Regulation

Banking in Video Games and Virtual Worlds

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) is monitoring markets—regardless of the infrastructure used—where financial products and services may be offered, including video games and virtual worlds."

Tags: CFPB

Regulation

CFPB Takes Action to Halt False Claims of 'Free' International Money Transfers

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) issued a new circular warning remittance transfer providers that false advertising about the cost or speed of sending a remittance transfer can violate federal law. Companies in the marketplace are charging junk fees on international money transfers and making false claims about the speed of transfers."

Tags: CFPB

Regulation

CFPB Clarifies Plans to Recognize Standard-Setting Organizations

ABA Banking Journal

"Before the Consumer Financial Protection Bureau finalizes its proposed rulemaking on personal financial data this fall, it will first codify what attributes an organization must have to be recognized under the rule as an issuer of qualified industry standards, CFPB Director Rohit Chopra said Wednesday."

Tags: CFPB

Regulation

Banks Prepare Legal Assault on CFPB Credit Card Late Fee Rule

Bloomberg Law

"The Consumer Financial Protection Bureau’s landmark rule capping credit card late fees at $8 faces a bumpy path ahead, as industry groups eye legal challenges to block it from taking effect. Banks have already blasted the regulation released Tuesday, arguing the CFPB used a shoddy process and incorrect math."

Tags: CFPB

Regulation

CFPB Bans Excessive Credit Card Late Fees, Lowers Typical Fee from $32 to $8

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) finalized a rule to cut excessive credit card late fees by closing a loophole exploited by large card issuers...once the final rule goes into effect by reducing the typical fee from $32 to $8."

Tags: CFPB

Regulation

CFPB Report Finds Large Banks Charge Higher Credit Card Interest Rates than Small Banks and Credit Unions

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau reported on the first set of results from the newly updated Terms of Credit Card Plans survey in which the survey data reveals that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk."

Tags: CFPB

Regulation

CFPB Proposes Rule to Stop New Junk Fees on Bank Accounts

Consumer Financial Protection Bureau

"The CFPB proposed to block banks and other financial institutions from one potential source of new junk fee revenue – fees on transactions declined right at the swipe, tap, or click including prohibiting non-sufficient funds (NSF) fees on transactions that financial institutions decline in real time."

Tags: CFPB

Regulation

Lawmakers Ask CFBP to Rein in Financial Industry’s Use of Forced Arbitration

Financial Regulation News

"U.S. Sen. Elizabeth Warren (D-MA) and U.S. Rep. Hank Johnson (D-GA) recently led 91 legislators in urging the Consumer Financial Protection Bureau (CFPB) to protect consumers by reining in the financial industry’s use of forced arbitration."

Tags: CFPB

Regulation

US Consumer Watchdog Hands Wall Street Rare Win With Big Tech Crackdown

Reuters

"The Consumer Financial Protection Bureau (CFPB) last week proposed regulating payments and smartphone wallets provided by tech leaders like Apple and Google, arguing they now rival traditional bank services in scale and scope and should be subject to the same consumer safeguards."

Tags: CFPB

Regulation

CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps."

Tags: CFPB

Regulation

Chime Inc. Agrees to Pay CFPB $3 Million to Resolve Remittance App Allegations

ABA Banking Journal

"Chime Inc. agreed to pay $3 million to resolve CFPB allegations that its subsidiary mobile app (Sendwave) illegally restricted consumer rights under the EFTA."

Tags: CFPB

Regulation

CFPB Issues Biennial CARD Act Report to Congress

Consumer Finance Monitor

"On October 25, 2023, the Consumer Financial Protection Bureau (CFPB) released its sixth consumer credit card market biennial report to Congress as required under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act)."

Tags: CFPB

Regulation

CFPB Report Finds Credit Card Companies Charged Consumers Record-High $130 Billion in Interest and Fees in 2022

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau released its biennial report to Congress on the consumer credit card market. The report found that in 2022 credit card companies charged consumers more than $105 billion in interest and more than $25 billion in fees."

Tags: CFPB

Regulation

CFPB Eyes Open Banking with Financial Data Rights Rule Proposal

Compliance Week

"On Thursday, the CFPB proposed its personal financial data rights rule. The action builds upon a proposal outlined by the agency last year as part of its desire to accelerate the shift toward open banking. Comments on the rule are due by Dec. 29."

Tags: CFPB

Regulation

CFPB Proposes Rule to Jumpstart Competition and Accelerate Shift to Open Banking

Consumer Financial Protection Bureau

"Today, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would accelerate a shift toward open banking, where consumers would have control over data about their financial lives and would gain new protections against companies misusing their data."

Tags: CFPB

Regulation

CFPB Takes Action Against Operator of Sendwave App for Illegally Cheating People on International Money Transfers

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) today took action against Chime Inc. for deceiving consumers about the speed and cost of remittance transfers through its mobile app, Sendwave."

Tags: CFPB

Regulation

CFPB and Justice Department Issue Joint Statement Cautioning that Financial Institutions May Not Use Immigration Status to Illegally Discriminate Against Credit Applicants

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau and Justice Department today issued a joint statement that reminds financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race, and other characteristics covered by the Equal Credit Opportunity Act, regardless of their immigration status."

Tags: CFPB

Regulation

Credit Card Reward ‘Bait and Switch’ Tactics Face CFPB Scrutiny

Bloomberg Law

"The Consumer Financial Protection Bureau is preparing to take a closer look at credit card rewards programs, the agency’s director said. CFPB Director Rohit Chopra on Friday said his agency is eyeing new guidance for how the Electronic Fund Transfer Act, a 1978 law governing electronic payments, applies to what he called “private digital dollars” and other digital currencies, including crypto."

