On February 21, a proposed class action lawsuit was filed against an auto finance company in the U.S. District Court for the Northern District of Georgia alleging various violations of the Military Lending Act (“MLA”). The named plaintiff is a “Covered Borrower” under the MLA, which includes active-duty military servicemembers and their dependents.Continue Reading Auto Finance Company Faces Class Action Lawsuit for Targeting Military Families

On February 29, the CFPB issued a circular warning digital comparison-shopping websites and lead generators that practices that steer customers to certain financial products or services based on compensation received from companies that sell such financial products or services can be an abusive act or practice in violation of the Consumer Financial Protection Act. The Bureau’s guidance will have a major impact on comparison-shopping websites for mortgage, credit cards, and short-term installment lending, among others.Continue Reading The CFPB Takes Aim at Digital Comparison Shopping Websites and Lead Generators

On February 15, Senators Sherrod Brown (D-OH), Jack Reed (D-RI) and Elizabeth Warren (D-MA) sent a letter to a leading payment app seeking clarification of its reimbursement policy for victims of imposter scams. Calling its protocol for reporting fraud and scams “unnecessarily complicated,” the Senators asked the payment app to add more categories of scams for which users can be reimbursed, and to streamline its process for reporting fraud, scams, and unauthorized transactions. The Senators noted that the company’s policy did not make clear which types of scams would qualify for reimbursement or what steps consumers needed to take to exercise their rights under its policy. The Senator’s pressed the payment app to make public whether banks and credit unions are required to reimburse customers who are victims of qualifying imposter scams. The Senators asked for responses to their questions by March 13, 2024.Continue Reading Congress Continues to Pressure Payment Apps to Change their Fraud Policies

On February 16, the CFPB issued revised rules updating its internal supervisory appeals process for institutions seeking to appeal a compliance rating or an adverse material finding. The updated rules open up new avenues for financial institutions to challenge supervisory evaluations and reflect a significant evolution from its 2015 updatesContinue Reading CFPB’s Enhanced Supervisory Appeals Process: A Potentially Beneficial Shift for Financial Institutions

In a move to bridge significant data gaps identified through its February 2023 Auto Finance Data Pilot where it sent information requests to nine large auto lenders about their lending portfolios, the Consumer Financial Protection Bureau is requesting comments for the collection of additional auto financing data. As with its prior requests, the Bureau is issuing these orders under its market monitoring authority which allows it to “gather information from time to time regarding the organization, business conduct, markets, and activities of covered persons and service providers.” 12 U.S.C. C. § 5512(c)(1) & (4). Compliance with the requests is mandatory.Continue Reading CFPB Ramps Up Auto Finance Scrutiny: A Look at the New Data Collection Initiative

On January 11, the CFPB issued two advisory opinions providing guidance to consumer reporting agencies (CRAs) on the Bureau’s views on FCRA compliance obligations with respect to background check reports and credit file disclosures. Continue Reading CFPB Continues Focus on Credit Reporting with Guidance on FCRA Compliance

On December 19, President Biden vetoed the joint resolution (S. J. Res. 32) the US Senate and House of Representatives passed under the Congressional Review Act that would have repealed the CFPB’s small business data collection rule (Rule) known as “Small Business Lending Under the Equal Credit Opportunity Act (Regulation B)” (we blogged about the rule and congressional challenge here and here). Continue Reading President Biden Vetoes Congressional Review Act Disapproval of CFPB’s Small Business Lending Data Collection Rule

On November 20, the CFPB, along with 11 state attorneys general and state regulators, entered into a stipulated final judgement and order with a Delaware-based company and two affiliated companies (“defendants”) in the education financing sector to settle allegations in violation of the CFPA, TILA/Regulation Z, and the FDCPA in connection with the defendants’ unlawful practices in originating, servicing, collecting, and enforcing income sharing agreements (“ISA”) (we have discussed ISAs in prior blog posts here and here). Continue Reading CFPB Settles Claims Against Operator of Training Program for Activities Arising out of Income Share Agreements