The Consumer Financial Protection Bureau (CFPB) issued an interim final rule to extend compliance deadlines for the small business data lending rule. After the CFPB issued the small business data lending rule on March 30, 2023, a federal court in Texas stayed the rule pending the Supreme Court’s decision in Consumer Financial Protection Bureau v. Community Financial Services Association of America (CFPB v. CFSA)… Read More
Month: June 2024
Are You Adequately Disclosing Or Missing the Mark
First there was Amazon’s Prime, now the Adobe “annual paid monthly” subscription plan. The Federal Trade Commission (“FTC”) once again is targeting alleged burial of material terms, hidden charges and complicated cancellation procedures. See Complaint, U.S. v. Adobe Inc., No. 5:24-cv-03630 (N.D. Cal. filed June 17, 2024)… Read More
Fifth Circuit Orders Return In Case Challenging Late Fee Rule Again
Once again, the Fifth Circuit decided that the case challenging the Consumer Financial Protection Bureau’s (“CFPB”) credit card late fee rule is to stay in Texas. This writ of mandamus is the latest update in the “byzantine” procedural history of the U.S. Chamber of Commerce’s case against the CFPB… Read More
CFPB Announces Effective Date for Payment Provisions of Payday Rule
The Consumer Financial Protection Bureau (CFPB) announced that the payment provisions of the “Payday Loan Rule” (Rule) will go into effect March 30, 2025 based on the Supreme Court entering its judgement in Consumer Financial Protection Bureau v. Community Financial Services Association of America on June 17, 2024… Read More
Preliminary Injunction in CO DIDMCA Case Granted
Yesterday the Colorado District Court granted the motion for a preliminary injunction in regard to the Colorado law that revived Colorado’s explicit rejection of federal usury preemption under the Depository Institutions Deregulation and Monetary Control Act of 1980 (“DIDMCA”)). 2023 Colo. Legis. Serv. Ch. 375 (H.B. 23-1229). The law was to take effect July 1, 2024, and apply to consumer credit transactions made or renewed on or after July 1, 2024… Read More
Have You Taken Any Shortcuts in Your Documentation
On June 4, the Consumer Financial Protection Bureau (“CFPB”) issued Circular 2024-03 regarding unlawful and unenforceable contract terms and conditions. The CFPB asserted that covered persons and service providers can violate the Consumer Financial Protection Act’s (“CFPA”) prohibition on deceptive acts and practices by including various terms that, among other things, (i) purport to waive or otherwise limit consumer rights or (ii) hide or misrepresent the terms applicable to consumers by using vague language to qualify language with broad disclaimers such as “subject to applicable law,” leaving the impression that an inapplicable or otherwise unenforceable provision could actually apply to a particular consumer. Read More
CFPB Proposes Rule Prohibiting Medical Debt from Credit Reports
The Consumer Financial Protection Bureau (“CFPB”) announced a proposed amendment to Regulation V which would prohibit medical debt from credit reports in most circumstances. The proposed amendment is the latest step in the CFPB’s crusade against medical debt and follows the announcement in September 2023 of its intention to ban medical debt from credit reports… Read More
Supreme Court Remands Second Bank Act Preemption Case
The United States Supreme Court granted the petition for a writ of certiorari in Flagstar Bank V. Kivett and at the same time vacated the judgment of the Ninth Circuit and remanded the case for further consideration in light of Cantero v. Bank of America, N.A., _____U.S. _______ (2024). Like the Cantero case, Flagstar Bank involves the National Bank Act and the preemption of a state law that requires
lenders and holders to pay interest on residential mortgage escrow accounts… Read More
Supreme Court Holds Court Must Decide Whether Arbitration Clause Or Forum Selection Clause Controls
The Supreme Court, in deciding a case involving whether the parties had agreed to arbitrate any disputes, emphasized that arbitration agreements are simply contracts. Consequently, the first question in any arbitration dispute must be: What have these parties agreed to? The case Coinbase, Inc. v Suski involved a User Agreement that contained an arbitration provision with a delegation clause… Read More
Supreme Court Remands National Bank Act Preemption Case
The United States Supreme Court remanded Cantero v. Bank of America to the Second Circuit for a preemption analysis consistent with the Barnett Bank case as required by the Dodd Frank Act. The case involved National Bank Act preemption and a New York state law that requires lenders and holders to pay interest on residential mortgage escrow accounts. The unanimous decision summarized the facts leading up to the case, including a summary of the Barnett Bank case and the Dodd Frank Act’s incorporation of the decision and the “prevents or significantly interferes” standard into federal statutory law… Read More