In Director Chopra’s recent interviews with several news reporting organizations, a persistent theme was the CFPB’s concerns about the entry of big tech companies into financial services, particularly in connection with payments and the companies’ ability to collect and monetize
Consumer Finance Monitor
CFPB, Federal Agencies, State Agencies, and Attorneys General
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Ballard Spahr launches Ballard360 LicenSync tracker
To help financial services companies manage the federal approvals, state licenses, and foreign “doing business” registrations they are required to maintain—and avoid penalties for non-compliance—Ballard Spahr has launched Ballard360 LicenSync. LicenSync was created by the firm’s Client Value and Innovation…
Unfairness and disparate effects: a reply to Professor Jeff Sovern
In a blog post published on July 30 on Consumer Law and Policy Blog, Professor Jeff Sovern discusses comments from CFPB officials that the Bureau will not use the disparate effects or impact test to determine if discrimination has occurred…
GOP lawmakers question CFPB’s relationship with state attorneys general and take aim at interpretive rule on state enforcement authority
Three Republican House members sent a letter last week to CFPB Director Chopra raising questions about the Bureau’s relationship with state attorneys general and its interpretive rule issued in May 2022 regarding the authority of state attorneys general and state…
FTC Proposes Substantive Revisions to Advertising Guidelines
The Federal Trade Commission (“FTC”) is seeking public comment on proposed changes to its guides concerning the use of endorsements and testimonials in advertising. FTC guides are advisory in nature and intended to assist businesses in complying with laws administered…
This week’s podcast episode: The U.S. Chamber of Commerce’s campaign against CFPB Director Chopra’s attempt “to radically reshape the American financial services sector”: A discussion with Bill Hulse, Vice President, U.S. Chamber of Commerce Center for Capital Markets Competitiveness
We first review the views expressed by Director Chopra and CFPB actions taken under his leadership that led the Chamber to launch its campaign. We then discuss the campaign’s specific components, which consist of digital ads, Freedom of Information Act…
FDIC issues advisory on deposit insurance and crypto assets
The FDIC has issued an “Advisory to FDIC-insured institutions Regarding Deposit Insurance and Dealings with Crypto Companies” to address the agency’s concerns regarding misrepresentations about FDIC deposit insurance by certain crypto companies. Of particular concern to the FDIC is…
FTC settles Section 5/ROSCA claims alleged against payment processor providing services to small businesses
On July 29, the Federal Trade Commission (“FTC”) announced a settlement with First American Payment Systems LP, a Texas-based nationwide payment processor, and two of its sales agent affiliates, Think Point Financial LLC and Eliot Management Group LLC (collectively, “First…
DOJ and CFPB send notification letter to auto finance companies regarding SCRA protections
On July 29, 2022, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a notification letter (the “joint letter”) to “remind” auto lenders and leasing companies of the protections provided to servicemembers and their dependents under…
FDIC updates enforcement manual for cease-and-desist actions
On July 25, 2022, the FDIC issued Financial Institution Letter (FIL)-34-2022 announcing updates to Chapters 1 and 4 of its Formal and Informal Enforcement Actions Manual (Manual). The Manual includes updates to the minimum standards for the FDIC’s termination of…