In a backdoor move to impose a de facto price cap on overdraft fees, the CFPB today proposed to apply requirements of Regulations Z to overdraft fees at banks and credit unions with more than $10 billion in assets.
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Proposed legislation to implement a national 36% annual cap on fees and interest charged on consumer loans would make it more difficult for many consumers to obtain credit, thereby harming the very consumers the bill seeks to protect, ABA and eight financial sector associations said.
The guidance focuses on the risk management of buy-now-pay-later loans, which are payable in four or fewer installments and carry no finance charges.
The FBI and CISA have released an updated joint cybersecurity advisory in response to recent activity by the cybercriminal group Scattered Spider against the commercial facilities sectors and subsectors.
Roughly 22.7 million American borrowers had an outstanding unsecured personal loan at the end of June 2023, with loans from financial technology firms a significant driver of new unsecured loans, the Federal Reserve Bank of New York said in a report.
The CFPB released a proposal for applying ability-to-repay requirements to residential property assessed clean energy, or PACE, loans.
CFPB: The updated rule will “facilitate the orderly transition of those consumer loans that currently use the Libor index to other indices.”
Banks entering the buy-now-pay-later market will find significant competition as well as potentially some allies.
In his State of the Union address tonight, President Biden highlighted his administration’s proposals to place price controls on consumer fees, including fees charged by banks for late payments.
The Consumer Financial Protection Bureau this week announced its intent to make a preemption determination regarding whether the Truth in Lending Act preempts a New York State commercial financing law with respect to certain provisions.