On June 6, the U.S. Department of the Treasury (Treasury) issued a request for information (RFI) seeking public input on the uses, opportunities, and risks presented by the use of artificial intelligence (AI) within the financial sector. Notably, the Treasury’s RFI comes three years after the issuance of a similar RFI by the federal banking agencies (Office of the Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation), Consumer Financial Protection Bureau, and National Credit Union Administration on financial institutions’ use of AI, discussed here.

On May 31, the Ninth Circuit Court of Appeals published an opinion in Bristol SL Holdings, Inc. v. Cigna Health and Life Insurance Company, which has significant implications for the healthcare industry, most notably by clarifying the broad scope of the Employee Retirement Income Security Act’s (ERISA) preemption of state law causes of action arising from pre-service coverage communications between medical providers and health plan administrators.

Yesterday, the Consumer Financial Protection Bureau (CFPB or Bureau) announced it has finalized a rule outlining the qualifications to become a recognized industry Standard Setter body (Standard Setter Rule). These bodies will be instrumental in issuing standards that assist companies in complying with the forthcoming Personal Financial Data Rights Rule under Section 1033 of the Consumer Financial Protection Act (Section 1033 Rule). The Standard Setter Rule outlines the attributes that these bodies must exhibit to gain recognition from the CFPB. It also provides a comprehensive guide detailing the application process for recognition and the CFPB’s evaluation methodology.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by partner Glen Trudel to discuss a recent appellate court decision affirming that a group of securitization trusts “engaged” in a known “consumer financial product or service”, and therefore are subject as covered persons to the enforcement authority of the Consumer Financial Protection Bureau (CFPB). This decision could potentially expose similarly situated securitization trusts to the jurisdiction and enforcement authority of the CFPB. Chris and Glen discuss the court’s rationale for the holding and delve into the implications of this ruling, including the potential for increased regulatory scrutiny and the need for trusts to ensure compliance with consumer laws relating to the loan assets they hold. They also discuss potential changes in the terms of future securitization documentation and the importance of due diligence and monitoring of service providers. The episode concludes with a discussion on the significance of this ruling in the legal landscape for securitization trusts and whole loan owners.

The Consumer Financial Protection Bureau (CFPB or Bureau) has issued a circular warning covered persons that including unlawful or unenforceable terms and conditions in consumer contracts can violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act (CFPA).

In this episode of Payments Pros, Carlin McCrory is joined by Nathan Ottinger, president of Georgia Banking Company’s Payments and Technology Banking Group. They delve into the current state of the payments marketplace, characterized by heightened regulatory scrutiny and rapid innovation. Nathan underscores the importance of well-documented risk management strategies for financial institutions and the necessity for businesses to secure proficient legal counsel, particularly in the realm of money transmission.

On June 3, the Consumer Financial Protection Bureau (CFPB or Bureau) issued its final rule requiring covered nonbanks to register enforcement orders, and it is a doozy. Not only will covered nonbanks be required to register public orders issued by agencies and courts with the CFPB, but they will have to go back to 2017. And not only will the CFPB publish the orders, but a large subgroup will have to certify on a yearly basis their full compliance with the orders or make a self-disclosure to the CFPB of any compliance failures. This rule has obvious major consequences for any covered person caught in its web, making the exact ambit of the rule crucial. Given the final rule clocks in at a whopping 486 pages, this post will attempt to provide a roadmap through the rule, focusing on what is required and who is covered.