On November 11, 2025, the Department of Justice intervened in the Consumer Financial Protection Bureau’s dispute with its employee union and notified the D.C. Circuit that the Bureau’s funding structure was unconstitutional and it can no longer draw funds from the Federal Reserve to fund its operations. The filing cited a formal opinion from the Department of Justice’s Office of Legal Counsel concluding that the Federal Reserve currently lacks “combined earnings” from which the Bureau may lawfully obtain funding. Previously, the Bureau stated that it could draw funds from the Federal Reserve’s revenues, but now maintains that only profits, not revenues, qualify as “combined earnings” under the Dodd-Frank Act. Because the Federal Reserve has been operating at a loss since 2022, there are currently no profits available for transfer to the CFPB. The OLC opinion states that the only way for the CFPB to keep the lights on is to request appropriations from Congress.Continue Reading CFPB Says its Funding Structure is Unconstitutional but a New Bureau Director is Nominated

On November 13, the CFPB issued a sweeping proposed rule to overhaul Regulation B, arguably the most far-reaching ECOA rewrite in the agency’s history. The proposal would eliminate disparate-impact liability under ECOA, sharply narrow the scope of discouragement to focus on explicit statements directed at applicants, and prohibit or heavily restrict the use of protected-class criteria in Special Purpose Credit Programs offered by for-profit organizations. Continue Reading CFPB Proposed Rule Dramatically Revises ECOA

In a significant decision for bank partnership arrangements, the United States Court of Appeals held that Colorado may apply its state interest rate caps to loans made by out-of-state banks under the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). The ruling reversed an earlier district court decision holding Colorado could not do so.Continue Reading Tenth Circuit Allows Colorado to Enforce its Interest Rate Caps on Out-of-State Banks

On November 3, 2025, the Consumer Financial Protection Bureau terminated its 2023 consent order against a national consumer reporting agency. The original order, issued in October 2023, required more than three million dollars in consumer redress and a five million dollar civil money penalty and addressed alleged violations of the Consumer Financial Protection Act, the Fair Credit Reporting Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act.Continue Reading CFPB Terminates 2023 Consent Order Against a National Consumer Reporting Agency for Alleged Security Freeze Violations

On October 30, the California DFPI entered a consent order with a residential mortgage lender and servicer following a regulatory examination and a directed self-audit. The DFPI alleged violations of the California Residential Mortgage Lending Act and California Civil Code provisions governing when per diem interest may begin to accrue.Continue Reading DFPI Orders Mortgage Lender to Pay $100,000 for Alleged Per Diem Interest and Recordkeeping Violations

On October 31, the Ohio Division of Financial Institutions (DFI) issued updated Bank Partnership Guidance under the state’s Small Loan Act, reversing its earlier position from December 2024 and January 2025. The DFI had previously advised that any nonbank entity arranging consumer loans of $5,000 or less in exchange for compensation, including loans originated by federally insured banks, would be required to obtain a state license. The latest guidance withdraws that interpretation and pauses licensing and enforcement for the near term.Continue Reading Ohio DFI Withdraws Prior Interpretation, Suspends Licensing for Bank Loan Arrangers Under Small Loan Act

On November 5, 2025, a national debt collection trade group and one of its members filed a lawsuit against the state of Colorado’s in an attempt to block its 2023 medical debt credit reporting law, HB 23-1126. The complaint alleges that the law, which bars adverse medical debt information from consumer credit reports and restricts related collection communications, is preempted by the Fair Credit Reporting Act and violates the First Amendment.Continue Reading Colorado’s Medical Debt Reporting Law Challenged in Federal Court

On October 30, the Pennsylvania Office of Attorney General announced a $750,000 settlement with a collectibles company resolving allegations that the business used deceptive “negative option” subscription features in violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law. The settlement follows more than 200 consumer complaints concerning automatic enrollments, hidden charges, and aggressive collection activity.Continue Reading Pennsylvania Attorney General Secures $750,000 Settlement Over “Negative Option” Collectibles Sales

On October 27, 2025, amendments to Delaware’s Medical Debt Protection Act took effect, establishing a total ban on the inclusion of medical debt in consumer credit reports. The amendments, enacted through Senate Substitute 1 for Senate Bill 156, revise Delaware’s consumer protection laws to prohibit both the furnishing and use of medical-debt information by consumer reporting agencies.Continue Reading Delaware Bans Medical Debt from Consumer Credit Reports

On November 3, the U.S. District Court for the Northern District of West Virginia granted class certification certified a statewide class of borrowers challenging a credit union’s alleged assessment of unauthorized “pay-to-pay” fees under the West Virginia Consumer Credit and Protection Act. The plaintiff alleged that the institution imposed a 5 dollar fee each time consumers made monthly payments by phone or other electronic means, even though neither the loan agreement nor any statute authorized the charge.Continue Reading West Virginia Federal Court Certifies Class Action Challenging “Pay-to-Pay” Fees