Month: August 2023

Consumer-like protections continue to invade business finance. The latest example is a new rule expanding the California Department of Financial Protection and Innovation’s authority to regulate unfair, deceptive and abusive acts and practices (“UDAAP”) in “commercial financing transactions”, defined to mean consummated commercial financing transactions for which California disclosures are required. Read More

In the absence of federal action, states keep marching forward with their own comprehensive consumer data privacy laws with mixed results. Oregon joins California, Colorado, Connecticut,
Indiana, Iowa, Montana, Tennessee, Texas, Utah and Virginia in enacting a non-uniform privacy law. See S.B. 619 (signed by governor July 18, 2023, effective July 1, 2024).Read More

The Federal Deposit Insurance Corporation (FDIC) has issued a cease and desist letter to Unbanked, Inc. concerning potential violations of Section 18(a)(4) of the Federal Deposit Insurance Ac (12 U.S.C. § 1828(a)(4)) for deceptive statements suggesting that various crypto-related products may be covered by FDIC deposit insurance. Unbanked, a nonbank, maintains relationships with insured banks.Read More

The U.S. District Court for the Southern District of Texas has ruled on a motion for preliminary injunction, granting an injunction to members of two trade groups and a private bank that filed suit challenging the Consumer Financial Protection Bureau’s (CFPB) final rule implementing the “Small Business Lending Rule Under the Equal
Opportunity Act (Regulation B)” pursuant to Section 1071 of the Consumer Financial Protection Act (“Rule”). See Texas Bankers Association vs. CFPB, No. 7:23-cv-00144 (S.D. Tex., order filed July 31, 2023); see our Alerts of Mar. 28 and Apr. 28, 2023. The plaintiffs had sought a nationwide preliminary injunction to prevent the CFPB from enforcing the Rule. The Rule requires banks and nonbanks to collect and report information about small business credit applications. Read More