Rulemaking & Guidance

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The topic of “junk fees” has been in the headlines, spurred by legislative action across various sectors. From regulations on credit card late fees to the Federal TICKET Act targeting concert event fees, lawmakers are actively implementing measures that impact how businesses can structure their fees. As part of this nationwide trend, California is taking a significant step with a new law aimed at curbing alleged junk fees associated with ATM transactions.Continue Reading California Increases the Pressure on Alleged “Junk Fees”: New Law Targets ATM Charges

On December 18, 2024, the Consumer Financial Protection Bureau (the “CFPB”) issued a circular to other law enforcement agencies warning that some credit card companies operating rewards programs may be breaking the law, and urging them to take action. The practices in question include, among others, illegally devaluing rewards points and airline miles. The CFPB also published research which found that retail credit cards charge much higher interest rates than traditional cards. In its circular, the CFPB provides a detailed review of these issues.Continue Reading CFPB Calls on Other Enforcement Agencies to Address Bait-and-Switch Credit Card Rewards Practices

On December 12, the CFPB released the final version of its overdraft rule that was first proposed in January. (We discussed it here.) Currently, financial institutions that extend overdraft protection are exempt from certain disclosure and underwriting requirements under TILA. This exemption was intended to allow banks to provide limited overdraft services as a courtesy to customers who inadvertently overdrew on their accounts. The Bureau now claims that fees generated from these overdraft credit products are excessive and harmful to consumers, and estimates the rule will add up to $5 billion in annual overdraft fee savings for consumers.Continue Reading CFPB Release Final Rule on Overdraft Fees

On December 9, the CFPB announced its release of an advance notice of proposed rulemaking to gather information in preparation for the release of a proposed rule to address concerns related to information furnished to credit reporting agencies (CRAs) concerning coerced debt and inaccurate credit reporting affecting survivors of domestic violence and elder abuse, among other forms of financial abuse. Continue Reading CFPB Seeks Input to Address Coerced Debt and Financial Abuse Under FCRA

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 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 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