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:
New York City’s Amended Debt Collection Rules Draw Legal Challenge
New York City’s recently amended debt collection rules — scheduled to go into effect on December 1, 2024 and which would stringently regulate various debt collection activities by debt collectors operating in the city — have drawn a constitutional legal challenge. Whether this challenge will affect the effective date is yet to be seen. The plaintiffs seek declaratory and injunctive relief to prevent the enforcement of the rules amending Title 6 of the Rules of the City of New York, which they argue are unconstitutional and preempted by federal and state law.
FTC Finalizes Amendments to Negative Option Rule
In March 2023, we discussed the Federal Trade Commission’s (FTC) Notice of Proposed Rulemaking (NPRM) aimed at making it easier for consumers to cancel recurring subscriptions and memberships. The proposed rule was part of the FTC’s review of its Negative Option Rule, which sought to broaden its scope. Publication of the NPRM resulted in more
Eighth Circuit Vacates Defense Summary Judgment on FDCPA Claim Due to Plaintiff’s Lack of Standing
Earlier this month, the U.S. Court of Appeals for the Eighth Circuit vacated summary judgment for the defense on various claims under the Fair Debt Collection Practices Act (FDCPA) because the plaintiff lacked subject matter jurisdiction from the outset.
August 2024 Consumer Litigation Filings: Everything Up for Month and YTD
According to a recent report by WebRecon, court filings under the Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), and Fair Debt Collection Practices Act (FDCPA) and complaints filed with the Consumer Financial Protection Bureau (CFPB) were up for the month. Year-to-date everything is up compared to 2023.
Dissecting Oral Arguments in NADA’s Challenge to the CARS Rule
In this podcast episode, Brooke Conkle and Chris Capurso are joined by esteemed senior practitioner Alan Wingfield to discuss the National Automobile Dealer Association’s (NADA) challenge to the Federal Trade Commission’s (FTC) CARS Rule. The conversation centers around the recent oral arguments held by the Fifth Circuit on October 9, involving both the NADA and the Texas Automobile Dealers Association (TADA). The discussion aims to provide insights into the origins and implications of the CARS Rule, as well as the legal arguments presented by the dealer associations in their challenge and the FTC in defense.
DOJ and CFPB Announce Landmark Redlining Settlement With Fairway Independent Mortgage Corporation
On October 15, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Department of Justice (DOJ) announced that they reached a settlement with Fairway Independent Mortgage Corporation (Fairway). This settlement addresses allegations of redlining in majority-Black neighborhoods in Birmingham, Alabama. Fairway is headquartered in Madison, WI, but operates under the trade name MortgageBanc in the Birmingham area. Fairway, the third-largest mortgage lender in the United States, is now the second non-bank mortgage company to enter into a redlining settlement.
Exploring AI’s Potential in Financial Services With John Sun of SpringLabs
In this episode of The Consumer Finance Podcast, Chris Willis is joined by Troutman Pepper Partner Mark Furletti, and special guest John Sun, CEO and co-founder of SpringLabs. The discussion delves into the transformative possibilities of artificial intelligence (AI) in the financial services sector, and covers the basics of AI, its current applications, and future potential. The conversation highlights how AI, particularly generative pre-trained models, can revolutionize complaint management, enhance regulatory compliance, and improve operational efficiency. Tune in to understand how AI is reshaping the landscape of consumer financial services and what lies ahead.
Federal Agencies Announce Increased Regulations Z and M Dollar Thresholds for Exempt Consumer Credit and Lease Transactions, and Higher Threshold for Exemption from Mortgage Loan Appraisal Requirements
On October 4, the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board (Fed) announced increased dollar thresholds used to determine whether certain consumer credit and lease transactions in 2025 are exempt from Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing).
Navigating Regulatory Waters: Recent Enforcement Actions in BaaS
In the latest episode of Payments Pros, hosts Carlin McCrory and Keith Barnett are joined by James Stevens to discuss recent enforcement actions in the banking as a service (BaaS) space. They delve into regulatory trends, consent orders, and future anticipated regulatory scrutiny.