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Consumer Financial Protection Bureau (CFPB) Safe Harbors

McGlinchey Stafford

NJ District Court Underscores Limits of “Safe Harbor” Protection Under Regulation F

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On May 7, 2024, the United States District Court for the District of New Jersey issued a decision holding that the use by a debt collector of the Model Form validation notice under Regulation F does not guarantee compliance...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: A Close Look at the Consumer Financial Protection Bureau’s Final Credit Card Late Fee...

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Our special guest is Andrew Nigrinis of Legal Economics LLC and former CFPB enforcement economist. The CFPB’s final credit card late fee rule lowers the safe harbor late fee amount that card issuers other than “smaller card...more

Goodwin

The CFPB’s “Junk Fees” Initiative: Recent Developments and Trends

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The term “junk fee” is not defined under federal law, but the CFPB has focused on factors such as whether the fee would be unexpected to or take advantage of a reasonable consumer, the amount of the fee compared to the cost...more

Troutman Pepper

Texas District Court Transfers Credit Card Late Fee Rule Lawsuit to D.C.

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Last week, the lawsuit challenging the Consumer Financial Protection Bureau’s (CFPB or Bureau) credit card late fee rule (Final Rule) was transferred from the U.S. District Court for the Northern District of Texas to the...more

Ballard Spahr LLP

Operational impacts of the new CFPB Credit Card Late Fee Rule

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On March 5, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued its final credit card late fee rule (the “Final Rule”), which, amongst other things, significantly reduces the late fee safe harbor cap for issuers...more

Troutman Pepper

Texas District Court Questions Venue in Credit Card Late Fee Rule Lawsuit

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As discussed here, earlier this month the Consumer Financial Protection Bureau (CFPB or Bureau) finalized its credit card late fee rule (Final Rule). The Final Rule sets a safe harbor amount for late fees at $8 and eliminates...more

Ballard Spahr LLP

Trade groups file lawsuit in Texas federal court challenging CFPB final credit card late fee rule and ask for preliminary...

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Just two days after the CFPB issued its final credit card late fee rule (Rule) last week, a lawsuit was filed in a Texas federal district court seeking to invalidate the Rule. The plaintiffs in the lawsuit are the Chamber of...more

Morrison & Foerster LLP

CFPB Issues Final Rule to Reduce Credit Card Late Payment Fees

On March 5, 2024, the Consumer Financial Protection Bureau (CFPB) announced the issuance of its final rule to amend Regulation Z and further restrict credit card late payment fees (the “Final Rule”). With certain material...more

Troutman Pepper

The War on Fees Intensifies: Presidential Strike Force and Industry’s Legal Counterattack

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As discussed here, earlier last week the Consumer Financial Protection Bureau (CFPB or Bureau) finalized its credit card late fee rule (Final Rule). The Final Rule sets a safe harbor amount for late fees at $8 and eliminates...more

Cozen O'Connor

CFPB Tells Large Credit Card Issuers to Get in Line With TILA

Cozen O'Connor on

The CFPB issued a final rule to address late fees charged by “larger card issuers”—credit card issuers that together with their affiliates have one million or more open credit card accounts—to ensure compliance with the Truth...more

Husch Blackwell LLP

The CFPB Drastically Cuts The Safe Harbor Amount For Credit Card Late Fees

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After much anticipation, the Consumer Financial Protection Bureau (CFPB) has issued a final rule drastically reducing Regulation Z’s safe harbor fee amount for credit card late fees to $8 for card issuers that do not qualify...more

Troutman Pepper

CFPB Issues Final Credit Card Late Fee Rule

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We discussed the Consumer Financial Protection Bureau’s (CFPB or Bureau) credit card late fee proposed rule here 13 months ago, and today, the Bureau announced that it has finalized the rule (Final Rule) setting a safe harbor...more

