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 April 9, the Federal Reserve Bank of Kansas City published a research briefing examining how video game platforms are reshaping the digital payments landscape. As in-game purchases and platform-based transactions grow in volume and complexity, these developments are raising new regulatory concerns for both federal and state banking regulators.Continue Reading Kansas City Federal Reserve Bank Explores Regulatory Risks in Gaming Ecosystems
On March 24, acting FDIC Chairman Travis Hill informed Congress that the agency is preparing to eliminate the use of “reputation risk” as a basis for supervisory criticism. In a letter to Rep. Dan Meuser (R-Pa.), Hill explained that the FDIC has completed a review of its regulations, guidance, and examination procedures to identify and remove references to reputational concerns in its supervisory framework.Continue Reading FDIC Aims to Eliminate Reputational Risk from Supervision
On March 20, the OCC announced that it will no longer treat reputation risk as a standalone category in its supervision of national banks and federal savings associations. The decision marks a dramatic shift in the agency’s risk-based examination framework.Continue Reading OCC Eliminates “Reputational Risk” Category from Bank Supervision Criteria
On January 23, 2025 the New York Department of Financial Services (NYDFS) announced proposed regulations to curb overdraft fees and insufficient funds fees charged by banks in New York. The proposed rules aim to protect consumers from what the NYDFS describes as “exploitative and deceptive banking fees.”Continue Reading New York Proposes Limits on Overdraft and NSF Fees
On January 20, President Trump issued a memorandum instituting a regulatory freeze pending review. This action, a common practice for new administrations, directs federal agencies to halt any new rulemaking until agency heads appointed by the incoming president have reviewed and approved pending regulations. The freeze has significant implications for the financial services industry.Continue Reading Trump Administration Issues Regulatory Freeze
Today, the Consumer Financial Protection Bureau (CFPB) issued a report, consumer advisory, and filed an amicus brief addressing the risks associated with home equity contracts (HECs)—financial products often marketed as home equity “investments.” The Bureau highlighted the high costs, complexity, and risks these products pose to homeowners, including the potential for financial distress and forced home sales if repayment obligations become unmanageable. The Bureau’s amicus brief, filed in a lawsuit currently ongoing in the United States District Court for the District of New Jersey, is discussed in detail below.Continue Reading CFPB Issues Warning on Risks of Home Equity Contracts, Takes Legal Action to Ensure Compliance with TILA
On January 14, 2025, the American Fintech Council (AFC) submitted a letter to the Ohio Department of Financial Institutions, urging it to re-examine its recent guidance on responsible bank partnerships and provide more clarity. The guidance, which outlines expectations for banks partnering with fintech companies, raised concerns among industry participants regarding its potential impact on innovation and competition in financial services.Continue Reading Trade Group Calls for Clarity on Ohio Fintech Guidance
On January 13, 2025, the CFPB announced a proposed rule aimed at prohibiting companies from including in consumer agreements terms that operate to waive consumers’ legal rights, allow companies to unilaterally change key terms, or restrict consumers’ lawful free expression. The CFPB has made a preliminary determination that the use of such terms may constitute an unfair or deceptive act or practice under the Consumer Financial Protection Act (CFPA). See 12 U.S.C. 5531(b).Continue Reading CFPB Proposes Rule to Protect Consumers from Unfair Contract Clauses
On January 2, 2025, the Consumer Financial Protection Bureau (CFPB) proposed an interpretive rule under the Electronic Fund Transfer Act (EFTA) and Regulation E to clarify how emerging payment systems, such as those used in video games, esports betting, and the use of stablecoin, fit within the existing regulatory framework. According to the Bureau, their actions are part of a broader effort to ensure that companies offering these types of “financial products” have mechanisms in place to protect consumers against hacking attempts, account theft, scams, and unauthorized transactions. It is the CFPB’s belief that absent these protections, consumers may face challenges vindicating their rights in the event of unauthorized transfers or errors.Continue Reading CFPB Proposes Interpretive Rule on Emerging Payment Mechanisms Under EFTA
On January 7, 2025, the CFPB announced the finalization of a rule amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., to prohibit the inclusion of medical bills on credit reports used by lenders and prevent lenders from using medical information in lending decisions. According to the Bureau, the final rule (previously discussed here) will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans.Continue Reading CFPB Finalizes Rule Removing Medical Bills from Credit Reports