Year: 2026

Los Angeles County Superior Court Judge Gary D. Roberts filed a final Statement of Decision and Judgment in favor of Opportunity Financial, LLC (“OppFi”) in a key “true lender” case. See Statement of Decision and Judgement, Opportunity Financial, LLC, v. Hewlett, No. 22STCV08163 (Cal. Super. Ct., dated May 19, 2026 and May 20, 2026, respectively). For background on this case, see our ALERTS of Mar. 13, 2026 and Mar. 28, 2022 and Elizabeth L. Anstaett and Mercedes C. Ramsey, Opportunity Financial LLC v. Hewlett: True Lender and Usury Issues, 77 CONSUMER FIN. L.Q. REP. 221 (2024). The court affirmed its rejection of the California Department of Financial Protection and Innovation’s (“DFPI”) claim that OppFi was the “true lender” of certain loans originated by FinWise Bank, a federally insured Utah bank, under the OppFi name (“OppFi Loans”). The DFPI could now appeal.
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On May 19, 2026, the National Credit Union Administration (NCUA) submitted a rule to the Office of Management and Budget’s Office of Information and Regulatory Affairs asserting that federal law preempts the Illinois Interchange Fee Prohibition Act (IFPA), which bans the collection of interchange fees on taxes and tips and is set to become effective July 1, 2026. See our ALERT of Feb. 26, 2026. The Office of the Comptroller of the Currency (OCC) issued a similar interim final rule clarifying national banks’ power to charge non-interest charges and fees and interim final order on April 24th, confirming that federal law preempts the IFPA for national banks and federal thrifts. The OCC’s order is effective June 30, 2026.
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Consumer financial services law is always in state of flux. After over a decade of dominance by the federal Consumer Financial Protection Bureau, the Trump administration has made an effort to scale back the CFPB’s reach. Consequently, state regulators and attorneys general are stepping up to fill the void and reassert historical authority with expanded tools in hand. As a practical matter for the industry, this shift in balance calls for greater attention to state law and regulation as a matter of ongoing compliance strategy.
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The U.S. Court of Appeals for the Second Circuit has issued its long awaited opinion on remand in Cantero v Bank of America, N.A.¹ upholding national bank preemption with regard to New York’s interest on escrow law. This decision creates a clear conflict with the First Circuit in Conti and the Ninth Circuit in Kivett, setting the stage for a potential appeal to the U.S. Supreme Court for further guidance on the proper application of the “nuanced comparative analysis” required by the Supreme Court’s earlier decision in Cantero. See our ALERT of Dec. 11, 2025. The Second Circuit’s decision was not unanimous, however, so a request for en banc review is possible.
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The U.S. Court of Appeals for the Tenth Circuit has granted plaintiffs’ petition for rehearing en banc in National Association of Industrial Bankers v. Weiser. 1 See our ALERTS of Dec. 18, 2025 and Jan. 27, 2026. The court’s November 10, 2025 judgment has been vacated…
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Los Angeles County Superior Court Judge Gary D. Roberts has issued a tentative decision granting summary judgment in favor of Opportunity Financial, LLC (“OppFi”) in a key “true lender” case. See Opportunity Financial, LLC, v. Hewlett, No. 22STCV08163 (Cal. Super. Ct., Jan. 29, 2026); see our ALERT of….
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A consumer sued a pest company for allegedly violating the Telephone Consumer Protection Act (“TCPA”) by placing pre-recorded calls, including telemarketing calls according to the consumer. The consumer had contracted for services with the pest company and provided his cell phone number for the purpose of receiving calls related to the service….
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On Feb. 10, U.S. District Judge Virginia Kendall issued a split decision regarding the Illinois Interchange Fee Prohibition Act (IFPA). Illinois Bankers Association v. Raoul, __ F.Supp.3d __, 2026 WL 371196 (N.D. Ill., Feb. 10, 2026). The IFPA is scheduled to become effective July 1, 2026, and would ban financial institutions, including payment networks and other entities, from (i) charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity (Interchange Fee Provision) and (ii) using data generated in connection with credit card transactions for anything more than completion of the transaction (Data Use Provision). See our ALERTS of June 5, 2025 and June 17, 2025. The district court earlier granted injunctive relief from the law to banks, savings associations, and out-of-state statechartered banks on both points, but in reviewing requests for permanent injunctive relief, denied relief on the Interchange Fee Provision while granting relief on the Data Use Provision.
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On January 21, the Defendants-Appellees filed their response to the petition for rehearing in National Association of Industrial Bankers v. Weiser, i arguing that en banc review is not warranted because (i) the Panel Opinion does not conflict with the Eighth Circuit’s decision in Jessup v. Pulaski Bank, ii , (ii) the Panel Opinion correctly applies Supreme Court precedent on express preemption and (iii) the Panel Opinion is a routine statutory interpretation, not a question of exceptional public importance…
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On Friday, January 9, 2026 President Trump kicked off a week of uncertainty for the credit card industry when he took to social media to revive his support for a 10% cap on credit card interest rates beginning on January 20, 2026. An idea he initially floated on the 2024 campaign trail, his recent post on Truth Social called for a one year, 10% cap on credit card interest with the stated goal of improving “affordability.” The president doubled down on his stance on Sunday evening…
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