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3 weeks ago | 
jdsupra.com | A.J.S. Dhaliwal |Mehul Madia |Liisa M. Thomas
On February 20, the SEC announced the creation of its Cyber and Emerging Technologies Unit (CETU) to address misconduct involving new technologies and strengthen protections for retail investors. The CETU replaces the SEC’s former Crypto Assets and Cyber Unit and will be led by SEC enforcement veteran Laura D’Allaird.
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Jan 13, 2025 | 
jdsupra.com | Matt Benz |A.J.S. Dhaliwal |Mehul Madia
On January 8, the CFPB announced its intent to pursue rulemaking that would allow the agency to oversee nonbank personal loan lender.
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Nov 18, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |Mehul Madia
On November 13, the Consumer Financial Protection Bureau released a “pilot study” on the small business lending market revealing “significant disparities” in how lenders treat black and white small business owners. As part of its study, the CFPB conducted matched-pair testing at 50 bank branches in New York and Virginia using actors who posed as small business owners. Black participants were provided slightly more favorable financial profiles compared to the white participants.
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Nov 11, 2024 | 
jdsupra.com | Matt Benz |A.J.S. Dhaliwal |Mehul Madia
On November 1, the CFPB filed a proposed stipulated final order that would resolve the Bureau’s pending lawsuit in the Northern District of Illinois against a nonbank mortgage lender and broker for allegedly engaging in redlining and other discriminatory lending practices.
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Nov 11, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |Mehul Madia |Skylar Stoudt
On November 7, 2024, the CFPB ordered one of the largest credit unions in the nation to pay over $95 million for its practices related to the imposition of overdraft fees. The enforcement action addresses practices from 2017 to 2022 where the credit union charged overdraft fees on transactions that appeared to have sufficient funds, affecting consumers including those in the military community, in violation of the CFPA’s prohibition on unfair, deceptive, and abusive acts or practices.
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Oct 28, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |James G. Gatto |Mehul Madia
On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting Act with respect to the personal data of their workers. This guidance adds to the growing body of law that protects employees from potentially harmful use of AI. The CFPB guidance notes employers’ growing use of third-party consumer reports in employment decisions.
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Oct 21, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |Mehul Madia |Skylar Stoudt
In a September 26 settlement, the Massachusetts Attorney General’s office reached an agreement with a mortgage loan servicer to resolve allegations of violations of Massachusetts consumer protection laws and the Truth in Lending Act. The loan servicer primarily engaged in the servicing of nonperforming residential mortgage loans.
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Oct 7, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |Mehul Madia |Moorari Shah
On October 1, the CFPB issued an advisory opinion highlighting that debt collectors engaging in certain practices with respect to the collection of medical debts are strictly liable under the FDCPA and Regulation F. The Bureau’s advisory opinion states that medical debts disproportionately impact groups like young adults, low-income individuals, Black and Hispanic people, veterans, and the elderly.
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Sep 23, 2024 | 
jdsupra.com | Matt Benz |A.J.S. Dhaliwal |Mehul Madia
On September 4, the California Privacy Protection Agency (“CPPA”) issued an Enforcement Advisory cautioning businesses against the use of “dark patterns” in their consumer-facing user interfaces. The California Consumer Privacy Act (“CCPA”) defines the term “dark pattern” as “a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision making, or choice” when asserting their privacy rights or consenting.
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Sep 18, 2024 | 
jdsupra.com | A.J.S. Dhaliwal |James G. Gatto |Skylar Stoudt
On August 28, the CFPB issued a Consumer Advisory warning that it believes video game companies are targeting children for monetary gain. With 45.7 million U.S. children engaged in video gameplay, the agency is concerned about the financial risks that games and virtual worlds pose, especially to young consumers. This Advisory highlights a growing focus on the game industry’s practices, which allegedly mimic traditional banking systems but lack corresponding consumer protections.
