News & Analysis as of

Regulation Z Credit Cards Truth in Lending Act (TILA)

Ballard Spahr LLP

Case in which CFPB came to financial institutions’ defense dismissed

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An Illinois federal judge has dismissed a proposed class action lawsuit that alleged that two Midwestern banks failed to provide repayment disclosures to borrowers, in a case that was unique because the CFPB came to the...more

Holland & Knight LLP

CFPB Keeps to Its Word by Issuing Additional Buy Now, Pay Later Guidance

Holland & Knight LLP on

purred by increased online and mobile app shopping during the COVID-19 pandemic, the Buy Now, Pay Later (BNPL) market has experienced higher growth and popularity as an innovative consumer finance offering, particularly for...more

Troutman Pepper

CFPB’s Latest FAQs Broaden Interpretive Rule for Pay-in-Four BNPL Products

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On September 18, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a set of frequently asked questions (FAQs) providing guidance on applying Regulation Z requirements to Pay-in-Four Buy Now, Pay Later (BNPL)...more

Hudson Cook, LLP

CFPB Sues Credit Card Issuer and its Owner and CEO for Alleged Deceptive Marketing and Improper Fees

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On September 13, 2024, the CFPB filed a lawsuit against the company and its owner and CEO, alleging deceptive and abusive acts and practices in violation of the CFPA and violations of TILA and its implementing regulation....more

Goodwin

CFPB Files Proposed Judgment in Bank Suit Regarding the Opening of Unauthorized Accounts

Goodwin on

​On July 9, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it filed a proposed stipulated final judgment and ​order in its suit against a national bank accused of allegedly opening unauthorized accounts...more

Ballard Spahr LLP

In Rare Move, the CFPB Comes to the Defense of Bank

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In an unusual move, the CFPB is coming to the defense of a bank being accused of failing to provide repayment disclosures to a borrower....more

Skadden, Arps, Slate, Meagher & Flom LLP

CFPB Applies Credit Card Rules to 'Buy Now, Pay Later' Lenders

Following its recent win before the Supreme Court, the Consumer Financial Protection Bureau (CFPB or Bureau) on May 22, 2024, issued an interpretive rule concluding that “Buy Now, Pay Later” (BNPL) loans accessed through a...more

Manatt, Phelps & Phillips, LLP

Surprise! CFPB Claims That Buy Now, Pay Later Providers Are “Card Issuers” Under Reg Z

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

Orrick, Herrington & Sutcliffe LLP

CFPB issues interpretive rule likening BNPL accounts to credit cards under Regulation Z

On May 22, the CFPB issued an interpretive rule stating its position that certain consumer protection provisions of Regulation Z applied to Buy Now, Pay Later (BNPL) accounts. The interpretive rule asserted that “digital user...more

Kilpatrick

New CFPB Rule Classifies “Buy Now, Pay Later” Lenders as Credit Card Issuers

Kilpatrick on

On May 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule that redefines the regulatory framework for Buy Now, Pay Later (BNPL) lenders, aligning them with traditional credit card providers...more

Cooley LLP

CFPB Issues Interpretive Rule Designating BNPL Providers as Card Issuers Subject to Regulation Z

Cooley LLP on

On May 22, 2024, the Consumer Financial Protection Bureau (CFPB) issued an interpretive rule stating that providers of “buy now, pay later” (BNPL) products that issue “digital user accounts” to access credit products to...more

Husch Blackwell LLP

The CFPB Determines "Buy Now, Pay Later" Providers Are Card Issuers under Regulation Z

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Yesterday, the Consumer Financial Protection Bureau (CFPB) released an interpretive rule stating that “Buy Now, Pay Later” (BNPL) providers are “card issuers” and “creditors” under the federal Truth in Lending Act (TILA) and...more

Ballard Spahr LLP

CFPB Issues “Interpretive Rule” Deeming BNPL Providers Card Issuers

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The result of the CFPB’s multi-year study of the BNPL industry is what the CFPB calls an interpretive rule in which it finds that: (1) “digital user accounts” (each a “DUA”) that may be used to access credit are “credit...more

Troutman Pepper

CFPB Rules Buy Now, Pay Later Lenders Must Offer Key Credit Card Protections

Troutman Pepper on

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an “interpretive rule,” subjecting “Buy Now, Pay Later” (BNPL) transactions to provisions of Regulation Z applicable to “credit cards.” Among other...more

Latham & Watkins LLP

Texas Judge Halts CFPB Rule Limiting Credit Card Late Fees

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The preliminary injunction was granted pursuant to Fifth Circuit precedent that the CFPB’s independent funding structure is unconstitutional. On May 10, 2024, the US District Court for the Northern District of Texas...more

Goodwin

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

Goodwin on

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

Goodwin

The CFPB’s Final Rule Imposes Significant Restrictions on Credit Card Late Fees

Goodwin on

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). ...more

Latham & Watkins LLP

CFPB Finalizes Rule Limiting Credit Card Late Fees

Latham & Watkins LLP on

The rule targets a statutory loophole that the CFPB asserts large credit card issuers exploited to exact excessive late fees from consumers. On March 5, 2024, the Consumer Financial Protection Bureau (CFPB) finalized a...more

Brownstein Hyatt Farber Schreck

CFPB Final Rule Caps Credit Card Late Fees at $8

In a move that aligns with conservative arguments that the Consumer Financial Protection Bureau (CFPB) has become a political arm of the White House, the agency finalized its controversial credit card late fee rule just two...more

Ballard Spahr LLP

Financial trade groups remind CFPB of the SBREFA requirements for the imminent overdraft and NSF fee rulemaking

Ballard Spahr LLP on

On January 3, 2023, American Bankers Association, America’s Credit Unions, and Independent Community Bankers of America wrote a letter to CFPB Director Rohit Chopra to address their concerns that the CFPB’s proposal for...more

Troutman Pepper

CFPB Report Highlights Consumer Experiences with Overdraft and NSF Fees

Troutman Pepper on

On December 19th, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a report highlighting consumers’ experiences with overdraft and nonsufficient funds (NSF) fees. The report found that roughly a quarter of...more

Ballard Spahr LLP

CFPB Fall 2023 rulemaking agenda indicates imminent issuance of final credit card late fees rule and proposed rules on overdraft...

Ballard Spahr LLP on

The CFPB has released its Fall 2023 rulemaking agenda as part of the Fall 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions.  The agenda’s preamble indicates that “[t]he Bureau reasonably anticipates having...more

Latham & Watkins LLP

CFPB Set to Limit Credit Card Late Fees

Latham & Watkins LLP on

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

Hudson Cook, LLP

CFPB Fines Large National Bank for Withholding Credit Card Rewards, Charging Multiple Non-sufficient Fund Fees, and Opening...

Hudson Cook, LLP on

On July 11, 2023, the CFPB announced two consent orders against a large national bank, settling allegations that the bank illegally charged consumers multiple non-sufficient fund fees for the same transaction, withheld cash...more

Hudson Cook, LLP

CFPB Fines National Bank $9 Million for Improper Handling of Credit Card Billing Error Notices and Claims of Unauthorized Use

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The CFPB settled a lawsuit originally filed in January 2020 against a large national bank, claiming it violated the Truth in Lending Act and its implementing Regulation Z, as well as the Consumer Financial Protection Act, by...more

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