely…
Over the last four months, New York’s Appellate Division has finally begun to address constitutional challenges to the state’s Foreclosure Abuse Prevention Act (FAPA), an act that became effective in December 2022 and promptly generated disparate trial court interpretations about whether the law was supposed to apply retroactively. As noted…
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,…
On January 14, 2025, the CFPB announced that it had filed a complaint against a large national bank for alleged violations of the Consumer Financial Protection Act (CFPA), the Truth in Savings Act (TISA) and TISA’s implementing regulation, Regulation DD, regarding the bank’s alleged improper interest rate practices. According to the CFPB’s complaint, the bank offered a…
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…
On September 12, 2024, New York’s highest court dismissed an appeal challenging the constitutionality of the retroactive application of the Foreclosure Abuse Prevention Act (“FAPA”), a law that amended certain New York rules to strictly cabin the time limits for commencing mortgage foreclosures. The Court of Appeals, on its own motion,…
On September 13, 2024. the CFPB brought suit in the Western District of Pennsylvania against the nonbank offeror of a consumer credit card and its CEO alleging that the terms of the company’s credit card violated the Consumer Financial Protection Act, the Truth In Lending Act, and Regulation Z. According to the…
On June 30, 2024, the Office of the Attorney General for the District of Columbia filed an action against an online ticket exchange and resale website alleging violations of the District of Columbia’s Consumer Protection Procedures Act (D.C. Code §28-3904(e)). The complaint alleges that the company used deceptive and unfair…
On July 11, the Seventh Circuit held that the Equal Credit Opportunity Act, 15 U.S.C. § 1691 et seq. (ECOA) authorizes the imposition of liability for the discouragement of prospective applicants. See CFPB v. Townstone Financial, Inc., ___ F.4th ___ (7th Cir. 2024), 2024 WL 3370023. As anticipated in Goodwin’s…
On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and order in its suit against a national bank accused of allegedly opening unauthorized accounts on behalf of consumers. The proposed judgment would resolve allegations that the bank opened unauthorized accounts in the names of its customers. As…
At the close of an extended term, on July 1, 2024, the U.S. Supreme Court expanded the time period for bringing a facial challenge to a federal agency rule. Before the decision in Corner Post, Inc. v. Board of Governors of the Federal Reserve System, the law in at least…
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…
Over a year after becoming law, New York’s Foreclosure Abuse Prevention Act, L. 2022, ch. 821 (eff. Dec. 30, 2022) (FAPA) continues to divide trial courts regarding the constitutionality of the law’s retroactive application. Appellate level guidance remains wanting. FAPA amended certain New York rules related to the time limits…
On October 12, 2023, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) announced that they filed a joint complaint and obtained a $15 million settlement against a parent credit reporting agency and one of its subsidiaries for alleged violations of the Fair Credit Report Act (FCRA) with respect to tenant…
On July 19, 2023, the Consumer Financial Protection Bureau (“CFPB”) sued Snap Finance LLC, Snap R TO LLC, Snap Second Look LLC, Snap U.S. Holdings LLC, and Snap Finance Holdings LLC (collectively, the Snap Defendants or Snap). The complaint alleged that the Snap Defendants violated the: Consumer Financial Protection Act…
On June 14, 2023, the Consumer Financial Protection Bureau (CFPB) filed its opening brief in its appeal of a U.S. district court’s decision in the CFPB’s enforcement action against Townstone Mortgage (Townstone). The CFPB’s brief argues that the Seventh Circuit should reverse the district court’s holding that the Equal Credit…
In the six months since New York’s governor signed the Foreclosure Abuse Prevention Act, L. 2022, ch. 821 (eff. Dec. 30, 2022) (FAPA), a split has emerged about whether the law applies retroactively. FAPA strictly cabins the time limits for commencing mortgage foreclosures by amending five New York procedural rules…
On May 15, 2023, the Pennsylvania Attorney General (PA AG) announced that it reached a $11.4 million settlement with a rent-to-own lender and its affiliates. This settlement resolves a lawsuit filed by the PA AG in Pennsylvania state court in which the PA AG alleged that the lender violated state law by misrepresenting the terms of its rental-purchase agreements…