- On May 1, the Consumer Financial Protection Bureau (CFPB) proposed a rule to implement a
US Supreme Court to Decide Fate of Chevron Doctrine in Potentially Watershed Administrative Law Case
On May 1, the U.S. Supreme Court granted review in Loper Bright Enterprises v. Raimondo, No. 22-451, on the question of whether to overturn or limit Chevron deference, the controversial doctrine that requires courts to defer to administrative agencies’ interpretations of law under certain circumstances. The Court overruling or limiting Chevron would constitute a
Colorado Supreme Court Confirms Bankruptcy Discharge Does Not Trigger Statute of Limitations to Recover Debt
Colorado just became the latest state to recognize that a borrower’s bankruptcy discharge does not accelerate secured installment debt or trigger the final statute of limitations period to recover the debt.
On April 24, the Colorado Supreme Court issued a highly anticipated decision, available here. The state supreme court reviewed the court of appeals’
OCC and FDIC Issue Separate Guidance on Overdraft Fees
- Some banks assess overdraft fees
CFPB Finds Civil Judgments Are Not Evenly Distributed
Noting a rise in credit card delinquencies, the Consumer Financial Protection Bureau (CFPB or Bureau) released a new blog post analyzing civil judgments, the final recourse for creditors to collect on unsecured debt. According to the CFPB, civil judgments are “”both common and unevenly distributed.””
Specifically, the CFPB reports that civil judgments are:
- Almost twice
Washington Robocall Bill Signed Into Law
As discussed here, on April 7, the Washington State legislature passed HB 1051, also known as the Robocall Scam Protection Act, expanding the scope of existing provisions of Washington’s consumer protection laws regulating robocalls and telephone solicitations to prohibit abusive telephone communication practices. On April 20, Governor Inslee signed the bill into law. It
CFPB Issues Advisory Opinion on “Zombie Debt”
On April 26, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion reminding the industry that a debt collector who brings or threatens to bring a foreclosure action to collect a time-barred mortgage debt may violate the Fair Debt Collection Practices Act (FDCPA). According to the CFPB, the impetus for issuing the
Texas Bankers Challenge CFPB’s Section 1071 Rule
On April 26, the Texas Bankers Association and Rio Bank, McAllen, Texas filed a complaint in the U.S. District Court for the Southern District of Texas challenging the Consumer Financial Protection Bureau’s (CFPB or Bureau) final rule under § 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Final Rule). As discussed here, § 1071 amended the Equal Credit Opportunity Act (ECOA) to impose significant data collection and reporting requirements on small business creditors. The plaintiffs rely heavily on the Fifth Circuit’s decision in Community Financial Services Association (CFSA) v CFPB, finding the CFPB’s funding structure unconstitutional and, therefore, rules promulgated by the Bureau invalid. The plaintiffs also argue portions of the Final Rule violate various requirements of the Administrative Procedure Act (APA).
Federal Agencies Issue Joint Statement on Potential for Unlawful Bias and Discrimination in Automated Systems
On April 25, officials from the Federal Trade Commission (FTC), the Civil Rights Division of the U.S. Department of Justice (DOJ), the Consumer Financial Protection Bureau (CFPB), and the U.S. Equal Employment Opportunity Commission (EEOC) (together, the Agencies) issued a joint statement warning against the potential for automated systems, including artificial intelligence (AI), used in
Colorado Introduces Bill to Opt Out of DIDMCA, Prevent Interest Rate Exportation
In 1980, Congress enacted the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). Sections 521-523 of DIDMCA empower state banks, insured state and federal savings associations and state credit unions to charge the interest allowed by the state where they are located, regardless of where the borrower is located and regardless of conflicting state law