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CFPB seeks input on development of new auto market data set

On November 17, 2022, the Consumer Financial Protection Bureau (“CFPB”) announced in a blog post that it is in seeking to build a new data set that “will allow for a more robust understanding of market trends” in the auto...more

FTC Issues Advance Notice of Proposed Rulemaking on ‘Junk Fees’

On October 20, 2022, the Federal Trade Commission (FTC) announced that it is issuing an Advance Notice of Proposed Rulemaking (ANPR or Notice) to address “junk fees,” a term used in the Notice to refer to “unfair or deceptive...more

Supreme Court hears arguments over jurisdiction for constitutional challenges to FTC’s enforcement authority

The Supreme Court heard arguments yesterday in Axon Enterprise v. Federal Trade Commission (No. 21-86), as to whether federal courts can hear a challenge to the FTC’s constitutionality by a party in an administrative...more

Vonage to pay $100 million in refunds to consumers under FTC consent order settling junk fees and “dark patterns” allegations

On November 3, 2022, the Federal Trade Commission (“FTC”) announced that it has entered into a consent order with internet phone service provider Vonage to settle allegations that it imposed “junk fees” on consumers and used...more

FTC issues advance notice of proposed rulemaking on “junk fees”

On October 20, 2022, the Federal Trade Commission (“FTC”) announced that it is issuing an Advance Notice of Proposed Rulemaking (“ANPR” or “Notice”) to address “junk fees,” a term used in the Notice to refer to “unfair or...more

New California laws place limits on GAP insurance

Two recently-passed bills in California, Assembly Bill 2311 (“AB 2311”) and Senate Bill 1311 (”SB 1311”), were signed into law by Governor Gavin Newsom on September 13 and September 27, respectively, placing new restrictions...more

FTC settles action against D.C.-area auto dealer group over illegal fees and discrimination allegations

On October 18, 2022, the Federal Trade Commission (“FTC”) announced a settlement with a Washington, D.C.-area auto dealer, Passport Automotive Group (“Passport”), resolving allegations that it had deceived consumers by adding...more

New York Department of Financial Services settles enforcement action with community bank over auto dealer fair lending allegations

Following up on a threat it made back in 2018, the New York State Department of Financial Services (DFS) announced on October 6, 2022 that it entered into a consent order with Rhinebeck Bank (“Rhinebeck”) to settle...more

CFPB highlights potential impact of high vehicle costs on consumers with deep subprime credit scores

In a September 28, 2022 blog post, the CFPB examined the potential impact of rising vehicle prices on consumers with deep subprime credit scores, concluding that they are particularly likely to be financially vulnerable....more

CFPB files complaint against online lender alleging MLA violations

On September 29, 2002, the Consumer Financial Protection Bureau (“CFPB”) filed a complaint against online lender MoneyLion Technologies, Inc, and several dozen of its subsidiaries (collectively, “MoneyLion”), alleging...more

DOJ Settles SCRA Interest Rate Action Against Auto Finance Company

On September 28, 2022, the Department of Justice (”DOJ”) announced a settlement with Westlake Financial Services (“Westlake”), a Los Angeles-based indirect auto finance company specializing in subprime and near-subprime...more

Trade groups react to FTC’s proposed Motor Vehicle Dealers Trade Regulation Rule as public comment period closes

Expressing a range of concerns, several key industry groups submitted comments to the Federal Trade Commission (“FTC”) last week regarding its proposed rule that would impose new substantive and disclosure obligations on...more

CFPB expresses concern about the potential credit impact of high vehicle costs for consumers

In a blog post on Monday, the CFPB advised that it is concerned about the impact of rising car prices on consumer’s financial health, particularly consumers with sub-prime or near prime credit scores. The most recent...more

FDIC issues cease and desist letters alleging false or misleading representations about deposit insurance on crypto-related...

On August 19, 2022, the FDIC issued cease and desist letters to five crypto companies, alleging they made false and misleading statements about FDIC deposit insurance and demanding immediate corrective action. The five...more

FTC settles Section 5/ROSCA claims alleged against payment processor providing services to small businesses

On July 29, the Federal Trade Commission (“FTC”) announced a settlement with First American Payment Systems LP, a Texas-based nationwide payment processor, and two of its sales agent affiliates, Think Point Financial LLC and...more

DOJ and CFPB send notification letter to auto finance companies regarding SCRA protections

On July 29, 2022, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a notification letter (the “joint letter”) to “remind” auto lenders and leasing companies of the protections...more

FHFA announces Office of Financial Technology

On July 18, the Federal Housing Finance Agency (“FHFA”) announced the launch of a new Office of Financial Technology with the goal of advancing effective risk management as it evaluates fintech developments in the housing...more

FTC and 18 state attorneys general settle action against national retail chain accused of unlawful practices targeting...

On July 20, 2022, the Federal Trade Commission (“FTC”) and 18 state attorneys general led by New York Attorney General Letitia James announced that they have entered into a settlement with Harris Originals of NY, Inc. and...more

CFPB encourages federal student loan servicers to conduct outreach to military borrowers on public service loan forgiveness

The Consumer Financial Protection Bureau (CFPB) is “encouraging” student loan servicers to identify their military borrowers in order to conduct proactive outreach encouraging them to consolidate their loans and submit...more

House Oversight and Reform Subcommittee on National Security holds hearing on protecting military servicemembers and veterans from...

On July 13, 2022, the House Committee on Oversight and Reform, Subcommittee on National Security held a hearing entitled “Protecting Military Servicemembers and Veterans from Financial Scams and Fraud.”  A recording of the...more

ALI circulates revisions to Tentative Draft No. 2 of the Restatement of the Law, Consumer Contracts

On June 22, 2022, the American Law Institute (“ALI”) circulated minor (mostly technical) revisions to Tentative Draft No. 2 of the Restatement of the Law, Consumer Contracts (the “Restatement”)....more

CFPB continues focus on overdraft practices

In a blog post published last week, the CFPB reported that since the beginning of 2022, it has been collecting data from supervised institutions on their overdraft and non-sufficient fund (NSF) practices and intends to use...more

CFPB Office of Servicemember Affairs annual report highlights consumer complaints from military families

Yesterday, the Consumer Financial Protection Bureau (CFPB) issued the Office of Servicemember Affairs Annual Report for 2021.  The report focuses primarily on customer complaints, highlighting issues related to credit...more

CFPB Highlights Unfair Treatment of Servicemembers through the Military Allotment System

The Consumer Financial Protection Bureau (CFPB) recently highlighted its concerns regarding the use of military allotments for loan repayment, inviting servicemembers who believe they have been treated unfairly by companies...more

ALI members approve Restatement of the Law, Consumer Contracts

As expected, the American Law Institute (“ALI”) approved the Restatement of the Law, Consumer Contracts yesterday at ALI’s 2022 Annual Meeting in Washington, DC. The Restatement sets forth a series of rules that are intended...more

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