Consumer Financial Protection Bureau (CFPB)

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Yesterday, the federal banking regulators issued new interagency guidance directing supervised financial institutions to take a closer look at credit risk when lending to individuals who are not legally authorized to work in the U.S. The guidance, issued jointly by the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA), follows a May 2026 Executive Order (discussed here) aimed at addressing perceived risks to the financial system arising from the extension of credit to the non-work authorized population.

On July 6, the Consumer Financial Protection Bureau (CFPB or Bureau) released its 2026 regulatory agenda, outlining its planned rulemaking initiatives across the pre-rule, proposed rule, and final rule stages. The agenda reflects the Bureau’s continued shift under the current administration toward deregulation, regulatory streamlining, and reconsideration of rules issued under prior leadership.

After years of pandemic-era forbearance programs, emergency moratoriums, and historically low foreclosure volumes, the mortgage market is undergoing a meaningful correction. Foreclosure activity is rising steadily across the country, and with it comes a familiar set of legal risks for servicers, lenders, and investors. The question is no longer whether foreclosure volumes will normalize — it is whether organizations are prepared for the compliance and litigation exposure that follows.

Statistics for May 2026 consumer litigation filings are in, and the picture is essentially the reverse of April. After all three major consumer protection statutes posted month-over-month increases in April, the first time that had happened in over a year, all three declined in May.

In this episode of Payments Pros, host Keith Barnett examines a recent FTC enforcement action involving alleged violations of the FTC Act and ROSCA. Keith discusses the FTC’s continued focus on negative option features, automatic renewals, subscription disclosures, free trial conversions, and cancellation practices, and explains why these issues remain important for companies operating in the payments ecosystem. He walks through the FTC’s allegations regarding insufficient disclosure of key subscription terms, including automatic renewal provisions and early cancellation fees, as well as concerns about burdensome cancellation processes for consumers. Keith also highlights how the action reflects a broader enforcement trend, with the FTC remaining active in the payments space despite increased attention on changes at the CFPB. The episode closes with practical takeaways for businesses, including the importance of clear disclosures, simple cancellation mechanisms, and careful internal communications regarding subscription and billing practices.

On June 17, the Consumer Financial Protection Bureau (CFPB or Bureau) officially rescinded its December 2020 advisory opinion on special purpose credit programs (SPCPs) under Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The rescission aligns with the Bureau’s recent views on SPCPs, including those expressed in the Bureau’s April 2026 final rule amending the SPCP provisions of Regulation B (the Final Rule) (discussed here).

As we have previously reported, the litigation over the attempted shutdown of the Consumer Financial Protection Bureau (CFPB or Bureau) has continued to move quickly through the courts. By way of background, the D.C. district court had granted a preliminary injunction requiring the CFPB to reverse its shutdown efforts, reinstate its workforce, and continue performing its statutory duties, finding that Acting Director Russell Vought’s actions were inconsistent with the Bureau’s statutory obligations under Title X of the Dodd-Frank Act. In our August 2025 post, we covered the D.C. Circuit panel’s decision vacating that preliminary injunction, holding that most of the National Treasury Employees Union’s (NTEU) claims belonged in the Civil Service Reform Act regime and that the remaining claims did not target reviewable final agency action. In our December 2025 post, we reported on the full court’s decision to grant rehearing en banc, vacate the panel’s judgment, and set an expedited briefing schedule. With the panel decision vacated, the en banc court took up the case with the partial stay continuing to govern the parties’ conduct in the interim.

On June 10, President Trump sent to the Senate his nomination of Brian Johnson to serve as Director of the Consumer Financial Protection Bureau (CFPB or Bureau) for a five-year term. The CFPB has been without a confirmed, full-time director since former Director Rohit Chopra was fired on February 1, 2025 (discussed here).

Federal regulators recently took two coordinated steps that significantly shift expectations for how lenders and banks treat non‑work authorized individuals and their employers. On June 5, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a formal statement on how immigration status should factor into ability‑to‑repay determinations under the Truth in Lending Act (TILA) and Regulation Z. On the same day, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), jointly with the federal banking agencies and in coordination with the Internal Revenue Service (IRS), released a detailed advisory on fraud, payroll schemes, and money laundering risks associated with the unlawful employment of non-work authorized persons, including specific guidance regarding the use of Individual Taxpayer Identification Numbers (ITINs) and Suspicious Activity Reports (SARs).

Statistics for April consumer litigation filings are in, and, for the first time in over a year, all three of the top consumer protection statutes moved up month-over-month. According to a report by WebRecon, court filings under the Telephone Consumer Protection Act (TCPA), Fair Debt Collection Practices Act (FDCPA), and Fair Credit Reporting Act (FCRA) all increased in April compared to March. This is the first time since March 2025 that all three statutes have been up in the same month. Consumer Financial Protection Bureau (CFPB) complaint volume dipped in April, but is still up year-over-year.