Trending: Banking Execs Warn House Financial Services Hearing of Regulatory ‘Ambiguity’

Prudent regulation is needed in helping to define the risks and rewards in emerging partnerships between financial institutions and banks — but current regulatory efforts may be too vague, critics charged at a Congressional hearing held Friday (July 12). A “field hearing” held by the House Financial Services Subcommittee on Financial Institutions and Monetary Policy — “field” hearings take place outside of Washington, D.C., and in this case was held in Kentucky — included testimony from banking and FinTech executives who noted that the partnerships have the potential to transform financial services and boost financial inclusion.

Seven New States Join Patchwork of U.S. Comprehensive Privacy Laws: Top 10 Trends from the First Half of 2024

In the first half of 2024, seven new states—Kentucky, Maryland, Minnesota, Nebraska, New Hampshire, New Jersey, and Rhode Island—all enacted their takes on comprehensive privacy laws, bringing the total number of states with such laws up to 19 (20, if counting Florida1). At a high level, most of these laws substantively mirror the provisions in previously enacted state comprehensive privacy laws, including continuing the trend of not providing a private right of action and affording covered entities an opportunity to cure alleged violations.

The FCC says robocalls that use AI-generated voices are illegal

he Federal Communication Commission is moving forward with its plan to ban AI robocalls. Commissioners voted unanimously on Wednesday in favor of a Declaratory Ruling that was proposed in late January. Under the measure, the FCC deems robocalls made using AI-generated voices to be “artificial” voices per the Telephone Consumer Protection Act (TCPA). That makes the practice illegal. The ruling takes effect immediately.

California Privacy Protection Agency Announces Proposed Regulations for Data Broker Registration

On July 5, the California Privacy Protection Agency (CPPA) published a Notice of Proposed Rulemaking regarding Data Broker Registration pursuant to Senate Bill 362 (the Delete Act). The Delete Act requires the CPPA to establish an accessible deletion mechanism. This mechanism allows a consumer, through a single verifiable consumer request, to request that every data broker delete any personal information related to that consumer held by the data broker or associated service provider or contractor. 

CFPB Proposes New “Streamlined” Mortgage Servicing Rules

As we predicted here, the Consumer Financial Protection Bureau (CFPB or Bureau) last week proposed new and, in some cases, streamlined rules governing what mortgage servicers must do after a borrower becomes delinquent. The proposed rules incorporate some pandemic-era practices, such as allowing servicers to offer assistance without a comprehensive review of the borrower’s financial situation. 

California DFPI July 2024 Monthly Bulletin

Myriam Valdez-Singh Appointed DFPI Deputy Commissioner for Legislation. Jerry Twomey Selected DFPI Deputy Commissioner for BDIA, 2024-25 Assessment Rates for Credit Unions and Money Transmitters and more.

The Work Around, Compliant?

Everyone who has worked in collection operations knows what it is like to create workarounds for processes. Often, these processes are designed by corporate teams without a true understanding of operational realities. Cutting corners on lengthy scripts or using alternate approaches is common to save time or simplify execution. However, processes are designed to ensure compliance with policies and requirements. So, is your workaround still compliant? 

New Report Highlights Impact of Embedded Lending Options on Small Business Banking Preferences

Embedded lending can help microbusinesses and small businesses grow and maintain smooth operations despite unstable cash flows. However, PYMNTS Intelligence’s latest study finds that relatively few microbusinesses and small businesses currently take advantage of this lending solution. In fact, fewer than one in five respondents used it in the last year. The data highlights unmet needs for access to lending, especially among microbusinesses.

When Is a Call Actually “Sent” for TCPA Purposes?: Plaintiff’s Effort to Certify TCPA Fax Class Action Denied Because “Sent” Reports Not Reliable–and It Raises an Interesting Question

I often say class counsel should avoid demanding class data upfront. It largely just complicates matters for them. Instead the right move is to learn about the data sets available so you can determine whether they are reliable or not. If so, you can move forward without the full production. If not, you can get out before wasting any more time-or pivot to an optional strategy.

Judge Pittman States that District Court Lacks Jurisdiction and Strikes the CFPB’s Notice of Supplemental Authority in Support of the Motion to Transfer Venue under Section 1406(a) and Motion and Brief to Dissolve the Preliminary Injunction in the Credit Card Late Fee Lawsuit

On July 8, 2024, in the lawsuit challenging the CFPB’s credit card late fee rule (Rule), the CFPB filed a notice of supplemental authority in support of their motion to dismiss or transfer the case, a motion to dissolve the preliminary injunction, and a brief to support their motion.