On October 7, the Consumer Financial Protection Bureau (CFPB or Bureau) published the Fall edition of its Supervisory Highlights, focusing on examinations of the auto-finance market completed between November 1, 2023, and August 30, 2024. The report highlights significant findings across various aspects of consumers’ experiences with vehicle finance, including origination disclosures, repossession activities, servicing practices, the handling of add-on products, and credit reporting.
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 October 4, the Supreme Court granted certiorari in the case of McLaughlin Chiropractic Associates, Inc. v. McKesson Corporation. This case will address a critical question that has been a point of contention among various circuit courts: whether the Hobbs Act, which limits judicial review of Federal Communications Commission (FCC) “final orders” to appellate courts, requires district courts to accept the FCC legal interpretation of the Telephone Consumer Protection Act (TCPA). While the Supreme Court previously addressed whether the Hobbs Act applied in private litigation, it ultimately did not resolve whether a district court is required to follow a particular FCC order interpreting the TCPA.
The U.S. Court of Appeals for the Fourth Circuit recently affirmed a district court’s decision denying a defendant’s motion to compel arbitration, underscoring the importance of clear and conspicuous notice in online arbitration agreements. Although the decision involves an arbitration provision in an online application for employment, it echoes lessons imparted by courts in cases involving consumer arbitration agreements. Read more here.
On October 1, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion aimed at debt collectors and emphasizing their obligations under the Fair Debt Collection Practices Act (FDCPA) and Regulation F. The opinion specifically emphasizes the prohibitions on false, deceptive, or misleading representations, and unfair or unconscionable means to collect or attempt to collect medical debts.
In this episode of The Consumer Finance Podcast, Chris Willis delves into the latest annual report from the CFPB’s Office of Servicemember Affairs. While the report is ostensibly about issues affecting military personnel, it primarily highlights ongoing challenges in student loan servicing. Chris discusses key findings, including customer service obstacles, errors in income-driven repayment plans, and the contentious practice of transcript withholding. This episode underscores the CFPB’s persistent focus on these issues and the implications for the student loan servicing industry. Tune in for a comprehensive analysis and stay informed about the regulatory landscape.
On September 20, the Consumer Financial Protection Bureau (CFPB or Bureau) announced a proposed rule aimed at amending the disclosure requirements for international money transfers, commonly known as remittances. The proposed amendment is aimed at clarifying for consumers the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator. The proposed rule will be published in the Federal Register, and the public will have until November 4, 2024, to submit their comments.
In this episode of Payments Pros, host Josh McBeain is joined by Caleb Rosenberg, a member of the firm’s Consumer Financial Services practice group, to discuss the complexities of business-to-business payments and the increasing state law requirements associated with them.
On September 29, California Governor Gavin Newsom signed Assembly Bill (AB) 1934 into law, marking a significant update to California’s Digital Financial Assets Law (DFAL). In addition to extending the compliance deadline for digital financial asset businesses, providing them with additional time to meet regulatory requirements and implement necessary operational changes, this new legislation includes significant modifications to the DFAL.
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: