On January 23, 2025 the New York Department of Financial Services (NYDFS) announced proposed regulations to curb overdraft fees and insufficient funds fees charged by banks in New York. The proposed rules aim to protect consumers from what the NYDFS describes as “exploitative and deceptive banking fees.”Continue Reading New York Proposes Limits on Overdraft and NSF Fees

On January 20, President Trump issued a memorandum instituting a regulatory freeze pending review. This action, a common practice for new administrations, directs federal agencies to halt any new rulemaking until agency heads appointed by the incoming president have reviewed and approved pending regulations. The freeze has significant implications for the financial services industry.Continue Reading Trump Administration Issues Regulatory Freeze

Today, the Consumer Financial Protection Bureau (CFPB) issued a report, consumer advisory, and filed an amicus brief addressing the risks associated with home equity contracts (HECs)—financial products often marketed as home equity “investments.” The Bureau highlighted the high costs, complexity, and risks these products pose to homeowners, including the potential for financial distress and forced home sales if repayment obligations become unmanageable. The Bureau’s amicus brief, filed in a lawsuit currently ongoing in the United States District Court for the District of New Jersey, is discussed in detail below.Continue Reading CFPB Issues Warning on Risks of Home Equity Contracts, Takes Legal Action to Ensure Compliance with TILA

On January 14, 2025, the American Fintech Council (AFC) submitted a letter to the Ohio Department of Financial Institutions, urging it to re-examine its recent guidance on responsible bank partnerships and provide more clarity. The guidance, which outlines expectations for banks partnering with fintech companies, raised concerns among industry participants regarding its potential impact on innovation and competition in financial services.Continue Reading Trade Group Calls for Clarity on Ohio Fintech Guidance

On January 13, 2025, the CFPB announced a proposed rule aimed at prohibiting companies from including in consumer agreements terms that operate to waive consumers’ legal rights, allow companies to unilaterally change key terms, or restrict consumers’ lawful free expression. The CFPB has made a preliminary determination that the use of such terms may constitute an unfair or deceptive act or practice under the Consumer Financial Protection Act (CFPA). See 12 U.S.C. 5531(b).Continue Reading CFPB Proposes Rule to Protect Consumers from Unfair Contract Clauses

On January 2, 2025, the Consumer Financial Protection Bureau (CFPB) proposed an interpretive rule under the Electronic Fund Transfer Act (EFTA) and Regulation E to clarify how emerging payment systems, such as those used in video games, esports betting, and the use of stablecoin, fit within the existing regulatory framework. According to the Bureau, their actions are part of a broader effort to ensure that companies offering these types of “financial products” have mechanisms in place to protect consumers against hacking attempts, account theft, scams, and unauthorized transactions. It is the CFPB’s belief that absent these protections, consumers may face challenges vindicating their rights in the event of unauthorized transfers or errors.Continue Reading CFPB Proposes Interpretive Rule on Emerging Payment Mechanisms Under EFTA

On January 7, 2025, the CFPB announced the finalization of a rule amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., to prohibit the inclusion of medical bills on credit reports used by lenders and prevent lenders from using medical information in lending decisions. According to the Bureau, the final rule (previously discussed here) will remove an estimated $49 billion in medical bills from the credit reports of about 15 million Americans.Continue Reading CFPB Finalizes Rule Removing Medical Bills from Credit Reports

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