Goodwin’s Consumer Finance Insights (CFI) monitors, reports, and analyzes the latest legal news, activity, and developments impacting the consumer finance industry. Consumer financial services companies—whether banks, fintechs, nonbank and alternative lenders, payment providers, or industry vendors or service providers, like digital advertisers and lead generators—face a constantly shifting and maturing regulatory and legal landscape. Growing from the Financial Crisis, today more than any time in history the consumer finance industry must confront a robust and growing body of industry legislation and regulation, all while under the microscope of sophisticated enforcers, like the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state regulators and attorneys general. It is critical for in-house and outside corporate counsel, compliance departments, and business executives to stay informed and aware of these developments to navigate institutional, reputational, and legal risks. Goodwin’s CFI is a singular source of the most recent industry news and latest enforcement activity for you to leverage. Here, you will find links to original enforcement documents, enforcement activity statistics, and reports, analysis, and commentary from Goodwin’s leading Consumer Financial Services Litigation and Enforcement practitioners.

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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Minnesota AG Reaches Over $1 Million Settlement With Debt Settlement Companies

​On October 21, 2024, Minnesota Attorney General Keith Ellison ann​​ounc​ed that his office reached a settle​ment with two debt settlement companies to resolve allegations that the companies misrepresented their services and collected fees in exchange for promises of settling consumers’ debts before actually performing the promised services, in violation of state law Minn. Stat. §…

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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 and DOJ File Complaint and Proposed Consent Order Against Mortgage Over Racial Discrimination Allegations

On October 15, 2024 the CFPB and DOJ announced​ they had jointly filed a complaint and consent or​der ​against a mortgage company over allegations of racial discrimination in Birmingham, Alabama​​. ​ ​The joint complaint alleged that the company engaged in unlawful discrimination by “redlining majority-Black and high-Black areas in Birmingham” and engaging in acts that would discourage applicants…

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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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Constitutionality of Shortened Time Limits on New York Foreclosures Still Unresolved

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,…

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California DFPI Announces Enforcement Actions Against Student Loan Debt Relief Companies

On September 17, 2024, the California Department of Financial Protection and Innovation (DFPI) announced ​it had taken enforcement action against three ​companies issuing two desist and refrain orders and one consent order against the businesses for allegedly charging unlawful fees for student loan debt relief services, in violation of the California Consumer Financial Protection Law…

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CFPB Permanently Bans Large Student Loan Servicer from Market and Orders Redress of $120 Million

On September 12, 2024, the CFPB announced that it entered into a stipulated proposed order with a large student loan servicer resolving allegations that the servicer forced borrowers into costly repayment options.​ Under the proposed order, the servicer would cease its servicing federal direct loans. In a January 2017 complaint, the CFPB accused the…

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CFPB Enters into $28 Million Consent Order Resolving Allegations of Consumer Credit Misreporting

​On September 11, the CFPB announced that it had entered into a consent order with a national bank resolving allegations that the bank reported inaccurate information to consumer reporting companies.  The bank agreed to pay nearly $28 million to resolve these allegations.​ The CFPB alleged the bank violated the Fair Credit Reporting Act (FCRA) and the Consumer…

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CFPB Enters Consent Order and Stipulation with National Bank to Resolve Allegations of Inaccurate Furnishing of Credit Information and Dispute Investigations

On September 11, 2024 the CFPB announced that it had entered into a consent order and stipulation with a national bank, resolving allegations that the bank repeatedly furnished inaccurate credit information, and that the bank knew of the inaccuracies for a year or more before correcting them in violation of the Fair Credit Reporting Act (FCRA),…

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CFPB Report Spotlights Consumer Risks with Private, Solar-Specific Loans

On August 7, 2024, the Consumer Financial Protection Bureau (CFPB) issued a report spotlighting four marketing and financing practices relating to solar financing that it claims pose significant consumer risks (the Report).  The CFPB noted that solar-powered electricity is a growing industry—suggesting that these risks may become an enforcement priority. …

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CFPB Enters Into Consent Order with Mortgage Lender to Resolve Allegations of Deceptive Conduct Toward Veterans and Servicemembers

​​On August 29, 2024, the CFPB announced that it had entered into a stipulation and consent order with ​​​​a Florida-based mortgage lender, resolving allegations that the mortgage provider ​​had misrepresented the payment terms of​ cash-out mortgage refinance loans​ it offered to servicemembers and veterans. In its consent order, ​the CFPB alleged that the mortgage lender committed ​​deceptive acts or…

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