Dear Mary,
We were recently impacted by a vendor incident, and the vendor is offering to provide notice to the impacted individuals on our behalf. That sounds like great news to us, but is this something we can and should consider?
– Potentially Optimistic in Miami
On July 2, the Consumer Financial Protection Bureau (CFPB or Bureau) published the summer edition of its Supervisory Highlights, focusing on examinations of auto and student loan servicing companies and debt collectors that were completed between April 1, 2023 and December 31, 2023. The report also highlights consumer complaints about medical payment products and identifies concerns with financial institutions freezing deposit accounts.
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 U.S. Supreme Court issued a landmark decision in Loper Bright Enterprises v. Raimondo overruling the Chevron doctrine. This decision marks a watershed moment in administrative law, fundamentally altering the landscape for judicial review of agency actions under the Administrative Procedure Act (APA).
On April 17, 2024, Virginia enacted HB 1519 taking a significant step towards amending the Virginia Consumer Protection Act (VCPA) to prohibit creditors from charging fees for accepting electronic payments in connection with credit transactions in Virginia. However, this amendment will not become effective unless the Virginia General Assembly reenacts the bill in 2025. Between now and then, the Virginia State Corporation Commission will assess this change and report its findings to the General Assembly by December of this year.
The U.S. District Court for the Northern District of Alabama recently issued a decision in a Fair Debt Collection Practices Act (FDCPA) case highlighting the importance of clear and unambiguous communication in debt collection practices and the need for debt collectors to have robust procedures in place to handle disputes.
As discussed here, following the U.S. Supreme Court’s decision in Community Financial Services Association of America, Limited v. Consumer Financial Protection Bureau (CFPB or Bureau), which upheld the CFPB’s funding structure, the Bureau announced updated compliance dates for its Section 1071 Final Rule concerning small business data collection and reporting under the Dodd-Frank Act.
Dear Mary,
One of our critical service providers recently suffered a cyberattack. It’s all over the news, and our business operations are severely impacted. We’re losing money every day, and we have no idea how long this will last. Do you have any suggestions on what to do? The lack of information from our service provider is incredibly frustrating.
– Frustrated in Dallas
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 June 20, six federal financial services regulators issued the final automated valuation model (AVM) rule. The AVM rule, initially proposed in June 2023 and discussed here, aims to implement the quality control standards mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). The final AVM rule is largely identical to the proposed rule and is set to take effect on the first day of the calendar quarter following 12 months after its publication in the Federal Register.