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The Consumer Financial Protection Bureau (CFPB) recently published its Semi-Annual Report to Congress, detailing its activities from October 2022 to March 2023. CFPB Director Rohit Chopra testified before the House Financial Services Committee and the Senate Banking Committee, discussing the state of the consumer financial services marketplace. He highlighted high levels of consumer debt, particularly in credit card and auto lending markets. Director Chopra also mentioned the Bureau's proposed rule to implement Dodd-Frank Section 1033, efforts to address "junk fees," and the Bureau's supervision and enforcement efforts, which have resulted in $8 billion in penalties and redress. He also expressed concerns about the role of artificial intelligence in financial services. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has submitted a comment letter to the California Department of Financial Protection and Innovation (DFPI) regarding a proposal that would require companies offering income-based advances to register and undergo examination. The CFPB supports the proposal, stating that state supervision of consumer financial services providers promotes consumer protection. The CFPB plans to issue further guidance on the application of federal law to income-based advance products. [Extracted from the article]

The article discusses a joint statement issued by the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) regarding the consideration of borrowers' immigration status under the Equal Credit Opportunity Act (ECOA). While Regulation B, which implements ECOA, does not explicitly prohibit considering immigration status, it does allow creditors to take it into account in certain contexts. However, the joint statement cautions against unnecessary or biased reliance on immigration status, as it may violate ECOA's antidiscrimination provisions and other laws. The statement also highlights the potential for immigration status to serve as a proxy for protected characteristics, such as race and national origin, and emphasizes the need for evidence-based criteria and fair lending practices. Additionally, the article mentions creditors' obligations under 42 U.S.C. § 1981, which provides broad antidiscrimination protections. [Extracted from the article]

In a recent speech, CFPB Director Rohit Chopra discussed the relationship between the CFPB and the U.S. mortgage market, highlighting the Bureau's role in implementing new standards to ensure safety and transparency. He argued that if these rules had been in place during the 2008 crisis, families would have been able to keep their homes and the Great Recession would have had a different outcome. Director Chopra also expressed concerns about the pending CFSA case in the Supreme Court, stating that it could have significant implications for the financial regulatory system. He emphasized the importance of the CFPB's regulations for the stability of the financial markets and household finances. [Extracted from the article]

In a recent speech at the Federal Reserve Bank of Philadelphia's Annual Fintech Conference, CFPB Director Rohit Chopra discussed the role of "Big Tech" in mobile payment systems. He highlighted the dominance of two large tech firms in the market and expressed concerns about their practices, particularly Apple's restrictions on third-party apps accessing tap-to-pay technology. Director Chopra also mentioned the CFPB's ongoing efforts to implement Dodd-Frank section 1033, which aims to enhance consumer control over financial data. A proposed rule for section 1033 is expected to be released next month. [Extracted from the article]

In December, twenty-one state attorneys general sent letters to the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) requesting assistance with investigations of federally chartered banks and the enforcement of state consumer protection laws. The attorneys general expressed concern that federally chartered banks often refuse to cooperate with investigations and fail to provide necessary documents or testimony. They suggested that the CFPB develop a formal mechanism for state attorneys general to seek assistance when facing resistance from federally chartered banks. [Extracted from the article]

A recent report published by the CFPB's Offices of Consumer Populations and Markets highlights a significant decline in insufficient fund (NSF) fees charged by banks and credit unions. The report reveals that a majority of large banks have eliminated NSF fees in recent years, resulting in a 97% decrease in NSF fee revenue for banks with over $10 billion in assets. This change has led to an estimated annual savings of nearly $2 billion for consumers. However, the report also notes that some institutions, particularly large credit unions, still charge NSF fees, and the CFPB will continue to monitor these practices. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has published a report titled "Tuition Payment Plans in Higher Education," which examines the payment of college tuition through payment plans. The report found that nearly all colleges offer tuition payment plans, with millions of students utilizing these plans each year. However, the disclosures related to these plans vary widely, and some students are forced into them, leading to fees and financial difficulties. Late payment fees under these plans are high, and some plans allow colleges to convert interest-free plans into interest-bearing loans. Additionally, borrowers under these plans may face intrusive forms of debt collection, and some plans require waivers of consumer rights. [Extracted from the article]

