Continuing a nationwide trend towards increased regulation of commercial financing, Governor Newsom has signed into law a bill extending the reach of California’s Rosenthal Fair Debt Collection Practices Act (the “Act”) to...more
Earned wage access (“EWA”) programs are financial products that allow workers to receive payment for wages they have already earned before their next scheduled payday. Many of these programs are integrated into their...more
8/7/2024
/ Borrowers ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Earned Wage Access ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Payday Loans ,
Payroll Advances ,
Regulation Z ,
Regulatory Agenda ,
Rulemaking Process ,
Truth in Lending Act (TILA) ,
Wage and Hour ,
Wages
Increased regulation of commercial financing shows no signs of stopping. California SB 1482, which would require commercial financing providers and brokers to register with the California Department of Financial Protection...more
6/6/2024
/ California ,
Consumer Financial Products ,
Department of Financial Protection and Innovation (DFPI) ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Financing ,
Lenders ,
Loans ,
NMLS ,
Proposed Legislation ,
Registration Requirement ,
Regulatory Agenda
To the likely surprise of providers of buy now, pay later (“BNPL”) financing, last week the Consumer Financial Protection Bureau (“CFPB”) issued an interpretive rule stating that BNPL products are actually “credit cards”...more
On May 16, 2024, the United States Supreme Court issued its long-awaited opinion in Consumer Financial Protection Bureau v. Community Financial Services Association of America, Ltd., holding that the CFPB’s unique funding...more
On April 24, 2024, the Consumer Financial Protection Bureau (CFPB) continued its assault on fees in the consumer finance industry. In its most recent edition of Supervisory Highlights, the CFPB reported that mortgage...more
5/6/2024
/ Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Fees ,
Financial Institutions ,
Financial Services Industry ,
Mortgage Lenders ,
Mortgage Servicers ,
Mortgage Servicing Rules ,
Supervisory Highlights ,
Unfair or Deceptive Trade Practices
On February 16, 2024, the Consumer Financial Protection Bureau (CFPB) issued a procedural rule revising its supervisory appeals process for the first time since 2015. This Rule makes several important changes...more
On October 19, the Consumer Financial Protection Bureau (CFPB) issued its highly anticipated notice of proposed rulemaking to implement Section 1033 of the Dodd-Frank Act. The Personal Financial Data Rights Rule would require...more
11/8/2023
/ Comment Period ,
Consumer Data Requests ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Data Management ,
Dodd-Frank ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
NPRM ,
Open Banking
On September 8, 2023, the U.S. District Court for the Eastern District of Texas issued an opinion and order vacating a March 2022 anti-discrimination update to the UDAAP section of the Consumer Financial Protection Bureau’s...more
The Consumer Financial Protection Bureau’s (CFPB or Bureau) Summer 2023 Supervisory Highlights, which discusses key examination findings between July 2022 and March 2023, underscores the Bureau’s continuing aggressive...more
After being the first state to impose disclosure requirements on small business finance transactions, California has now added an annual reporting requirement and subjected commercial finance companies to UDAAP claims. On...more
8/22/2023
/ Annual Percentage Rate (APR) ,
Annual Reports ,
California ,
Department of Financial Protection and Innovation (DFPI) ,
Disclosure Requirements ,
Final Rules ,
Financial Regulatory Reform ,
Financial Services Industry ,
Financial Transactions ,
UDAAP ,
Unfair or Deceptive Trade Practices
U.S. states continue to consider and adopt statutes requiring TILA-like disclosures in connection with various types of commercial financing transactions. Most recently, Georgia passed a law, effective January 1, 2024,...more
In March, the Colorado legislature proposed HB 23-1229, which would, among other things, opt the state out of Sections 521 to 523 of the Depository Institutions Deregulation and Monetary Control Act (“DIDMCA” or the “Act”),...more
On March 30, the Consumer Financial Protection Bureau (CFPB) issued its long-awaited final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require lenders to...more
On March 17, the California Department of Financial Protection and Innovation (DFPI) proposed its long-awaited registration requirements for certain covered persons under the California Consumer Financial Protection Law...more
On January 4, 2023, the Consumer Financial Protection Bureau (“CFPB”) and New York Attorney General (“NYAG”) filed a complaint in the Southern District of New York against a Michigan-based subprime indirect auto lender...more
On November 16, 2022, the Consumer Financial Protection Bureau (Bureau) released its Fall 2022 Supervisory Highlights. The 32-page report discusses the Bureau’s key examination findings in the areas of auto servicing,...more
On October 19, 2022, the Fifth Circuit sent shock waves through the financial world, ruling that the Consumer Financial Protection Bureau’s (“CFPB” or the “Bureau”) independent funding structure violates the U.S....more
In an effort to reduce allegedly “unnecessary junk products” sometimes included in automobile financing, on September 14, Governor Gavin Newsom signed into law Assembly Bill 2311, further regulating motor vehicle conditional...more
Months after the California Debt Collection Licensing Act (DCLA) took effect and covered persons were required to submit applications to obtain licenses, the Department of Financial Protection and Innovation (DFPI) has...more
July 5 is the deadline for submitting comments on the California Department of Financial Protection and Innovation’s (DFPI) proposed regulations on complaint handling and reporting, which would impose significant obligations...more
6/14/2022
/ Banking Sector ,
California ,
California Consumer Financial Protection Law (CCFPL) ,
Comment Period ,
Consumer Complaint Management ,
Consumer Complaint System ,
Department of Financial Protection and Innovation (DFPI) ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Proposed Regulation ,
Regulatory Agenda ,
Regulatory Burden
On April 28, 2022, the Federal Trade Commission (FTC) issued a press release announcing a notice of proposed rulemaking (NPRM) and an advance notice of proposed rulemaking (ANPR) seeking public comment on possible changes to...more
5/3/2022
/ Advanced Notice of Proposed Rulemaking (ANPRM) ,
Comment Period ,
Federal Trade Commission (FTC) ,
Financial Services Industry ,
Goods or Services ,
Lenders ,
NPRM ,
Small and Medium-Sized Enterprises (SMEs) ,
Telecommunications ,
Telemarketing ,
Telemarketing and Consumer Fraud and Abuse Prevention Act (TCFAPA) ,
Telemarketing Sales Rule ,
Unfair or Deceptive Trade Practices
The Illinois Department of Financial and Professional Regulation (IDFPR) has adopted a series of regulations pursuant to the Illinois Predatory Loan Prevention Act (PLPA). The new regulations will require certain Illinois...more
4/29/2022
/ Annual Percentage Rate (APR) ,
Consumer Financial Products ,
Consumer Lenders ,
Consumer Loan Companies ,
Financial Regulatory Reform ,
Financial Services Industry ,
Illinois ,
Interest Rates ,
Loans ,
New Regulations ,
Predatory Lending ,
Regulatory Requirements
Since the beginning of the Biden Administration, the Consumer Financial Protection Bureau (CFPB) has announced its intention to significantly increase its enforcement activity and expand its reach through aggressive...more
4/8/2022
/ Antitrust Provisions ,
Board Members ,
Board of Directors ,
Competition ,
Consumer Financial Protection Bureau (CFPB) ,
Corporate Executives ,
Enforcement Actions ,
Financial Services Industry ,
Regulatory Authority ,
Risk Mitigation ,
Unfair or Deceptive Trade Practices ,
Webinars
Merchant Cash Advance providers, commercial litigation funders, online SMB lending platforms and other nonbank small-business lenders, take note: Following the lead of California and New York, Utah is now the third state to...more