Month: December 2022

On December 12, 2022 the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule that would require certain nonbank entities falling under CFPB supervision to register with the CFPB after becoming subject to a public written order or judgment based upon violations of certain consumer protection laws. The entities would be required to self-report the applicable order to the CFPB and provide basic identifying and administrative information about the entity as well as information regarding the orders (including copies of the orders). The resulting registry will be made available to the public to mitigate risks to consumers and “unify the efforts of consumer financial protection enforcers.” Read More

The Consumer Financial Protection Bureau (“CFPB”) released a report revealing that Reserve and National Guard members of the armed forces are not always receiving the benefit of their right to rate reductions under the federal Servicemembers Civil Relief Act (“SCRA”). The CFPB would like creditors to be more proactive in helping servicemembers obtain SCRA benefits. Read More

The Ohio General Assembly passed S.B. No. 249 to create a regulatory sandbox program for novel financing products and services. The bill requires the Ohio Superintendent of Financial
Intuitions to establish a regulatory sandbox program to enable a person to test novel financial products and services in Ohio on a temporary basis without obtaining a license or authorization that would otherwise be required. Under the new law novel financial products and services are permitted to be tested in the regulatory sandbox for up to two years, with a possible one year extension if the sandbox participant is seeking licensure. Read More

In response to a written request by the Small Business Finance Association, the Consumer Financial Protection Bureau published a notice of intent to make a preemption determination regarding whether the Truth in Lending Act preempts the New York Commercial Finance Disclosure Law with respect to certain provisions. See our Alerts dated Sept. 29, 2022 and Dec. 14, 2020 for our discussion of the New York law. The CFPB also provided notice that it is considering whether to make a preemption determination regarding state laws in California, Utah and Virginia that are potentially similar to the New York law. See our ALERTS dated June 15, 2022 (California) and May 6, 2022 (Utah and Virginia) for our discussion of these laws. The CFPB is soliciting public comment on the preemption issue. Comments must be received on
or before January 20, 2023. Read More