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….
On April 25, 2024, the FTC announced that it filed a suit against a Washington-based third-party bill payment company and two of its chief executives for engaging in allegedly deceptive and misleading practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), Section 521 of the Gramm-Leach-Bliley Act (GLB Act), 15 U.S.C. 23 § 6821, and…
On April 24, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it had entered into a consent order with the Higher Education Loan Authority of the State of Missouri (MOHELA), resolving allegations that MOHELA failed to timely provide DFPI with information detailing the contact information of certain Californian student loan…
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,…
On April 23, 2024, the Minnesota Attorney General announced his office had sued a used-car dealer and its owner for violation of multiple state consumer protection statutes. The suit’s allegations include that the dealer “(1) misrepresent[ed] that its used cars are certified when they are not; (2) illegally add[ed] expensive vehicle service contracts…
On April 17, 2024, the New York State Attorney General (NY AG) announced that it entered into an Assurance of Discontinuance (AOD) with a national bank, resolving allegations related to the bank’s debt collection practices. The bank is a nationally chartered bank that issues debit cards, prepaid cards, payroll cards, and gift cards, primarily through third-party servicers, many of whom…
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…
Late last month, the Consumer Financial Protection Bureau (CFPB) issued a new Consumer Financial Protection Circular (Circular) which provides guidance about when a remittance transfer provider may be in violation of the prohibition on unfair, deceptive or abusive acts or practices in the Consumer Financial Protection Act (CFPA) when making…
On April 1, 2024, North Carolina Attorney General Josh Stein filed a complaint against a consumer lender, claiming that the lender charged consumers hidden premiums and fees for add-on products associated with its offering of small dollar personal loans, in violation of the Consumer Financial Protection Act (CFPA), the Truth In Lending Act…
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…
On March 20, 2024, the Office of Washington Attorney General (WA AG) Bob Ferguson announced that it obtained a judgment against a debt collection agency in the State of Washington King County Superior Court. This judgment represents the final resolution of a charity care lawsuit filed by the WA AG in February…
On March 18, 2024, the Federal Trade Commission (FTC) announced that it entered into proposed orders with two fintech firms, resolving allegations of misconduct tied to the firms’ involvement in federal COVID-19 Paycheck Protection Programs (PPP). Specifically, the proposed orders resolve allegations that the firms violated Section 5(a) of the FTC Act,…
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…
On Tuesday, March 5, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule (Final Rule) which amends provisions of Regulation Z, which implements the Truth in Lending Act (TILA). The Final Rule amends the provisions related to the permissible late fee that a credit card issuer may impose…
On March 8, 2024, the Minnesota Attorney General announced that it had filed a lawsuit against four solar companies for allegedly violating Minnesota Prevention of the Consumer Fraud Act (“MCFA”), the Uniform Deceptive Trade Practices Act, the False Statement in Advertising Act (“FSAA”), and Chapter 56 of the Minnesota Regulated Loan Act. The…
In late January, the West Virginia Legislature introduced two bills aiming to regulate and expand the telemarketing laws in West Virginia. The first bill, House Bill 4886, would amend the Code of West Virginia by adding a new section that establishes a $1000 civil administrative penalty for each instance that…
On February 16, 2024, the Consumer Financial Protection Bureau (CFPB or Bureau) announced that it is updating its internal supervisory appeals process for institutions seeking to appeal a compliance rating or an adverse material finding. If a supervised entity disagrees with a compliance rating or any other adverse finding after…
On February 27, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with a San Francisco-based financial services company resolving allegations that the company’s handling of consumer complaints violated California’s Consumer Financial Protection Law (CCFPL). The company, which partners with regional banks to provide mobile…
Last week, the Federal Communications Commission (FCC) released a Declaratory Ruling stating that existing federal regulations related to using “an artificial or prerecorded voice” to deliver a telephone message, also encompass voices generated by artificial intelligence (AI). The ruling does not expand prohibitions or definitions set forth in the applicable…
On February 2, 2024, the U.S. District Court for the Central District of California issued an order permanently banning several companies and their owners from the telemarketing and debt relief businesses and requiring them to pay approximately $19 million in restitution and civil money penalties. This order came as a…