The Consumer Financial Protection Bureau wants to supervise large nonbanks that offer digital wallets and payment applications.
Driven by an increase in mortgage interest rates, the average monthly mortgage payment increased more than 46 percent to $2,045 in December 2022 from $1,400 the previous year. The median interest rate for a 30-year, fixed-rate mortgage was 6.5 percent at the end of last year.
The Consumer Financial Protection Bureau is warning the largest tech companies about enacting restrictive tap-to-pay policies. The CFPB cited Apple’s proprietary tap-to-pay offering, which bans banks and other third-party payment apps from accessing the option on its iOS devices. The policy could reduce consumer choice and complicate efforts to create a more complete open banking system, according to the agency.
The Consumer Financial Protection Bureau fined Boca Raton, Fla.-based mortgage loan servicer and originator Freedom Mortgage $1.75 million for providing illegal incentives to real estate agents and brokers in exchange for mortgage loan referrals.
Sen. Elizabeth Warren (D-Mass.) recently called on the Consumer Financial Protection Bureau to finalize a proposal that would drastically reduce credit card late fees. The June 29 letter pertained to a proposal in February to reduce the maximum credit card fee per missed payment to $8 from the current figure of $41.
The Consumer Financial Protection Bureau will propose open banking regulations in the next few months and plans to finalize the rule in 2024, Director Rohit Chopra said June 12 in a blog post. Chopra said the rule, which the CFPB is required to issue under Section 1033 of the Dodd-Frank Act, will ensure a more competitive environment and give consumers the ability to control their own financial data.
The Consumer Financial Protection Bureau fined Providence, R.I.-based Citizens Financial Group $9 million for violating consumer financial protection standards on disputed credit card transactions. According to the CFPB, Citizens violated the Truth in Lending Act by improperly denying customers’ requests for reports of fraud and errors and requiring them to “jump through unnecessary and burdensome hoops, which are not required under the Truth in Lending Act, to report fraud.”
The Consumer Financial Protection Bureau has reported a data breach that impacted more than 250,000 consumers. Media reports indicated that a CFPB employee who has since left the agency forwarded to a personal email account personal information on 256,000 consumers and confidential supervisory information on 45 financial institutions.
The Consumer Financial Protection Bureau recently finalized Dodd-Frank Act Section 1071, which governs the collection and reporting of small business lending data. Under the rule, lenders will be required to collect and report information about the small business credit applications they receive.
The Supreme Court has agreed to review a case challenging the constitutionality of the Consumer Financial Protection Bureau’s funding mechanism. The Feb. 27 decision came four months after a three-judge panel in the U.S. District Court for the Western District of Texas ruled that the CFPB’s funding mechanism violated the Constitution’s Appropriations Clause because it draws funding from the Federal Reserve instead of Congress.