Several years ago, the Consumer Financial Protection Bureau (CFPB) took a big step to protect consumers from unfair and abusive practices in the payday and installment lending industry. After a thorough review of the market, the CFPB discovered a troubling trend: lenders repeatedly attempting to withdraw money from consumers’ accounts even after the accounts were empty. One particularly shocking example revealed a lender making 11 failed withdrawal attempts in a […]

In a notable move to ease the pressures of medical debt and protect consumers’ financial well-being, the Consumer Financial Protection Bureau (CFPB) has introduced a proposal. This proposal aims to update credit reporting practices by removing medical bills from most credit reports, enhancing privacy protections, improving credit scores and loan approvals, and curbing coercive debt collection tactics. The Need for Change  Medical bills have long been a challenge in the […]

The Consumer Financial Protection Bureau (CFPB) has issued its final rule requiring nonbank entities, including debt collectors, to register with the bureau when they are subject to local, state, or federal court or agency enforcement actions.  Debt collection companies that bring in more than $10 million annually are considered a nonbank entity.  This substantial move to enhance consumer protection involves the creation and maintenance of a registry to collect information […]

The Federal Trade Commission (FTC) has recently submitted its annual report to the Consumer Financial Protection Bureau (CFPB), detailing its enforcement and related activities for 2023. This report covers the FTC’s efforts under the Truth in Lending Act (TILA), the Consumer Leasing Act (CLA), and the Electronic Fund Transfer Act (EFTA), reflecting the changes instituted by the Dodd-Frank Act.  Signed into law on July 21, 2010, the Dodd-Frank Act significantly […]

The Consumer Financial Protection Bureau (CFPB) has recently issued an interpretive rule that classifies Buy Now, Pay Later (BNPL) lenders as credit card providers. This decision, announced through a press release, mandates that BNPL lenders extend key consumer rights and legal protections typically associated with traditional credit cards. This move aims to address growing concerns about consumer protection in the rapidly expanding BNPL market.  Key Protections Under the New Rule  […]

In a notable ruling, the U.S. Supreme Court has upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), concluding that it does not violate the Constitution’s separation of powers clause. Justice Clarence Thomas authored the decision, which passed with a 7-2 majority. Justices Samuel Alito and Neil Gorsuch dissented.  The case, Community Financial Services Association of America Ltd. (CFSA) v. CFPB, revolved around whether funding the CFPB through […]