On Tuesday, March 5, 2024, the Consumer Financial Protection Bureau (CFPB) issued a final rule (Final Rule) which amends provisions of Regulation Z, which implements the Truth in Lending Act (TILA). The Final Rule amends the provisions related to the
LenderLaw Watch
LenderLaw Watch, published by Goodwin Procter, focuses on legal developments and regulatory issues affecting the mortgage lending and consumer finance industries. The blog covers topics such as compliance with the Real Estate Settlement Procedures Act (RESPA), enforcement actions by the Consumer Financial Protection Bureau (CFPB), litigation involving mortgage servicers and lenders, and regulatory challenges related to student loans and debt relief services. It also addresses significant court decisions impacting financial regulatory frameworks and state-level enforcement actions against financing companies. The content is aimed at professionals navigating the intersection of mortgage lending, consumer protection laws, and financial regulatory compliance.
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Minnesota AG Sues Solar Lending Companies Over Hidden Fees
On March 8, 2024, the Minnesota Attorney General announced that it had filed a lawsuit against four solar companies for allegedly violating Minnesota Prevention of the Consumer Fraud Act (“MCFA”), the Uniform Deceptive Trade Practices Act, the False Statement in Advertising…
West Virginia Proposes Mini-TCPA Law
By Allison Funk
In late January, the West Virginia Legislature introduced two bills aiming to regulate and expand the telemarketing laws in West Virginia.
The first bill, House Bill 4886, would amend the Code of West Virginia by adding a new section…
FCC Confirms A.I.-Generated Robocall Voices Are “Artificial” under the TCPA
Last week, the Federal Communications Commission (FCC) released a Declaratory Ruling stating that existing federal regulations related to using “an artificial or prerecorded voice” to deliver a telephone message, also encompass voices generated by artificial intelligence (AI). The ruling does…
CFPB Announces New Proposed Rule to Target Junk Fees
By Bayly Buck
On January 24, 2024, the Consumer Financial Protection Bureau (CFPB) announced a new proposed rule as part of the CFPB’s broader strategy of targeting junk fees. This proposed rule would “prohibit non-sufficient funds (NSF) fees on transactions that financial…
OIG Issues Report Concerning CFPB Enforcement Investigations
On January 8, 2024, the Office of Inspector General (OIG) issued an Evaluation Report (Report) concluding that the Consumer Financial Protection Bureau (CFPB or Bureau) should “enhance certain aspects of its enforcement investigations process.” The Report focuses on the efficiency…
California Department of Financial Protection Issues Consent Order Against Fintech Company
On January 9, 2024, the California Department of Financial Protection and Innovation (DFPI) announced that it entered into a consent order with a Delaware fintech company that provided California consumers with access to an internet-based platform for merchants to offer installment payments…
CFPB and State Attorneys General File Suit Against Debt-Relief Companies
By Andrew Hill
On January 10, 2024, the CFPB and seven state attorneys general filed suit against a New York-based financial consultant company, chief executives, and several related entities for allegedly running an illegal debt relief service scheme in violation of the…
Awaiting Appellate Precedent on Whether Recent New York Foreclosure Limits Are Constitutional
Over a year after becoming law, New York’s Foreclosure Abuse Prevention Act, L. 2022, ch. 821 (eff. Dec. 30, 2022) (FAPA) continues to divide trial courts regarding the constitutionality of the law’s retroactive application. Appellate level guidance remains wanting.
FAPA…
CFPB and Several States Order Vocational Education Company to Pay Fines, Cancel Loans, and Cease Operations After Allegedly Deceptive Loan Practices
By Andrew Hill
On November 20, 2023, the Consumer Financial Protection Bureau (CFPB) announced that, in conjunction with 11 states, it entered into a stipulated final judgment with a Delaware-based vocational education company that advertises itself as a “workplace accelerator” and its affiliates…