Under Director Chopra’s leadership, the CFPB has regularly been sounding alarms about the potential for discrimination arising from the use of so-called “black box” credit models that use algorithms or other artificial intelligence (AI) tools. Today, in the second of
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This week’s podcast episode: A conversation with special guest Phil Weiser, Colorado Attorney General
AG Weiser discusses the areas of consumer financial services that are a current focus of his office’s efforts. After discussing the role of the newly-created Office of Financial Empowerment in addressing the needs of unbanked consumers, AG Weiser discusses his…
CFPB sends letters to CEOs of major credit card issuers regarding payment furnishing practices
The CFPB has sent letters to the chief executive officers of five major credit card issuers regarding their companies’ payment furnishing practices.
In the letters, the CFPB cites a 2020 report in which it provided data showing a decline in…
DFPI releases notice addressing processing delays for debt collection license applications
In an announcement to its subscribers sent electronically on May 23, 2022, the California Department of Financial Protection and Innovation (“DFPI”) notified applicants – and prospective applicants – for a license under California’s Debt Collection Licensing Act (the “Act”) that…
CFPB scraps no action letter and compliance assistance sandbox programs and creates new Office of Competition and Innovation
The CFPB announced earlier this week that as part of a new approach to innovation in consumer finance, it is replacing its Office of Innovation and Operation Catalyst with a new office, the Office of Competition and Innovation, and eliminating…
Oklahoma Governor signs bill limiting use of automated dialing systems
On May 20, Oklahoma Governor Kevin Stitt signed into law House Bill No. 3168 which imposes new limits on the use of automated dialing systems. The new law, titled the “Telephone Solicitation Act of 2022” (Act), takes effect on November…
U.S. Supreme Court rejects prejudice requirement for waiver of arbitration
The U.S. Supreme Court today held that waiver of the right to arbitrate does not require a showing that the other party was prejudiced. The unanimous opinion by Justice Kagan in Morgan v. Sundance reversed the Eighth Circuit, which had…
New CFPB interpretive rule outlines broad state CFPA enforcement authority
The CFPB has issued a new interpretive rule regarding the authority of state attorneys general and state regulators (State Officials) to enforce the Consumer Financial Protection Act (CFPA).
CFPA Section 1042(a) (12 U.S.C. Section 5552) authorizes “the attorney general (or…
CFPB arbitration study would not support a new regulation
Recently, Professor Jeff Sovern and I exchanged views on whether the CFPB could (or should) add arbitration rulemaking to its regulatory agenda. Professor Sovern has now suggested that the CFPB’s 2015 Study of consumer arbitration would support a new regulation. …
CFPB announces launch of new system for providing guidance and issues first Circular; FDIC issues final rule on misuse of FDIC name or logo or making misrepresentations about deposit insurance
Just one day after announcing that it was launching a new system to provide guidance to other agencies with consumer financial protection responsibilities on how the CFPB intends to enforce federal consumer financial laws, the CFPB released its first Consumer…