Regulatory Agencies

In CONSUMER FINANCIAL PROTECTION BUREAU, Plaintiff, v. CRAIG MANSETH, et al., Defendants. Additional Party Names: Darren Turco, Jacob Adamo, JTM Cap. Mgmt., LLC, UHG I LLC, UHG II LLC, UHG, LLC, United Debt Holding LLC, No. 22-CV-29-LJV, 2023 WL 5400235, at *8–9 (W.D.N.Y. Aug. 22, 2023), Judge Vilardo allowed the CFPB to proceed over objections from some defendants that they… Read More

The CFPB issued its Summer 2023 Supervisory Highlights, including a section on security protocols. "The CFPB’s Supervision program evaluates information technology controls at supervised institutions that may impact compliance with Federal consumer financial law or implicate risk to consumers. The CFPB assesses the effectiveness of information technology controls in detecting and preventing data breaches and cyberattacks. For example, inadequate security… Read More

In CFPB v. Community Financial Services Association (SCOTUS 22-448), the CFPB filed it's Opening Brief on May 8 before the SCOTUS seeking reversal of the Court of Appeals for the Fifth's Circuit decision.  The CFPB's Opening Brief can be found here: CFPB's Opening Brief 5-8-23 Read More

On May 1, 2023, the DFPI held its Inaugural Meeting for the new DFPI Advisory Committee for the 2023-2025 Term.  There were largely three highlights.  First, the DFPI introduced the DFPI's new Committee (https://dfpi.ca.gov/dfpi-debt-collection-advisory-committee/) : Angela Reed-Becker – Equabli Inc. Cindy Yaklin – States Recovery Systems Inc. Desiree Nguyen Orth – East Bay Community Law Center Kali Miller – PTNSVC… Read More

Today, the DFPI issued Notice of the next Advisory Committee meeting, scheduled for May 1, 2023 at 10:00 a.m. PST.  The meeting will take place virtually, will be open to the public, and will be led by Senior Deputy Commissioner Suzanne Martindale and Deputy Commissioner Melinda Lee. The next meeting of the committee will take place virtually on May 1,… Read More

Today, the DFPI issued a Notice of Proposed Rulemaking relevant to entities who may have to register with the DFPI under the CCFLP.  Comments are due by May 2, 2023.  In the DFPI's purpose statement, the DFPI explained: In September 2020, Governor Gavin Newsom signed Assembly Bill 1864, which codified the CCFPL in division 24 of the Financial Code and vested… Read More

On May 20, 2022, the Department of Financial Protection and Innovation published a Notice of Proposed Rulemaking (PRO 03-21) to adopt Article 5, including sections 1070, 1071, 1072, 1073, 1074, and 1075 of Title 10, Chapter 3, Subchapter 4 of the California Code of Regulations, to implement, interpret, and make specific Financial Code section 90008 of the California Consumer Financial… Read More

On October 20, the FTC announced an NPR with respect to “junk fees”, noting The FTC is concerned that junk fees are common in many sectors of the U.S. economy. The advance notice of proposed rulemaking announced today seeks public comment on the harms stemming from junk fees and associated junk fee practices and on whether a new rule would… Read More

You have a pretty good idea where the decision is going to go when it starts with this sentence from James Madison in the Federalist Papers: An elective despotism was not the government we fought for; but one which should not only be founded on free principles, but in which the powers of government should be so divided and balanced… Read More

The FTC announced an advanced notice of proposed rulemaking on commercial surveillance and security.  “Commercial surveillance” is defined as the business of collecting, analyzing and profiting from consumer data. The FTC seeks public comment on implementation of new rules on how businesses "(1) collect, aggregate, protect, use, analyze, and retain consumer data, as well as (2) transfer, share, sell, or… Read More

On August 11, 2022, the CFPB issued a circular on data security and the question "[c]an entities violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security?"  The short answer is "yes." The CFPB highlights specific security measures to minimize risk. In line with the new… Read More

On July 27, the CFPB issues an extensive FAQ or "Compliance Aid" on how to comply with the new FDCPA regulations.  A Compliance Aid is This designation will provide the public with greater clarity regarding the legal status and role of these materials, as discussed below. The Bureau does not intend to use Compliance Aids to make decisions that bind… Read More

On July 15, the DFPI issued proposed regulations on the scope of  debt collection licensure required by the DCLA.  The text of the proposed regulations can be found  here:  PRO-05-21-Text-DCLA-Invitation-for-Comments.-7.14.22 There are a number of significant proposed regulations for licensees, applications, or potential licensees. First, the DFPI's proposed regulations would confirm that W-2 or true employees are not required to… Read More

On June 24, the FTC announced that purportedly is designed to fight deceptive advertising, crack down on bait-and-switch marketing, and put a stop to hidden add-on charges when consumers go vehicle shopping.  According to the Notice posted in the Federal Register, FTC 6.23.22 Auto Rule NPRM, the NPR purports to The Federal Trade Commission (“FTC” or “Commission”) seeks comment on… Read More

The DFPI issued a Notice of Proposed Rulemaking, the comment period for which closes on July 5, 2022.  The NPR relates to obligating covered persons to implement and maintain a process for consumers to make complaints and for covered persons to respond to them.  The Notice is here (PRO-03-21-Notice-of-Proposed-Rulemaking-5-17-22 and the Proposed Regulations can be found here https://dfpi.ca.gov/wp-content/uploads/sites/337/2022/05/PRO-03-21-Draft-Text-CCFPL-Complaints-5-2-22.pdf In the Statement of… Read More

In Consumer Fin. Prot. Bureau v. CashCall, Inc., Nos. 18-55407, 18-55479, 2022 U.S. App. LEXIS 13810, at *23-25 (9th Cir. May 23, 2022), the Court of Appeals for the 9th Circuit rejected CashCall's argument that the Native American Tribal Lender, and not CashCall was the true lender for purposes of determining whether state usury law applied. In substance, all of… Read More

The DFPI announced that it continues to have delays in processing applications.  Debt Collector Licensing – Update on Processing Delays  In conjunction with the notice, the DFPI have also updated the Questions & Answers on their webpage at https://dfpi.ca.gov/debt-collection-licensee/. Read More

On October 27, 2021, the Federal Trade Commission ("FTC") announced important updates to the Gramm-Leach-Bliley Act's (the "Act") primary consumer protection rules. Enacted in 1999, the Act implemented regulations on financial institutions with regard to consumer privacy and data security concerns. It includes two primary parts, or "rules": the Privacy Rule and the Safeguards Rule. The Privacy Rule limits disclosure… Read More

The CFPB announced that as part of its overall CMS assessment, the CFPB may evaluate the technology controls of an institution and its service providers. Institutions within the scope of the CFPB’s supervision and enforcement authority include both depository institutions and non-depository consumer financial services companies. These institutions operate in a dynamic environment influenced by challenges to profitability, increased focus on… Read More

In Ftc v. Credit Bureau Ctr., No. 17 C 194, 2021 U.S. Dist. LEXIS 173180, at *3-7 (N.D. Ill. Sep. 13, 2021), Judge Kennelly allowed the FTC to amend its judgment to preserve a restitution award on an alternative legal theory after SCOTUS held in AMG Cap. Mgmt. that section 13(b) of the FTC Act did not afford a right… Read More