On March 15, the CFPB issued a Request for Information (RFI) about data broker business practices to inform planned rulemaking under the FCRA and provide the CFPB with insight into the full scope of the data broker industry....more
On February 28, 2023, the FTC and the CFPB issued a joint request for information (“RFI”) seeking public comment on background checks used to screen potential tenants for rental housing...more
3/27/2023
/ Background Checks ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Reports ,
Federal Trade Commission (FTC) ,
FHFA ,
Landlords ,
Property Management Companies ,
Public Comment ,
Reporting Requirements ,
Request For Information ,
Tenants ,
Urban Planning & Development
On March 17, the FTC announced its inquiry into the small business credit reporting industry. In particular, it is ordering five firms to provide detailed information about their products and processes.
The FTC notes...more
On March 2, the CFPB published a report analyzing the financial profiles of consumers who borrow through buy now, pay later (BNPL) lending products. The report found that BNPL borrowers on average are more likely to be active...more
3/17/2023
/ Borrowers ,
Buy Now Pay Later (BNPL) ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Cards ,
Delinquent Borrowers ,
Financial Distress ,
Financial Services Industry ,
Regulatory Requirements ,
Rulemaking Process ,
Surveys
On February 27, the California Department of Financial Protection and Innovation (DFPI) issued new guidance with respect to the performance of remote work by mortgage loan originators (MLOs) working for licensees under the...more
On March 7, the CFPB and the NLRB announced that they entered into an information sharing agreement to better protect consumers and address practices that harm workers in specific labor markets. The agreement further supports...more
On March 9, the FTC unanimously voted to block the proposed merger between the nation’s largest provider of home mortgage loan origination systems (LOS) and other key lender software tools, and its top competitor that offers...more
3/17/2023
/ Acquisitions ,
Anti-Competitive ,
Competition ,
Digital Platforms ,
Federal Trade Commission (FTC) ,
Mergers ,
Mortgage Lenders ,
Mortgage Loan Originators ,
Mortgages ,
Software ,
Technology ,
Vendors
On February 23, the CFPB issued market-monitoring orders to nine large auto lenders to provide information about their auto lending portfolios. According to the CFPB, auto finance market has seen significant change in recent...more
On February 23, the CFPB issued a consent order penalizing an auto finance company for allegedly violating the financial rights of military families and other consumers in providing auto title loans. The CFPB found that the...more
On February 2, the Massachusetts Attorney General announced that her office entered into an assurance of discontinuance with an auto loan provider to settle allegations of certain illegal auto loan collection practices....more
On February 9, the FTC provided the CFPB and the Federal Reserve Board with its annual letter that summarizes its activities enforcing the ECOA and its implementing regulation, Regulation B, in the prior year. The FTC is in...more
On February 7, the CFPB issued an Advisory Opinion to address the applicability of RESPA section 8 to operators of certain digital technology platforms that enable consumers to comparison shop for mortgages and other real...more
2/20/2023
/ Advisory Opinions ,
Borrowers ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Mortgages ,
Online Marketplace Lending ,
Price Comparisons ,
Regulatory Requirements ,
RESPA ,
Rulemaking Process ,
Section 8 ,
Technology Sector
On February 3, the U.S. District Court for the Northern District of Illinois issued an opinion and order dismissing with prejudice the CFPB’s complaint for violations of the ECOA against a mortgage lender and its owner...more
2/20/2023
/ Borrowers ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Creditors ,
ECOA ,
Enforcement Actions ,
Fair Lending ,
Financial Services Industry ,
Mortgage Lenders ,
Mortgages ,
Non-Bank Lenders ,
Regulation B ,
UDAAP
On February 1, the CFPB announced a newly proposed rule aimed at ensuring that late fees charged on consumer credit card accounts are “reasonable and proportional” to late payments. If finalized, the proposed rule would amend...more
The FDIC recently announced a consent order with an Oregon regional bank for violations of Section 8 of RESPA, the FTC Act, and the FRCA, resulting in a civil monetary penalty totaling $425,000. After conducting its...more
2/13/2023
/ Civil Monetary Penalty ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
FDIC ,
Financial Institutions ,
Financial Services Industry ,
FTC Act ,
Investigations ,
Mortgages ,
Oregon ,
RESPA ,
Section 8
On February 1, NY DFS announced the adoption of the final regulation implementing the New York State Commercial Finance Disclosure Law (CFDL) (N.Y. Fin. Serv. Law §§ 801 to 812). The regulations require companies that offer...more
On January 11, 2023, a Texas federal court dismissed a class action lawsuit against a leading financial technology company alleging it violated Texas usury laws by charging interest on loans it made through a partnership with...more
On January 23, the NY DFS released updated guidance with regard to better protecting consumers in the event of virtual currency insolvency. This updated guidance applies to entities that DFS has licensed or chartered to hold...more
On January 27, the Federal Reserve Board (FRB) announced that it unanimously voted to deny a crypto firm’s application to become a member of the Federal Reserve System. This denial ends the crypto firm’s 27-month effort to...more
On January 4, the Colorado Attorney General announced that his office entered into assurances of discontinuance (available...) with two credit unions that will result in $4 million being refunded to Colorado borrowers who...more
1/27/2023
/ Auto Insurance ,
Automotive Industry ,
Buyers ,
Colorado ,
Consumer Financial Protection Bureau (CFPB) ,
Credit Unions ,
Enforcement Actions ,
Fees ,
Financial Services Industry ,
Refunds ,
Settlement ,
State Attorneys General
On January 12, the CFPB released a report that identified an uptick in identity theft reported by servicemembers. The report found that military consumers (defined as active duty servicemembers, veterans, and military family...more
1/27/2023
/ Consumer Financial Protection Bureau (CFPB) ,
Creditors ,
Cybersecurity ,
Debt ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
Identity Theft ,
Military Service Members ,
Policies and Procedures ,
Privacy Laws ,
Red Flags Rule
On January 19, the CFPB issued Circular 2023-01 to affirm that companies offering “negative option” subscription services are required to comply with federal consumer financial protection laws. According to the Circular,...more
1/27/2023
/ Auto-Renewal ,
Cancellation Rights ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Protection Laws ,
Corporate Counsel ,
Disclosure ,
Federal Trade Commission (FTC) ,
Informed Consent ,
New Guidance ,
Regulatory Requirements ,
Rulemaking Process ,
Subscription Services
On January 11, the CFPB proposed a rule requiring nonbanks subject to its supervisory authority, with limited exceptions, to annually register with the CFPB regarding their use of certain terms and conditions in form...more
In December, a Utah-based bank and its service provider entered into an assurance of discontinuance with the Iowa Attorney General and the Iowa Division of Banking, settling an investigation into allegedly usurious...more
On January 11, the CFPB and a debt-collection law firm it sued in 2019 for illegal debt-collection practices reached settlement. The CFPB included in its initial complaint against the defendant allegations that the law firm...more