Consumer Financial Protection Bureau

On May 1, 2026, the CFPB published its final rule implementing section 1071 of the Dodd-Frank Act, the small business lending data collection and reporting rule (Final Rule or Rule). The rule is finalized largely as proposed, except that the final rule removes disaggregated data fields for race/ethnicity. While the final rule is effective June 30, 2026, the compliance date is January 1, 2028. This memorandum provides a brief overview of the Rule. This rule amends the 2023 small business lending data rule, which did not go into effect due to litigation and a change in administration. Under the...

Set to be published in the Dec. 23rd Federal Register, the CFPB is issuing an advisory opinion (Advisory Opinion) to resolve “regulatory uncertainty” regarding the application of TILA/Reg Z to earned wage access (EWA) products. The Advisory Opinion explains why “Covered EWA” is not credit under Regulation Z. It also explains why, to the extent any EWA product is credit under Regulation Z, expedited delivery fees and tips are not, in the normal course, finance charges under Regulation Z. The CFPB also is withdrawing the 2024 proposed interpretive rule on EWA. The Advisory Opinion is effective...

In a pending case brought by the union representing CFPB employees, the Administration has informed the court that CFPB will run out of funding early next year and that the Administration will not seek additional funding for the agency. This memorandum examines the implications for the CFPB’s key functions – rulewriting, supervision, enforcement, and publication of market data – should the agency cease operations in early 2026. The Dodd-Frank Act provides the CFPB with exclusive authority to prescribe rules implementing federal consumer financial laws. These laws include ECOA, EFTA, FDCPA,...

Yesterday's notice rescinding the CFPB rulemaking procedural rule references a rarely acknowledged problem in regulatory change monitoring: the distinction between the agency announcement of a rulemaking action and its publication in the Federal Register. Banking agencies typically announce rulemaking actions on their websites when they are transmitted to the Federal Register, but official publication in the Federal Register can take several weeks. There are important reasons to capture and track both events: 1️⃣ The agency announcement is important because stakeholders in regulated...

On Friday, May 30th, the CFPB filed a motion for summary judgment in Forcht Bank v. CFPB asking the court to vacate the entire rule implementing Section 1033 (Rule). The motion argues that the Rule is unlawful under the Administrative Procedure Act (APA) as it exceeds the agency’s statutory authority and is arbitrary and capricious. The CFPB states that the change in position is the result of the agency’s review of existing rules under Executive Order 14219 to ensure they are based on the best reading of the underlying statute and do not impose undue burdens on small businesses and impede...

On May 12, 2025, the CFPB published the withdrawal of several guidance documents, interpretive rules, policy statements, and advisory opinions dating back to 2011, when the CFPB began operations. Effective immediately, the CFPB is withdrawing 67 issuances in total: 8 policy statements, 7 interpretive rules, 13 advisory opinions, and 39 other guidance documents (including circulars and bulletins). Over two-thirds of these guidance materials were issued during President Biden’s term. The attached chart details each issuance that the CFPB is withdrawing. The CFPB gave three reasons for...

With the anticipated “streamlining” of the Consumer Financial Protection Bureau’s (CFPB) jurisdiction and authority, it is possible that the Federal Trade Commission (FTC) may assume an enhanced role in overseeing the activities of financial services providers. To appreciate the FTC’s role, the attached chart compares the powers and authorities of the FTC and the CFPB. The key takeaways from the chart are: The Agencies’ Missions Overlap: The CFPB implements and enforces federal consumer financial law for the purpose of ensuring that all consumers have access to markets for consumer financial...

Under current law, the operations of the CFPB are funded by a transfer of “earnings” from the Federal Reserve System to the CFPB. Since the Federal Reserve System is operating at a loss due to rising interest rates and arguably has no earnings, the Administration has been urged to shut down the agency by executive order. (See Chopra is Out. Now Shutter the CFPB, by Hal Scott in the Wall Street Journal, February 3, 2025.) As discussed below, such an order would have some unintended effects on the application of federal consumer financial laws to banks and certain nonbanks. Executive orders...

On December 3rd, the CFPB proposed a rule expanding the coverage of FCRA to data brokers, clarifying the definition of consumer report, limiting the use of credit header data, and expanding the consumer consent requirements to furnish a consumer report. Comments on the Proposed Rule are due March 3, 2025. With an expanded definition of “consumer report” and “consumer reporting agency” (“CRA”), particularly that a person selling any of four types of information about a consumer (credit history, credit score, debt payments, and income or financial tier) for any purpose generally would qualify...

On June 3, 2024, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) published its final rule creating a registry (“Registry”) of nonbank covered persons subject to certain agency and court orders (“Final Rule”). The Final Rule is effective on September 16, 2024, but the implementation dates vary based on type of entity (as discussed below). In short, under the Final Rule, nonbank covered persons subject to certain final public orders obtained or issued by a government agency in connection with the offering or provision of a consumer financial product or service must report the...

On May 16, 2024, the U.S. Supreme Court affirmed the mechanism established by Congress to fund the Consumer Financial Protection Bureau (CFPB). The case was brought by trade associations whose members were adversely impacted by a CFPB rule. The plaintiffs argued that the method by which funds are made available to the CFPB violates the Constitutional Appropriations Clause that provides that “[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” By a 7 to 2 majority, the Supreme Court disagreed, and upheld the constitutionality of the funding system....

Today, the CFPB issued its final rule on credit card late fees under TILA. This memorandum provides a brief overview of the final rule. New Safe Harbor for Credit Card Late Fees: The new safe harbor for credit card late fees is $8 (as opposed to $30/$41 under the previous rule) and is no longer adjusted for inflation. The rule eliminates for late fees a higher safe harbor dollar amount for subsequent violations of the same type that occur during the same billing cycle or in one of the next six billing cycles. The proposed provisions to restrict late fee amounts to 25% of the required minimum...

Financial services trade associations have been a core focus of our practice for over half a century. The firm has served as outside counsel to over a dozen leading industry trade associations, as well as numerous issue-focused coalitions. Several of the firm's senior lawyers worked in-house at trade associations prior to joining the firm. We provide trade associations with legal counsel on federal banking, consumer finance, and housing policy matters. Our work includes drafting and editing comment letters to regulators such as the OCC, Federal Reserve, CFPB, FDIC, Treasury, FHFA, and HUD, as...

Katie Wechsler heads the firm's consumer and housing finance practice. She represents financial institutions and trade associations before Congress and the federal regulatory agencies, with a particular focus on federal consumer financial laws, mortgage lending and servicing, and the implementation and supervision of consumer financial protection requirements. Katie has developed a detailed understanding of the CFPB's authority, including the implementation of section 1033 (personal financial data rights) and section 1071 (small business data collection). Katie previously served as counsel...