In an unpublished decision, the U.S. Court of Appeals for the Ninth Circuit recently affirmed the decision of a California district court finding that the furnisher conducted a reasonable investigation under the Fair Credit Reporting Act (FCRA) when it updated its credit reporting to more accurately reflect the plaintiffs’ payment history.
In this episode of The Consumer Finance Podcast, Chris Willis is joined by colleague Jesse Silverman. They discuss the crucial steps fintech firms need to take to establish and maintain successful partnerships with banks. Silverman, with his unique background as a state regulator, CFPB staff member, and fintech executive, provides insights into the preparation, due diligence, and onboarding processes. He emphasizes the importance of understanding the bank’s compliance requirements, having clear policies and procedures, and ensuring a robust information security system. Silverman also discusses the benefits and challenges of using a Banking as a Service (BaaS) partner. The episode provides valuable advice for fintech companies looking to navigate the complexities of partnering with banks in a highly regulated industry.
On April 30, the U.S. Court of Appeals for the Fifth Circuit issued an order vacating the district court’s effective denial of the motion for a preliminary injunction filed by several trade groups, including the U.S. Chamber of Commerce, Fort Worth Chamber of Commerce, Longview Chamber of Commerce, American Bankers Association, Consumer Bankers Association, and Texas Association of Business (collectively, the trade groups). The trade groups are challenging the credit card late fee rule issued by the Consumer Financial Protection Bureau (CFPB) as unconstitutional and violative of the Administrative Procedures Act and seek a preliminary injunction while the case is pending.
In the final episode of the Payments Pros special two-part series, Jordan Bennett, Nacha’s senior director of network risk management, joins Keith and Carlin to discuss the new rules regarding fraud monitoring.
In the second episode of this four-part series, Ethan, Addison, and Trey explore the CFPB’s proposed rule to define a market for general-use consumer payment applications under its larger participant authority, and its impact on digital asset financial services companies. The group discusses the integration of digital assets into the traditional financial system and the associated regulatory concerns. The episode concludes with a discussion of two significant FTC enforcement actions filed against digital asset financial services companies in 2023, underlining the potential consequences for stakeholders operating in the industry.
Earlier this week, the Consumer Financial Protection Bureau (CFPB or Bureau) released its second report detailing changes in the credit reporting of medical debts made by the three national consumer reporting agencies (CRAs) to reduce the number of medical bills on credit reports. Overall, the CFPB found the changes in the reporting of medical collections have led to a significant reduction in the number of consumers with tradelines relating to medical debts on their consumer reports. However, the total balances of medical collections on consumer reports only fell by 38% nationwide.
In the opening episode of a four-part series examining major developments in the digital assets industry in 2023, Ethan Ostroff, Addison Morgan, and Trey Smith discuss significant federal regulatory events that transpired throughout the year.
In this episode of Troutman Pepper’s FCRA Focus podcast, host Kim Phan delves into the topic of dispute resolution through the e-OSCAR system with special guest, Joel Strickland, the director of customer success at e-OSCAR. Joel shares valuable insights into the resources available to data furnishers, including e-OSCAR University and the annual users conference, Simplicity. This episode illuminates the functionalities and benefits of the e-OSCAR system for FCRA dispute resolution and clarifies the limitations of e-OSCAR’s role in the dispute resolution process, underscoring the importance of legal and compliance consultations for data furnishers.
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 April 24, the Consumer Financial Protection Bureau (CFPB or Bureau) released a special edition of its Supervisory Highlights report focusing on examinations of the residential mortgage servicing market that were completed between April 1, 2023 and December 31, 2023. According to the report, the CFPB found instances of mortgage servicers charging illegal fees, such as prohibited property inspection fees, and sending deceptive notices to homeowners. Examiners also found servicers violating Regulation X’s loss mitigation rules.