To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week:
- On September 10, the Federal Reserve Board’s Vice Chair for Supervision Michael S. Barr delivered a speech at the Brookings Institution in Washington, D.C., emphasizing the importance of bank capital for financial stability and resilience. Barr discussed proposed changes to the Basel III endgame and the capital surcharge for global systemically important banks, highlighting the need to balance resiliency with efficiency. He announced plans to re-propose these rules based on public feedback, aiming to better align capital requirements with the risks posed by bank activities while ensuring a safer and fairer banking system. For more information, click here.
- On September 9, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra delivered prepared remarks at the National Housing Conference, emphasizing the potential economic benefits of mortgage refinancing as interest rates decline. Chopra highlighted the significant savings homeowners could achieve through refinancing, but also pointed out obstacles such as high closing costs and complexities in the process. He outlined steps the CFPB is taking to address these issues, including monitoring new mortgage technologies and exploring regulatory changes to streamline refinancing and reduce costs. Chopra stressed the importance of ensuring that all homeowners, particularly those from minority and less affluent communities, can benefit from lower rates. For more information, click here.
- On September 9, the Federal Bureau of Investigation released its 2023 Cryptocurrency Fraud Report, revealing more than 69,000 complaints and more than $5.6 billion in estimated losses related to cryptocurrency fraud. Investment scams were the most prevalent, accounting for approximately 71% of all cryptocurrency-related losses. The report emphasizes the challenges posed by the decentralized nature of cryptocurrency and underscores the importance of rapid complaint reporting to aid law enforcement efforts. For more information, click here.
- On September 9, the Department of Veterans Affairs (VA) released a circular announcing the introduction of the Program Participant Management (PPM) System for lenders in the Loan Guaranty (LGY) program. Starting October 7, lenders will use the PPM System to submit applications, track request statuses, and manage various administrative tasks electronically. The VA will provide training materials and user guides to facilitate the transition, and lenders are required to register and designate at least one VA relationship manager to maintain their information within the system. This new system aims to streamline processes and improve efficiency for lenders participating in the LGY program. For more information, click here.
- On September 5, the Federal Trade Commission (FTC) provided the CFPB with its annual letter summarizing debt collection activities for 2023. The letter, which contributes to the CFPB’s annual report to Congress, highlights the FTC’s efforts to protect consumers and small businesses from illegal debt collection practices. The FTC highlighted key actions, including settlements and trials against deceptive debt collection operations, halting unlawful student debt collections, combating dark patterns in subscriptions, and addressing unlawful car debt practices. The FTC also focused on consumer education, providing materials in English and Spanish about debt collection rights and responsibilities. For more information, click here.
- On September 5, the Federal Financial Institutions Examination Council (FFIEC) announced the sunset of the FFIEC Cybersecurity Assessment Tool (CAT) on August 31, 2025. The CAT, introduced in June 2015, will be replaced by new and updated government and industry resources, including the National Institute of Standards and Technology Cybersecurity Framework 2.0 and the Cybersecurity and Infrastructure Security Agency’s Cybersecurity Performance Goals. The FFIEC will discuss these new resources during a banker webinar this fall, encouraging FDIC-supervised financial institutions to leverage these tools for better cybersecurity risk management. The CAT will be removed from the FFIEC website on the sunset date. For more information, click here.
- On August 27, U.S. Senator Mike Rounds (R-SD) introduced the “Unleashing AI Innovation in Financial Services Act” (S. 4951), a bill aimed at fostering artificial intelligence (AI) innovation within the financial services industry. According to his press release, this legislation is part of a broader set of five bipartisan AI bills that Rounds has released for consideration by Congress this fall. The Rounds legislation bundle is in addition to 10 AI-related bills that were advanced to the Senate this summer by the Committee on Commerce, Science, and Transportation. For more information, click here.
- On September 4, the California Department of Financial Protection and Innovation (DFPI) announced that the Superior Court for Los Angeles County upheld the Digital Financial Assets Law’s consumer protections for users of crypto asset kiosks, commonly known as “Bitcoin ATMs.” The court ruled that the $1,000 per customer per day withdrawal limit is a reasonable measure to prevent fraud, rejecting the Alliance for the Fair Access to Cryptocurrency Terminals ‘ claim that the limit was excessive. The Digital Financial Assets Law, effective July 1, 2025, mandates licensing and regulatory oversight for digital financial asset activities, including crypto kiosks. For more information, click here.
- On September 4, the California Privacy Protection Agency (CPPA) issued an Enforcement Advisory addressing the use of dark patterns under the California Consumer Privacy Act (CCPA). The advisory emphasizes that user interfaces must not subvert or impair consumers’ autonomy when asserting their privacy rights, and businesses should ensure their interfaces present privacy choices clearly and symmetrically. Deputy Director Michael Macko highlighted that the focus is on the effect of these interfaces, not the intent, urging businesses to review their practices to avoid creating confusing or misleading options for consumers. For more information, click here.
- On August 22, the Conference of State Bank Supervisors (CSBS) announced the establishment of a new advisory group to provide guidance on the development and use of AI in the financial services sector. The CSBS AI Advisory Group comprises experts from academia, the financial industry, and nonprofit organizations. CSBS President and CEO Brandon Milhorn emphasized that AI offers significant opportunities if responsibly developed and deployed, and the advisory group will support state financial supervisors in navigating legal, policy, and supervisory challenges related to AI. For more information, click here.