The CFPB has issued guidance for how the agency plans to enforce its final rule implementing Section 1071 of the Dodd-Frank Act, which requires the collection and reporting of credit application data for small businesses, including women-owned and minority-owned small businesses.
The CFPB warned financial institutions that they are legally obligated to “competently interact with customers” about financial products or services even if those interactions occur through chatbots powered by artificial intelligence.
The CFPB issued a consumer advisory warning that many popular nonbank payment apps lack deposit insurance and therefore the protection of keeping money in a bank account.
The CFPB issued a circular stating that a bank may violate federal law if it unilaterally reopens a deposit account to process transactions after a consumer has closed the account.
The CFPB’s “untested and unvalidated assumptions” about credit card late fees are wrong, particularly about the deterrence effect of late fees, and result in “flawed policy,” ABA and two banking and credit card associations said.
The CFPB’s proposal to overhaul the safe harbor dollar amount for credit card late fees lacks evidence to support its claim that the rule will not have significant economic effects on a substantial number of small entities, the Small Business Administration’s independent Office of Advocacy wrote in a letter to the bureau.
While well-intentioned, the Truth in Lending Act’s mortgage loan originator rules are extremely complex and continue to cause considerable compliance challenges due to their prescriptive and detailed restrictions on compensation for loan originators, ABA said in a letter to the CFPB.
CFPB: The updated rule will “facilitate the orderly transition of those consumer loans that currently use the Libor index to other indices.”
The Texas Bankers Association this week sued to block the CFPB from implementing its final rule under Section 1071 of the Dodd-Frank Act.
Banks can take several steps to mitigate challenges surrounding overdraft/NSF fee lawsuits and enforcement actions.