Tags: CFPB

Regulation

US Consumer Watchdog Warns Payment Systems Risk Chinese-Style Surveillance

Reuters

"The top U.S. agency for consumer financial protection is considering regulatory moves to help protect the public from the kind of excessive surveillance of their financial data enabled by payment structures in China, its director said on Friday."

Tags: CFPB

Regulation

Consumer Agency Hated by Republicans Is in Fight of Its Life at Supreme Court

Bloomberg

The US Consumer Financial Protection Bureau, long a target of conservatives and the bane of the banking industry, is now in the fight of its life at the Supreme Court.

Tags: CFPB

Regulation

CFPB Outlines Requirements for Lenders Using Artificial Intelligence to Deny Credit

Financial Regulation News

"...The Consumer Financial Protection Bureau (CFPB) released guidelines for lenders to adhere to when using artificial intelligence and other models to deny consumers credit...The guidance outlines legal requirements creditors must meet in providing specific and accurate reasons why adverse actions were taken against consumers."

Tags: CFPB

Regulation

Big Tech's Role in Contactless Payments: Analysis of Mobile Device Operating Systems and Tap-to-Pay Practices

Consumer Financial Protection Bureau

"In jurisdictions around the world, consumers, small businesses, financial institutions, and policymakers are recognizing the benefits of open ecosystems in the digital world...Given the agency’s mandate to ensure fair, transparent, and competitive markets, as well as the CFPB’s plans to issue rules that will accelerate the shift to open banking in the United States, the CFPB analyzed POS payments in the context of mobile operating systems to better understand the state of platform interoperability in payments, a critical open banking use case."

Tags: CFPB

Companies Regulation

CFPB Report Highlights Role of Big Tech Firms in Mobile Payments

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) published a new issue spotlight highlighting the impacts of Big Tech companies’ policies and practices that govern tap-to-pay on mobile devices like smartphones and watches."

Tags: CFPB

Regulation

Laying the Foundation for Open Banking in the United States (CFPB)

Consumer Financial Protection Bureau

"...The CFPB is working to accelerate the shift to open banking through a new personal data rights rule intended to break down these obstacles, jumpstart competition, and protect financial privacy...We expect to solicit comments on our formal proposal in a few months and finalize in 2024."

Tags: CFPB

Regulation

Are Payment Apps Systemically Important? CFPB's Chopra Thinks So

American Banker

"Rohit Chopra, the director of the Consumer Financial Protection Bureau, has concerns about peer-to-peer payment platforms such as PayPal, Venmo and Cash App.  During a webcast appearance on Tuesday, Chopra suggested that financial regulators should consider whether such money transmitter services should be designated as systemically important to ensure their customers' funds are adequately protected. (Subscription Required)"

Tags: CFPB

Regulation

Consumer Use of Buy Now, Pay Later: Insights from the CFPB Making Ends Meet Survey

Consumer Financial Protection Bureau

"This report explores the consumer financial profiles of Buy Now, Pay Later (BNPL) borrowers using the Bureau’s Making Ends Meet survey and its association with credit bureau data. While many BNPL borrowers who we observed used the product without any noticeable indications of financial stress, BNPL borrowers were, on average, much more likely to be highly indebted, revolve on their credit cards, have delinquencies in traditional credit products, and use high-interest financial services such as payday, pawn, and overdraft compared to non-BNPL borrowers."

Tags: CFPB

Regulation

CFPB Issues Guidance to Root Out Tactics Which Charge People Fees for Subscriptions They Don’t Want

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) issued a new circular affirming that companies offering “negative option” subscription services must comply with federal consumer financial protection law. Negative option programs include subscription services that automatically renew unless the consumer affirmatively cancels, and trial marketing programs that charge a reduced fee for an initial period and then automatically begin charging a higher fee.

Tags: CFPB

Companies Regulation

CFPB Orders Wells Fargo to Pay $3.7 Billion for Widespread Mismanagement of Auto Loans, Mortgages, and Deposit Accounts

Consumer Financial Protection Bureau

“The Consumer Financial Protection Bureau (CFPB) is ordering Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines. The bank’s illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes. Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank.”

Tags: CFPB

Regulation

Fraud, Transaction Problems Highlight US Consumer Complaints Over Crypto

Reuters

“Fraud and transaction problems were leading factors in a surge of US consumer complaints related to cryptocurrencies & other digital assets. The report from the US Consumer Financial Protection Bureau (CFPB) comes as the high-profile failure of the FTX crypto exchange has seized the attention of regulators and shaken the crypto industry. “Our analysis of consumer complaints suggests that bad actors are leveraging crypto-assets to perpetrate fraud on the public,” said CFPB Director Rohit Chopra.  Even before the collapse of FTX, complaints from consumers who were hit by other types of digital currency losses have been rising at an alarming rate, the CFPB reported. The CFPB report said the crypto market has become a magnet for fraudsters who see little chance that their schemes will be detected due to the absence of investor protection and the opaque nature of the market.”

Tags: CFPB

Regulation

Why The US Wants To Regulate The Buy Now, Pay Later (BNPL) Industry

MediaNama

“The US Consumer Financial Protection Bureau (CFPB) on September 15 published a report detailing the consumer harms that it observed with the “rapidly growing” Buy Now, Pay Later (BNPL) industry arising from practices like data harvesting, inconsistent consumer protection, and debt overextension.  The agency noted that it will identify potential guidelines or rules to issue to ensure that BNPL lenders adhere to many of the baseline protections that already exist for other forms of credit. The report comes after CFBP in December 2021 announced a market monitoring inquiry to gain more insight into the industry.”

Tags: CFPB