On August 21, the Consumer Financial Protection Bureau (CFPB or Bureau) took a significant step forward in its reconsideration of the Section 1033 open banking final rule, originally issued in November 2024, by issuing an Advance Notice of Proposed Rulemaking (ANPR). This move follows the Bureau’s announcement that it would be reopening the rulemaking process when it requested a stay to the original rule amidst legal challenges.
As has been well-documented, the Consumer Financial Protection Bureau (CFPB or Bureau) is navigating a period of significant uncertainty. Just last week, the U.S. Court of Appeals for the District of Columbia vacated a preliminary injunction in the case of National Treasury Employees Union v. CFPB, potentially allowing for substantial layoffs and operational changes within the agency (discussed here). Despite this development, the CFPB briefly released an ambitious rulemaking agenda on the OMB’s Office of Information and Regulatory Affairs website on August 15, which then became inaccessible due to “Site Maintenance.”
On August 8, the Consumer Financial Protection Bureau (CFPB or Bureau) published a series of proposed rules aimed at redefining what constitutes a “larger participant” in several key financial markets. Under § 1024 of the Consumer Financial Protection Act, the Bureau’s supervisory authority extends to “larger participants” offering consumer financial products or services. The proposed rules seek to amend existing thresholds in the consumer reporting, auto financing, consumer debt collection, and international money transfer markets to better align with current market conditions and regulatory priorities. The Bureau is accepting comments on these proposals until September 22, 2025.
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 August 15, the U.S. Court of Appeals for the District of Columbia issued a decision in the case of National Treasury Employees Union (NTEU) v. Consumer Financial Protection Bureau (CFPB or Bureau). The appellate court vacated the district court’s preliminary injunction, which had previously restricted the CFPB’s actions to halt the Bureau’s operations and terminate its employees.
On July 28, the New Jersey Division of Consumer Affairs issued a reminder to more than 3,000 auto dealerships regarding their obligations under the New Jersey data deletion law, N.J.S.A. § 56:12-18.1. This law, enacted and effective in January 2024, requires dealerships to offer data deletion services for consumer information stored in vehicles accepted for resale or lease. Dealerships are now on notice of their compliance obligations under the law.
On July 31, the Securities and Exchange Commission (SEC) Chairman Paul Atkins (Chair Atkins) presented “Project Crypto,” an initiative aimed at positioning the U.S. as the global leader in the digital finance world. In his address, Chair Atkins outlined his vision to modernize securities rules and regulations, enabling America’s financial markets to fully embrace blockchain technology and move on-chain. This plan solidifies President Trump’s vision of making the U.S. the crypto capital of the world and signals a new era of regulatory clarity and innovation for the crypto industry within the U.S.
In a significant ruling, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a consumer’s state law claims against a federal credit union on federal preemption grounds. The putative class action plaintiff’s claims challenged the credit union’s $15 dollar returned-check fee under California’s Unfair Competition Law (UCL), arguing it was an “unfair” and “unlawful” business practice, especially since the check the plaintiff deposited was declined without any funds being made available to him. The Ninth Circuit upheld the district court’s ruling that the plaintiff’s state law unfair competition claim was preempted by 12 C.F.R. § 701.35, which states expressly that state laws regulating bank fees do not apply to federal credit unions.
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.
An initiative designed to add significant regulatory obligations to the home improvement and solar financing industries is progressing through the California legislature. Senate Bill 784 (SB 784) passed the California Senate last month and the California Assembly is quickly moving a slightly amended version of the bill through committees in July. If enacted, SB 784 would take effect on January 1, 2026.