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In this episode of The Consumer Finance Podcast, Chris Willis is joined by Partners Mark Furletti and Jason Cover to delve into the CFPB’s recent interpretive rule that classifies buy now, pay later (BNPL) products as credit cards under Regulation Z. The discussion unpacks the controversy surrounding this rule, the subsequent FAQs released by the CFPB, and the broader implications for the BNPL industry. The episode explores the challenges and ambiguities posed by the rule, potential compliance strategies, and the likelihood of legal challenges. Tune in for an insightful analysis of one of the year’s most debated regulatory developments in consumer finance.

Continue Reading Navigating the CFPB’s Controversial Interpretive Rule on BNPL Products

On October 7, the Consumer Financial Protection Bureau (CFPB or Bureau) published the Fall edition of its Supervisory Highlights, focusing on examinations of the auto-finance market completed between November 1, 2023, and August 30, 2024. The report highlights significant findings across various aspects of consumers’ experiences with vehicle finance, including origination disclosures, repossession activities, servicing practices, the handling of add-on products, and credit reporting.

Continue Reading CFPB’s Fall Edition of Supervisory Highlights Focuses on Auto-Finance Market

On October 1, the Consumer Financial Protection Bureau (CFPB or Bureau) issued an advisory opinion aimed at debt collectors and emphasizing their obligations under the Fair Debt Collection Practices Act (FDCPA) and Regulation F. The opinion specifically emphasizes the prohibitions on false, deceptive, or misleading representations, and unfair or unconscionable means to collect or attempt to collect medical debts.

Continue Reading CFPB Intensifies Scrutiny on Medical Debt Collection Practices

In this episode of The Consumer Finance Podcast, Chris Willis delves into the latest annual report from the CFPB’s Office of Servicemember Affairs. While the report is ostensibly about issues affecting military personnel, it primarily highlights ongoing challenges in student loan servicing. Chris discusses key findings, including customer service obstacles, errors in income-driven repayment plans, and the contentious practice of transcript withholding. This episode underscores the CFPB’s persistent focus on these issues and the implications for the student loan servicing industry. Tune in for a comprehensive analysis and stay informed about the regulatory landscape.

Continue Reading CFPB’s Focus on Student Loan Servicing: Insights from the Office of Servicemember Affairs Report

On September 20, the Consumer Financial Protection Bureau (CFPB or Bureau) announced a proposed rule aimed at amending the disclosure requirements for international money transfers, commonly known as remittances. The proposed amendment is aimed at clarifying for consumers the types of inquiries that may be better handled by their remittance company before contacting the CFPB or the relevant state regulator. The proposed rule will be published in the Federal Register, and the public will have until November 4, 2024, to submit their comments.

Continue Reading CFPB Proposes Amendments to Disclosure Requirements Under Remittance Transfer Rule

In this episode of The Consumer Finance Podcast, Chris Willis delves into the Consumer Financial Protection Bureau’s (CFPB) recent response to the Treasury Department’s request for information on the use of artificial intelligence (AI) in financial services. Chris highlights key points from the CFPB’s communication, including their views on fraud models, fair lending testing standards, and the implications for financial institutions. He also discusses the CFPB’s candid remarks about its own innovation office and the future of regulatory treatment for individual firms. This episode is essential listening for anyone in the financial services industry looking to stay informed about regulatory expectations and compliance challenges.

Continue Reading Exploring the CFPB’s Stance on AI in Financial Services

On September 24, the Consumer Financial Protection Bureau (CFPB or Bureau) announced a significant development in its efforts to implement open banking rules in the United States. The Bureau has initiated a public comment process for the first application from an organization seeking recognition as an open banking standard-setter.

Continue Reading CFPB Launches Public Comment Process for Open Banking Standard Setter Recognition

Today, the Consumer Financial Protection Bureau (CFPB or Burau) released its annual report detailing the financial challenges faced by servicemembers, veterans, and military families. In 2023, this group submitted nearly 84,600 complaints to the CFPB, representing a 27% increase from 2022 and a 98% increase from 2021. The report highlights issues with student loan servicing, transcript withholding by educational institutions, and a rise in scams targeting older veterans.

Continue Reading CFPB Report Highlights Challenges Facing Servicemembers and Veterans, Including Student Loans and Money Transfer/Virtual Currency Scams

On September 18, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a set of frequently asked questions (FAQs) providing guidance on applying Regulation Z requirements to Pay-in-Four Buy Now, Pay Later (BNPL) products accessed through digital user accounts (DUAs). These FAQs follow the Bureau’s interpretive rule issued in May of this year, subjecting BNPL transactions to provisions of Regulation Z applicable to “credit cards.”

Continue Reading CFPB’s Latest FAQs Broaden Interpretive Rule for Pay-in-Four BNPL Products

In this special crossover episode of The Consumer Finance Podcast and Moving the Metal, Troutman Pepper attorneys Brooke Conkle and Chris Capurso discuss the Consumer Financial Protection Bureau’s (CFPB) new report on negative equity in auto lending. This report, the first of its kind, utilizes data from the CFPB’s 2023 Auto Finance Data Pilot, which was issued to major banks, finance companies, and captive lenders. Brooke and Chris analyze the impact of the report, including what the report may indicate for the CFPB’s upcoming priorities.

Continue Reading The CFPB’s Report on Negative Equity in Auto Lending