On April 9, the House of Representatives passed two Congressional Review Act (CRA) joint resolutions aimed at nullifying certain Consumer Financial Protection Bureau (CFPB) rules finalized in the final days of the Biden-Harris Administration. These resolutions, S.J. Res. 18 and S.J. Res. 28, target rules related to limiting the overdraft fees that may be charged by large financial institutions, and extending supervisory authority over certain providers of digital payments services, respectively. The CRA resolutions are now before President Trump for signature.
California Introduces Legislation to Fill the Void of Federal Consumer Protection Regulations
As federal agencies pull back on consumer protection regulations under the Trump administration, California is stepping up to fill the void. This shift was forecasted in January, when the Consumer Financial Protection Bureau (CFPB) released a report titled “Strengthening State-Level Consumer Protections” (discussed here), which provided a roadmap for states looking to bolster their consumer protection laws after the anticipated rollback with the new administration.
FCC Grants Limited One-Year Extension for TCPA Robocall Revocation Rule Compliance
Today, the Federal Communications Commission (FCC) issued an order extending the effective date of certain parts of § 64.1200(a)(10) of its rules under the Telephone Consumer Protection Act (TCPA) to April 11, 2026.
Court Orders CFPB to Reinstate Employees and Resume Operations; CFPB Promptly Files Appeal
On March 28, the Consumer Financial Protection Bureau (CFPB or Bureau) was ordered by the U.S. District Court for the District of Columbia to reinstate its employees and resume its operations. This decision comes after the CFPB allegedly attempted to shut down its activities, leading to the National Treasury Employees Union (NTEU) filing a lawsuit questioning the legality of the shutdown. The court held that the CFPB’s actions to halt its operations and terminate its employees were not consistent with its statutory obligations under Title X of Dodd-Frank. As a result, the court granted a preliminary injunction requiring the CFPB to reverse its shutdown efforts, reinstate its workforce, and continue performing its statutory duties. On March 29, the Bureau filed its notice of appeal of the preliminary injunction.
Fourth Circuit Issues Ruling on Furnisher’s Duty to Investigate Legal Disputes Under FCRA
On March 14, the U.S. Court of Appeals for the Fourth Circuit issued a ruling addressing the obligations of furnishers under the Fair Credit Reporting Act (FCRA) to conduct reasonable investigations of disputed information, whether the disputed information be legal or factual in nature. The issue of whether the distinction between “legal” and “factual” disputes is relevant under the FCRA has been hotly contested in recent years. The Fourth Circuit’s new decision follows in the footsteps of the Eleventh and Second Circuits by replacing a “legal vs. factual” test with a “readily and objectively verifiable” test.
CFSA Attempts to Renew Small Dollar Lending Rule Litigation in Supreme Court Petition
On March 7, the Community Financial Services Association of America (CFSA) and the Consumer Service Alliance of Texas filed a petition for a writ of certiorari with the U.S. Supreme Court seeking to overturn a decision by the U.S. Court of Appeals for the Fifth Circuit. The Fifth Circuit held that in order to obtain judicial relief, a party challenging governmental action taken by an individual who remained in office against the President’s wishes due to an unconstitutional removal restriction must show that a hypothetical replacement officer would have taken a different action. The petitioners argue that this standard is unreasonably burdensome and inconsistent with the Supreme Court’s decision in Collins v. Yellen.
Fourth Circuit Finds Unilateral Change-in-Terms Provision Rendered the Arbitration Agreement Illusory Under Maryland Law
On March 11, the U.S. Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to compel arbitration in two class-action lawsuits. The decision potentially has far-reaching implications for the enforceability of arbitration clauses in consumer contracts, particularly those involving unilateral modification provisions.
Navigating FTC CIDs
On March 10, Christopher Mufarrige, the newly-appointed Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), published a blog explaining the significance of Civil Investigative Demands (CIDs) for businesses and the ramifications for failing to respond. The Director warns that “[i]f your business receives such a demand for information, we expect you to respond in a reasonable and timely manner or face legal consequences.” The blog also provides the following primer about CIDs:
Credit Card Late Fee Rule Litigation: CFPB Indicates “Resolution is Feasible”
In a significant development in the credit card late fee rule litigation, the Consumer Financial Protection Bureau (CFPB) has filed a status report indicating that it is actively working towards a resolution. This update follows last month’s court’s order, which required the CFPB to explain its plans for proceeding with the case.
California Federal Court Halts Allegedly Deceptive Debt Collection Practices by Blackrock Services, Inc. and Affiliates
On February 27, the Federal Trade Commission (FTC) successfully obtained a temporary restraining order against Blackrock Services, Inc. and its associated entities and individuals. The court order aims to halt the defendants’ alleged deceptive and abusive debt collection practices.