On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting Act with respect to the personal data of their workers. This guidance adds to the growing body of law that protects employees from potentially harmful use of AI.
Continue Reading CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance

On October 18, a fintech trade group filed a complaint in a D.C. federal court challenging the CFPB’s interpretive rule on Buy Now, Pay Later (BNPL) products. The rule, released last May, treats BNPL providers as credit card providers under TILA (previously discussed here). The complaint alleges various violations of the Administrative Procedure Act (APA), among others, claiming that the CFPB violated the APA’s notice and comment requirements, exceeded its statutory authority when issuing the rule, and acted in an arbitrary and capricious manner in imposing requirements on BNPL providers.
Continue Reading Trade Group Challenges CFPB’s Buy Now Pay Later Rule

On October 22, the CFPB announced the finalization of its Personal Financial Data Rights Rule under Section 1033 of the Dodd-Frank Act. The rule aims to bring the U.S. closer to an “open banking” framework by making it easier for consumers to switch between financial institutions.
Continue Reading CFPB Finalizes Personal Financial Data Rights Rule

On October 3, the OCC issued Bulletin 2024-29, providing guidance for managing credit risk in connection with refinancing commercial loans. …
Continue Reading OCC Issues Guidance on Refinance Risk in Commercial Lending

On October 15, the CFPB and the DOJ announced a settlement against a large mortgage lender for its alleged discriminatory redlining practices against residents of majority-Black neighborhoods in the greater Birmingham, Alabama area in violation of the Fair Housing Act, the Equal Credit Opportunity Act, and Consumer Financial Protection Act. Redlining occurs when lenders discourage credit applications, deny equal access to home loans and other credit services in certain areas, or avoid providing home loans based on applicants’ protected class status, such as the race, national origin, or color of the residents of those areas.
Continue Reading CFPB and DOJ Target Mortgage Lender for Alleged Discriminatory Redlining Practices

In a September 26 settlement, the Massachusetts Attorney General’s office reached an agreement with a mortgage loan servicer to resolve allegations of violations of Massachusetts consumer protection laws and the Truth in Lending Act.
Continue Reading Massachusetts AG Reaches Settlement with Loan Servicer Over Improper Debt Collection Practices

On October 16, the FTC announced that it has finalized its “click to cancel” rule, that will require sellers to make it much easier for consumers to cancel subscriptions. The final rule is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency is modernizing to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.
Continue Reading FTC Finalizes ‘Click to Cancel’ Rule

The banking industry’s efforts to challenge a new Illinois law banning interchange fees, also known as “swipe fees,” on tax and tip payments gained significant momentum when the OCC criticized the law as an “ill-conceived” threat to the “efficient and effective” operation of the banking system in an amicus brief filed in Illinois federal court on October 2. …
Continue Reading Swipe Fee Saga Continues: OCC and Trade Groups Clash with Illinois AG

On September 20, Governor Newsom signed AB 2424, which establishes a significant set of new foreclosure notification and sale requirements for mortgage lenders. The law is effective as of January 1, 2025.
Continue Reading California Passes Law Extending new Protections to Mortgage Borrowers

On October 10, the CFPB settled an action against a California-based private arbitration company permanently banning it from arbitrating disputes related to consumer financial products or services. The company operates an online dispute resolution platform that connects debtors with creditors for the purpose of resolving disputes and debts.
Continue Reading CFPB Permanently Bans Arbitration Company from Arbitrating Consumer Financial Disputes

On October 7, the CFPB announced the release of a special edition of its Supervisory Highlights, focused on the agency’s most recent findings in auto financing. The CFPB’s Supervisory Highlights cover select examinations related to auto finance that were completed between November 1, 2023, and August 30, 2024. Main takeaways include:…
Continue Reading CFPB Supervisory Highlights Target Auto Finance Missteps

On September 24, the Governor of California signed AB 2017 (the “Act”) into law. The Act prohibits state-chartered banks and credit unions from charging consumers non-sufficient fund fees (“NSF fees”) when they initiate transactions that are instantaneously declined due to insufficient funds.
Continue Reading California Enacts Law Prohibiting State Banks and Credit Unions from Charging NSF Fees

On October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F.
Continue Reading CFPB Issues Guidelines for Medical Debt Collection