On June 18, the CFPB published a proposed rule that would rescind its authority to use money from the Civil Penalty Fund for consumer education and financial literacy initiatives. The proposed changes would amend the CFPB’s 2013 rule implementing the Civil Penalty Fund provisions of the Consumer Financial Protection Act (CFPA) and restrict the Fund’s use exclusively to harmed consumers.Continue Reading CFPB Proposes to Eliminate Education Allocations from Civil Penalty Fund

On May 23, the CFPB notified a Kentucky federal court that it now considers its own 2023 open banking rule “unlawful” and plans to set the rule aside. The Bureau announced its intent to seek summary judgement against the rule, which was issued under Section 1033 of the Dodd-Frank Act to promote consumer-authorized data sharing with third parties.Continue Reading CFPB Seeks to Vacate Open Banking Rule

On May 14, the CFPB issued a proposed rule to rescind recent amendments (here, here, and here) to its nonbank supervisory program. The amendments were designed to expand and formalize the Bureau’s process for subjecting nonbank covered persons to supervision under the Consumer Financial Protection Act (CFPA). Under the CFPA, the CFPB is authorized to supervise a nonbank covered person if it has reasonable cause to determine if the nonbank covered person was engaged in financial services-related conduct that posed a risk to consumers. Among other things, the amendments introduced a mechanism for the Director to publicly release final decisions and order.Continue Reading CFPB Proposes to Rescind Risk-Based Supervision Rulemaking

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 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