Tag:CFPB

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CFPB Aims to End the Use of Medical Debt Information in Making Credit Determinations and in Credit Reporting
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The CFPB Turns Its Focus To Credit Card Reward Programs
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CFPB Raises Alarms Without Providing All the Facts
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The CFPB Proposes New Credit Card Late Fee Limits
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CFPB Issues Advisory Opinion Strictly Interpreting Permissible Purpose for Consumer Reports
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Potential Major Change for U.S. Prepaid Products: Paypal vs CFPB Court Vacates Two Significant Restrictions in CFPB’s Prepaid Account Rule
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California Enacts “Mini-CFPB” Law, Significantly Altering Financial Services Regulation in the State
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US Consumer Financial Protection Bureau Seeking Comments on Proposed Remittance Rule Revisions
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CFPB Seeking Comments On Possible Remittance Rule Revisions
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CFPB’s New Office of Innovation to be led by Arizona FinTech Regulatory Sandbox Official; Cryptocurrencies and Blockchain will likely be on the Agenda

CFPB Aims to End the Use of Medical Debt Information in Making Credit Determinations and in Credit Reporting

By: Andrew C. Glass, Gregory N. Blase, and Joshua L. Durham

On June 11, 2024, the Consumer Financial Protection Bureau (CFPB) published a Notice of Proposed Rulemaking (NPRM) to ban the inclusion of medical bills in consumer credit reports.

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The CFPB Turns Its Focus To Credit Card Reward Programs

By: Jeremy McLaughlin and Chelsie Rimel

The Consumer Financial Protection Bureau (CFPB or Bureau) released a new report spotlighting common consumer complaints for credit card rewards programs. The Bureau and its Director, Rohit Chopra, have been focused on payments oversight, including by proposing a rule last Fall that would apply to nonbank entities that provide digital wallets. The new report discusses the relationship between consumers and the providers of reward programs, and it stresses the need for fairness and transparency.

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CFPB Raises Alarms Without Providing All the Facts

By Judie Rinearson and Jeremy McLaughlin

The Consumer Financial Protection Bureau’s (CFPB) recent Consumer Alert was certainly well intentioned. Many consumers (including the authors) who hold funds in payment apps (such as Venmo and Paypal) should be made aware that the funds are usually NOT held in an FDIC-insured bank.  But that doesn’t mean the funds are necessarily unprotected.

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The CFPB Proposes New Credit Card Late Fee Limits

By John ReVeal

On February 1, 2023, the CFPB proposed new rules to reduce the late fees that credit card issuers may charge to consumers (the “Proposed Rules”).  The CFPB refers to current late fees as “over the top” and “exorbitant.”  The CFPB indicates that it believes it has the authority to limit late fees under the CARD Act of 2009, which amended the Truth in Lending Act to require that late fees and other penalty fees be “reasonable and proportional to” the consumer’s violation of the cardholder agreement.     

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CFPB Issues Advisory Opinion Strictly Interpreting Permissible Purpose for Consumer Reports

By Grant F. Butler

On July 12, 2022, the Consumer Financial Protection Bureau (“CFPB”) issued an advisory opinion that states its strict interpretation of the permissible purposes for which a consumer reporting agency may provide a consumer report and for which consumer report users may obtain consumer reports.  Section 604(a) of the Fair Credit Reporting Act (“FCRA”) identifies the “permissible purposes” for which a consumer reporting agency may furnish a consumer report. 

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California Enacts “Mini-CFPB” Law, Significantly Altering Financial Services Regulation in the State

By: Jeremy McLaughlin & Mehreen Ahmed

On September 25, 2020, California Governor Newsom signed AB-1864 into law, which will significantly change the landscape of consumer financial service regulation in the state. The law renames the Department of Business Oversight as the Department of Financial Protection and Innovation (“DFPI”). Along with a new name, the DFPI also gains important enforcement powers as the agency will now have the power to enforce all California laws related to “persons offering or providing consumer financial products or services in the state.” The law allows DFPI to establish a “Financial and Technology Innovation Office.” A key aim of the law is to improve the state’s consumer protection capacity by increasing the number of investigators and attorneys to oversee financial institutions.

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US Consumer Financial Protection Bureau Seeking Comments on Proposed Remittance Rule Revisions

Jeremy M. McLaughlin and Daniel S. Cohen

On December 3, the United States Consumer Financial Protection Bureau (“CFPB”) published a notice of proposed rulemaking to revise the Remittance Rule (“Proposed Rule”) and is accepting comments until January 21, 2020.  The proposal follows the CFPB’s April 2019 request for information on the Remittance Rule (see here for our previous discussion).  The key provisions of the Proposed Rule address two aspects of the Remittance Rule: (1) the Rule’s applicability to a company that executes 100 or more remittances per year in the normal course of business, and (2) the Rule’s allowance for insured banks and credit unions to disclose estimates, rather than exact figures, under certain circumstances. This latter allowance is set to expire on July 21, 2020.

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CFPB Seeking Comments On Possible Remittance Rule Revisions

By Daniel S. Cohen and Jeremy M. McLaughlin

On April 25th, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued a request for information (“RFI”) asking for input about the scope of its Remittance Rule (the “Rule”), whether the Bureau should exempt certain small financial institutions from the Rule, and how the expiration of the Rule’s “temporary exemption” for insured depository institutions and credit unions would adversely affect consumers.  Comments are due 60 days after publication in the Federal Register.

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CFPB’s New Office of Innovation to be led by Arizona FinTech Regulatory Sandbox Official; Cryptocurrencies and Blockchain will likely be on the Agenda

By Eric A. Love

On July 18, 2018, Consumer Financial Protection Bureau (“CFPB”) Acting Director Mick Mulvaney announced that Paul Watkins, who previously led the FinTech initiatives in the Arizona Attorney General’s Office, will head the CFPB’s newly created Office of Innovation. According to a CFPB press release about the selection, the Office of Innovation will replace the CFPB’s Project Catalyst initiative (which the CFPB launched in 2012) and will “focus on creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.”  Project Catalyst and the Office of Innovation share the stated overarching objective of promoting “consumer-friendly innovation” in consumer financial services.

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