On January 6, 2025, the CFPB filed a lawsuit against a non-bank manufactured home financing company for violations of the Truth in Lending Act and Regulation Z. The lawsuit alleges that the mortgage lender engaged in predatory lending practices by providing manufactured home loans to borrowers it knew could not afford them.Continue Reading CFPB Sues Mortgage Lender for Predatory Lending Practices in Manufacture Homes Loans
On January 7, 2025, the CFPB filed a lawsuit against a nationwide consumer reporting agency for violations of the Fair Credit Reporting Act. The lawsuit claims the company’s investigation of consumer disputes was inadequate, specifically criticizing their intake, processing, investigation, and customer notification processes. The lawsuit also alleges the company reinserted inaccurate information on credit reports, which the agency alleges harmed consumers’ access to credit, employment, and housing. In addition to FCRA, the Bureau alleges that the company’s faulty intake procedures and unlawful processes regarding consumer reports violated the Consumer Financial Protection Act’s (CFPA) prohibition on unfair acts or practices.Continue Reading CFPB Alleges Credit Reporting Agency Conducted Sham Investigations of Errors
On December 27, 2024, the Federal Deposit Insurance Corporation (FDIC) announced a notice of assessment of a civil money penalty against a Kansas-based bank. The action, originally brought in November, imposed a $20.4 million civil money penalty against the bank and alleged violations of the Bank Secrecy Act (BSA), 31 U.S.C. § 5311 et seq., for its failure to implement an adequate anti-money laundering and counter-terrorism program.Continue Reading FDIC Enforcement Spotlights Deficiencies in Kansas Bank’s Anti-Money Laundering Program
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 19, the U.S. Department of Treasury released a report summarizing key findings from its 2024 Request for Information (RFI) on the uses, opportunities, and risks of Artificial Intelligence (AI) in financial services. The report notes the increasing prevalence of AI, including generative AI, and explores the opportunities and challenges associated with its use.Continue Reading Treasury Highlights AI’s Potential and Risks in Financial Services
On December 30, the Department of Justice (DOJ), at the Federal Trade Commission’s (FTC) referral, filed an amended complaint against an online cash advance provider. The complaint now names the company’s CEO as a defendant, alleging violations of the FTC Act, 15 U.S.C. §§ 45(a), and the Restore Online Shoppers’ Confidence Act, 15 U.S.C. § 8403. Continue Reading FTC and DOJ File Amended Complaint Against Cash Advance Fintech
As 2024 concludes, financial markets are witnessing significant shifts, particularly within the world of cryptocurrency. As crypto investors profit, many cash out from more volatile assets, such as Bitcoin, to safer options such as real-world asset (“RWA”) tokens—tokenized representations of tangible assets traded on a blockchain, and stablecoins—assets pegged to traditional currencies like the U.S. dollar. The regulation of digital currencies is an ongoing focus for federal and state regulators (previously discussed here, here, and here). As stablecoin and RWA token products gain popularity with consumers, it will be interesting to see how consumer finance regulators choose to address the novel risks that these products pose.Continue Reading Riding the Wave: How the Crypto Surge is Influencing Finance
On December 18, the U.S. Court of Appeals for the Eleventh Circuit heard arguments in Insurance Marketing Coalition Limited (“IMC”) v. Federal Communications Commission, which was brought by the marketing trade association to challenge the FCC’s December 2023 one-to-one consent rule, which is slated to go into effect on January 27, 2025. Under the new rule promulgated under the Telephone Consumer Protection Act, the FCC has modified the definition of “express written consent” and seeks to require comparison shopping websites and other marketers to obtain a consumer’s prior written consent to receive calls and texts from one marketing partner at a time. Continue Reading Federal Court of Appeals Considers Challenge to FCC’s One-to-One Consent Rule
On December 20, 2024, an Illinois federal court, in considering a motion for a preliminary injunction brought by the Illinois Bankers Association, American Bankers Association, and other trade groups, ruled that national banks and federal savings associations will not be subject to Illinois’ groundbreaking law that, starting on July 1, 2025, would forbid card issuers, payment card networks, acquirer banks and payment processors from charging retailers for swipe fees on gratuities and “any use and occupation tax or excise tax” imposed by the State or a local government. (See here and here for our previous discussions on the law).Continue Reading Banks Win Temporary Reprieve from Novel Illinois Swipe-Fee Law
On December 16, the CFPB released a special edition of its Supervisory Highlights, which detailed findings from the Bureau’s recent examinations of student loan markets. The report identifies a range of violations related to student loan refinancing, private lending and servicing, debt collection, and federal loan servicing.Continue Reading CFPB Report Highlights Widespread Violations in Student Loan Sector