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On May 2, the CFPB published a blog post demonstrating its commitment to “a fair, transparent, and competitive auto lending market” by calling attention to add-on products for which auto dealers and finance companies “often charge consumers all payments for any add-on products as a lump sum at origination of the auto loan, and they generally include the lump sum cost as part of the total vehicle financing agreement.”  CFPB examiners have focused on how servicers manage these add-on product charges when the loan ends prior to when the add-on product’s potential benefits end.
Continue Reading CFPB Blog: Stop Overcharging for Auto Loan Add-on Products

In April, we continued to see a steady pace in the seriousness and frequency of crypto enforcement actions by state and federal law enforcement.  (See our March 2022 Crypto Enforcement Actions Roundup blog here where we discuss the regulatory guidance and jurisdiction of federal and state agencies to enforce these matters.)…
Continue Reading April 2022 Crypto Enforcement Actions And Regulatory Guidance Roundup

On April 28, the New York Department of Financial Services (NYDFS) provided a “Virtual Currency Guidance” update.  The guidance is directed towards all virtual currency businesses licensed under 23 NYCRR Part 200 (the New York BitLicense) or limited purpose trust companies chartered under the New York Banking Law (collectively, “VC Entities”).”  The guidance mandates VC Entities to employ blockchain analytics to design and implement effective BSA/AML policies, processes, and procedures, including, for example, those relating to customer due diligence, transaction monitoring, and sanctions screening.
Continue Reading NYDFS Provides Guidance on the Use of Blockchain Analytics to Maintain Compliance

On April 21, the CFPB and New York Attorney General’s Office filed a complaint against a remittance provider alleging that the provider (i) repeatedly gave senders inaccurate information about when their remittance transfers would be available to recipients abroad; (ii) repeatedly failed to provide the investigations, responses, or remedies required when consumers complained of remittance-transfer errors; and (iii) failed to comply with policy-and-procedure and document-retention requirements.  The complaint also alleges that the company engaged in unfair acts and practices by failing to timely make remittance transfers available to recipients or to timely make refunds available to senders. The complaint alleges that the these actions violated the Electronic Funds Transfer Act and its implementing Regulation E and the Remittance Rule and the Consumer Financial Protection Act, among various consumer financial protection laws.
Continue Reading CFPB and NY AG Sue Remittance Provider, citing “Repeat Offender”

The FTC recently finalized an order against a leading provider of business credit report services, alleged to have deceived business regarding the value of products offered and failing to correct errors on customers’ credit reports.
Continue Reading FTC Finalizes Order Against Leading Provider of Business Credit Reports

This week, CFPB Director, Rohit Chopra, appeared before the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Committee on Financial Services in conjunction with the CFPB’s submission of its Semiannual Report to Congress.  In his prepared testimony before both committee, the Director highlighted some of the CFPB’s work over the past six months, which includes:…
Continue Reading CFPB Director Testifies Before Congress

On April 15, the CFPB and FTC announced the release of a joint annual report to Congress administering the Fair Debt Collection Practices Act (FDCPA).  The annual report highlights both agencies’ efforts to protect and provide debt collection relief to consumers, particularly in light of the COVID-19 pandemic and resulting economic hardship. …
Continue Reading CFPB Signals Foray into Protecting Small Businesses from Abusive Debt Collectors

On April 12, the CFPB filed a complaint against a credit reporting agency (CRA), two of its subsidiaries, and a former senior executive for violating a 2017 consent order issued to the company related to alleged deceptive marketing regarding its credit scores and other credit-related products.  The CFPB alleges that the CRA continued its unlawful behavior and employed deceitful digital “dark patterns” to profit from customers and also alleges violations of the CFPA, EFTA/ Regulation E, and the FCRA/Regulation V.  The order seeks a permanent injunction, damages, civil penalties, consumer refunds, restitution, disgorgement and the CFPB’s costs.
Continue Reading CFPB Sues Credit Reporting Agency and Former Senior Executive

State and federal crypto and NFT-related enforcement actions continue to occupy the regulatory landscape with an apparent uptick coinciding with the issuance of The White House’s Executive Order in March (we discussed the Biden Executive Order here). The following are some enforcement actions from state and federal regulators since the Executive Order.
Continue Reading Crypto Round-up: Executive Order Coincides with Uptick in Enforcement Actions

On March 30, the CFPB settled with a student loan servicer to resolve allegations that the servicer made deceptive statements to student loan borrowers and misrepresented their forgiveness and repayment options, including deceiving borrowers with Federal Family Education Loan Program (FFELP) loans about their eligibility for Public Service Loan Forgiveness (PSLF).  The consent order requires the servicer to pay a $1 million civil money penalty.
Continue Reading CFPB Fines Student Loan Servicer $1 Million to Settle Alleged UDAAP Violations