Consumer Financial Protection

In April 2025, President Trump issued an executive order (EO 14281) directing federal agencies to eliminate disparate-impact liability "to the maximum degree possible." In response to that EO, the OCC, FDIC, CFPB, and HUD have stepped away from disparate impact claims: The OCC and FDIC removed disparate impact from their fair-lending examination manuals. HUD proposed to remove its disparate impact rule found at 24 C.F.R. Part 100, and instead, rely on court interpretations of disparate impact. The CFPB finalized a rule amending Regulation B to remove the "effects test" or disparate impact...

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...

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...

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...

We advise banks, fintechs, mortgage companies and others on regulatory compliance across the full spectrum of consumer protection and prudential requirements. Our regulatory practice covers consumer compliance (TILA, RESPA, UDAP/UDAAP, FCRA, HMDA, fair lending), safety and soundness issues, payments rules, and regulatory change management. We help clients understand the impact of new regulations, build compliance programs, and maintain comprehensive regulatory inventories. Services provided by the Regulation & Compliance practice include: Capital Analysis: We assess treatment of assets,...

Capitol FinLaw has deep roots in mortgage finance policy, with experience spanning origination, servicing, insurance, and securitization issues. Clients include mortgage lenders and servicers, mortgage and property insurers, service providers, credit reporting agencies, and industry trade associations. Services we provide to mortgage clients include: Consumer Compliance: We assist clients with compliance matters on a variety of federal banking and consumer financial services laws including TILA, RESPA, HMDA, FCRA, CRA, privacy, fair lending, compliance management, and UDAP/UDAAP. Impact...

Our fintech work spans regulatory, strategic, and policy engagements for a diverse range of payment ecosystem participants and digital lenders. Our lawyers have experience working with both traditional and innovative institutions, including: retail and commercial payments and lending fintechs (including buy-now-pay-later providers), fintech banks and neobanks, prepaid program managers and issuers, money transmitters, finance companies, crypto and digital asset service providers, payment processors, payment system infrastructure operators, and payments and credit units of technology companies....

Insurance companies that participate in federally regulated banking and housing activities operate at the intersection of state insurance regulation and federal financial regulation. We advise insurance company clients on the federal banking, housing finance, and consumer protection rules that apply to those activities, including their obligations under federal supervisory frameworks. Our work spans regulatory advice, comment letters and legislative advocacy on federal proposals affecting the sector, and transaction support for activities that touch federally regulated functions. Services we...

Jim Sivon specializes in financial services law. He primarily works with financial institutions, fintechs, financial trade associations and consulting firms. Jim provides clients with strategic legal advice on charter options, including commercial bank charters, industrial loan company (ILC) charters, national trust bank charters, narrow state charters, money transmission licenses and options for foreign banks; prepares and shepherds regulatory applications related to corporate transactions and product approvals, including charter applications, Change in Bank Control filings, Bank Holding...

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...

BJ Sanford advises payments and fintech companies, U.S. and foreign banks, trade associations, investors, and policy and consulting firms. His practice centers on payments regulation, public policy, and the regulation of bank activities and structure. He also advises clients on regulatory capital, bank investments and control, affiliate transactions, the U.S. operations of foreign banks, and regulatory examinations. Payments regulation. BJ advises payments firms and banks on payment regulation, product development, and compliance with rules including Regulation E, Regulation Z, Regulation II...

Nancy Worth specializes in matters involving the federal financial regulatory agencies, with a particular focus on federal consumer law and fair lending. She advises on supervision and compliance matters relating to mortgages, credit cards, and other lending products, and on examination guidance, applications, reports of examination, enforcement actions, and consumer complaints. Her practice extends to commenting on agency review of legislation and Consumer Financial Protection Bureau regulations. Nancy previously served as Special Counsel for the Office of the Comptroller of the Currency...

Alfred Pollard advises on housing finance, federal preemption, banking legislation, and regulatory affairs. He brings experience in major litigation, legislative and regulatory advocacy, and state and local government relations to clients facing the full range of issues that arise at the intersection of federal housing finance regulation, banking law, and public policy. Alfred served as General Counsel for the Federal Housing Finance Agency and its predecessor for over 20 years (2000–2021), where he managed the Office of General Counsel and personally addressed major litigation, legislative,...