On January 8, Senate Bill No. 1252 (SB 1252) was introduced to the Virginia General Assembly, aiming to amend and reenact sections of the Code of Virginia related to the application of usury rates. Just two weeks ago, the bill was passed by both the House and Senate. Opponents of the bill contend that the language and effect is very unclear, but that broad language and stringent provisions could stifle innovation and ultimately harm consumers by limiting their access to credit.
In a move that could significantly impact the auto retail industry, California has introduced Senate Bill 766, known as the California Combating Auto Retail Scams (CARS) Act. Introduced by Senator Benjamin Allen (D) on February 21, this bill aims to impose stringent new regulations on auto dealers in the state, many of which echo back to the Federal Trade Commission’s (FTC) own CARS Rule.
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 January 14, Patriot Bank, N.A. entered into an agreement with the Office of the Comptroller of the Currency (OCC) to address and rectify several unsafe or unsound practices and violations of law. This agreement follows the bank’s reported loss of nearly $27 million for the quarter ending September 30, 2024.
On February 19, the National Consumers League (NCL) and four small business owners filed a motion to intervene in support of the Federal Communications Commission (FCC) and the United States in the case of Insurance Marketing Coalition Ltd. v. FCC. This motion seeks to challenge the panel’s January 24, 2025 decision that vacated the FCC’s 2023 Order, known as the One-to-One Rule.
In Kirkman v. Blitt and Gaines, P.C., the plaintiff sued the defendant in the Northern District of Illinois alleging violations of the Federal Debt Collection Practices Act (FDCPA) for sending her a letter by regular mail instead of email. The court found that the plaintiff lacked standing and granted the defendant’s motion to dismiss.
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.
This article was republished in insideARM on February 20, 2025.
As discussed here, on February 9, the National Treasury Employees Union (NTEU), which includes members employed by the Consumer Financial Protection Bureau (CFPB or Bureau), filed a lawsuit in the District Court for the District of Columbia. The lawsuit challenges the actions of Acting Director Russell Vought, arguing that his efforts to “shut down” the CFPB are unconstitutional and violate the Congressional mandate outlined in the Dodd-Frank Act. Since then, President Trump has nominated Jonathan McKernan to be the new Director of the CFPB (discussed here). If confirmed by the Senate, McKernan will replace Acting Director Vought, who also serves as the head of the Office of Management and Budget.
In a recent decision, the U.S. Court of Appeals for the Sixth Circuit affirmed the dismissal of federal claims brought by a mortgagee against Trinity Financial Services, LLC (Trinity) under the Fair Debt Collection Practices Act (FDCPA). While the appellate court agreed that the plaintiff lacked standing, its holding was rooted in different grounds, namely that the plaintiff’s injuries were not traceable to any independent FDCPA violation.
We are pleased to share our annual review of regulatory and legal developments in the consumer financial services industry. With active federal and state legislatures, consumer financial services providers faced a challenging 2024. Courts across the country issued rulings that will have immediate and lasting impacts on the industry. Our team of more than 170 professionals has prepared this concise, yet thorough analysis of the most important issues and trends throughout our industry. We not only examined what happened in 2024, but also what to expect — and how to prepare — for the months ahead.