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On May 15, the CFPB withdrew three Biden-era rulemaking proposals, including a December 2024 proposal to regulate data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), a January proposal to extend Regulation E to emerging payment systems such as those used in video games and esports betting, and a proposed interpretive rule targeting restrictive and potentially unlawful terms in consumer contracts.Continue Reading CFPB Withdraws Guidance and Proposed Rules on Data Broker, Video Game Payments, and Contract Clauses

On May 9, the U.S. Department of the Treasury announced that President Trump intends to nominate Jonathan McKernan to serve as the Undersecretary of Domestic Finance. McKernan had been awaiting Senate confirmation to lead the CFPB, but the White House confirmed his nomination will be rescinded as the administration continues to pursue structural change to the Bureau.Continue Reading CFPB Director Nominee to Move to Treasury Finance Role

On May 12, the CFPB formally withdrew nearly 70 guidance materials—including policy statements, advisory opinions, circulars, and interpretive rules—through a Federal Register notice issued by Acting Director Russell Vought. The move stems from an internal memo circulated last month to identify guidance that allegedly imposed unlawful compliance burdens or exceeded statutory authority.Continue Reading CFPB Withdraws Dozens of Guidance Documents as Part of Deregulatory Push

On May 9, President Trump signed a Congressional Review Act resolution repealing the CFPB’s final rule restricting overdraft fees at large financial institutions. The rule, originally finalized under the Biden administration, would have imposed new limits on overdraft fees charged by banks with over $10 billion in assets.Continue Reading President Trump Signs Resolution Nullifying CFPB Overdraft Fee Rule

On May 1, the CFPB filed a joint motion with two financial trade groups to vacate a Biden-era rule barring most medical debt from appearing on consumer credit reports.  The motion comes after lender groups filed a lawsuit in January, arguing that the rule unlawfully exceeded the CFPB’s statutory authority under the Fair Credit Reporting Act (FCRA).Continue Reading CFPB Withdraws Medical Debt Rule After Legal Challenge from Industry Groups

On May 1, the U.S. District Court for the Northern District of Illinois ordered the former owner of a now-defunct debt-relief company to pay over $43 million in restitution and penalties.  The order resolves a lawsuit filed by the CFPB in 2020 alleging violations of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR). Continue Reading CFPB Orders Defunct Debt-Relief Company to Pay $43 Million for Alleged Student Loan Abuses 

On April 30, the CFPB announced it will deprioritize enforcement and supervision of its small business lending data collection rule for institutions not covered by the stay issued by the U.S. Court of Appeals for the Fifth Circuit. The rule, finalized in May 2023 under Regulation B, implements Section 1071 of the Dodd-Frank Act and requires lenders to collect and report demographic and loan application data from small business credit applicants.Continue Reading CFPB Halts Enforcement of Small Business Lending Rule for Institutions Outside Fifth Circuit

On April 15, Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas entered an Order and Final Judgement vacating the CFPB’s 2024 credit card late fee rule (previously discussed here) for violating the federal Credit Card Accountability and Disclosure (CARD) Act and the Administrative Procedure Act. The rule, which amended Regulation Z, had established a new $8 late fee safe harbor for larger credit card issuers and eliminated annual inflation adjustments. Continue Reading CFPB Late Fee Rule Vacated by Texas Federal Court 

On April 28, the U.S. Court of Appeals for the D.C. Circuit reinstated a district court order blocking the CFPB from conducting a large-scale reduction in force (previously discussed here). The decision reversed an earlier partial stay that had permitted limited layoffs based on a “particularized assessment.” Continue Reading D.C. Circuit Reinstates Injunction Blocking CFPB’s Mass Layoffs 

The CFPB recently dropped two more lawsuits it brought under the Chopra administration—one involving a student loan securitization trust and the other regarding a subprime auto finance company. Both lawsuits included allegations of unfair, deceptive, or abusive practices (UDAAPs) in violation of the Consumer Financial Protection Act. Continue Reading CFPB Dismisses Two Actions Against Student Loan Trusts and Subprime Auto Lender 

On April 16, the CFPB released an internal memo outlining major shifts in its supervision and enforcement priorities, signaling a retreat from several areas of regulatory activity. The next day, the Bureau issued formal reduction-in-force (RIF) notices to numerous employees, notifying them of termination effective June 16.Continue Reading CFPB Shifts Supervision and Enforcement Priorities; Staff Reduction Stayed by Court