Firm Alerts

In a blog post, Rohit Chopra, Director of the Consumer Financial Protection Bureau (“CFPB”), announced the CFPB’s intent to re-examine and update a broad range of consumer financial regulations. The goal of this re-examination, according to Director Chopra, is the simplification of what he brands an “overly complicated” regulatory landscape. Consequently, the CFPB plans to re-examine landmark rules inherited from other agencies or promulgated in the first decade of the CFPB’s existence, as well as the regulatory implementation of longstanding Congressional directives. The CFPB argues that...

The Consumer Financial Protection Bureau (“CFPB”) issued an Advance Notice of Proposed Rulemaking (“ANPR”) on credit card late payment fees, returned payment fees and the fee safe harbor under Truth in Lending Act, the CARD Act and Regulation Z. The notice asks for comment from credit card issuers, consumer groups and the public, regarding credit card late fees, late payments and card issuers’ revenue and expenses. he request for comment is part of the CFPB’s larger “Junk Fee Initiative.” The CFPB trumpets the request for information as “the first step toward addressing credit card company...

The Consumer Financial Protection Bureau (“CFPB”) has taken two actions to encourage state governments to bring enforcement actions for alleged violations of any federal consumer financial laws enforced by the CFPB. First, the CFPB issued an interpretive rule delineating state governments’ authority to enforce federal consumer protection laws. Second, the CFPB began issuing Consumer Financial Protection Circulars, guidance directed at state attorneys general and regulators. The CFPB issued an interpretive rule delineating states’ authority to bring civil suit against alleged (i) unfair,...

On June 3, 2022, a bipartisan group of legislators from the House and Senate announced a data privacy bill titled the American Data Privacy and Protection Act (“ADPPA”). While there are many hurdles the bill must overcome before it is enacted, the bipartisan group of legislators hope this announcement will be the first step towards improving United States privacy laws. The ADPPA contains similar provisions to those in currently enacted state privacy laws. The ADPPA applies to covered entities, meaning (i) any entity that collects, processes or transfers covered data and (a) is subject to the...

The California Department of Financial Protection and Innovation (“DFPI”) recently released a statement to those applying for a debt collection license under the Debt Collection Licensing Act that application approvals will be delayed. The delay is due at least in part to the Federal Bureau of Investigation informing the DFPI that certain protocols need to be changed with respect to requesting federal background checks. The DFPI encourages those needing a debt collection license to apply through the Nationwide Multistate Licensing System. In a change to its enforcement policy, the DFPI...

On May 27, 2022, the California Consumer Protection Agency (“CCPA”) released a draft of proposed revisions to the California Consumer Privacy Act regulations. While the draft regulations are 66 pages long, the draft does not change the overall regulatory structure. The draft regulations create additional requirements and principles that a business must incorporate in obtaining consumer consent including (i) using a method that is easy to understand, (ii) creating symmetry in choice between more privacy protected and less privacy protected options, (iii) avoiding language or interactive...

In a recent blog post, the Consumer Financial Protection Bureau (“CFPB”) returned to the topic of Buy Now, Pay Later (“BNPL”) to encourage standardized credit reporting of BNPL lines. BNPL programs typically involve short-term, no-interest consumer credit offered at the point of sale, online and occasionally in brick-and-mortar stores. In December 2021, the CFPB announced an inquiry into BNPL, issuing orders to five major BNPL companies requesting information regarding the risks and benefits of their programs. See our ALERT of Dec. 17, 2021. The inquiry named the accumulation of debt as an...

The California Department of Financial Protection and Innovation (“DFPI”) released the final regulations implementing the Commercial Financing Disclosure Act. The regulations are a culmination of a long regulatory process. See our prior ALERTS dated Apr. 8, 2021, Oct. 14, 2021 and Nov. 16, 2021. These regulations set forth the precise formatting and calculation methods to make the required commercial disclosures. While similar to the most recent iteration of the regulations, the finalized regulations have been substantially revised from the initial proposed regulations.. Read More

On May 10, 2022, Connecticut joined several other states in enacting a consumer privacy law, the Connecticut Personal Data Privacy and Online Monitoring Act (“Act”). The Act creates rights for consumer’s to correct, access, delete and obtain personal data. The Act also gives consumers the right to opt-out of personal data processing related to (i) targeted advertising, (ii) certain sales of personal data or (iii) certain profiling. Furthermore, the Act requires controllers, defined as those who determine the purpose and means of processing personal data, to limit the collection of data to...

Within a month, Virginia and Utah both enacted legislation aimed at controlling merchant cash advance transactions through registration and disclosure requirements. The Virginia statute becomes effective July 1, 2022, with a registration deadline of November 1, 2022. The Utah statute becomes effective January 1, 2023. The Virginia Act adds a new chapter to the Financial Institutions title of the Virginia Code governing Sales-Based Financing Providers. See Va. Code Ann §§ 6.2-2228 et seq. “Sales-based financing” is defined as a transaction that is repaid by the recipient to the provider, over...