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:

Federal Activities

State Activities

Federal Activities:

• On November 5, the Federal Deposit Insurance Corporation (FDIC) issued a press release announcing the Minority Banking Opportunity Explorer, a new online tool designed to help financial institutions, investors, and other stakeholders identify neighborhoods that could benefit from banking services. This tool, which was introduced at the Minority Depository Institutions (MDI) Subcommittee meeting to the Advisory Committee on Community Banking, aims to support the FDIC’s mission to promote the creation and growth of minority depository institutions. By assisting financial institution organizing groups in exploring potential business opportunities and helping existing MDIs identify new branch locations or advertising opportunities, the tool seeks to enhance the reach and impact of mission-driven banks. For more information, click here.
• On November 1, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) and the Federal Housing Finance Agency (FHFA) announced the formation of a working group aimed at increasing capital for affordable housing lending from the Federal Home Loan Banks. The CDFI Fund-FHFA working group will facilitate greater access to affordable capital for community development financial institutions (CDFIs) to address housing needs in underserved communities. The working group will explore new programs for nondepository CDFI members, property appraisal mechanisms, and data sharing on CDFI activities. For more information, click here.
• On November 1, the Consumer Financial Protection Bureau (CFPB) filed a proposed order to resolve its case against Townstone Financial, Inc. (Townstone), the first redlining case brought against a nonbank mortgage lender and broker. This settlement follows the Seventh Circuit Court of Appeals’ pivotal decision in favor of the CFPB that expanded the Equal Credit Opportunity Act (ECOA) to include protections for prospective applicants who may be discouraged from applying for credit. The order, if entered by the court, would prohibit Townstone from engaging in any actions that violate the ECOA and require the company to pay a $105,000 penalty to the CFPB’s victims relief fund. For more information, click here.
• On October 31, the U.S. Court of Appeals for the Fifth Circuit Court of Appeals granted the appellants’ motion to expedite the appeal in Texas Bankers Association v. CFPB. The suit, brought by several trade associations, challenges the CFPB’s final rule under § 1071 of the Dodd-Frank Act, the “Small Business Lending Data Collection Rule.” The court scheduled oral argument for February 3, 2025. However, in that same order, the court denied appellants’ motion for a temporary stay of the final rule’s compliance dates, stating that the motion for a stay pending appeal “remained pending.” This means that the compliance dates set forth in the CFPB’s Interim Final Rule remain for now, with the earliest date for the largest lenders being July 18, 2025. For more information, click here.
• On October 30, the Biden-Harris administration issued a fact sheet highlighting its achievements in managing the risks and harnessing the potential of artificial intelligence (AI) since President Biden’s executive order issued a year ago. The executive order directed comprehensive actions to ensure AI’s safety and security, protect privacy, advance equity and civil rights, and promote innovation. Over the past year, federal agencies have completed more than 100 tasks, including using Defense Production Act authorities to mandate reporting from AI developers, leading AI safety testing, and issuing a National Security Memorandum on AI. Additionally, the administration has launched initiatives to support workers, protect patients’ rights, and promote responsible AI use in education and housing. Efforts to harness AI for good include the National AI Research Resource pilot and investments in AI education and training. The administration has also advanced U.S. leadership in AI globally through international collaborations and agreements. For more information, click here.
• On October 30, a group of Republican members of the U.S. House Committee on Financial Services, led by Chairman Patrick McHenry and Vice Chairman French Hill, addressed a letter to Federal Reserve Chair Jerome Powell, Acting Comptroller of the Currency Michael J. Hsu, and FDIC Chairman Martin Gruenberg regarding the request for information on bank-fintech arrangements. The letter emphasized the importance of innovation in the financial technology sector and urged regulators to avoid undue regulatory scrutiny that could stifle innovation. The members highlighted the potential benefits of bank-fintech partnerships, such as increased accessibility to financial products, enhanced competition, and growth in community bank deposits. They advocated for a tailored regulatory approach that considers the unique nature of each partnership, ensuring consumer protections without hindering innovation. The letter also called for improved communication with state banking regulators and the creation of regulatory sandboxes to foster responsible innovation. The signatories stressed the need for clarity in regulation and cautioned against overstepping statutory authority, urging collaboration with Congress to address any gaps. For more information, click here.
• On October 29, the U.S. Department of the Treasury released the inaugural National Strategy for Financial Inclusion, outlining objectives and recommendations to enhance consumer access to safe financial products and services and bolster financial security. This strategy, requested by Congress in 2023, was developed through extensive research and engagement with experts, community leaders, industry representatives, and federal agencies. Key recommendations include promoting access to transaction accounts, increasing access to safe and affordable credit, expanding equitable access to savings and investments, improving inclusivity of government-backed financial products, and protecting consumers from illegal practices. For more information, click here.
• On October 28, the Federal Trade Commission (FTC) filed suit against Global Circulation, Inc. and its owner for allegedly tricking consumers into paying more than $7.6 million in bogus debt. The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, Atlanta Division, alleges violations of Section 5(a) of the FTC Act, the Fair Debt Collection Practices Act, and the Gramm-Leach-Bliley Act. The FTC’s complaint specifically alleges that the defendants falsely claimed that consumers owed money on payday loans or other debts, often using consumers’ private information to lend credibility to their claims. It is further alleged that defendants threatened consumers with lawsuits, wage garnishment, asset seizure, and even arrest, despite lacking the authority or intention to take such actions. Defendants also allegedly contacted consumers’ family members, falsely claiming that legal action was imminent and pressuring them to relay messages to the consumers. The FTC lastly claims that defendants failed to provide required notices and disclaimers, such as the amount of the debt, the name of the creditor, and consumers’ rights to dispute the debt. For more information, click here.

State Activities:

• On November 1, the New York City Department of Consumer and Worker Protection announced that the effective date for the amended debt collection rules has been officially moved to April 1, 2025. The rules, which impose stringent regulations on debt collection activities in New York City, were initially set to be enforced starting December 1. However, the enforcement date was postponed to provide debt collectors with additional time to comply with the new requirements. The amended rules include detailed record-keeping and communication log requirements, expanded debt validation obligations, and other provisions that have been described as vague and challenging to implement. The delay in both the effective date and enforcement provides a crucial grace period for debt collectors to adapt their systems and processes to meet the new standards. For more information, click here.
• On October 30, the California Privacy Protection Agency (CPPA) announced that its Enforcement Division is conducting a public investigative sweep to ensure data brokers comply with the Delete Act, which requires them to register annually with the CPPA and pay a fee. The Delete Act, effective January 1, 2024, mandates that data brokers — defined as businesses that collect and sell personal information of consumers without a direct relationship — register by January 31 each year or face penalties of $200 per day. CPPA officials emphasized the importance of compliance to protect consumer privacy and highlighted the development of the Data Broker Requests and Opt-Out Platform (DROP), set to launch in 2026, which will enable consumers to request the deletion of their personal information from all data brokers with a single request. For more information, click here.
• On October 25, the Connecticut Department of Banking issued an order of summary suspension and temporary order to cease and desist against cryptocurrency ATM company Coinme Inc., doing business as Coinme, for multiple violations of the Connecticut General Statutes. The order, which includes a notice of intent to revoke and refuse to renew Coinme’s money transmission license, alleges that Coinme failed to maintain the required minimum tangible net worth, engaged in unsafe or unsound practices, and partnered with an unlicensed entity to perform money transmission activities. The order also mandates Coinme to make restitution to Connecticut consumers who lost money due to scams and to provide disgorgement of any fees collected through unsafe practices. Coinme has the right to request a hearing within 14 days of receiving the order. For more information, click here.