Search Results: Regulation

“Open Banking” Promoted in New CFPB Rule

In October 2023, the Consumer Financial Protection Bureau (CFPB) proposed a new rule intended to encourage “open banking”.  “Open banking” is a practice of sharing, with consent, consumers’ banking and financial data (account balances, transaction history, payment due dates, routing numbers, and the like) with third-party vendors who in turn…

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Bureau Sues Lease-to-Own Company for its Financing Options to Asset Limited Consumers

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…

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Notice of Proposed Rulemaking for Quality Control Standards for Automated Valuation Models (AVMs) Published

On June 21, 2023, the Office of the Comptroller of the Currency (OCC), Treasury, Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Consumer Financial Protection Bureau (CFPB), and Federal Housing Finance Agency (FHFA) (collectively, the “Agencies”) published a proposed…

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FTC Approves Consent Order with Payment Card Network Operator for EFTA Violations

On May 30, 2023, the Federal Trade Commission (FTC) announced that it had finalized a consent order with one of the nation’s largest credit and debit card providers in an administrative action regarding alleged violations of the Electronic Funds Transfer Act (EFTA), as amended, 15 U.S.C. § 1693o-2, and its implementing regulation,…

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FDIC Issues Cease and Desist Demand Against Neobank

On March 24, 2023, the Federal Deposit Insurance Corporation (FDIC) announced that it had issued an advisory letter ​to a United States-based neobank, demanding that the company immediately cease and desist and take immediate corrective action to address allegedly false and misleading statements regarding the company’s insured status under the Federal Deposit…

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FCC Proposes Rules To Block Illegal Text Messages and Close the “Lead Generator Loophole”

On February 23, 2023, the Federal Communications Commission (FCC) issued a Further Notice of Proposed Rulemaking (FNPRM) seeking public comment on proposed rules targeting unlawful text messages. If the proposed rules are adopted, they will comprise the FCC’s “first action to protect consumers from unwanted and illegal texts.” If adopted,…

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CFPB Proposes Rule That Nonbanks Subject to Certain Public Orders Must Publicly Register with CFPB As a Means of Detecting “Repeat Offenders”

On December 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) proposed a rule (“Proposed Rule”) that would require non-bank financial institutions to register with the CFPB when they become subject to certain final public orders by a Federal, State, or local government agency in connection with the offering or provision…

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CFPB, Banking Agencies, and State Regulators Warn of Increased Scrutiny on Mortgage Servicers

The CFPB, federal banking agencies, and state regulators are returning to pre-pandemic norms with respect to enforcement and supervision of the mortgage servicing industry.  On November 10, 2021, the Board of Governors of the Federal Reserve, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union…

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CFPB Issues New Final Rule Regarding Supervisory Guidance

On January 19, 2021, the Consumer Financial Protection Bureau (CFPB) issued a new final rule implementing the Fair Debt Collection Practices Act (FDCPA).  According the CFPB’s press release, the purpose of the new final rule is to “clarif[y] the differences between regulations and supervisory guidance.”  Specifically, “supervisory guidance does not…

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Federal Regulators Update Senate, House on Pandemic Impact

On November 10, 2020, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held a virtual hearing entitled “Oversight of Financial Regulators.”  The presenting witnesses were:  Randal Quarles, Vice Chair for Supervision of the Federal Reserve System; Brian Brooks, Acting Comptroller of the Currency; Jelena McWilliams, Chairman of the…

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Consumer Financial Protection Bureau Issues New Final Rule Modernizing the Fair Debt Collection Practices Act

On October 30, 2020, the Consumer Financial Protection Bureau (CFPB) issued a new final rule implementing the Fair Debt Collection Practices Act (FDCPA).  According the CFPB’s press release, the new final rule is designed “to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices…

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CFPB Issues Assessment of Rule Requiring Consolidation of Mortgage Disclosures

On October 1, 2020, the Consumer Financial Protection Bureau (CFPB) released its rule assessment for a final Rule relating to mortgage disclosures.  Known as the TRID Rule, the Bureau’s final Rule implemented requirements under the Consumer Financial Protection Act (CFPA) to integrate various mortgage loan disclosures under the Truth in…

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White House Issues Memorandum Urging Federal Agencies to Adopt Protections for Subjects of Enforcement

On August 31, 2020, the Office of Information and Regulatory Affairs (OIRA), an arm of the Office of Management and Budget (OMB) within the Executive Branch, issued a memorandum (M-20-31 memorandum) directing the heads of federal executive departments and agencies to revise their procedures and practices in light of “the…

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California Legislature Passes Bill Expanding Consumer Financial Protection Oversight

On August 31, 2020, the California Legislature passed Assembly Bill No. 1864 (AB-1864), sending the bill to California Governor Gavin Newsom for his expected approval.  Below is an overview of some of AB-1864’s key provisions. As LenderLaw Watch reported earlier this year, Governor Newsom’s 2020-2021 Budget Summary proposed expanding the…

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CFPB Symposium Considers Use of Cost-Benefit Analysis in Financial Regulation

On July 29, 2020, the Consumer Protection Financial Bureau (CFPB) held a symposium on the use of cost-benefit analysis in consumer financial protection regulation.  CFPB Director Kathleen Kraninger provided opening remarks, followed by two panels of experts.  The first panel focused its discussion on how the CFPB uses cost-benefit analysis…

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