On July 16, TradeStation Securities, Inc., a member firm of the Financial Industry Regulatory Authority (FINRA), submitted a Letter of Acceptance, Waiver, and Consent (AWC) to FINRA’s Department of Enforcement. This AWC proposes a settlement for alleged rule violations concerning retail communications related to crypto assets. The acceptance of this AWC by FINRA ensures that no future actions will be brought against TradeStation Securities based on the same factual findings.
In a significant turn of events, the Consumer Financial Protection Bureau (CFPB or Bureau) has decided to initiate a new rulemaking process concerning its final rule on personal financial data rights under Section 1033 of the Consumer Financial Protection Act of 2010 (1033 rule). This decision comes amidst ongoing legal challenges, notably from Forcht Bank, N.A.; Kentucky Bankers Association; and the Bank Policy Institute, which filed a lawsuit immediately after the 1033 rule was finalized challenging it.
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.
Today, the New York City Department of Consumer and Worker Protection (NYC DCWP) announced another delay in the effective date of its amended debt collection rules. This marks the second postponement. As discussed here, the rules were initially set to take effect on December 1, 2024. Then the enforcement date was first postponed to April 1, 2025, following industry concerns and legal challenges, and then to October 1, 2025. However, the NYC DCWP has now stated that the rules will not go into effect on October 1, 2025, and has committed to providing an update at least three months prior to the new effective date.
On July 14, the Federal Trade Commission (FTC) secured a court order aimed at halting allegedly deceptive practices against seven companies and three individuals operating the “Accelerated Debt” program. The defendants allegedly contacted consumers through telemarketing calls or in response to calls resulting from their mail and online ads and made false claims about their ability to substantially reduce consumer debts and misleading consumers about fees. The FTC alleged these actions violated the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, the Fair Credit Reporting Act (FCRA), and § 521 of the Gramm-Leach-Bliley Act by making false statements to get consumers’ financial account numbers. The court’s order includes a temporary restraining order, asset freeze, and the appointment of a temporary receiver to oversee the defendants’ business operations.
As a follow up to our May post, FAPA in the Spotlight Again: Second Circuit Renews Call for NY Court of Appeals Review, the New York Court of Appeals has finally agreed to consider New York’s Foreclosure Abuse Prevention Act’s (FAPA) reach and constitutionality in the case of Art. 13 LLC. Interestingly, on the same day the Court of Appeals accepted the Second Circuit’s request, New York’s highest court also agreed to review a separate decision from the First Department, which found that it is constitutional to apply the FAPA amendments retroactively in the case of Van Dyke. Both appeals stem from actions seeking to cancel and discharge mortgages, where the New York trial courts previously held that the statute of limitations for foreclosure had expired.
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 July 14, the Consumer Financial Protection Bureau (CFPB or Bureau) filed a status report announcing its decision not to reissue its Medical Debt Collection Advisory Opinion, which had been issued in 2024 to “remind debt collectors of their obligations to comply with the Fair Debt Collection Practices Act [FDCPA] and Regulation F’s prohibition on false, deceptive, or misleading representations or means in connection with the collection of any medical debt and unfair or unconscionable means to collect or attempt to collect any medical debt.” The Advisory Opinion had been challenged in the U.S. District Court for the District of Columbia by ACA International and Collection Bureau Services, Inc.
California Senate Bill 940 (SB 940), enacted in late 2024, introduces several key changes to arbitrations involving “consumer contracts,” which is defined as a contract prepared by a seller and signed by a consumer for the sale or lease of goods or services or for the extension of credit purchased or used primarily for personal, family, or household purposes. Below, we explore the major provisions of SB 940 and their implications.
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.