Trade groups sue CFPB for reducing late fee charges

The Consumer Financial Protection Bureau released a finalized rule on March 5 that caps consumer credit card fees at $8 per incident. In response, some trade groups filed a federal lawsuit two days later seeking a preliminary injunction against the rule. 

CFPB proposes changes to bank overdraft fees

The Consumer Financial Protection Bureau is looking to overhaul how banks and credit unions with more than $10 billion in assets determine overdraft expenses. The proposal, announced Jan. 17, includes two ways for banks and credit unions to determine costs. The CFPB also proposed banning the mandatory use of preauthorized electronic fund transfers to repay transactions paid into overdrafts by institutions that charge overdraft fees higher than a designated threshold.

CFPB: Mortgage applications fell last year amid rising interest rates

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.

CFPB warns Apple over tap-to-pay restrictions

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.

Mortgage company fined $1.75 million in kickback case

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. 

Warren calls on CFPB to pass drastic late fee proposal

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.

CFPB to finalize open banking rule in 2024

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.

Citizens Financial fined $9 million for credit card violations

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.”

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