Affirm Holdings, Inc., a major buy now, pay later (BNPL) provider, has stated in a regulatory filing that it expects to come under the supervision of the Consumer Financial Protection Bureau (CFPB) in the near future. The CFPB has been increasing its scrutiny of the BNPL market, with Director Rohit Chopra leading an inquiry into BNPL practices and releasing several reports and blog posts on the industry. While the CFPB has the authority to supervise certain larger participants in the consumer financial marketplace, it has not yet exercised this authority in the BNPL market. [Extracted from the article]

On August 15, 2023, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra delivered remarks before a White House Roundtable on Protecting Americans from Harmful Data Broker Practices. During his remarks, Director Chopra signaled that the CFPB plans to move forward with a rulemaking that would clarify the application of the Fair Credit Reporting Act ("FCRA") to data brokers. [Extracted from the article]

The senators call on the CFPB to "review the risks posed by this new technology as soon as practicable and take action under the CFPB's existing authorities to protect consumers". On July 6, 2023, Democratic Senators Sherrod Brown, Bob Menendez, Jack Reed, and Tina Smith issued a letter to CFPB Director Rohit Chopra regarding the emergence of artificial-intelligence-powered voice cloning technology and its potential use in financial scams. [Extracted from the article]

The Agenda also states that the Bureau is contemplating new rules surrounding insufficient funds fees and overdraft fees as well as amendments to the regulations implementing the Fair Credit Reporting Act. The Bureau has issued its Spring 2023 Rulemaking Agenda, which covers rulemakings the Bureau expects to enter the pre-rule, proposed rule, and final rule stages during the period from June 1, 2023, through May 31, 2024. [Extracted from the article]

A group of Democratic members of Congress have written a letter to the Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, urging the Bureau to issue a rule that would limit consumer arbitration clauses. The letter acknowledges that Congress has the authority to restrict these clauses, but argues that the CFPB is better positioned to take action in this area. It also highlights that Congress previously overturned a 2017 Bureau arbitration rule, but asserts that the Bureau still has the authority to regulate arbitration and can issue a new rule that does not violate the prohibition. [Extracted from the article]

On December 12, 2022, the CFPB promulgated a proposed rule aimed at nonbank entities subject to federal, state, and local consumer financial protection law enforcement orders. The proposal would also impose an attestation requirement for certain larger nonbanks subject to the Bureau's supervisory authority. [Extracted from the article]

The Semi-Annual Report, which covers the Bureau's activities from October 1, 2021, through March 31, 2022, discusses its significant rules and orders, complaints about consumer financial products or services, public supervisory and enforcement actions by the Bureau, significant actions by state regulators relating to federal consumer financial law, the Bureau's efforts to fulfill its fair lending mission, diversity in the Bureau's workforce, and the agency's budget. On December 14 and 15, 2022, Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra testified before the U.S. House Financial Services Committee and the Senate Banking Committee regarding the Bureau's Semi-Annual Report to Congress. [Extracted from the article]

The Consumer Financial Protection Bureau (CFPB) has updated its page on compliance with the Real Estate Settlement Procedures Act (RESPA) to include a "non-exhaustive list" of regulations and guidance issued by the U.S. Department of Housing and Urban Development (HUD) that the Bureau applies in its current activities. This list includes HUD policy statements and an interpretive rule that the CFPB still considers to be applicable. The CFPB gained authority under RESPA in 2011 and continues to apply documents issued by other agencies relating to RESPA. [Extracted from the article]

In a June 13, 2023, interview with Fox News, CFPB Director Rohit Chopra discussed banks' use of artificial-intelligence-based chatbots in customer service contexts. He also cited risks surrounding the protection of consumers' financial data they divulge to chatbots. [Extracted from the article]