Troutman Pepper

Undated Model Debt Violation Notice Does Not Violate the FDCPA

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Last week, a district court in Nevada held that an undated, model form debt validation notice does not violate the Fair Debt Collection Practices Act (FDCPA). In Bergida v. PlusFour, Inc., the defendant sent a debt validation...more

Adams and Reese LLP

No Safe Harbor for Inaccurate Adverse Action Notices Based Upon Undisclosed Use of AI and Complex Credit Models

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The Consumer Financial Protection Bureau (CFPB) issued a circular on September 19, 2023, addressing its concerns about a creditor’s use of artificial intelligence or complex credit models to review and make decisions...more

Latham & Watkins LLP

CFPB Set to Limit Credit Card Late Fees

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The move becomes effective on October 1, 2023, with the Supreme Court soon to decide on the agency’s rule-writing authority. On February 1, 2023, the Consumer Financial Protection Bureau (CFPB) proposed a rule (the...more

Ballard Spahr LLP

Consumer Finance Monitor Podcast Episode: A Close Look at the Consumer Financial Protection Bureau’s Credit Card Late Fees...

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The CFPB has issued a proposal that would make significant changes to the current rules for credit card late fees, including substantially reducing the safe harbor late fee amounts that card issuers can charge and eliminating...more

Nutter McClennen & Fish LLP

Nutter Bank Report: February 2023

Federal Guidance Warns of Liquidity Risks Arising from Crypto-Asset-Related Deposits - The federal banking agencies have issued joint guidance to banking organizations highlighting potentially heightened liquidity risks...more

Buchalter

CFPB Proposes Limiting Credit Card Late Fees to $8 Per Late Payment

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On February 1, the CFPB issued a proposed rule to cut the “safe harbor” amount that banks and credit card companies can charge for late fees. If finalized, the proposed rule would reduce the maximum safe harbor limit for...more

Morgan Lewis - All Things FinReg

CFPB Proposes Delay of Mandatory Compliance Date for General Qualified Mortgage Rule

We previously reported on recent mortgage rulemakings that were finalized by the Consumer Financial Protection Bureau (CFPB or Bureau) late last year. Of the two final rules from the Bureau, one drastically simplifies the...more

Goodwin

California’s Mini-CFPB Enters into Memorandums of Understanding with Earned Wage Access Fintech Companies

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In January 2021, the new California Department of Financial Protection and Innovation (DFPI) entered into memorandums of understanding (MOUs) with five earned wage access fintech companies so that these companies can continue...more

Morrison & Foerster LLP

A Sign Of Things To Come: The California DFPI Exercises Its New Authority In Regulating Earned Wage Access Products

The law creating a new California mini-CFPB took effect on January 1, 2021, and a few weeks later, the California Department of Financial Protection and Innovation (DFPI) entered into “first-of-their kind” memoranda of...more

Smith Debnam Narron Drake Saintsing & Myers,...

The CFPB Publishes the Remainder of its Final Debt Collection Rule – Here’s What You Need to Know

On December 18, 2020, the CFPB published the remainder of its Final Debt Collection Rule (the “Rule”) highlighting its crown jewel - the provisions centering around debt validation notices. While the bulk of Part 2...more

Goodwin

SEC Finalizes Reforms Under Investment Advisers Act

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In this Issue. The Securities and Exchange Commission (SEC) finalized reforms under the Investment Advisers Act to modernize rules that govern investment adviser advertisements and payments to solicitors, and published a risk...more

Goodwin

CFPB Affirms Regulation Z Does Not Apply To Non-Recourse Earned Wage Access

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Recently, the Consumer Financial Protection Bureau (CFPB) issued an order accepting into the CFPB’s compliance assistance sandbox an earned wage access (EWA) program where participating employees are not obligated to repay...more

Alston & Bird

CFPB Issues “Seasoned Qualified Mortgage” Rule

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A&B ABstract: On December 10, 2020, the Consumer Financial Protection Bureau (CFPB) issued an innovative final rulemaking that creates a pathway to “safe harbor” Qualified Mortgage (QM) status for performing non-QM and...more

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