Jan 27
Jan 27 CFPB’s Report Finds an Increase in Vehicles Eligible for Repossession Compared to Pre-Pandemic Levels

On January 23, 2025, the CFPB published a report showing that the rate of auto repossessions at the end of 2022 surpassed pre-pandemic levels. The CFPB also found that lenders were increasingly more likely to use third parties, called forwarders, to manage the repossession process.

Jan 27
Jan 27 CFPB Fines American Honda Finance for COVID-19 and Other Credit Reporting Failures

Adam Witmer

Regulatory Update

On January 17, 2025, the CFPB ordered the American Honda Finance Corporation to pay $12.8 million for reporting inaccurate information that affected the credit reports of 300,000 people who drive Honda and Acura vehicles. Honda Finance is a nonbank automotive finance company for American Honda Motor Co., Inc., whose business is the purchase and servicing of loans and leases arranged by Honda and Acura dealerships.

Jan 26
Jan 26 ON SALE: Adverse Action Requirements

Adam Witmer

Our Adverse Action Requirements class is currently on sale. This program takes a deep dive into everything you and your team need to know about adverse action notices. In this program, we review the adverse action requirements of both Reg B and FCRA, explain disclosure requirements under the FCRA mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and discuss common adverse action violations. Plus, our Adverse Action Requirements has been pre-approved by the ABA for 4.0 CRCM/CERP continuing education credits. To learn more about this program, go to: www.compliancecohort.com/adverse-action-requirements

Jan 23
Jan 23 CFPB Releases Winter 2025 Edition of Supervisory Highlights

Adam Witmer

Regulatory Update, Fair Lending

On January 17, 2025, the CFPB issued a special edition of its Supervisory Highlights concerning advanced technologies. In particular, the Winter 2025 Supervisory Highlights Edition looks at select examinations of institutions that use credit scoring models, including models built with advanced technology commonly marketed as AI/ML technology, when making credit decisions.

Jan 22
Jan 22 CFPB Takes Action Against Draper & Kramer Mortgage for Redlining Violations

Adam Witmer

Regulatory Update, Regulation B

On January 17, 2025, the CFPB took action against Draper & Kramer Mortgage Corporation for discriminatory mortgage lending activities that discouraged homebuyers from applying to Draper for homes in majority-Black and Hispanic neighborhoods in the greater Chicago and Boston areas. CFPB Director Rohit Chopra said that the Bureau’s proposed order bans Draper from mortgage lending for five years and ensures that the company pays for its unlawful discrimination.

Jan 21
Jan 21 NCUA Publishes Research Note on Overdraft and NSF Fees in Credit Unions

Adam Witmer

Regulatory Update

On January 16, 2025, the NCUA released a Research Note that provides an analysis of statistics for overdraft and non-sufficient funds fees, and observations on the relationship between overdraft and non-sufficient funds fees and other revenues. NCUA Chairman Harper said that the Research Note provides important information for consumers, researchers, credit unions, and regulators about the use of overdraft and NSF fees at credit unions.

Jan 20
Jan 20 CFPB Proposes Rule Targeting Consumer Financial Contracts

Adam Witmer

Regulatory Update

On January 14, 2025, the CFPB proposed a rule under Regulation AA that would prohibit certain contractual provisions in agreements for consumer financial products or services. The proposed rule aims to address coercive and restrictive clauses in consumer financial contracts.

Jan 20
Jan 20 CFPB Reminds of the Implementation of the Final Rule on Payday and Installment Loans

Adam Witmer

Regulatory Update

On January 10, 2025, the CFPB published a blog post to create consumer awareness on the new protections for payday and installment loans that will take effect March 30, 2025. The new rule addresses lenders’ unfair and abusive practice of repeatedly trying to withdraw money from an account to pay off the loan, even after the account had been shown to be empty.

Jan 19
Jan 19 COMING SOON: Winter 2025 Quarterly Compliance Update

Adam Witmer

We are in the process of recording our Winter 2025 Quarterly Compliance Update and plan to release it in the coming weeks. (PREMIUM MEMBERS: You will be notified once the program is live and available to view.) Our Winter 2025 Quarterly Compliance Update covers all of the regulatory activity that took place during the fourth quarter of 2024 and is a great way for financial institutions to stay up-to-date on the activity that took place in the regulatory compliance world. You can learn more about this program at www.compliancecohort.com/winter-2025-quarterly-compliance-update.

Jan 15
Jan 15 CFPB Withdraws Proposed Rule on Fees for Instantaneously Declined Transactions Rule

Adam Witmer

Regulatory Update

On January 14, 2025, the CFPB published in the Federal Register a withdrawal from its proposed rule to prohibit banks and other financial institutions from charging certain nonsufficient funds (NSF) fees, such as those for declined debit card purchases, Automated Teller Machine (ATM) withdrawals, and some person-to-person payments. The CFPB said that it will determine whether a more comprehensive approach to also prohibit NSF fees charged for additional types of transactions will better protect consumers from potentially unlawful fees.