Tag:CFPB
CFPB Faces Uncertain Future: What it Means for Consumers
The US Consumer Financial Protection Bureau (CFPB) is a government agency that ensures consumers are “treated fairly by banks, lenders, and other financial institutions.” Along with enforcing consumer protection laws, the CFPB oversees products, like credit cards and mortgages, and investigates complaints regarding dishonest or illegal activity to hold companies accountable. The CFPB has faced controversy about whether or not the agency has too much power. However, the CFPB is currently under increased scrutiny by the Trump administration, which could result in issues with consumer financial protections.
Banking Regulators Accused of Debanking Scheme Targeted at Cryptocurrency
On January 23, 2025, President Trump signed an executive order aimed at supporting the growth of digital assets and blockchain technologies across the American economy, mitigating risks associated with Central Bank Digital Currencies (CBDCs), and protecting fair and open access to banking services for all private-sector entities. This executive order was created following accusations from industry leaders in digital assets who claim that banking regulators at the Federal Deposit Insurance Corporation (FDIC) were encouraged by the Biden administration to instruct banks to deny banking services to digital asset companies, also known as debanking. To investigate these claims further, the United States Senate Committee on Banking, Housing, and Urban Affairs conducted a hearing on February 5, 2025 to hear directly from industry leaders about the depth and impact of the allegations.
Card Declined: CFPB Withdraws Proposed Rule Banning Nonsufficient Funds
On January 24, 2024, the Consumer Financial Protection Bureau (CFPB proposed a rule that would block non-sufficient funds (NSF) fees on debit card, ATM, and peer-to-peer payment transactions that are declined instantaneously or nearly instantaneously. The proposal of this rule arose from a variety of initiatives under the CFPB of the Biden administration to crack down on “junk fees” charged by banks and other financial institutions. However, on January 14, 2025 the CFPB issued notice to withdraw their proposed rule regarding NSF fees.
CFPB Proposed New Rules to Expedite Mortgage Assistance
Earlier this year, the Consumer Financial Protection Bureau (CFPB) announced proposed rule changes to provide additional relief for homeowners struggling to make mortgage payments. The changes aim to amend the 2013 regulations governing mortgage servicing, ensuring that borrowers can more easily access mortgage assistance and therefore reduce the risk of unnecessary foreclosures. This comes at a time when economic uncertainties and evolving market conditions make it critical for homeowners to have quick access to resources to avoid foreclosures. The new proposal, if finalized, is designed to simplify the process for borrowers seeking mortgage assistance, improve communication between borrowers and servicers, and add safeguards to protect homeowners.
CFPB Takes Aim at Credit Card Late Fees in Latest Rule to Eliminate ‘Junk Fees’
In January 2022, the Consumer Financial Protection Bureau (CFPB) set out to increase transparency in the pricing of financial services products by implementing rules to eliminate ‘junk fees’ that often obscure the true price of financial products. Through this initiative, the CFPB analyzed the impact of numerous types of fees across banking while simultaneously attracting the scrutiny of banking advocacy organizations such as the American Banking Association (ABA) and the US Chamber of Commerce. These advocacy organizations have challenged the constitutionality of the CFPB funding structure. The CFPB examines all categories of financial products in the search for ‘junk fees’, including recently uncovering paper bank statement fees for statements that were never printed or mailed, add-on products being charged to paid-off auto loan accounts, undisclosed fees imposed on international money transfers, and bank operating systems double-dipping on non-sufficient funds fees. While litigation has recently settled in the Supreme Court to determine that the CFPB is constitutionally funded under the Appropriations Clause, the most recent rule by the CFPB to limit ‘junk fees’ imposed on credit card accounts remains on hold following a decision to grant a Preliminary Injunction by the US District Court for the Northern District of Texas.
College Tuition Payment Plans Are Putting Student Borrowers at Risk
Doria Keys Associate Editor Loyola University Chicago School of Law, JD 2025 College is typically the first instance in which many Americans encounter debt collection, lending, and credit reporting. The most common way that students borrow is by acquiring student loans, either from the U.S. Department of Education or from private financial institutions. A less …
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Proposal to Change TULA Late Fee Maximum on Credit Cards: Is it Beneficial or Burdensome?
Megan Aldworth Associate Editor Loyola University Chicago School of Law, JD 2023 The Truth in Lending Act (TILA), established 1968, is aimed to protect consumers against unfair credit practices and billing by lenders. Under TILA, lenders must provide consumers (borrowers) with information that allows them to compare loan terms given by various lending institutions. …
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No Payday for the CFPB: A Recent 5th Circuit Decision Jeopardizes the CFPB and its Funding
A decision filed October 19, 2022 by the Fifth Circuit Court of Appeals has vacated a payday lending rule put in place by the Consumer Financial Protection Bureau (CFPB). The rule was put in place to prevent predatory lending practices and unfair practices in their collection. The court decision was not based on the rule being unconstitutional but rather based in how the bureau is funded. The decision has overreaching implications on the future enforcement of CFPB rules.
The Financial Services Industry and Its Regulatory Landscape: 2021
Every year, hundreds of financial advisors and brokers across the country are convicted of a host of bad acts, which include conducting Ponzi schemes, misappropriating client funds and forging customer signatures. 2021 was no exception. Here are ten recent examples of how the legal system as well as regulators in the financial services industry, respond to allegations of fraud, misappropriation, improper hiring practices, and criminal activity.
Uh Oh Venmo…The CFPB is Cracking Down under the Biden Administration
Chandler Wright Associate Editor Loyola University Chicago School of Law, JD 2022 “Can I Venmo you?” is a phrase that many of us find ourselves saying on a weekly basis. Venmo has become not just a money-transfer application, but also a verb. In some ways, Venmo has also become a social media platform among friend …
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