On May 15, the CFPB rescinded its May 2022 interpretive rule that had expanded state enforcement authority under Section 1042 of the Consumer Financial Protection Act (CFPA). The Bureau now maintains that the previous guidance misread the statute and improperly extended state authority beyond what Congress intended.Continue Reading CFPB Narrows State Enforcement Powers by Rescinding 2022 Interpretative Rule
On May 15, the CFPB issued an amended consent order against an international remittance provider, reducing its civil penalty from $2.025 million to $44,955. The order alleges violations of the Electronic Fund Transfer Act (EFTA), its implementing Regulation E, and the Consumer Financial Protection Act (CFPA).Continue Reading CFPB Reduces Civil Penalty in Settled Remittance Enforcement Action
On May 15, the CFPB withdrew three Biden-era rulemaking proposals, including a December 2024 proposal to regulate data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), a January proposal to extend Regulation E to emerging payment systems such as those used in video games and esports betting, and a proposed interpretive rule targeting restrictive and potentially unlawful terms in consumer contracts.Continue Reading CFPB Withdraws Guidance and Proposed Rules on Data Broker, Video Game Payments, and Contract Clauses
On May 9, the U.S. Department of the Treasury announced that President Trump intends to nominate Jonathan McKernan to serve as the Undersecretary of Domestic Finance. McKernan had been awaiting Senate confirmation to lead the CFPB, but the White House confirmed his nomination will be rescinded as the administration continues to pursue structural change to the Bureau.Continue Reading CFPB Director Nominee to Move to Treasury Finance Role
On May 12, the CFPB formally withdrew nearly 70 guidance materials—including policy statements, advisory opinions, circulars, and interpretive rules—through a Federal Register notice issued by Acting Director Russell Vought. The move stems from an internal memo circulated last month to identify guidance that allegedly imposed unlawful compliance burdens or exceeded statutory authority.Continue Reading CFPB Withdraws Dozens of Guidance Documents as Part of Deregulatory Push
On May 9, President Trump signed a Congressional Review Act resolution repealing the CFPB’s final rule restricting overdraft fees at large financial institutions. The rule, originally finalized under the Biden administration, would have imposed new limits on overdraft fees charged by banks with over $10 billion in assets.Continue Reading President Trump Signs Resolution Nullifying CFPB Overdraft Fee Rule
On May 1, the CFPB filed a joint motion with two financial trade groups to vacate a Biden-era rule barring most medical debt from appearing on consumer credit reports. The motion comes after lender groups filed a lawsuit in January, arguing that the rule unlawfully exceeded the CFPB’s statutory authority under the Fair Credit Reporting Act (FCRA).Continue Reading CFPB Withdraws Medical Debt Rule After Legal Challenge from Industry Groups
On May 1, the U.S. District Court for the Northern District of Illinois ordered the former owner of a now-defunct debt-relief company to pay over $43 million in restitution and penalties. The order resolves a lawsuit filed by the CFPB in 2020 alleging violations of the Consumer Financial Protection Act (CFPA) and the Telemarketing Sales Rule (TSR). Continue Reading CFPB Orders Defunct Debt-Relief Company to Pay $43 Million for Alleged Student Loan Abuses
On April 30, the CFPB announced it will deprioritize enforcement and supervision of its small business lending data collection rule for institutions not covered by the stay issued by the U.S. Court of Appeals for the Fifth Circuit. The rule, finalized in May 2023 under Regulation B, implements Section 1071 of the Dodd-Frank Act and requires lenders to collect and report demographic and loan application data from small business credit applicants.Continue Reading CFPB Halts Enforcement of Small Business Lending Rule for Institutions Outside Fifth Circuit
On April 15, Judge Mark T. Pittman of the U.S. District Court for the Northern District of Texas entered an Order and Final Judgement vacating the CFPB’s 2024 credit card late fee rule (previously discussed here) for violating the federal Credit Card Accountability and Disclosure (CARD) Act and the Administrative Procedure Act. The rule, which amended Regulation Z, had established a new $8 late fee safe harbor for larger credit card issuers and eliminated annual inflation adjustments. Continue Reading CFPB Late Fee Rule Vacated by Texas Federal Court