On November 26, the U.S. Fifth Circuit Court of Appeals overturned sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) against a decentralized cryptocurrency mixing service (a blockchain-based technology used to enable transaction anonymity) accused of facilitating money laundering.Continue Reading Fifth Circuit Overturns OFAC Sanctions on Blockchain-based Privacy Technology
On October 16, the FTC announced that it has finalized its “click to cancel” rule, that will require sellers to make it much easier for consumers to cancel subscriptions. The final rule is part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency is modernizing to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.Continue Reading FTC Finalizes ‘Click to Cancel’ Rule
On October 3, the OCC issued Bulletin 2024-29, providing guidance for managing credit risk in connection with refinancing commercial loans. Continue Reading OCC Issues Guidance on Refinance Risk in Commercial Lending
On September 24, the Governor of California signed AB 2017 (the “Act”) into law. The Act prohibits state-chartered banks and credit unions from charging consumers non-sufficient fund fees (“NSF fees”) when they initiate transactions that are instantaneously declined due to insufficient funds.Continue Reading California Enacts Law Prohibiting State Banks and Credit Unions from Charging NSF Fees
On October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F.Continue Reading CFPB Issues Guidelines for Medical Debt Collection
On September 5, the CFPB issued its annual report on debt collection practices, detailing the Bureau’s efforts to enforce the Fair Debt Collection Practices Act (FDCPA). This year’s report focuses on improper practices in the collection of medical and rental debt.Continue Reading CFPB Targets Medical and Rental Debt Collection in 2024 Annual Report
On August 28, the CFPB issued a Consumer Advisory warning that it believes video game companies are targeting children for monetary gain. With 45.7 million U.S. children engaged in video gameplay, the agency is concerned about the financial risks that games and virtual worlds pose, especially to young consumers. This Advisory highlights a growing focus on the game industry’s practices, which allegedly mimic traditional banking systems but lack corresponding consumer protections. Continue Reading The CFPB Continues to Reshape Consumer Protection in the Digital Arena
On August 26, the United States District Court for the Southern District of Texas issued a decision upholding the legality of the CFPB Small Business Lending Rule (the “Rule”) (designed to implement section 1071 of the Dodd-Frank Act) in a lawsuit filed by plaintiff trade associations challenging the CFPB’s authority in promulgating the Rule (previously discussed here and here).Continue Reading Federal Court Upholds CFPB’s Small Business Lending Rule
The CFPB recently released a report on payment processing companies that manage school lunch payments for school districts. The companies, the report argues, cater to a captive market and often impose transaction fees that disproportionately affect low-income families. According to the Bureau, the report is intended to assist school districts in avoiding contracts with firms that charge families allegedly excessive fees to process their school lunch payments.Continue Reading CFPB Report Spotlights Hidden Fees in School Lunch Payments
On May 30, the CFPB announced that it was probing mortgage closing costs as part of its continued focus on so-called junk fees. The Bureau’s request for information seeks input from the public on “the impact closing costs have on borrowers and the mortgage market, including the degree to which they add overall costs or otherwise cause borrower harm, and any impact such fees may have on the ability to purchase a home, anticipate and afford monthly payments, or refinance an existing mortgage.” Continue Reading CFPB Opens Public Probe on Closing Fees
On May 23, the U.S. Department of Housing and Urban Development (HUD) announced that Federal Housing Administration-approved Mortgagees are subject to a heightened cybersecurity incident reporting regime. The new requirement, which amends the Single Family Housing Policy Handbook 4000.1, requires FHA-approved Mortgagees to report “suspected” “Significant Cybersecurity Incidents” within 12 hours of detection. Continue Reading FHA’s Releases 12-Hour Cyber Incident Notification Rule