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FDIC consent order with Cross River Bank indicates heightened scrutiny of bank-fintech partnerships

The FDIC recently announced that it has entered into a Consent Order with Cross River Bank (CRB or Bank) to resolve FDIC charges that the Bank engaged in unsafe or unsound practices related to its fair lending compliance. ...more

5/5/2023  /  Banking Sector , Banks , FDIC , FinTech

CFPB and federal banking agencies issue joint statement on LIBOR transition; CFPB issues interim final rule on discontinuation of...

Last week, the CFPB, together with the Federal Reserve Board (Board), FDIC, OCC, and NCUA, issued a “Joint Statement on Completing the LIBOR Transition.” The agencies issued the statement to remind supervised institutions...more

Texas banking trade group and Texas bank file lawsuit challenging validity of CFPB Section 1071 final rule on small business data...

While it has only been a month since the CFPB issued its final rule to implement Section 1071 of the Dodd-Frank Act, the CFPB is already facing a lawsuit challenging the rule’s validity. The lawsuit was filed last week in a...more

Consumer Finance Monitor Podcast Episode: Recent Federal and State Debt Collection Developments [Video]

Third-party debt collectors, first-party creditors, and debt buyers face an ever-evolving federal and state regulatory landscape as well as ongoing private litigation. We first look at the impact of the CFPB’s most recent...more

CFPB/FTC/DOJ/EEOC issue joint statement on enforcement efforts directed at discrimination and bias in automated systems; CFPB...

The CFPB, FTC, Justice Department, and Equal Employment Opportunity Commission have issued a joint statement about enforcement efforts “to protect the public from bias in automated systems and artificial intelligence.” The...more

CFPB pushes the ECOA coverage envelope again

The CFPB has filed a Statement of Interest in a case pending before a Florida federal district court in which the plaintiffs allege that the defendant engaged in discriminatory targeting in violation of the Equal Credit...more

New issue of FDIC Consumer Compliance Supervisory Highlights looks at referral arrangements, trigger leads, servicemember...

In the March 2023 issue of Consumer Compliance Supervisory Highlights, the FDIC discusses consumer compliance issues identified by its examiners during supervisory activities conducted in 2022 involving referral arrangements,...more

California federal district court denies DFPI motion to dismiss lawsuit challenging state’s regulations requiring consumer-like...

A California federal district court recently denied the motion filed by the California Department of Financial Protection and Innovation (DFPI) seeking to dismiss a lawsuit filed by an advocacy organization seeking to enjoin...more

CFPB releases policy statement defining abusive acts or practices

In the CFPB’s second attempt to define “abusive” acts or practices, the first being guidance rescinded a year after it was given in 2020, the CFPB has issued a new policy statement in which it turns to statutory analysis and...more

CFPB final Section 1071 rule on small business data collection includes important changes from proposal

On March 30, the Consumer Financial Protection Bureau issued its final rule to implement Section 1071 of the Dodd-Frank Act. Section 1071 amended the Equal Credit Opportunity Act to require financial institutions to collect...more

Second Circuit Rules CFPB’s Funding Does Not Violate Appropriations Clause

A three-judge panel of the U.S. Court of Appeals for the Second Circuit has unanimously ruled that the CFPB’s funding structure does not violate the Appropriations Clause of the U.S. Constitution. In its decision, the panel...more

CFPB issues final Section 1071 rule on small business data collection; Ballard Spahr to hold webinar on April 17

The Consumer Financial Protection Bureau has 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 financial institutions to...more

CFPB determines Truth In Lending Act does not preempt New York, California, Utah, and Virginia commercial financing disclosure...

The CFPB has issued a determination that the Truth in Lending Act (TILA) does not preempt the commercial financing laws of New York, California, Utah, and Virginia.  The determination will be effective on the date it is...more

CFPB credit card late fees proposal published in Federal Register

Nearly two months after it was issued on February 1, the CFPB’s proposal to make significant changes to the Regulation Z rules for credit card late fees was published in today’s Federal Register. The changes include a...more

Second Circuit rules that CFPB’s funding does not violate Appropriations Clause

A three-judge panel of the U.S. Court of Appeals for the Second Circuit has unanimously ruled that the CFPB’s funding structure does not violate the Appropriations Clause of the U.S. Constitution. In its decision, the panel...more

CFPB makes updates and corrections to CFPB and other federal agency contact information in ECOA and FCRA notices

On March 20, 2023, the CFPB published a final rule in the Federal Register that makes non-substantive corrections and updates to CFPB and other federal agency contact information found in various regulations, including the...more

CFPB announces changes to semi-annual survey of credit card terms

The CFPB has announced that it has made changes to its semi-annual survey of credit card term.  According to the CFPB, the changes are “designed to increase price competition in the credit card market by allowing people to...more

CFPB Issues Request For Information About Data Brokers And Other Businesses That Collect And Sell Consumer Data

The CFPB has issued a request for information about business models that collect and sell consumer data, such as data brokers, data aggregators, and platforms. The RFI is intended to provide the CFPB with insight into the...more

CFPB issues bulletin on handling of discharged student loans by servicers

The CFPB has issued a new bulletin (2023-01) titled “Unfair Billing and Collection Practices After Bankruptcy Discharges of Certain Student Loan Debts.” The bulletin warns servicers that they risk engaging in a UDAAP...more

DOJ Announces $9M Agreement to Resolve Redlining Allegations Against Park National Bank

Park National Bank (“Park National”), based in Ohio, has agreed to pay $9 million to settle allegations brought by the U.S. Department of Justice (DOJ) that it engaged in unlawful redlining practices in the Columbus...more

CFPB and DOJ file statement of interest in lawsuit alleging lender violated ECOA and FHA by denying loan based on appraisal...

The Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) have filed a Statement of Interest regarding the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to a...more

GAO issues report on fintech products; recommends CFPB clarify when earned wage access products are “credit” under Truth in...

The Government Accountability Office (GAO) has issued a new report entitled “Financial Technology: Products Have Benefits and Risks to Underserved Consumers, and Regulatory Clarity Is Needed.”...more

CFPB Supervisory Highlights Special Edition looks at “junk fees” charged in connection with deposits, auto servicing, mortgage...

Continuing its (and the White House’s) “junk fees” rhetoric, the CFPB has released a new issue of Supervisory Highlights that carries the title “Junk Fees Special Edition.” The report discusses the Bureau’s examinations...more

Republican House members send letter to Director Chopra raising concerns about CFPB credit card late fees proposal

A group of 17 Republican members of the House Financial Services Committee have sent a letter to CFPB Director Chopra regarding the CFPB’s credit card late fees proposal. ...more

DOJ announces $9 million agreement to resolve redlining allegations against Park National Bank

Park National Bank (“Park National”), based in Ohio, has agreed to pay $9 million to settle allegations brought by the U.S. Department of Justice (DOJ) that it engaged in unlawful redlining practices in the Columbus...more

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