CFPB proposes rule removing medical bills from credit reports

Yesterday, the CFPB announced a proposed rule that would remove medical bills from most credit reports and add other limitations on the use of medical debt in lending. The agency’s press release is available here, and the proposed rule is available here. Comments will be open until at-least mid August.

DC Federal Court Remands “Junk Fee” Challenge Due to Lack of Article III Standing

Travelers United is a DC-based nonprofit that has sued a number of travel and hospitality providers for putative violations of DC’s consumer protection laws. In one recent case, the organization sued Hilton for their “deceptive Junk Fee practices” that “trick consumers into paying more” to book a hotel room “than they otherwise would.” Travelers United […]

Is the CFPB facing still another challenge?

Shortly after the Supreme Court upheld the CFPB’s constitutionality in the CFSA case, Harvard Emeritus Professor Hal Scott published an op-ed in WSJ, The CFPB’s Pyrrhic Supreme Court Victory (behind paywall) claiming that the CFPB has still another problem to deal with. Professor Scott’s essay, along with another piece posted on a Federalist Society website […]

Is payday lending the fentanyl of consumer lending?

Some years back, I had major surgery. When I woke up after the surgery, I was on fentanyl for pain relief. The following day, I was stepped down to morphine. Morphine was less effective at blocking the pain, but the staff explained that it was too risky to keep me on fentanyl. And in the […]

Private lender Navient has secret debt discharge program tied to school misconduct

Since 1994, the Department of Education has had a process for discharging federal student loan debt where students show they were defrauded or misled by the schools they attended- referred to as the “borrower defense” process. The Biden Administration’s borrower defense rule is currently on hold as a result of a Fifth Circuit opinion. But even […]

Should banks bear the burden of Zelle scams?

Zelle scams have been drawing a lot of attention lately.  For example, Penny Crosman has an article in the American Banker, Inside a Zelle fraud that almost lost a Florida consumer $3,500 (behind paywall but available on Lexis); she also discusses it on the Banking with Interest podcast. The Electronic Fund Transfers Act enables consumers […]

CFPB finalizes rule requiring companies report adverse orders

The CFPB today announced a final rule that will require nonbank financial companies subject to Dodd-Frank to register and report if they have been subject to certain final orders from agencies or courts based on violations of certain consumer laws, and imposing injunctive or remedial relief. In the agency’s press release, it indicated it will […]

How would the CFPB fare under Heritage’s Project 2025?

The Heritage Foundation has created what it describes as “the conservative movement’s unified effort to be ready for the next conservative Administration to govern” in a document titled Mandate for Leadership: The Conservative Promise, with a subheading of Project 2025; Presidential Transition Project. As far as I know, no presidential candidate has adopted it. It […]

Caruso and Cox article on subscription contract regulation

Given the pervasiveness of subscription contracts, regulation of such contracts has become a much more important consumer protection topic. And here is an article that tells us how to do that: Kaitlin Ainsworth Caruso of Maine and Prentiss Cox of Minnesota’s Silence as Consumer Consent: Global Regulation of Negative Option Contracts, American University Law Review, […]

New York Appellate Court Endorses the Dendrite Test for Subpoenas to Identify Anonymous Speakers

In a decision issued today, New York’s Appellate Division for the First Department reversed a decision of the state supreme court that had ordered Google and GoDaddy to identify BehindMLM, the author of a blog about multilevel marketing schemes, and quashed subpoenas to Google (the host of the blog) and GoDaddy (the registrar of the […]