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1 week ago | 
jdsupra.com | Stefanie Jackman |Jesse Silverman |Lori J. Sommerfield
On April 11, the U.S. Court of Appeals for the District of Columbia Circuit issued an order partially staying the district court’s preliminary injunction in the ongoing legal dispute between the National Treasury Employees Union (NTEU) and the Consumer Financial Protection Bureau (CFPB). This decision marks a significant development in the NTEU’s challenge against Acting Director Russell Vought’s actions, which the union claims are unconstitutional and violate the Dodd-Frank Act.
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1 week ago | 
jdsupra.com | Stefanie Jackman |Jesse Silverman |Lori J. Sommerfield
The Consumer Financial Protection Bureau (CFPB or Bureau) agreed to vacate its controversial credit card late fee rule in a joint motion for entry of consent judgment filed in Chamber of Commerce of the United States of America v. CFPB this week. This significant move comes after the U.S. District Court for the Northern District of Texas found that the rule likely violated the Credit Card Accountability and Disclosure Act (CARD Act).
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1 week ago | 
jdsupra.com | Stefanie Jackman |Ethan G. Ostroff |Lori J. Sommerfield
On April 9, the House of Representatives passed two Congressional Review Act (CRA) joint resolutions aimed at nullifying certain Consumer Financial Protection Bureau (CFPB) rules finalized in the final days of the Biden-Harris Administration. These resolutions, S.J. Res. 18 and S.J. Res. 28, target rules related to limiting the overdraft fees that may be charged by large financial institutions, and extending supervisory authority over certain providers of digital payments services, respectively.
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Dec 10, 2024 | 
jdsupra.com | Matthew Bornfreund |Lori J. Sommerfield
On December 3, the Office of the Comptroller of the Currency (OCC) issued version 1.1 of the “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet of the Comptroller’s Handbook, also known as the UDAAP booklet. The UDAAP booklet was last updated in June 2020. Key Updates in Version 1.1 Overdraft Services: The revised booklet offers enhanced guidance on sound risk management practices related to overdraft services.
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Dec 9, 2024 | 
openlegalblogarchive.org | Matthew Bornfreund |Lori J. Sommerfield
On December 3, the Office of the Comptroller of the Currency (OCC) issued version 1.1 of the “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet of the Comptroller’s Handbook, also known as the UDAAP booklet. The UDAAP booklet was last updated in June 2020. Key Updates in Version 1.1Overdraft Services:The revised booklet offers enhanced guidance on sound risk management practices related to overdraft services.
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Nov 15, 2024 | 
jdsupra.com | Joseph Reilly |Caleb Rosenberg |Lori J. Sommerfield
On November 13, the Consumer Financial Protection Bureau (CFPB or Bureau) released a pilot study titled “Matched-Pair Testing in Small Business Lending Markets” highlighting what the CFPB believes were two statistically significant disparities in the treatment of Black and white small business owners seeking loans. First, the secret shopping study indicated that Black entrepreneurs were less encouraged by small business lenders to apply for loans.
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Nov 6, 2024 | 
jdsupra.com | Lori J. Sommerfield |Chris Willis
In a significant development, the Consumer Financial Protection Bureau (CFPB or Bureau) has finally reached a settlement with Townstone Financial, Inc. (Townstone) in the first redlining case brought against a nonbank mortgage lender and broker. This settlement follows the Seventh Circuit Court of Appeals’ pivotal decision in favor of the CFPB that expanded the Equal Credit Opportunity Act (ECOA) to include protections for prospective applicants who may be discouraged from applying for credit.
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Nov 6, 2024 | jdsupra.com | Lori J. Sommerfield |Chris Willis
In a significant development, the Consumer Financial Protection Bureau (CFPB or Bureau) has finally reached a settlement with Townstone Financial, Inc. (Townstone) in the first redlining case brought against a nonbank mortgage lender and broker. This settlement follows the Seventh Circuit Court of Appeals’ pivotal decision in favor of the CFPB that expanded the Equal Credit Opportunity Act (ECOA) to include protections for prospective applicants who may be discouraged from applying for credit.
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Oct 18, 2024 | 
jdsupra.com | Joseph Reilly |Lori J. Sommerfield |Chris Willis
On October 15, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Department of Justice (DOJ) announced that they reached a settlement with Fairway Independent Mortgage Corporation (Fairway). This settlement addresses allegations of redlining in majority-Black neighborhoods in Birmingham, Alabama. Fairway is headquartered in Madison, WI, but operates under the trade name MortgageBanc in the Birmingham area.
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Oct 14, 2024 | 
jdsupra.com | Joseph Reilly |Lori J. Sommerfield |Chris Willis
[co-author: Eric Maxwell]On October 10, the U.S. Department of Justice (DOJ) announced a landmark redlining settlement with Citadel Federal Credit Union (Citadel), marking the first such agreement with a credit union in the DOJ’s history. This settlement, the 14th in DOJ’s Combatting Redlining Initiative since 2021, addresses allegations that Citadel engaged in discriminatory lending practices by redlining predominantly Black and Hispanic neighborhoods in and around Philadelphia.
